Supreme Court tells Obamacare opponents to move on 25 Jun 2015 The top U.S. court upheld subsidies for health coverage bought on federal markets. The president’s landmark reform is popular and, now, entrenched enough to survive. Even if Republicans win the White House in 2016, they need to stop wasting time on the issue and start governing.
Guest view: What Argentina teaches about Greece 25 Jun 2015 The South American nation tried to live a currency lie in 2001. But even clever schemes could not stave off crisis. Fernando Fernandez of IE Business School argues that Greece is in a similar situation. Clever plans cannot save the country from an untrustworthy government.
IAC investors may get a Match from partial divorce 25 Jun 2015 Boss Barry Diller is spinning off the company’s online dating unit, but will retain control. Match, which contains fast-growing Tinder, is profitable with tech-like margins but showing some signs of age. Diller’s splits, though, have a history of creating value for shareholders.
Coty takes farcical route to right CEO 25 Jun 2015 Bart Becht is staying as the perfume maker’s interim boss, a week before outsider Elio Sceti was due to take over. The former Reckitt chief and dealmaker is just who Coty needs if its bid for P&G’s beauty business succeeds. But it hardly counts as a well-planned succession.
Boeing’s new captain can’t rely on autopilot 24 Jun 2015 During Jim McNerney’s decade at the controls, the shares failed to fly as high as the broader aerospace and defense index. New CEO Dennis Muilenburg faces competitive and union headwinds, but also extra turbulence in Washington. Boeing’s next leg requires a steady pair of hands.
New drivers could rev Formula One’s billions 24 Jun 2015 Private equity backer CVC is ready to speed off after a decade of turbocharged returns, while 84-year-old patriarch Bernie Ecclestone may not be doing enough to tune high-tech motor racing’s commercial chassis. Qatari and U.S. owners might just restore full power.
Palantir’s mystery inflates its $20 bln valuation 24 Jun 2015 The private data analytics firm beloved by government intelligence is raising $500 mln. Going public may not be an option for Palantir given its clients and culture. That deepens the enigma that further feeds its potential value - a James Bond privacy premium of sorts.
U.S. trustbuster delivers transatlantic smackdown 24 Jun 2015 The Justice Department’s Bill Baer stressed to London listeners the need to divorce politics from antitrust. American competition policy hasn’t been immune from bias. But the speech seemed squarely aimed at EU lawmakers pushing to break up the likes of Google on fuzzy grounds.
Antitrust food fight messes up outlook for mergers 24 Jun 2015 A U.S. court halted Sysco’s $3.5 bln US Foods purchase, saying the deal would probably harm national competition despite local rivals. A similar argument threatens Staples’ $6.3 bln bid for Office Depot. The bottom-line economics still look tasty, but legal precedent has soured.
3M’s biggest deal ever sticks safely to program 23 Jun 2015 The $100 bln inventor of Post-it notes is paying $2.5 bln for KKR-owned Capital Safety. The price for the workplace safety equipment manufacturer exceeds 3M’s R&D spend last year, and the valuation is healthy. Even so, it’s a high-growth business that suits a modest M&A strategy.
Uncle Sam wastes home-loan crisis 23 Jun 2015 Tackling expensive rent is a better policy goal than pushing mortgages – and would arguably create more jobs. Instead, Washington has stoked growth in home loans with low down payments and less creditworthy borrowers provided by shadow banks. That’s counterproductive.
Rob Cox: Don’t underestimate Exor’s John Elkann 23 Jun 2015 Fiat Chrysler CEO Sergio Marchionne is the one leading a coercive charm offensive for car industry consolidation, but it wouldn’t be happening without the Agnelli scion’s support. Exor’s hostile bid for PartnerRe signals a hard-nosed approach that GM and others shouldn’t dismiss.
Anthem can afford to raise its premium for Cigna 22 Jun 2015 The $54 bln bid puts an extra $12 bln onto the value of its rival’s equity. Cigna is playing hard to get for good reason, though. The possibility of other suitors gives its defense validity. Cost savings and the implied return on investment also suggest Anthem has wiggle room.
Living wills face do-or-die moment 22 Jun 2015 The biggest U.S. banks will soon submit the latest drafts of how to limit contagion if their firm collapses. Most flunked previous rounds but suffered no consequences. If regulators don’t punish failure this time, living wills risk becoming a farce worth forgetting.
Mega-rejections signal M&A’s Taylor Swift moment 22 Jun 2015 U.S. health insurer Cigna brushed off a $54 bln takeover bid from Anthem while pipeline operator Williams spurned Energy Transfer’s $53 bln approach. Meantime, the 25-year-old pop idol forced Apple to pay up for music. In a hot market like this, love won’t be unrequited forever.
China’s biggest U.S. buyout faces search for funds 22 Jun 2015 Qihoo 360 may become the largest Chinese company to flee foreign markets. But first the antivirus group’s bosses need at least $6 bln to buy out other shareholders. Banks might lend half - or more, if mainland lenders feel generous. Finding billions in new equity may be harder.
Memo from 2020: Elizabeth Warren heads to Citi 19 Jun 2015 Barney Frank, whose name adorns the law that reshaped Wall Street, has followed former FDIC Chair Sheila Bair through the revolving door to a bank board. Only the crusading U.S. senator joining them would be more surprising. Breakingviews imagines how it might play out.
ConAgra’s smorgasbord is ready to carve 19 Jun 2015 The Hunt’s-to-Swiss Miss conglomerate’s $6.8 bln acquisition of Ralcorp in 2013 has left a bad taste for shareholders. Pushy Jana Partners is ready to shake up the board. ConAgra’s myriad brands probably fit better elsewhere. The question is how to slice it.
Comcast founder leaves behind dual-class legacy 19 Jun 2015 Ralph Roberts, dead at 95, turned a tiny Mississippi cable outlet into a $150 bln media giant so dominant it recently worried U.S. trustbusters. He made shareholders rich but also bequeaths a form of control to his son Brian that must be the envy of even tightly held companies.
PayPal’s post-partum future will eclipse eBay’s 18 Jun 2015 The common perception is eBay is an online auctions business with an attached payments operation. The opposite is true. PayPal’s standalone business is far more promising – and bigger, too. It may eventually be worth four times as much as the auction unit once they’re separated.