BREAKINGVIEWS

SoftBank turns to dividends to dial up IPO appeal

13 November 2018READY SOON

Masayoshi Son’s behemoth wants to raise $23 bln with the listing of its Japanese mobile unit. That implies a chunky premium to peers and leans on a generous payout. A looming price war will make it tough to keep handing out twice as much of its profit as the likes of NTT Docomo.

Stan Lee’s legacy is Hollywood’s golden ticket

12 November 2018

The Spider-Man creator is dead at 95. Through Marvel, Lee helped whip up comic-book characters that drove action films like Black Panther – on which movie studios now depend for audiences. Even so, Marvel’s bumpy journey shows superheroes need powerful friends too.

Mexico’s revolutionaries risk spoiling the party

12 November 2018

President-elect López Obrador doesn’t take office until next month, but he and his fellow leftists have already upset markets with moves to nix an airport project and rein in bank fees. Such fumbles could help guide Brazil’s far-right populist Jair Bolsonaro as he nears power too.

GE boss could face his own goodwill writedown

12 November 2018

The firm’s stock sank anew on Monday despite Larry Culp’s vow to speed asset sales. Repeated failures to draw a line under power woes and other liabilities have shredded GE’s credibility. The new chief risks falling into the same trap, and losing investors’ confidence.

Coty proves bad M&A happens to good people

12 November 2018

Its CEO is out and Bart Becht has resigned as chair of the perfumier, which fumbled a $12.5 bln deal. A fresh start is good, but such chaos doesn’t befit a company with so many consumer-goods experts on its board. It does no favors for main owner and serial dealmaker JAB, either.

Elliott’s Athenahealth deal leaves sickly odor

12 November 2018

The activist is helping take private the healthcare firm it started agitating against 18 months ago. But at $5.7 bln the deal is some 16 pct below its May offer – and Elliott is relying on a partner to buy the lion’s share. Such tactics may not play well against future targets.

Italian group bank rescue is self-preservation act

12 November 2018

A vehicle funded by the country’s lenders is spearheading a 400 mln euro rescue plan for ailing Carige. A private sector bailout avoids using taxpayers’ money and should not clash with EU state aid rules. It’s a sensible way to minimise the risk of banking contagion.

Governor’s exit would gut India’s central bank

12 November 2018

A power struggle with New Delhi could force out Urjit Patel. Losing two RBI chiefs in two years would ruin the credibility of India’s most respected financial institution. It also heralds more jostling elsewhere between populist governments and independent-minded central bankers.

U.S. disposal helps clear Diageo’s sales hangover

12 November 2018

The booze giant is offloading cheap-and-cheerful drinks like Popov vodka and Black Haus schnapps to rival Sazerac for $550 mln. Forswearing discount spirits, where sales are declining, should give investors a clearer view of consumers’ demand for its more expensive tipples.

SAP-Qualtrics deal may be mutually good experience

12 November 2018

Rather than go public the U.S. customer and employee feedback outfit is selling to the German giant for $8 bln, over $3 bln more than IPO expectations. Though it casts aside the Qualtrics founders’ desire for control, it could still be a smart long-term choice for both companies.

Singles’ Day haul offers Alibaba temporary relief

12 November 2018

The e-commerce titan said sales hit $31 bln during this year's Nov. 11 event, another record and an impressive, though cooler, 27 pct increase on last year. That will ease some worries over Chinese consumption. Still, a day of online bargains is a poor indicator of future growth.

SoftBank mobile IPO calls for bullish Mrs Watanabe

12 November 2018

Masayoshi Son’s telecoms division could be worth some $55 billion, Breakingviews reckons. That equity value falls well short of the $70 billion SoftBank may be hoping for. With a huge retail offering likely, it’s ordinary Japanese who will need to be persuaded.

U.S. stress tests risk falling on slippery slope

9 November 2018

Fed supervision chief Randal Quarles wants to tweak the annual exams. Some revisions are warranted, like giving banks test results before they decide how much capital to return to investors. But scrapping the watchdog’s ability to fail a firm gives Wall Street too much leeway.