Telefonica’s O2 float is best placed on hold 4 Sep 2017 The Spanish telco has been considering an IPO of its UK arm since regulators blocked a sale in 2016. A legal row over mobile spectrum auctions would complicate pricing, and debt is less pressing since Telefonica cut its dividend. Better to delay than cancel another offering.
Elliott shows tail wags dog in German M&A 4 Sep 2017 The U.S. investor has nudged Bain and Cinven into paying minority shareholders in drugmaker Stada 12 pct more than others got last month. Germany’s odd rules and passive investing make it all too easy for holdouts who own small stakes to throw their weight around.
Drahi’s U.S. adventure may end with a fizzle 4 Sep 2017 Telecoms magnate Patrick Drahi wants to expand his Altice group’s U.S. arm by buying other cable firms. The sector’s low margins could appeal to the famed cost-cutter. But larger companies, like $117 bln Charter, are out of reach. Drahi may have to make do with smaller fare.
Legend spins Silk Road yarn for Europe bank deal 4 Sep 2017 The firm behind Lenovo will pay $1.8 bln for Luxembourg’s BIL. That highlights corporate China’s continued appetite for foreign finance, even amid an M&A crackdown. Tying the deal to Beijing’s overseas goals may be politically astute, but will in reality be a bit of a stretch.
China-India spat signals last hurrah for BRICS 4 Sep 2017 The duo stepped back from a border dispute in time for a smooth summit of the emerging markets bloc. But Beijing’s focus on Belt and Road, its ambitious global infrastructure push, has it and India marching in opposite directions. That looks toxic for the alliance.
Hurricane Harvey darkens forecast for OPEC cuts 1 Sep 2017 The oil cartel’s lower output was finally reviving prices before a storm knocked out around a third of U.S. refineries and dented demand. A glut of crude building up in tankers could force producers to rein in output even longer if they want to tilt the market in their favour.
Vanguard slowly flexes corporate-governance muscle 1 Sep 2017 Index funds can’t choose to sell stocks. But the $4.5 trln fund giant is engaging more with companies and in the past year voted against management at Exxon Mobil, Viacom and Wells Fargo on climate change, pay and the like. It’s hardly activism but it beats pure passive investing.
Dream of U.S. job surge is partly in Trump’s hands 1 Sep 2017 Although August’s 156,000 new positions fell short of forecasts, the trend is steady. Yet the president may soon subject nearly 800,000 children of illegal immigrants to deportation. Some 30,000 could lose jobs each month; GDP would suffer too. That’s an avoidable hit to growth.
Vivendi still looks like a one-legged stool 1 Sep 2017 The French group delivered better than expected revenue in the first half. But most good news still came from music label Universal. TV unit Canal Plus remains a drag on growth despite signs of a turnaround. Chairman Vincent Bolloré gets little credit for his integration efforts.
Europe’s consumer giants are overindulging on ads 1 Sep 2017 Companies like Nestlé and Danone spend twice as much on marketing than U.S. peers relative to sales. They defend such profligacy by pointing to superior revenue growth. True, sales are better, but not by much. With activists circling, plump ad budgets are ripe for cuts.
Water investment glass isn’t even half full 1 Sep 2017 Hungary’s president has issued a rallying cry for the $12 trln needed by 2030 to meet water-linked climate goals. The problem isn’t a lack of money, but emerging states’ poor governance and lack of financial nous. Multinationals and pushy investors could help change that.