BREAKINGVIEWS

Despite help from SUVs, GM still isn’t there yet

25 July 2017

The $54 bln U.S. automaker made more money than expected in the second quarter thanks to a shift from cars towards trucks and crossovers. Now, though, it’s making too many smaller vehicles. After exiting unprofitable overseas markets, CEO Mary Barra has to slim down at home, too.

Barnes & Noble sale has plot logic but no ending

25 July 2017

An activist wants the $560 mln U.S. bookstore chain to go private. That makes sense for a fading business that needs work. The problem is finding a buyer on the other end. Amazon’s Whole Foods deal has everyone thinking. But Barnes & Noble may be nowhere on Jeff Bezos’ list.

Poland’s new tricks expose EU’s old weakness

25 July 2017

Judicial reforms that jeopardized the rule of law were stalled by the president, not European censure. Yet the bloc had little ability to impose sanctions anyway. As when nations flout budget rules, EU membership tests are more strictly enforced before entry than after.

India’s pesticide kings have fertile base for M&A

25 July 2017

UPL may bid more than $4 bln for part of Platform Specialty, the U.S. group backed by Bill Ackman's hedge fund, Reuters says. While overseas deals have led many Indian companies astray, a trim balance sheet and a solid deal-making history offer a chance to rewrite the record.

Bolloré’s grand media plan for Vivendi takes shape

25 July 2017

The French group’s TV arm has proposed a joint venture with Telecom Italia to buy content rights. Building a media network that is able to compete with U.S. giants may trim Vivendi’s conglomerate discount. Vincent Bolloré will have to find more synergies to close the gap further.

Akzo adds new gloss to disdain for investors

25 July 2017

The Dutch paint maker has to convene an emergency meeting to formally appoint Thierry Vanlancker as the new CEO. Its timing is designed to prevent irate activists from forcing a vote on Chairman Antony Burgmans’ future. This is an ill-advised disregard for shareholder democracy.

Jimmy Choo buyout could blister the brand

25 July 2017

U.S. label Michael Kors is paying $1.2 billion for the luxury shoemaker. Three nimble steps are necessary to justify that price: supercharge sales, improve margins and find synergies. The buyer’s track record shows that is achievable, but at risk of taking Choo downmarket.

Hong Kong’s IPO naming and shaming hits new low

25 July 2017

AMTD Strategic Capital had its listing application publicly rejected. That’s embarrassing for AMTD’s banks and its parent, a securities and fund-management firm backed by Morgan Stanley. The financial and reputational costs should prod other debutants and advisers to try harder.

HNA shines dim light on ownership

25 July 2017

A restructuring of the acquisitive Chinese conglomerate’s shareholding structure is meant to allay concerns about opacity. It loses two mysterious investors and will now be majority owned by a pair of charities. More clarity is welcome, but this web still looks pretty tangled.

Alphabet opacity hinders Google’s antitrust fight

24 July 2017

Despite huge efforts outside online search the $685 bln juggernaut still looks like a one-trick pony dependent on ad sales. Shedding more light on its autonomous vehicle, YouTube, biotech and other ventures might comfort investors about the looming risks of antitrust regulation.

Fintech faithful put payments on a pedestal

24 July 2017

Shares in relative newbies Square and PayPal as well as older outfits Visa and First Data are near all-time highs. Privately held Stripe has teamed up with Alipay and WeChat. Along with Amazon, Apple and others, they’re chasing a $2.3 trln business. They can’t all be winners.

M&A may become the new Democratic whipping boy

24 July 2017

After losing the presidency to Trump, the opposition wants tougher antitrust oversight. Deals involving United Airlines, AT&T-Time Warner and Dow-DuPont are in the crosshairs, as are near-monopolies like Facebook. A fight is brewing against the concentration of corporate power.

WebMD gets second opinion on rollup strategy

24 July 2017

Back in 1999, the online health-information publisher united with another fledgling rival in a deal backed by Microsoft and Intel. KKR is now buying WebMD for $2.8 bln, far less than the earlier stock-swap valuation. This fresh merger with other websites may work out better.