BREAKINGVIEWS

Legal woes poison Bayer’s prospects

20 March 2019

The German chemical group’s shares fell another 12 pct after a second U.S. jury said its Roundup weed killer causes cancer. Its value is down $34 bln since August and investors reckon its crop sciences unit is worthless. With thousands of cases pending, even that may be generous.

AB InBev shareholders get more smoke, less 3G

20 March 2019

The brewer nominated former Altria CEO Martin Barrington as chairman. Though he’s not linked to the Brazilian investment firm that jointly controls the $143 bln company, the Marlboro maker is a shareholder. Investors who want a more radical shake-up have an opportunity to say no.

UK $3 bln satellite deal hits escape velocity

20 March 2019

A private-equity consortium is preparing to launch an offer for Inmarsat months after the company aborted a bid from U.S. peer EchoStar. Handling maritime communications is shakier than a year ago while services like in-flight Wi-Fi remain risky. The deal deserves to go into orbit.

Citic and CLSA will survive boss departure

20 March 2019

The Hong Kong brokerage’s CEO is quitting, shortly after its chairman left. The moves have led to whispers of a culture clash with China’s Citic Securities, which bought CLSA for $1.3 bln in 2013. Bank mergers are always a challenge. Still, it’s too early to write this one off.

Rivals can fly around Google’s game cloud

20 March 2019

The U.S. web giant is stepping into gaming with a browser-based service. Console makers Nintendo and Sony lost a combined $3 bln of value on the news. Google's scale intimidates, but victory depends on exclusive titles that can out-drive Super Mario, not just lots of servers.

Gadgets light up Xiaomi’s future

20 March 2019

The Chinese giant defied a global phone slump with a 53 pct jump in 2018 sales to $26 bln, even after a sluggish fourth quarter. Bets on cheap-and-cheerful markets are paying off, as is a shift to pricier devices. Despite boss Lei Jun's internet ambitions, hardware still matters.

Hyundai shareholders can have it both ways

20 March 2019

Activist Elliott wants $7 bln in payouts from the South Korean autos group. Though Hyundai's R&D track record is weak, it can’t afford to throttle investment in the latest technology. Better to back the conglomerate's stingier proposals and then push for another modest dividend.

Financial firms’ dealmakers feast at fees trough

19 March 2019

Banks and payments firms account for four of this year’s 10 largest M&A transactions, after the FIS-Worldpay merger. It puts their advisers on track for the busiest and most lucrative year since the financial crisis. But there’s enough froth to suggest the good times won’t last.

New Fox bears hallmarks of the old fox

19 March 2019

Rupert Murdoch’s outfit is now trading as a news and sports company. With a fresh poison pill and former House Speaker Paul Ryan on the board, he’s entrenched himself and his political ties. A Disney stake gives him an additional media option. He’s still playing by his own rules.

Starboard’s Bristol-Myers pitch needs an activist

19 March 2019

Pushy investors should keep their arguments tight. Starboard’s beef with the drug company’s $74 bln deal for Celgene does highlight overpayment and patent risks. But its 197-page presentation is as bloated as its target, containing contradictions and micromanagement.

WPP would win most from $5 bln data-business sale

19 March 2019

Buyout groups Advent and Blackstone are circling the ad group’s market-research unit Kantar, Reuters reported. Private-equity buyers could hike margins and combine it with a rival. WPP’s wad of cash and retained access to its consumers’ data sounds more enticing, though.

Oligarch’s Spanish bid is lesser of two evils

19 March 2019

A takeover by Mikhail Fridman’s LetterOne could leave investors in DIA with heavy losses. But supporting the management means backing a $680 mln rights issue – almost twice the supermarket’s market value. After accounting problems and profit warnings, the former looks preferable.

Sainsbury’s antitrust riposte barks up wrong tree

19 March 2019

The supermarket chain promised to deliver 1 bln pounds of price cuts to ease fears about a tie-up with Asda. That might help its image with customers, but probably not change the regulator’s mind. Arguing that the grocery market is rapidly changing would be a smarter move.