Barnes & Noble sale has plot logic but no ending 25 Jul 2017 An activist wants the $560 mln U.S. bookstore chain to go private. That makes sense for a fading business that needs work. The problem is finding a buyer on the other end. Amazon’s Whole Foods deal has everyone thinking. But Barnes & Noble may be nowhere on Jeff Bezos’ list.
Poland’s new tricks expose EU’s old weakness 25 Jul 2017 Judicial reforms that jeopardized the rule of law were stalled by the president, not European censure. Yet the bloc had little ability to impose sanctions anyway. As when nations flout budget rules, EU membership tests are more strictly enforced before entry than after.
India’s pesticide kings have fertile base for M&A 25 Jul 2017 UPL may bid more than $4 bln for part of Platform Specialty, the U.S. group backed by Bill Ackman's hedge fund, Reuters says. While overseas deals have led many Indian companies astray, a trim balance sheet and a solid deal-making history offer a chance to rewrite the record.
Bolloré’s grand media plan for Vivendi takes shape 25 Jul 2017 The French group’s TV arm has proposed a joint venture with Telecom Italia to buy content rights. Building a media network that is able to compete with U.S. giants may trim Vivendi’s conglomerate discount. Vincent Bolloré will have to find more synergies to close the gap further.
Akzo adds new gloss to disdain for investors 25 Jul 2017 The Dutch paint maker has to convene an emergency meeting to formally appoint Thierry Vanlancker as the new CEO. Its timing is designed to prevent irate activists from forcing a vote on Chairman Antony Burgmans’ future. This is an ill-advised disregard for shareholder democracy.
Jimmy Choo buyout could blister the brand 25 Jul 2017 U.S. label Michael Kors is paying $1.2 billion for the luxury shoemaker. Three nimble steps are necessary to justify that price: supercharge sales, improve margins and find synergies. The buyer’s track record shows that is achievable, but at risk of taking Choo downmarket.
Hong Kong’s IPO naming and shaming hits new low 25 Jul 2017 AMTD Strategic Capital had its listing application publicly rejected. That’s embarrassing for AMTD’s banks and its parent, a securities and fund-management firm backed by Morgan Stanley. The financial and reputational costs should prod other debutants and advisers to try harder.
HNA shines dim light on ownership 25 Jul 2017 A restructuring of the acquisitive Chinese conglomerate’s shareholding structure is meant to allay concerns about opacity. It loses two mysterious investors and will now be majority owned by a pair of charities. More clarity is welcome, but this web still looks pretty tangled.
Alphabet opacity hinders Google’s antitrust fight 24 Jul 2017 Despite huge efforts outside online search the $685 bln juggernaut still looks like a one-trick pony dependent on ad sales. Shedding more light on its autonomous vehicle, YouTube, biotech and other ventures might comfort investors about the looming risks of antitrust regulation.
Fintech faithful put payments on a pedestal 24 Jul 2017 Shares in relative newbies Square and PayPal as well as older outfits Visa and First Data are near all-time highs. Privately held Stripe has teamed up with Alipay and WeChat. Along with Amazon, Apple and others, they’re chasing a $2.3 trln business. They can’t all be winners.
M&A may become the new Democratic whipping boy 24 Jul 2017 After losing the presidency to Trump, the opposition wants tougher antitrust oversight. Deals involving United Airlines, AT&T-Time Warner and Dow-DuPont are in the crosshairs, as are near-monopolies like Facebook. A fight is brewing against the concentration of corporate power.
WebMD gets second opinion on rollup strategy 24 Jul 2017 Back in 1999, the online health-information publisher united with another fledgling rival in a deal backed by Microsoft and Intel. KKR is now buying WebMD for $2.8 bln, far less than the earlier stock-swap valuation. This fresh merger with other websites may work out better.
Dearth of policy action dulls U.S. economic hopes 24 Jul 2017 Six months in, Donald Trump’s growth promises are getting downgraded. The IMF just cut its forecast for U.S. expansion, though the global outlook is holding up. Stocks stateside have underperformed other markets in 2017 and the dollar has fallen. For now, greatness is elsewhere.
Saudi oil cut would be a hit-and-hope strategy 24 Jul 2017 The kingdom’s pact with OPEC to damp output is crumbling and has failed to drain inventories, or boost prices, fast enough. One suggestion is to reduce its own exports by as much as a seventh to shock markets into submission. If that fails, though, Saudi would look impotent.
Carmakers need more collaboration, not less 24 Jul 2017 Germany’s VW, BMW and Daimler may have illegally colluded on emissions cleaning systems. The scale of potential misconduct is hard to judge. But if consumers don’t suffer, big technological change and bloated R&D budgets suggest more carmaker cooperation is nothing to be feared.
Grab rides two trends to $6 bln valuation 24 Jul 2017 The taxi app is raising $2.5 bln in Southeast Asia’s biggest fundraising. It helps that Japan’s SoftBank is investing in unicorns everywhere and that Didi, like China's other tech giants, is chasing growth nearby. The funds will make it harder for Uber to conquer the region.
B&M is unimaginative punt on Brexit Britain 24 Jul 2017 The discount retailer has been named as a potential 4.4 bln pound target for Wal-Mart’s Asda. With incomes tightening, UK shoppers will want cheaper goods. Yet Asda could as easily soup up its existing offering or copy rivals Tesco and Sainsbury’s with a more ambitious deal.
Julius Baer rightly cautious about double windfall 24 Jul 2017 The Swiss private bank’s client funds grew 6 pct, thanks to its horde of new wealth managers and rising markets. Baer’s singular business model makes it happily exposed to these trends, but the big picture is that servicing the rich will remain challenging and competitive.
Beijing sours on private-sector independence 24 Jul 2017 Bureaucrats who once encouraged foreign takeovers are now second-guessing private deals by Dalian Wanda, HNA and others. Tech stars like Tencent are being force-fed shares in state dinosaurs. The Communist Party has grown overconfident in its ability to micro-manage.
Abe’s weakness puts Japan reform momentum at risk 24 Jul 2017 A period of unusual political stability helped Prime Minister Shinzo Abe shake up the economy. But his approval ratings have crashed. He is more likely to respond with populist spending than doubling down on reform. If that fails to shore up his support, he may be replaced.
White House creates its very own jobs crisis 21 Jul 2017 Press Secretary Sean Spicer quit after the hiring of financier Anthony Scaramucci. Donald Trump also fired his FBI director, undercut his Treasury secretary and regrets his attorney general pick. Just as U.S. employers wrestle with labor participation, so too does the president.
GE’s new boss may find inspiration from Honeywell 21 Jul 2017 Jeff Immelt’s weak earnings swan song underscores the challenge for John Flannery atop the $222 bln industrial giant. Making quick progress on early goals is key, as Darius Adamczyk is doing several months in at Honeywell. With activists in both stocks, it should be a no-brainer.
Telecom Italia loses out in Vivendi lottery 21 Jul 2017 Flavio Cattaneo will step down as CEO of Telecom Italia after clashing with shareholder Vivendi. Cattaneo was an effective cost cutter and only in place a year. Investors may be used to Vivendi calling the shots, but such unexplained upheaval is another reason for TI’s discount.
Puppy love keeps IPO investors on the leash 21 Jul 2017 Snap's stumble, Blue Apron's disastrous debut and YogaWorks' yanked listing spelled doom for trendy, fast-growing businesses. Then shares of PetIQ jumped some 30 pct. More sensible pricing helped the maker of dog treats and medicine, but it also remains vulnerable to competition.
IPO baggage weighs heavier on ZTO 21 Jul 2017 A U.S. pension fund is suing the Chinese courier and its underwriters for inflating profit margins in its $1.4 bln New York debut last year. Shares have traded poorly since, and the company faces rising costs and fierce competition. Winning over sceptics will be even harder now.
Buyout firms bet $3.7 bln on fintech’s dicier side 21 Jul 2017 Blackstone and CVC’s bid for Paysafe fits with an M&A rush for financial technology. The UK-based payment processor has a penchant for the racy world of online gambling. Those risks may be better handled in private ownership. In exchange, the buyers stand to make a decent return.
Euro rally will only speed its own reversal 21 Jul 2017 The single currency has hit a two-year high against the U.S. dollar. That will depress import prices when inflation is still too low. Any hint that a stronger exchange rate will prompt the European Central Bank to leave monetary policy loose for longer will push it down again.
Toshiba’s Swiss cast-off pits hope over experience 21 Jul 2017 The stricken Japanese group is flogging loss-making Landis+Gyr in a Zurich offering. The maker of smart meters is a technology leader in a growth market. Yet so far financial performance lags engineering expertise. The $2.4 billion price tag depends on a swift turnaround.
ACS and Benettons pitch patriotism against brawn 21 Jul 2017 The Spanish construction firm is eyeing a bid for toll-road operator Abertis, rivalling a 16 bln euro offer from the Benetton family’s Atlantia. ACS is smaller and has less firepower, though would keep Abertis Spanish. But the financial logic of a bid is stretched, whoever wins.
Free phones power Mukesh Ambani’s tech ambitions 21 Jul 2017 India's richest man has seriously upped the ante in the country’s mobile war. His Reliance Jio network is offering free internet-enabled handsets, potentially reaching 500 mln more people. A strong oil refining business means he can worry about recouping the investment later.