GOP gives small-bank M&A an odd shot in arm 1 Jun 2017 Republicans have dashed hopes of regulatory relief for mergers that take assets above $10 bln. Compliance costs go up then, too. Ironically, that should spur a raft of mergers to justify crossing the threshold. It helps that the Fed is growing comfortable with deals of that size.
Deere deal is paved with good intentions 1 Jun 2017 The $40 bln U.S. farm-equipment maker is diversifying further into road building, paying $5.2 bln for Germany's Wirtgen. It's a big deal and overseas, but Deere's pitch on strategy and price sound reasonable. It will need to work out better than Caterpillar's Bucyrus bet, though.
Chicago emigration is warning of Detroit endgame 1 Jun 2017 More people quit the Windy City in 2016 than left any other U.S. metropolis. Chicago's pension funds and schools are already strapped for cash. A sustained exodus can only worsen the financial squeeze. If it's not reversed, the long-term risk is Motown's bankruptcy and blight.
Cox: Sgt. Pepper also taught the board to play 1 Jun 2017 It was 50 years ago that the Beatles spawned a music boom. The industry has changed, but the album's messages still resonate, even in the business world. As Warren Buffett or Steve Jobs might attest, if we work together, experiment and fix holes, things get better all the time.
Akzo is emblem for new “fortress Europe” 1 Jun 2017 The Dutch maker of Dulux paint thwarted a generous 25 bln euro takeover attempt from U.S. rival PPG without putting forward a convincing financial defence. As European governments reach for more power to fend off unwanted mergers, Akzo has shown how shareholders can lose out.
Barclays faces unfamiliar issue: excess capital 1 Jun 2017 The UK lender is offloading all but 15 pct of its African unit for $2.9 bln after strong demand from investors. The sale should lift its capital ratio above 13 pct. After a year of retrenchment CEO Jes Staley can begin to think about how the slimmed-down bank can reward shareholders.
Publicis pay hike shows where real power lies 1 Jun 2017 Long-time boss Maurice Lévy will receive 2.8 mln euros as chairman – more than he was paid as CEO. After 30 years in charge of the advertising group he has much to teach his successor. But his presence on the board inhibits fresh thinking at a firm that has struggled for growth.
Spanish bank mess could make or break CoCos 1 Jun 2017 Banco Popular’s contingent capital bonds have collapsed in price, for fear they will be converted into equity. If they do so without causing chaos, it would show that CoCos are a viable instrument in a real-world bank rescue. A failure to trigger would confirm the opposite.
Finnish-German utility would make odd couple 1 Jun 2017 Shares in Uniper jumped on a report that Finland’s Fortum is considering buying E.ON’s 47 pct stake in the 6.3 bln euro power group. Yet Uniper’s big carbon footprint would tarnish the Finns’ clean energy strategy, and its lackluster earnings make the financial logic a stretch.
Politics align for Malaysia bank merger 1 Jun 2017 Efforts to squish together the country's banks have repeatedly failed. Now RHB could buy AmBank, creating a $9 bln group. After the 1MDB fund scandal, big shareholders may be keener to do a deal. A rising oil price helps too. The trick will be to keep the structure simple.