Considered View

DowDuPont activist legacy spawns new activism

21 January 2021

Starboard Value wants new directors and a new CEO at $33 bln Corteva. The seed and pesticide group is one of three born from the 2017 merger and later breakup of Dow and DuPont. That grand plan looked good on paper to other noisy investors, but making it work is proving hard.

Keystone XL is stage for more political theater

21 January 2021

The logic behind the U.S. pipeline was already on the fritz. Oil’s future is uncertain, especially the crude in Canada that Keystone would have transported. Banks, too, were pulling back from lending. Joe Biden’s order nixing the project is mostly symbolic of future intentions.

Perella Weinberg deal boosts SPAC credibility

21 January 2021

A $977 million price tag for the M&A advisory shop values it lower than peers based on reasonable growth assumptions. It's a sensible figure for a real business in a competitive market. Perella's choice to go public by selling to a blank-check company looks well advised.

Russian mining IPO comes with sanctions noise

21 January 2021

Nord Gold is planning a $5 bln listing in London, the WSJ reports. Severstal billionaire Alexey Mordashov only has a minority stake, but his sons own most of the rest. Investors need to consider the risk that the new U.S. administration decides to take a tougher line on Moscow.

Brexit legacy will clip sterling’s wings

21 January 2021

The currency hit an eight-month high against the euro. Vaccine rollouts, on which GDP rebounds depend, are more advanced in UK than many countries. But non-tariff barriers are hindering trade with the EU, which may hold back growth. That will limit the pound’s scope to fly.

Corona Capital: Intel, Run on guns

21 January 2021

Concise views on the pandemic’s corporate and financial fallout: Intel’s new boss gets closer to his big debut. Meanwhile, gunmakers are riding high on social tensions and pandemic angst, but could soon find they have fewer friends in high places.

Options trading bubble draws frothy M&A equivalent

21 January 2021

Britain’s IG is buying tastytrade for $1 bln in cash and shares. The price seems high, even allowing for surging demand for the Chicago-based group’s derivatives products. As with the current stock-market boom, success depends on continued interest from flighty retail traders.

Couche-Tard may be impulse buyer after French fail

21 January 2021

Founders of the minimart empire, blocked from buying Carrefour, have a super voting share that expires in 11 months. After that they’d need investor support for a big purchase like German grocer Metro. The 13% drop in the Canadian group’s stock shows fears of a short-term spree.

Chinese monopoly rules threaten super-app model

21 January 2021

The central bank has defined payments dominance in market-share terms, squarely targeting Ant and Tencent. Its new draft rules also separate transactions from interest-bearing products. That will complicate cross-selling more profitable services, and deter new competitors.

China’s energy policy keeps blowing fuse

21 January 2021

Widespread electricity rationing last month slowed factory output, threatening another harsh winter for Chinese households. Banning Aussie coal didn’t help, but Beijing has stalled reforms to its grid monopoly, forcing a choice between emissions targets and keeping the lights on.