AB InBev adds dash of cynicism to raised SAB offer 26 Jul 2016 A raised 79 bln pound offer for SABMiller should give agitating hedge funds a dignified exit. But it mostly ignores the fall in the value of the Budweiser brewer's offer - and makes a share-based alternative offer targeted at SAB’s biggest shareholders slightly more attractive.
BT will have to earn lasting split reprieve 26 Jul 2016 Britain’s watchdog says the telecoms group can keep its infrastructure arm if Openreach becomes a separate legal entity with its own board, assets, and strategy. BT retains budget control. But without more autonomy for Openreach and access for rivals, a breakup is still possible.
China insurers’ worst habits go almost unchecked 26 Jul 2016 The insurance watchdog is looking for trouble in the wrong places. It is warning over the industry’s riskiest investments from corporate raiding to big M&A. But it could do more to rein in the high-yielding products insurers offer that underpin the hunt for outsize returns.
Water woes are a drain on Make in India 26 Jul 2016 India has long undervalued one of its most precious resources. Chronic mismanagement of water in the country is already a strain on factories. Now the worry is that it will hold back Prime Minister Narendra Modi’s big plan to create jobs and turn India into a manufacturing hub.
Bankers will miss their Yahoo search queries 25 Jul 2016 It took an astounding seven separate financial advisers including Goldman Sachs and Guggenheim - and eight legal ones - to consummate the $4.8 bln sale to Verizon. A similar number helped other suitors, too. Wall Street may lament Yahoo's disappearance the most.
Yahoo fittingly closes portal on tech M&A misses 25 Jul 2016 The $4.8 bln sale to Verizon caps two decades of deals and non-deals that shaped internet history. Yahoo got lucky with Alibaba, but failed to capitalize on its dominance with Google, Facebook and eBay. Spurning Microsoft also was a mistake. It's a one-company textbook on timing.
Caterpillar gets harsh M&A lesson in Japanese 25 Jul 2016 The earth-moving giant made a badly timed push into mining with the near $9 bln takeover of Bucyrus in 2011. Now Japanese rival Komatsu has snared counterpart Joy Global for less than half that. Komatsu's longer-term view gives its dealmaking more chance of unearthing treasure.
Bloomberg gives Clinton big wet Wall Street kiss 25 Jul 2016 The former Republican New York mayor, who considered an independent run for president, will endorse the Democratic nominee at the party's convention this week. Bloomberg's backing will play like an endorsement from the financial-industry plutocracy. Clinton could do without that.
Baidu video drama has better-than-expected finale 25 Jul 2016 The CEO of China's top search engine has scrapped a $2.8 bln bid for the group's video arm days after an investor voiced concerns. Selling the loss-making unit would have boosted margins. But shareholders had little insight into the unit's prospects or the boss's motives.
Verizon doubles down on ancient web history 25 Jul 2016 The telecom giant is spending $4.8 bln on Yahoo's core business. CEO Lowell McAdam is betting he can attract digital advertisers by meshing the internet-search firm with AOL, another 1990s high-flier Verizon bought last year. Trouble is, Facebook and Google are too far ahead.
William Hill three-way merger would be big gamble 25 Jul 2016 The $3.6 bln bookmaker is being courted by rival 888 and casino operator Rank. While the suitors could benefit from greater scale, William Hill has less to gain even though it has sacked its boss after poor online showings. Integration risk warrants a hefty, all-cash premium.
UK slaps capitalism in its “unacceptable” face 25 Jul 2016 Lawmakers angry at retailer BHS's collapse are mulling further regulation to protect jobs and pensions. The fiasco epitomises what Prime Minister Theresa May decries as "anything goes" business. It takes UK corporate life into interesting - and potentially painful - moral areas.
LVMH hints at timely wardrobe edit 25 Jul 2016 Selling Donna Karan to U.S. fashion company G-III for $650 million is a rare fashion cast-off for the French luxury group. More underperforming brands may be sold as global sales of designer goods slow. That presents opportunities for smaller but ambitious luxury players.
Carlyle’s dentist bond is full of cavities 25 Jul 2016 The private equity firm's bond for a British dentist chain sets new precedent in loose debt covenants. The UK vote to leave the EU has not tamed investors' animal spirits. With central banks promising ever looser policy, it's easy for issuers to extract generous terms.
Indian tycoon’s sweetened Cairn bid is still sour 25 Jul 2016 Anil Agarwal's mining group Vedanta has upped its offer to buy out the minorities of its cash-rich Indian subsidiary. The 9 percent premium looks far from compelling. The fate of the $2.4 bln bid rests with Cairn India's two largest outside investors.
China’s bondholders won’t go down without a fight 25 Jul 2016 Investors are confronting the Chinese province of Liaoning over the latest default by Dongbei, a troubled steelmaker. With defaults by state-backed firms escalating, expect more bitter rows like this – especially if debt holders can successfully take on Liaoning in court.
Clinton and Kaine become globalization’s defenders 22 Jul 2016 The Democratic presidential candidate selected Virginia Senator Tim Kaine as her running mate. The former governor is a moderate who backed trade deals in the past. Their first task will be to win over liberals who supported Bernie Sanders and are being courted by Donald Trump.
Chancellor: Inequality breeds outbreak of populism 23 Jul 2016 The rich have enjoyed most of the fruits of globalisation, just as they did in 19th-century America. Unless politicians can enact benign policies to rectify the widening gap between the have-somes and have-lots, more unpleasant alternatives will loom on the horizon.
Review: Trump foretold his own grander artifice 22 Jul 2016 Despite recent misgivings by its ghostwriter, "Art of the Deal" is a useful volume to revisit as the Republican convention points to the November election. The blustery façade even in 1987 masked a dearth of substance. Potemkin showmanship was, and is, Trump's greatest skill.
Burst of UK takeovers may be a false signal 22 Jul 2016 Bids for British companies like ARM and Odeon have sent acquisition volumes surging in the weeks since the EU referendum. The weak pound is a factor, but these overtures were planned well in advance. Current executive gloominess implies dealmaking activity could soon dry up.
Sports Direct scandal debunks UK employment glory 22 Jul 2016 UK lawmakers have issued a damning report on the retailer and say working conditions hark back to Victorian times. Founder Mike Ashley has big problems to fix. But there’s a wider economic malaise if workers put up with such poor treatment even when the jobless rate is very low.
Portugal’s three bad B’s: banks, budget, Brexit 22 Jul 2016 Lisbon’s banks are saddled with bad loans, and need capital. The government is caught between Brussels’ fiscal rules and a weak coalition. And the UK vote to leave the EU may hurt already grim growth. The three B’s may imperil Portugal’s BBB rating, and blow up its bond yields.
Trump chooses fear mongering over economic promise 22 Jul 2016 The White House hopeful was anointed at the GOP convention. He and other speakers, like tech investor Peter Thiel, presented a dire picture. The economy is stable but violence at home and abroad has unnerved voters. The grim message, coupled with populist appeal, could resonate.
China Film IPO is a remake investors can skip 22 Jul 2016 A listing of the state-owned movie distributor could value it at up to $2.4 bln. As growth slows in its core business, China Film wants to be a big player in movie production and cinemas. But it will be tough to catch up with giants Wanda and Alibaba in such vertical integration.
UK’s currency pounding cracks door wider for yuan 22 Jul 2016 Chinese state media have griped that last month's Brexit vote hobbles London's ability to help internationalize the yuan. But there are pluses, too. For one thing, the sterling selloff has made the free-floating democratic pound look a lot less safe next to the steadier renminbi.
Elliott shows Pulte founder how activism is done 21 Jul 2016 The pushy investor has convinced the $7 bln U.S. homebuilder to add three board members, cut investment in new land and buy back shares. Elliott's constructive engagement is in stark contrast to founder William Pulte's ham-fisted campaign against his company's soon-to-depart CEO.
Pandora search for richer station may yield static 21 Jul 2016 The streaming-music service may have rejected a $3.4 bln offer from Liberty Media, satellite radio Sirius XM's owner, saying it's worth a third more. The financial logic of Liberty's purported bid looks shaky. A higher price for Pandora would probably destroy value for any buyer.
Republican donors reach for yield beyond Trump 21 Jul 2016 Wealthy hedge-fund bosses like Paul Singer and other Wall Street financiers wasted millions betting on candidates who lost to the real-estate mogul. Rather than back the GOP nominee, they're giving to congressional races instead. The risk-adjusted return could be higher.
U.S. health insurer M&A has only death-row chances 21 Jul 2016 The Department of Justice has filed to stop Anthem's $44 bln purchase of Cigna and Aetna's $33 bln deal for Humana. They may try to fight, but the odds aren't with them. The government's arguments look strong, and President Obama's antitrust prosecutors are on a winning streak.
Mega beer merger develops case of the shakes 21 Jul 2016 An offer of 71 billion pounds that SABMiller accepted from AB InBev in November no longer looks generous - and not just because sterling has plunged. SAB’s board still has time to push for a better deal, or at least get a second opinion.