BREAKINGVIEWS

PR firms step into big-ticket merger lull

17 September 2021

Global dealmaking hasn't yet surged after America's Labor Day holiday. It may yet happen. In the meantime two big M&A communications firms, WPP-backed Finsbury and Sard Verbinnen, are considering a merger of their own. The combo would get a top league-table spot to shout about.

State Street-Invesco deal may leave both in limbo

17 September 2021

On paper, a tie-up between their asset management businesses looks valuable. Cost cuts are fairly easy and taking out a competitor has merits in a commoditized business. But fees will keep falling, and even putting their $5 trln of assets together won’t supercharge growth.

World Bank has a shareholder-engagement problem

17 September 2021

Leaders, including now-IMF head Kristalina Georgieva, pressured staff to boost China’s ease of doing business ranking, a probe said. This isn’t realpolitik mitigating inherent U.S. bias. Such tactics detract from the bank’s work, damage credibility and impair its future role.

Gene hunter IPO is missing link in British biotech

17 September 2021

DNA sequencer Oxford Nanopore is eyeing a UK float, worth perhaps $5 bln. Shunning the bigger U.S. market looks bold, but the company’s niche position in a hot sector will help. While that’s hard to repeat, a success would boost London’s appeal for other life science groups.

Spain’s utility goof is thin end of net-zero wedge

17 September 2021

Madrid’s $3 bln raid on the coffers of its power sector is a clear climate-change own-goal. The political sensitivity of energy prices means it won’t be Europe’s last. The bigger risk is Brussels watering down the carbon-trading scheme partly responsible for gas prices soaring.

Three’s a good crowd in Indonesia telecoms deal

17 September 2021

Combining CK Hutchison’s local 3 unit with Ooredoo’s Indosat produces a $6 bln No. 2 player and synergies of $400 mln. If past industry tie-ups in similar markets are a guide, the Hong Kong and Qatari groups’ deal will also lift rivals’ revenue and cut their costs too.

Emerging economies face stages of inflation grief

16 September 2021

Central banks’ reactions to rising prices come in three steps, BNP Paribas reckons: denial, acceptance, and action. Brazil and Chile are further along, having hiked rates quickly as pressures mounted. Investors will prefer them to countries stuck in the first stage, like Turkey.

Remitly cash-transfer IPO names a high-wire price

16 September 2021

The fintech firm that helps immigrants send money home could value its shares at up to $7 bln. Its founders have hit on a genuine need – there’s a $500 bln market for global remittance payments. Yet vast competition and lack of profit make this an expensive kind of transfer.

Federer’s sneaker IPO sets blistering pace

16 September 2021

Shares of On, backed by the tennis legend, soared 50% on debut, valuing the running-shoe maker at $11 bln. Rapid sales growth supports the steep valuation. But On has plenty of rivals, and its early success in China may fall foul of Beijing’s hostility to foreign brands.

Bolloré gives coup de grâce in French tycoon spat

16 September 2021

Gallic raider Vincent Bolloré may buy publisher Lagardere for 4.6 bln euros, ending a battle for control of the Paris Match owner also involving LVMH boss Bernard Arnault. His Vivendi can make a healthy return, while CEO Arnaud Lagardere at least gets to come along for the ride.

Pricey private equity IPO rides road and rail boom

16 September 2021

French Infrastructure boutique Antin is raising 550 mln euros in Paris. It’s a chance to profit from Europe and America’s plans to boost investment, though closely held shares mean investors only get a passenger seat. Stellar growth is needed to justify a 4 bln euro valuation.

Hong Kong unicorn bets on positive Covid results

16 September 2021

Biotech upstart Prenetics is set to go public in a $1.7 bln merger with a blank-cheque firm. Demand for virus test kits at airports and homes has boosted sales, but that is unlikely to last. Growth will depend on new technologies and habits in a post-pandemic world.

Tesla crash-tests India’s industrial focus

16 September 2021

Elon Musk wants the country to cut sky-high import tariffs. Speeding his luxury vehicles onto roads might give New Delhi’s electrification goals a flashy endorsement. But there would be little real impact. India’s push for a clean mobility revolution can charge up without Tesla.