Tenneco and Icahn pull a mini DowDuPont 10 Apr 2018 The U.S. auto-parts maker is paying $5.4 bln including debt for Federal-Mogul, owned by the investor’s listed entity. The plan is to break the merged company into two, boosting the overall value. Shareholders shoulder risk when deals have several steps. But the logic holds up.
Bayer investors get unwelcome antitrust present 10 Apr 2018 The German company has struck a deal with U.S. regulators to clear its $60 billion acquisition of seed group Monsanto, the Wall Street Journal reported. After EU approval in March, a two-year saga is almost over. Bayer’s sagging stock price means shareholders can hold the cheers.
Bolloré’s best bet is to play along with Singer 10 Apr 2018 Vivendi chair Vincent Bolloré may lose a fight for control of Telecom Italia with activist investor Elliott. Selling his 24 pct stake would mean a loss, assuming he can find a buyer. Staying put while Paul Singer’s group tries to revive the Italian telco is a better option.
Swiss treasure helps AXA pay for XL folly 10 Apr 2018 The French insurer is restructuring its Swiss life insurance business, freeing up $2.6 bln of capital. The move provides some extra funding for its $15 bln takeover of Bermuda reinsurer XL. Reduced financial risk is welcome, but doesn’t help justify what remains a pricey deal.
Dutch lawmakers give Ahold backup in activist spat 10 Apr 2018 Activist CIAM wants the supermarket to scrap its foundation that can be used to block takeovers. But with the Netherlands eyeing new laws to stymie hostile bidders, companies may not need these arcane tools much longer. Shareholders will suffer either way.
Xi throws the trade ball back into Trump’s court 10 Apr 2018 China’s president pledged imminent market openings at a speech on Tuesday. He re-hashed plenty of old promises but dangled new items on autos and intellectual property. The opening offer is unlikely to appease U.S. hardliners, but it creates precious space for more negotiation.
Facebook not Zuckerberg is under fire in D.C. 9 Apr 2018 It will be tempting for U.S. lawmakers grilling Mark Zuckerberg to focus on his all-too-apparent flaws. That would miss the bigger question: whether Facebook is too complex to manage, whoever runs it. That is key to knowing whether the company ought to be regulated.
Dell’s Pivotal IPO actually is pivotal 9 Apr 2018 The private tech giant has a massive debt load, feeble cash flow and investors eventually hoping to exit. Floating part of $4 bln cloud software firm Pivotal into a hot market doesn’t solve its problems, but would provide capital and a path to a cleaner structure.
Fintech lenders will struggle to regain mojo alone 9 Apr 2018 The likes of LendingClub, On Deck and SoFi want to put recent problems behind them. But their loan books, and earnings, are small. The banks they once dared to threaten have been catching up. Even Goldman is nipping at their heels. A bout of M&A could do them credit.
Glencore’s Rusal cloud has a silver lining 9 Apr 2018 The commodity trader is nursing a hit to its 9 percent stake in the Russian miner, whose shares have halved due to U.S. sanctions. But the loss is bearable and disruption to the aluminium market and growing protectionism may end up helping CEO Ivan Glasenberg’s trading business.
Wall Street gets its money-mining canary back 9 Apr 2018 Jefferies’ owner, the $8 bln Leucadia, will offload non-financial units, take its traditionally trading-heavy investment bank’s name, and move to a November year-end. The industry will again have an early-warning stock – and long-time boss Richard Handler’s task will be clearer.
Canines chase cars, except in case of eHi’s buyout 9 Apr 2018 The Chinese auto-rental agency has been a dog since its IPO in 2014. While travel is growing in the People’s Republic, that hasn’t translated into a robust business. Still, compared to similar species like Car Inc, eHi's public owners will be fortunate to exit free of bite marks.
Novartis $8.7 bln splurge balances risk and growth 9 Apr 2018 The Swiss drugmaker paid a near 90 pct premium for AveXis, which is developing a treatment for spinal muscular atrophy, weeks after selling its consumer drugs joint venture. Experimental drugs offer faster growth than painkillers but more risk. It’s a pricey way to boost revenue.
Netflix’s mooted retro deal is life imitating art 6 Apr 2018 The video-streaming giant is bidding $300 mln for an L.A. signage firm. Like the lead in Oscar-winning "Three Billboards," grabbing people’s attention may be CEO Reed Hastings’ goal. Just making a show about the current scrappy, litigious owners would make more sense.
CBS can be much more generous with Viacom 6 Apr 2018 The broadcaster is easily able to cough up more than a possible lowball offer for the MTV operator, which appeared to value Viacom at below the market price. With a combined value of $40 bln there’s plenty to go round – while still leaving CBS’s own shareholders better off.
Russian stocks deliver sanctions face-palm moment 6 Apr 2018 The U.S. sanctioned Rusal and EN+, as well as related oligarchs like Oleg Deripaska. The danger that groups close to the Kremlin might get burned was pretty clear in EN+’s recent IPO prospectus. Governance and politics are as critical to such companies’ value as their operations.
Review: The ultimate truth about blockchain 6 Apr 2018 The technology behind bitcoin has applications that extend far beyond the crypto-currency hype. But is it the panacea for humanity’s problems? “The Truth Machine” takes a positive view of decentralised digital ledgers, but underplays fundamental questions of safety and trust.
Trade and immigration loom over U.S. jobs outlook 6 Apr 2018 Payroll gains in March were disappointing, but the monthly average for the first quarter was a strong 202,000. Corporate tax cuts are supposed to boost economic growth from last year’s 2.3 pct. Saber-rattling on tariffs is a headwind, though – and fewer immigrants could be, too.
Wanted: candidates for Europe’s toughest bank job 6 Apr 2018 Deutsche Bank Chairman Paul Achleitner is seeking to replace CEO John Cryan. The lender needs someone who can motivate traders while slashing costs, and take on Wall Street without neglecting Germany. Breakingviews imagines the pitch headhunters have sent to potential candidates.
Carlyle uncorks a fine Australian wine deal 6 Apr 2018 The private equity firm is acquiring Accolade, maker of Hardys and other brands, for A$1 bln. Asian demand should leave ample room for growth. Higher Chinese tariffs on U.S. wine also could help. And a cheap valuation compared to rival Treasury makes it a buyout worth toasting.