Mort Zuckerman to newspaper industry: Drop Dead 5 Sep 2017 The NY property mogul sold the Daily News to the parent of the Los Angeles Times for $1 plus liabilities. It’s a victory of sorts for Tronc, which has lost other auctions and hovers near Gannett's takeover price. But it's another sad marker of print media's extinction.
Nasdaq signals information is the real market 5 Sep 2017 The tech-heavy exchange is paying $705 mln for eVestment, a data provider to asset owners and managers. It’s pricey at over 16 times adjusted EBITDA. But CEO Adena Friedman sees more value in information that brings buyers and sellers together than in acting as a trade conduit.
United Tech breathes rarefied air to bulk up 5 Sep 2017 The conglomerate is paying $30 bln including debt for Rockwell Collins. The combination makes sense but, with a weak 5 pct return on investment, UTC is paying up for aerospace scale. Elusive revenue benefits or a lucrative breakup are needed to prove the deal's potential.
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.
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.
Soft tech dominance brings on hard fight 31 Aug 2017 The exit of internet-monopoly researchers from a Google-funded think tank signals a larger battle. Tech firms have reaped fortunes controlling search, data and advertising. The companies and regulators are slowly taking the concentration of influence more seriously.
Trump may unite Congress – against him 31 Aug 2017 The U.S. runs out of money in a month and the president is attacking lawmakers in his own party. That could prompt Republicans and Democrats to work together to keep the lights on. Plus: Rupert Murdoch could be overpaying for Sky.
Wells Fargo CEO exposed by supersized scandal 31 Aug 2017 The U.S. mega-bank uncovered another 1.4 mln potentially fake accounts. With the board and sales practices grudgingly refreshed, boss Tim Sloan, a 30-year Wells Fargo veteran, sticks out as a vestige of the old regime. New Chair Betsy Duke should rethink the case for keeping him.
Harvey’s damage will long outlast the storm 31 Aug 2017 The sun is out over South Texas but the toll from the hurricane’s record rains keeps rising. With refinery closures extending eastward and a chemical plant exploding, the governor says losses could top Katrina’s. Gas shortages and surging prices will spread the economic fallout.
Elliott’s Stada shakedown is cheeky but rational 31 Aug 2017 The hedge fund wants the private equity firms buying drugmaker Stada to pay 74.40 euros for its minority stake. That’s nearly 50 pct above the firm’s value before Bain and Cinven began bidding. Yet Elliott has a point: the buyers could pay up and still make a respectable return.
Carrefour’s ills demand Tesco-like revamp and more 31 Aug 2017 The French supermarket said full-year operating profit could fall 12 percent, partly due to stiff competition at home. The grocer’s new CEO faces even more challenges than Tesco’s Dave Lewis did three years ago. Domestic market share is shrinking and its online offering is weak.
United Technologies’ avionics bid looks airworthy 30 Aug 2017 The conglomerate’s potential acquisition of Rockwell Collins should deliver enough cost savings to justify paying a reported $23 billion. Greater size also promises increased negotiating heft with Boeing and Airbus. Investors have good reason to clear this deal for takeoff.
Silicon Valley takes the slow lane to Washington 30 Aug 2017 The likes of Facebook and Amazon are desperately playing catch-up in the policy-shaping game. AT&T, Comcast and other internet providers have spent more than $100 mln lobbying over the last 18 months. It may give them an edge in the nasty battles over net neutrality and privacy.
U.S. tax reform plan can contain hidden loopholes 30 Aug 2017 The GOP no longer wants to tax worldwide corporate profits, which pushes companies to move overseas. It’s a good idea but may create other ways to dodge Uncle Sam. Accounting for assets like patents would help ensure firms, especially in tech, don’t game their government bills.