Chipotle wraps succession up in rotten governance 29 Nov 2017 The embattled burrito chain’s founder Steve Ells is stepping down as CEO but becoming executive chairman. That puts too many bosses in the kitchen and may hamper the new chief’s ability to stir in much-needed new ingredients. It’s a maneuver other companies have come to regret.
Cineworld bid for Regal smells of rotten tomatoes 29 Nov 2017 The British group could make a $3.6 billion bid for the second-largest U.S. movie-theatre chain. It might boost lowly margins and strike better deals with studios and distributors. But a huge equity hike and threats from digital streaming make for a bad picture for investors.
Trump gives Xi first taste of trade acrimony ahead 29 Nov 2017 The afterglow of the U.S. president’s trip to China faded fast. Unimpressed by Beijing's progress on North Korea and market opening, he is taking an aggressive stance on aluminium dumping. This sets the stage for uglier, more economically significant fights on trade.
Fast-food deal cures activist indigestion 28 Nov 2017 Buffalo Wild Wings is selling to private equity-owned Arby’s for $2.4 bln. It ends the chicken restaurant’s bruising 17-month fight with Marcato. The juicy 38 pct premium also salvages a decent return for the pushy investor whose stake looked like it was heading for slaughter.
Fed chair pick shows mastery of central-bank arts 28 Nov 2017 Jerome Powell breezed through his Senate confirmation hearing with Zen-like confidence. He dodged the tax-reform debate, kept rate-hike comments predictable, backed Fed independence and defended its bank-rules review. The prospect of post-Yellen stability will please markets.
WeWork labors to keep itself looking different 28 Nov 2017 The shared-office provider’s latest purchase is Meetup. The social network’s get-togethers might fill WeWork’s space at slow times. But like investing in a wave-pool firm, starting a school and opening a gym, the consistent theme is desperation to not be a real-estate firm.
Slim chance of Kochs taking over Meredith media 28 Nov 2017 The campaigning U.S. billionaires are investing $650 mln in Meredith so the publisher can buy Time Inc. The Kochs get prefs with an 8.5 pct dividend but no board seats. Like Carlos Slim’s loan to the New York Times, the likely returns look more financial than political.
Unilever buys more time for HQ beauty parade 28 Nov 2017 The Dove soap maker will postpone a decision on locating its head office in London or Rotterdam. It avoids becoming a lightning rod for discontented voters for now. Sitting on its hands also gives the UK government time to offer up goodies that match or beat Dutch perks.
Ocado gets dubious halo as Europe’s Amazon bulwark 28 Nov 2017 The online retailer’s shares jumped by a fifth after it signed a deal to develop Casino’s digital offering. Investors are pricing in more agreements as European grocers react to the U.S. tech giant edging onto their turf. Ocado’s track record suggests they may be disappointed.
Wall Street chip analysts put a “buy” on research 28 Nov 2017 Bearish Morgan Stanley notes on memory prices were followed by $25 bln in lost market value for Samsung, TSMC and Western Digital. Despite an excess of cheerleading from the sell-side, it has the power to move markets. It's a timely reminder as the business model faces upheaval.
Uber backers face head-on collision with greed 28 Nov 2017 SoftBank is offering to buy shares in the ride-hailing firm at a $48 bln valuation. Even with a 30 pct markdown to the last fundraising, investors could cash out and make many multiples of their money. The prospect of a $500 bln colossus, however risky, will cloud the thinking.
Deckers takes on activist with two left feet 27 Nov 2017 The UGGs bootmaker promises to appoint two new directors next year. It’s a weak attempt to dance away from Marcato’s campaign to replace all nine board members next month. The pushy investor’s role has boosted the stock by 63 pct. Deckers’ leaders may fall flat on their faces.
Oil patch can use Icahn’s tough love 27 Nov 2017 The activist joined another angry investor to stop oil driller SandRidge's $746 mln acquisition of rival Bonanza. SandRidge adopted a poison pill to block him. It is an egregious example of oil companies chasing size at shareholders’ expense. On principle, it’s worth the battle.
Cowen deal collapse spells pain for Chinese firms 27 Nov 2017 Unexpected resistance from U.S. regulators led the investment banking boutique to scrap a stake sale to CEFC China Energy. Beijing connections once seemed to be the outfit’s entrée to global M&A but now loom as a big obstacle. Chinese companies may need a new overseas strategy.
CFPB leadership row won’t stop inevitable gutting 27 Nov 2017 It’s unclear who’s in charge at the U.S. consumer protection agency. The departing Obama-appointed director named his interim successor, as did the White House, provoking a legal fight. But Trump can name a permanent head, and make good on his promise to eviscerate the watchdog.
BlackRock ETF bot makes turkeys of human managers 27 Nov 2017 Larry Fink’s $6 trln asset manager is turning to computers to run a new batch of exchange-traded funds tracking shifting industry sectors. Machine learning and big data should do it well and at low cost. It adds more worries for flesh-and-blood stock pickers.
Time beats the clock in $2.8 bln deal 26 Nov 2017 After rejecting earlier entreaties, the publisher of People and Fortune is being bought by rival Meredith at a hefty 46 pct premium. It's a break for Time, whose go-it-alone strategy looked doomed. Bountiful cost savings, though, will help the buyer and backers the Koch brothers.
Jana’s Outback bet beats a walk in the Olive Garden 24 Nov 2017 The activist has taken a 9 pct stake in the Aussie steakhouse’s owner. Cheap grocery prices and the rise of delivery apps have battered such restaurants. It took a wholesale revamp by investor Starboard to turn Olive Garden around. Jana, though, may be targeting easier pickings.
Bankers’ rule-change wish list starts in the weeds 24 Nov 2017 Executives have plenty of regulations they want a more industry-friendly Fed to overhaul. But for many the top target is an obscure supervisory letter that has turned often minor infractions into roadblocks for everything from new branches to M&A. It’s unnecessary red tape.
Clariant and activist lack a positive reaction 24 Nov 2017 The Swiss chemical maker will devise a new strategy after its merger with rival Huntsman flopped. It rejected demands from White Tale to explore a breakup. Clariant cannot ignore its 20 pct shareholder, but the activist that scuppered the deal needs to propose as well as oppose.