Hadas: U.S. deaths are economic and social failure 29 Mar 2017 Americans are dying younger due to drugs, drink and suicide. The rise in such "deaths of despair" comes from the fatal interaction of a weak welfare system, inadequate healthcare and decaying communities. These national flaws also help explain the lack of a political response.
Akzo activists are useful and best ignored 29 Mar 2017 Holders of a quarter of the Dutch paint maker’s shares think it should engage with hostile bidder PPG, claims activist fund Elliott. Yet by rushing into talks, Akzo would play a trump card too early. Appearing lukewarm, but with shareholders still keen, may lure a better offer.
Tencent drifts off course with Tesla 29 Mar 2017 The Chinese tech giant can easily afford a near-$2 bln stake in Tesla. But Elon Musk's electric cars are not a great fit with its cash-cow businesses, social media and mobile games. Making a huge, venture capital-style bet like this is a worrying sign of indiscipline.
Darden owners get too gluttonous over cheesy deal 28 Mar 2017 Shares of Olive Garden's parent had their best day in nine years after snagging rival casual-dining chain Cheddar’s for $780 mln. It's a decent enough deal, and scale helps improve margins in the restaurant trade. But it hardly merits a rally equal to the price paid.
GM is better off avoiding David Einhorn’s detour 28 Mar 2017 The hedge-fund boss wants the automaker to split its shares into one class that collects dividends and another reliant on growth. The plan, which he once pitched to Apple, underestimates GM's cyclical and tech challenges. With bailout memories vivid, it's wise to steer clear.
Utilities to pay price of Westinghouse bankruptcy 28 Mar 2017 A Chapter 11 filing would jolt the company’s key clients, Scana and Southern. Continuing with their nuclear plants could leave the utilities exposed to further cost overruns, while pulling the plug won’t end liabilities. Either way, the firms’ earning power will be cut.
Climate ship has sailed despite Trump’s sea-change 28 Mar 2017 The president says man-made global warming is a hoax and he's set to reduce its role in U.S. energy policy. Scientists, consumers, his military and, increasingly, investors disagree. They're well armed to do battle with fresh polar-ice data and advancements in renewable power.
American Airlines buys China upgrade, earns points 28 Mar 2017 The carrier is joining forces with China Southern, and taking a sub-3 pct stake for $200 mln. AA ought to end up with more Chinese passengers and fewer empty seats. Ideally it wouldn’t have to buy a stake to do so. Consider it one of the irksome hidden costs of air travel.
China’s soccer dreams lead to strange bedfellows 28 Mar 2017 Elliott is saving a Chinese takeover of Italian club AC Milan with 300 mln euros of funding, Reuters says. The U.S. hedge fund must be driving a hard bargain. But the buyers may have been boxed in by Chinese curbs on moving capital and the prospect of losing a hefty down-payment.
White House struggling to learn arcane D.C. math 27 Mar 2017 After failing to repeal Obamacare, Republicans are turning to tax reform. It's an even more complex endeavor. Like healthcare, tax policy is constrained by an obscure law that limits the effect on the U.S. deficit. Trump may loathe Washington process, but the numbers have to add up.
M&A lawyers confronted with ETE’s convenient truth 27 Mar 2017 Delaware's top court ruled that the U.S. pipeline operator, having failed to secure an important tax opinion, had a right to end its unwanted deal with Williams. In a dissent that may resonate, however, Chief Justice Leo Strine raised his eyebrow about pressure on outside advisers.
Dubai mall owner throws sand in Amazon’s face 27 Mar 2017 Emaar Malls has challenged the U.S. retailer with an $800 mln counterbid for Souq.com. Amazon has technical expertise and deep pockets. But the owner of Dubai’s largest retail park has local knowledge, powerful allies and, most importantly, an existing business model to defend.
Kushner brings conflicts not aptitude to new role 27 Mar 2017 Donald Trump wants his son-in-law to harness business nous to make Washington work better. Jared Kushner was AWOL during last week’s healthcare fiasco and his family may be seeking Chinese cash to bail out its property business. His record offers little that government needs.
Disney gives Paris investors a Scrooge McDuck exit 27 Mar 2017 The maker of "Mickey's Christmas Carol" wants to buy out shareholders in its Paris theme park at a premium. Yet the price downplays Euro Disney’s profitability and real estate. This is poor compensation for a rollercoaster investment with more down than up.
Air Products finds China M&A has unstable element 27 Mar 2017 The U.S. firm is giving up on a $1.5 bln play for Yingde Gases. A profit warning from the target provides cover for a retreat but Air Products underestimated a messy boardroom spat, and its months-long trauma highlights the difficulties faced by foreign suitors in China.
Trump’s dealmaking falls sick – for now 24 Mar 2017 Republicans in Congress wouldn’t support an alternative, so Obamacare will live on. Efforts to undermine it will continue. Meanwhile, medical costs still outpace inflation. Unless that changes, the choice between squeezing costs and rationing care will remain on lawmakers’ minds.
Guest view: The $1 trln trade deal anyone can love 24 Mar 2017 Even as NAFTA, TPP and other global accords come under siege, one WTO agreement was quietly just put into force. It'll help countries and companies big and small save money by getting goods across borders quicker, says Andrew Wilson, who runs a Chamber of Commerce affiliate.
Newspaper publisher scoops its own shareholders 24 Mar 2017 Los Angeles Times owner Tronc agreed to buy out investor Oaktree at the same premium price at which it rejected a takeover bid. It also cleared the way for Chairman Michael Ferro to grow his stake. His battle for control with a director puts other investors below the fold.
PPG bid for Akzo fails narrative and maths tests 24 Mar 2017 The U.S. paint and coatings maker says cost savings and the benefits of scale justify a $24 bln offer for its Dutch rival. It’s hard to tell a more visionary tale in a low-growth sector where consolidation is the way to stay ahead. But PPG’s synergy targets don’t add up either.
Eton Park pegs hedge-fund cycle at 13 years 23 Mar 2017 Eric Mindich set a possible record raising over $3 bln to launch his fund in 2004. After a dismal 2016 cut the firm’s assets to $7 bln, the ex-Goldman star is following other big names who could no longer make the high-fee model work and closing down. Good luck to lesser mortals.