Eminem IPO risks a Slim Shady rap 25 Sep 2017 An online site for buying and selling artists' royalties is floating a unit that will buy into the revenue from music catalogs, starting with the Detroit star's. The interests may be partial, though, and the revenue volatile. The financial remix sounds off-key for public markets.
Scandinavian payments buyout faces long payback 25 Sep 2017 Hellman & Friedman is buying Danish group Nets for $6.6 bln including debt. It’s the latest private equity firm to ride the switch to online payments. Nets has been through the buyout machine before, and faces threats. There are few easy wins in the current hot market.
ABB’s short-term value push takes $2.6 bln detour 25 Sep 2017 The Swiss group is shelving a $3 bln buyback programme to acquire GE’s non-core industrial solutions unit. On the surface it’s a strange move for a company that’s faced calls to simplify and boost margins. But a low price and high synergies mean ABB investors might still prosper.
Unilever gets more than beauty tips from Carver 25 Sep 2017 The Pot Noodle owner is paying 2.3 billion euros for fast-growing Carver Korea, maker of “Eye Cream for Face” serums. Owners Bain Capital and Goldman Sachs pocket a hefty profit. Unilever gains access to a booming Asian market, and exposure to e-commerce and duty-free outlets.
Facebook owners ignore Russian affair at own peril 22 Sep 2017 The $500 bln social network's alleged role in election meddling has legislators flapping, regulators gearing up and even roiled Mark Zuckerberg from paternity leave. Yet Facebook's valuation, at 27 times forward earnings, remains robust. There's a risky disconnect at work here.
Growth shows up just in time for Argentina’s Macri 22 Sep 2017 The pro-business leader is counting on economic recovery to salve the pain of austerity as he undoes the spendthrift policies of populist predecessor Cristina Fernandez. Strong second-quarter growth is likely to help him stymie her aspirations of a comeback in mid-term elections.
FDIC is last defense against Dodd-Frank rollbacks 22 Sep 2017 Wall Street bankers are counting down the days for the term of Chair Martin Gruenberg, an Obama administration holdover, to end in November. Trump has yet to tee up a successor, however. The longer the Volcker Rule and living wills stay as is, the harder it may be to undo them.
Uber may be low on fuel for London fight 22 Sep 2017 The UK capital has decided not to renew the ride-hailing app’s licence, citing an irresponsible approach to safety and security issues. Boardroom upheaval makes it harder for Uber to address the concerns credibly, while a dented image could undermine Londoners’ enthusiasm to help.
Groundhog Day returns for U.S. wireless mergers 22 Sep 2017 Once again, the fragrance of cost savings worth $30 bln to shareholders has brought T-Mobile US and Sprint into a mating dance. Regulatory opposition and price disagreements sank past efforts. Though Sprint's Masayoshi Son is now a Trump BFF, the chances of consummation are low.
Nestlé’s L’Oréal stake is ready for a makeover 22 Sep 2017 The head of French cosmetic group’s founding family, Liliane Bettencourt, has died, reviving the debate about the Nescafé owner’s 23 pct stake. The best solution is to offload it. The challenge for Nestlé boss Ulf Mark Schneider is how to distribute 24 billion euros of value.
Review: How Murdoch’s news revolution devoured him 22 Sep 2017 The play “Ink” dramatises the tycoon’s populist assault on Britain’s cloistered media after buying the Sun in 1969. It’s a deft history of the press culture that eventually led to the phone hacking scandal. These days Rupert Murdoch’s empire is the one at risk of disruption.
Misbehaving CEOs can get off far too easily 21 Sep 2017 That's a lesson to draw from the case of KB Home boss Jeffrey Mezger, whose crass rant with neighbor Kathy Griffin went viral. Cutting his bonus might hurt if he received one in recent years. A more fitting penalty would be to axe his haul of stock awards worth some $2.4 mln.
Viewsroom: German election all about runners-up 21 Sep 2017 Chancellor Angela Merkel and her Christian Democrats should win more votes than rivals. But they’ll need coalition partners to form a government. Choosing among them promises to be a nail-biter. Also: the Toys R Us bankruptcy won’t be a total loss for its private-equity owners.
Bloated U.S. healthcare spending has silver lining 21 Sep 2017 The first drug that works by silencing targeted genes by Alnylam is heading for FDA approval. It’s hot on the heels of another that treats cancer by using modified immune cells. New therapies are proliferating, thanks in part to America’s unsustainably large healthcare budget.
Anadarko signals its future is out of its hands 21 Sep 2017 The oil firm is spending $2.5 bln to repurchase stock. Yet it’s unlikely to make money until 2020 and has $15 bln of debt. The buyback plan is an admission it can’t find profitable investments. It also implies CEO Al Walker is hoping for the oil price to rise or a takeover.
Siemens-Alstom train-deal economics trump politics 21 Sep 2017 The German firm may merge its train unit with the French peer Alstom, rather than Bombardier. That would create a global player in high-speed rail, but leave Siemens in an awkward embrace with joint-owner French government. It’s a price worth paying to create a European champion.
SEC failure puts U.S. cyber security on back foot 21 Sep 2017 Unlike the Equifax hack, the breach into the watchdog’s systems doesn’t put people’s data at risk. But the SEC buried its belated disclosure of the attack in a broader statement on cyber issues. It sets a terrible example on transparency for the publicly traded firms it oversees.
Hadas: Crypto-currencies presage new monetary era 21 Sep 2017 No, bitcoin and its peers won’t become an electronic version of the gold standard. Rather, the speculation surrounding them indicates a financial system out of control. If the frenzy ends in a crash, it’s a chance to revive the old idea of a centrally controlled money supply.
What Carney can learn from Yellen 21 Sep 2017 Fed Chair Janet Yellen showed rate-setters can shock markets even when they stick to the script. That’s a lesson for the Bank of England’s Mark Carney, who has talked up a rate rise this year. Like her, he may have to hike without having solved a host of economic puzzles.
CRH deal cements its U.S. infrastructure bet 21 Sep 2017 The building materials company is buying Kansas-based Ash Grove for $3.5 bln including debt. It’s a full price for a group which likes to buy cheap. Despite doubts over President Trump’s pledge to rebuild highways and bridges, pushing into its key market makes sense for CRH.