Germany has no need to wipe hedgies’ bloody nose 4 Jul 2017 Hedge funds looking to profit from the takeover of drugmaker Stada were wrongfooted after the deal failed to get enough support. The regulator might now waive rules to enable it to go through. Such largesse would make German takeovers an even easier playground for speculators.
Worldpay’s U.S. suitors will be hard to dismiss 4 Jul 2017 The UK payments processing company has received offers from JPMorgan and Vantiv. These are the sort of buyers that can beef up the American side of the business to deliver much-needed scale. Bids at current pricey levels are compelling in a sector that is ripe for such deals.
Iberian energy deal needs mutual spark 4 Jul 2017 Spanish utility Gas Natural has approached Portuguese rival EDP about a 35 billion euro tie-up, Reuters reported. Shareholders likely will be receptive to a fusion that offers strategic logic. But the maths will only work if the pair can reduce combined debt of over 30 bln euros.
Lotte’s Malaysia IPO has bad chemical reaction 4 Jul 2017 The South Korean conglomerate is raising $877 mln through a cut-down IPO of its petrochemical unit. It still ranks as Malaysia's biggest listing since the 1MDB crisis. But a chunky valuation discount to peers suggests toxic air around the issuer and destination is yet to clear.
Refiner uses crude tactics in Japanese M&A tussle 4 Jul 2017 Idemitsu’s bosses are trying to clinch a merger with a rival, over objections from Idemitsu’s own founding family. Diluting the family through a $1.2 bln share sale is a value-destructive workaround. The move reflects corporate Japan’s disdain for investor rights.
Shanghai Tang sale pushes against M&A current 4 Jul 2017 An Italian textile maker has purchased the China-inspired fashion brand from luxury giant Richemont. The deal is at odds with the image of wealthy mainland buyers snapping up cash-strapped European brands. But Shanghai Tang was never very Chinese, and that's the problem.
Beijing-Trump relations enter dangerous phase 4 Jul 2017 Chinese and U.S. leaders misread each other. Beijing overinvested in a few relationships, while it ran up the trade surplus and failed to rein in North Korea. Trump's team is now pushing back with sanctions, tariff threats and military moves. The risks of a trade war are rising.
Stonyfield deal whipped up by U.S. yogurt frenzy 3 Jul 2017 France's Lactalis is paying 20 times EBITDA for Danone's yogurt brand, or $875 mln. While American demand has propelled upstarts like Chobani to multibillion-dollar valuations, growth has slowed. It may be hard for the old-school label to woo new consumers.
Illinois blowup flags dangers of budget fireworks 3 Jul 2017 As America celebrates July 4, at least six states missed their financial-planning deadlines. New Jersey and Maine even shut down services. A third straight year of political impasse has Illinois racing to avoid a junk credit rating. The spectacle should scare others into action.
Nestlé can ignore all Dan Loeb’s ideas bar one 3 Jul 2017 Of the four demands activist Third Point put to the Swiss giant’s board, just one is worth pursuing. Share buybacks, selling divisions and a sale of Nestlé’s L’Oreal stake wouldn’t obviously juice up the share price. Old-fashioned margin improvement holds the most promise.
Theresa May’s dilemma is Mark Carney’s opportunity 3 Jul 2017 The British Prime Minister is under growing pressure to loosen fiscal policy. Higher wages for public sector workers would worsen the deficit. But boosting growth would give the Bank of England chief more freedom to fight inflation. Necessity may force May to do the right thing.
Qatar standoff spells end of Gulf cooperation 3 Jul 2017 Saudi Arabia has granted the sheikhdom two more days to comply with its demands. Failure to reach a deal could escalate the dispute, hitting regional economies and investors in equal measure. But even if both sides back down, plans for greater economic collaboration are on hold.
Overhaul pits taxman against Indian ingenuity 3 Jul 2017 The rollout of a nationwide goods and services levy has been surprisingly smooth. The real prize would be shrinking the informal economy. Yet citizens have circumvented Prime Minister Modi's previous big reforms. That makes it too soon to hail GST a success.
Naspers’ addiction to Tencent is unhealthy 3 Jul 2017 The South African group is worth $28 bln less than its stake in the Chinese gaming giant. Naspers boss Bob van Dijk rules out a spinoff, but that would be the best fix. Unfortunately for would-be activists, supervoting shares make it hard for outsiders to apply pressure.
Next stop for Chinese bonds is credible ratings 3 Jul 2017 A new Bond Connect lets foreign fund managers buy into the mainland’s $9 trln market from Hong Kong. The easier access is welcome and should speed up China’s inclusion in key indexes. But big inflows, especially into corporate bonds, will require more plausible credit ratings.