Mooted $11 bln gas deal signals energy M&A thaw 10 Mar 2016 TransCanada’s interest in Columbia may end a dearth in industry tie-ups. Both are among the better-positioned players in a sector where falling oil and gas prices sparked fears about a wave of bankruptcies. Perkier crude may lubricate similar mergers between industry survivors.
Fintech’s growing pains are only just beginning 10 Mar 2016 Shares of mobile payments firm Square fell up to 8 pct on so-so earnings. SoFi started a fund to buy its own loans as other sources proved harder to tap. And competition is getting fiercer, including from banks. Lower fees, riskier business mixes and failure are on the horizon.
Best U.S. health-insurance merger may be none 10 Mar 2016 UnitedHealth’s four main rivals are fighting to push their deals past state and federal regulators. The $115 bln UnitedHealth will look smart if the mergers, each worth about $70 bln in current combined market value, are blocked. It might even win out if the deals pass muster.
Lula charges shorten odds of early Rousseff exit 10 Mar 2016 The travails of her mentor add to the ways Brazil’s president might go prematurely, with alleged dodgy budgeting and the Petrobras scandal already looming. At least the mechanisms to remove Dilma are mostly orderly. Either way, though, the country’s challenges will outlast her.
Twitter’s staff handouts add to "profit" flattery 10 Mar 2016 The $11 bln microblog is giving people more stock, and cash, to keep them sweet after losses on shares already granted. Aside from defeating the point of making employees owners, it ensures Twitter’s custom metrics, which exclude stock-based pay, become even less realistic.
Carlos Slim builds Spanish empire at skinny price 10 Mar 2016 The Mexican tycoon has been building stakes in builder FCC and property firm Realia. He has made bids for both, at low premiums, after exceeding a 30 pct threshold. Slim has no incentive to offer target shareholders a sweeter offer unless the regulator forces his hand.
John Gutfreund takes old Wall St model to grave 10 Mar 2016 The ex-Salomon Brothers boss led investment banks from partnerships into prop trading – and ended up in a scandal. His era was, at least, one where bankers’ excesses didn’t put the system at risk. That lends his kind of risk taking a degree of perverse charm that will be missed.
U.S. pipeline firms can go with bankruptcy flow 9 Mar 2016 Insolvent oil and gas drillers can shed contracts with companies that move their product, says a N.Y. judge. The ruling may rattle investors who assumed the agreements supplied safe revenue streams. No need to panic, though: The deals will probably be renegotiated, not canceled.
Wanda’s U.S. cinema rollup unlikely to get rewrite 9 Mar 2016 An unhappy investor thinks Chinese-controlled AMC Entertainment is underpaying for rival American theater chain Carmike. The 20 pct premium is no blockbuster, but it’s no flop either. And after a year of hawking itself, the $1.1 bln deal may be the best the company could get.
American oversight of financial tech looks so 2007 9 Mar 2016 U.S. regulators are falling short of policing this emerging industry, partly because of the outdated patchwork of state rules. The UK and others are further ahead in addressing the sector in fresh ways. Creating a modern, federal regime to oversee these firms is a priority.
Valeant’s new directors portend suits and sales 9 Mar 2016 The drug firm’s challenges can be seen in its new board appointees: an M&A specialist, a law professor and retired judge, and a drug entrepreneur with experience selling companies. These directors can help Valeant prepare for a future chock-full of litigation and divestitures.
Why the Yankees are swinging their bats at Comcast 9 Mar 2016 The $140 bln cable operator is sticking by a decision to drop the channel that airs the team’s baseball games, risking the ire of Bronx Bombers fans as the season starts. The fracas underscores bigger problems in the pay-TV universe as distributors become choosier about networks.
U.S. tech sanctions more risky than bank crackdown 9 Mar 2016 America has used its dominance of international finance to force foreign lenders to cut ties with enemy states. New restrictions on Chinese telecom firm ZTE extend the principle to technology. But that could have much bigger ramifications for U.S. firms.
Amex boss needs better credit with shareholders 8 Mar 2016 Ken Chenault this week faces investors tired of missed targets, slow growth and an underperforming stock. A mega-merger fix isn’t possible, and some issues are industry-wide. But he has to sell owners on his plan for boosting results – or risk having them find him in default.
U.S. anti-gun rulings put freer markets in sight 8 Mar 2016 Courts have upheld assault-weapons bans, adding heft to a Connecticut suit that tests laws shielding firearms firms from liability. The case is still a stretch, but growing assent to gun-rights limits may force the likes of Remington to compete without unfair legal protection.
U.S. banks may distrust watchdogs’ hints at easing 8 Mar 2016 Some officials reckon lenders have gone too far to prevent money-laundering risk, cutting vulnerable people off from the banking system. The concern is valid, but tough enforcement has made banks allergic to gray areas. They’re unlikely to accept regulators’ pleas to relax a bit.
United Airlines board dogfight could be win-win 8 Mar 2016 Two hedge funds are gunning to get six new directors appointed, including a retired Continental boss. It’s a headache for CEO Oscar Munoz as he returns from sick leave. Despite heated rhetoric, though, a compromise on a revamped board should suit both sides better than a battle.
ZTE needs a U.S. solution as soon as possible 8 Mar 2016 The Chinese network-gear giant faces a ban on using U.S. suppliers for allegedly violating sanctions on Iran. That would cripple ZTE: most of its kit and handsets rely on American components. One way or another, it urgently needs to resolve this problem.
Wall Street pay and profit hint at bloat 7 Mar 2016 Bonuses in the Big Apple’s securities business tumbled 9 pct to $146,000 on average, New York’s comptroller found. Earnings fell, too. The two are more closely aligned than they’ve been in years. Such drops often precede either a recession or a culling of bank staffs. Or both.
Silicon Valley unicorns to starve without tourists 7 Mar 2016 Funds of the mutual, hedge and sovereign wealth variety have been feeding tech startups and the $1 bln mythology. As valuation clouds darken the rainbows, these outside investors will retreat and the herd will thin. That should help venture capitalists get back to reality.