Dole’s latest IPO could leave owner sucking lemons 26 Apr 2017 David Murdock wants to take his fruit and veg empire public again four years after a controversial buyout that landed him in court. Even after paying down some debt, Dole may only be worth enough for Murdock barely to break even. That’ll please the investors he stiffed in 2013.
FCC puts dubious faith in U.S. broadband oligopoly 26 Apr 2017 New Chairman Ajit Pai wants to roll back rules that classify high-speed internet as a utility. He reasonably points to reduced investment following their implementation. A defanged regulator overseeing dominant providers of a crucial service, however, would be bad for customers.
Trump’s sketchy tax math will fail Congress test 26 Apr 2017 The president’s plan for big rate cuts relies on the unrealistic assumption that GDP will hit 3 pct and be enough to cover any revenue shortfall. The U.S. deficit, though, is growing at an alarming pace. Republican lawmakers are likely to demand a do-over before giving it a pass.
Chipotle partly fulfills Bill Ackman’s order 26 Apr 2017 Recovering sales at the $14 bln burrito chain helped keep the pushy investor's big bet on a roll. A new payments data breach could make investors queasy again, though. Chipotle has a long way to go before it cooks up the kind of return Ackman's Pershing Square typically craves.
Hadas: Nationalists are united by economic muddle 26 Apr 2017 Brexit fans want freer trade, Marine Le Pen is a protectionist and Donald Trump can’t make up his mind. Populists also disagree on fiscal deficits and industrial policy. What they share is an aversion to the truth that national prosperity starts with compromises on sovereignty.
Twitter unduly attracts financial followers 26 Apr 2017 The struggling social-media company touted user growth as evidence it can get back on track under moonlighting boss Jack Dorsey. Revenue also fell 8 pct, a first since Twitter's 2013 IPO, as advertisers grew skeptical. There's hardly enough evidence to justify the market zest.
Credit Suisse’s Thiam picks capital over returns 26 Apr 2017 The bank’s CEO has rightly opted to raise $4 bln in a rights issue, ditching a plan to list its Swiss unit. Strong first-quarter earnings mean he is doing so from the front foot. But an uncertain outlook poses questions over when Credit Suisse can make an economic profit.
Gucci shows up rivals – and analysts 26 Apr 2017 The Italian label’s first-quarter sales rose 48 percent, double even bullish predictions. Global luxury spending is flat so rivals are probably losing market share. The difficulty of spotting winners and losers in this skittish sector makes current lofty valuations suspect.
Santander tames its troublesome triplets 26 Apr 2017 Brazil and Spain have become less of a challenge for the Madrid-based lender. The UK, which could turn problematic, hasn’t yet. Santander is treading cautiously despite a 14 percent quarterly earnings increase – which is wise, because the benign environment is still fragile.
StanChart’s springtime revival is premature 26 Apr 2017 A sharp drop in bad loan charges helped the emerging market bank double pre-tax profit in the first quarter. Revenue growth was less impressive, though. Shaky assets and intense competition mean the lender is still some way from hitting CEO Bill Winters' modest return target.
Half-hearted crackdown dents case for Chinese P2P 26 Apr 2017 Peer-to-peer lender China Rapid Finance is set for a $100 mln-plus New York IPO. This looks badly timed: new rules last year failed to rid the industry of cowboys, and rival Yirendai trades at a low valuation. With that backdrop, sector heavyweight Lufax is unlikely to list soon.
Toshiba axing PwC would be ugly bid to stay listed 26 Apr 2017 The Japanese group may ditch its recently hired Big Four auditor for a smaller firm, the Nikkei reports. That won't win back trust from regulators and investors. But Toshiba is desperate to retain its stock market presence, and the impasse with finicky PwC put that at risk.
Wal-Mart reroutes e-commerce race to last mile 25 Apr 2017 The mega-retailer may add khakis merchant Bonobos to its growing web collection. More significantly, Wal-Mart just started discounting online items if customers pick them up in stores. Making the model work is a tall order, but at least tries to exploit an edge it has on Amazon.
Add Wells Fargo chairman to fake-accounts firings 25 Apr 2017 Just 56 pct of shareholders backed Stephen Sanger, a stinging rebuke for his failure as lead director during the scandal. After 5,300 employees and the CEO paid with their jobs, he and other board members with lackluster support should go, too, to help the bank rehabilitate.
Trump finds a trade battle worth fighting 25 Apr 2017 The president is slapping a 20 pct duty on Canadian softwood after decades of officials complaining of subsidies. The administration has a good case in going after one of the nation’s closest allies. That should also give Trump some leverage – if he doesn’t overplay his hand.
Tyson makes shareholders tasty $3.2 bln sandwich 25 Apr 2017 The poultry company is expanding its range of prepared foods by gobbling up AdvancePierre. Cost savings more than cover the 32 pct premium even before any revenue boost. Along with plans to carve off less wholesome morsels, Tyson is giving investors plenty to cluck about.
All-in gaming mergers will echo banking tie-ups 25 Apr 2017 The UK gambling industry faces a new wave of regulatory costs that favour bulking up, like in banking after 2008. A few big betting firms will probably emerge, with a long tail of me-too mass-market players. Online savvy should keep smallish peers Sky Bet and 888 in the hunt.
Whole Foods can make Cerberus complete in grocery 25 Apr 2017 Trump pal Steve Feinberg's private-equity fund pulled a $12 bln float for supermarkets chain Albertsons in 2015. Albertsons could go public, and burnish its shelf space, by reversing into organic grocer Whole Foods. GE’s recent deal with Baker Hughes shows how that might work.
Theresa May channels Margaret Thatcher in reverse 25 Apr 2017 The 1980s Conservative prime minister did unpopular things in the name of market forces, and wound up a middle-England hero. By pledging to cap fuel prices, her 2017 successor is being unashamedly interventionist. It’s hard to square with May’s vision of a “truly global Britain”.
Ericsson turnaround has a static problem 25 Apr 2017 The Swedish telecoms kit maker made a $1.4 billion first-quarter operating loss after provisions and writedowns announced in March. New boss Borje Ekholm has the right strategy. But investors will still fret about further nasty surprises and a lack of progress on non-core sales.
Alitalia reaches final destination, again 25 Apr 2017 Employees at the loss-making Italian airline rejected a restructuring. A bankruptcy is likely, and a breakup or sale. Alitalia has been here before. Ending its agony would beat another fudged rescue, but could feed political discontent ahead of elections.
Fresenius bets $4.8 bln on post-Trump drug sector 25 Apr 2017 The German healthcare group’s bid for Akorn makes sense. The U.S. drugmaker’s high-margin business has little overlap and a full product pipeline. It is paying a 35 pct premium but Fresenius needs few synergies to meet its cost of capital. Politics may be the fly in the ointment.
Arnault’s new-look Dior pleases almost everyone 25 Apr 2017 The French tycoon is offering to buy out minority investors in Christian Dior for 12 bln euros. LVMH shareholders will also welcome a streamlined empire. The most stylish twist is that Arnault is using the luxury giant’s balance sheet and shares in rival Hermes to pay for it.
IPO delay lifts spotlight off China’s shadow banks 25 Apr 2017 The first listing of a mainland trust company in 20 years is up in the air after it missed a Hong Kong regulatory deadline. This is a pity. The listing would have helped outsiders decipher the high-yielding trust products at the core of China’s intricate shadow-banking industry.
Arconic takes battle of letters to Elliott 24 Apr 2017 The parts maker offered to back two of the activist's four board picks but accused Elliott of twice reneging on agreed compromises. The exit of CEO Klaus Kleinfeld after his own intemperate screed has not relieved the tensions. Regular shareholders may by caught in the crossfire.
U.S. “animal spirits” are turning into zombies 24 Apr 2017 The bump in U.S. stock prices and bond yields after November's election is still there, but fading. Donald Trump's business-friendly ideas are looking less likely to get through Congress. And if yardsticks measuring protectionism are any guide, that threat has evaporated.
Mondelez is a heavy snack even for 3G and Buffett 24 Apr 2017 The maker of Oreo cookies and Cadbury chocolates has long whet the appetite of Kraft Heinz. Now Mondelez’s hunt for a CEO offers an opening to the firm backed by 3G Capital and Berkshire Hathaway. Yet even the famed cost-cutters could get stuffed by the target’s rich valuation.
Trump’s first 100 days provide more art than deal 24 Apr 2017 The U.S. president is planning a flurry of events before Saturday's landmark, including another try at repealing Obamacare and the unveiling of a tax plan. Promised early policy wins have yet to materialize though. Given his record, he’d be wise not to risk a Washington shutdown.
Lackluster $24 bln medical merger better than none 24 Apr 2017 Becton Dickinson's deal for C.R. Bard involves cost cuts worth less than half the 25 pct premium. Like lawmakers, though, U.S. healthcare firms are stuck with Obamacare's pressures. Scale brings negotiating power needed to sell needles and catheters to consolidating hospitals.
PPG raised offer kicks hole in Akzo’s door 24 Apr 2017 With a 50 pct premium, guarantees for European workers and a big break fee, the U.S. paint maker’s third approach for its Dutch rival leaves CEO Ton Buechner no choice but to engage. The onus would then be on PPG to explain how this rich 24.6 bln euro deal makes financial sense.