AstraZeneca implies surrender can be bought 6 May 2014 The UK drugmaker has launched its defence against Pfizer’s $106 bln approach by detailing a portfolio with a potential 73 pct of added sales by 2023. It sounds more like an inventory waiting to be valued than an argument for independence. The chances of a deal have barely fallen.
Rob Cox: Solving America’s homegrown Putin dilemma 6 May 2014 Critics say that Obama’s targeted economic sanctions against some Russian oligarchs smack of appeasement. Yet silence prevails when it comes to a Nevada tax scofflaw surrounded by vigilantes. If the U.S. can’t uphold the rule of law at home, it can have no credibility abroad.
Alstom’s train future is with Siemens, not GE 6 May 2014 Paris opposes an offer by the U.S. group to buy Alstom’s power business unless the French company gets the American’s transport assets in exchange. That is a barmy idea. What Alstom should try instead is use GE’s money to build a pan-European train business with Siemens.
Mini-me tech bubble is mere shadow of 2000 excess 5 May 2014 The run-up may have paused, but dozens of companies are in line to float, hubris is rampant, oddball metrics abound, and revenue-free startups are still worth fortunes. Even nerd culture has become hip. The latest internet boom is as absurd as the last, but it’s far smaller.
Target boss exit heralds top tech officers’ rise 5 May 2014 CEO Gregg Steinhafel has been held accountable for the retailer’s massive data breach last year. That should put heat on other corporate honchos to take cybersecurity seriously. Chief information executives deserve more say in company policy - if not a path to the head job.
U.S. Nobel winner put useful economic spin on life 5 May 2014 Chicago’s Gary Becker, dead at 83, first gave arguments against discrimination quantitative heft, then applied a certain clear-eyed logic to crime, family structure and “rotten kids.” Critics found his theories dehumanizing, but his insights are still influencing social policy.
Hugo Dixon: Do national champions merit protection? 5 May 2014 Only when the target is genuinely strategic and the bidder may not have the country’s interests at heart. In other cases, including Pfizer’s bid for AstraZeneca and GE’s acquisition of Alstom’s power business, governments should stay neutral.
Lots of U.S. jobs – just not yet productive ones 2 May 2014 The 288,000 new positions in April make welcome reading. But since 2010, GDP has increased only slowly relative to employment. That means productivity growth has been weak, especially compared to the last recovery starting in 2002. That’s a problem if it persists.
Pfizer’s M&A churns out more pennies than pounds 2 May 2014 A $106 bln AstraZeneca bid would deliver savings. But drug mega-deals create little value. Pfizer could’ve bought most of the top biotech firms instead of Wyeth, its last acquisition, and had higher returns. Buying stakes in innovative companies is a preferable route to riches.
Viacom’s UK deal broadcasts hope for old-time TV 2 May 2014 Sumner Redstone’s media giant will pay $757 mln for Britain’s Channel 5. That looks rich for a shoestring free-to-air station known for reality shows and programme imports. But Viacom gets a decent platform for overseas growth. And old-school TV is a show with much further to run.
Brazilian blunders fuel a better Mexican oil plan 2 May 2014 State meddling, onerous buy-local rules and limits on foreign control slowed Brazil’s expected boom in crude. So its rival to the north has proposed looser regulation and more freedom for government-owned Pemex. The scheme faces hurdles, but it’s a recipe for boosting output.
Brazil’s "Come Back Lula" movement is misguided 2 May 2014 Populist calls for Dilma Rousseff’s predecessor to replace her in October’s presidential election reflect understandable nostalgia for the growth during his time in office. But rising commodity prices, not smart policies, made Brazil richer. Voters can’t count on those again.
Pfizer yet to land knockout blow on Astra 2 May 2014 The U.S. drugmaker upped its proposal to $106 bln, and promised to keep some of the UK group’s workforce. It does not look high enough to bring Astra to the table. Worse, Pfizer’s aggressive public tactics may only antagonise shareholders.
UK engagement with Pfizer is irresponsible 2 May 2014 British politicians and scientists want assurances that a takeover of AstraZeneca by U.S. rival Pfizer would be in the national interest. But good UK science requires more than corporate control. A rushed dialogue with a semi-hostile bidder helps neither the target nor the nation.
Animal spirits permeate neo-Predators’ Ball 1 May 2014 There’s always a whiff of it at Michael Milken’s annual Beverly Hills gathering of global grandees, even after the crisis and amid outrage over income inequality. This year, talk of M&A mojo and credit exuberance filled the air with an unmistakable aura of confidence.
Lazard bests rivals in M&A boom practice lap 1 May 2014 Investment bankers are increasingly confident that more deals are on the cards. They cite a recovering Europe, more corporate optimism and a recent spate of bold transactions. Lazard, though, is one of the few firms to have reaped the benefit of these trends already.
The Fed really does care about little banks too 1 May 2014 It’s easy to think no one would miss these thousands of small community institutions if they disappeared. But America’s top bank police chief, Janet Yellen, assured them she cares. Tailored regulation and still tougher rules for the bigger behemoths prove her point.
Astra has small tactical advantage over Pfizer 1 May 2014 Time can benefit bidders rather than targets – that’s why Kraft left Cadbury flailing for months. But uncertainties around regulatory clearance and Washington politics complicate the dynamics of Pfizer’s approach to AstraZeneca. The U.S. group will want a quick, recommended deal.
Ford schools U.S. firms on turnarounds, succession 1 May 2014 Alan Mulally’s almost eight years at the wheel offer a textbook case of how a company can drive itself out of the scrap yard. The automaker has also done an enviable job of paving the road for the next chief executive. It’s a story corporate America should learn from.
Exxon investors can anticipate benefits of boring 1 May 2014 The oil giant isn’t the growth machine of yore, as falling production and a 4 pct slide in first-quarter income attests. But a fourfold rise in free cash flow from capital cuts shows it still pumps out cash. While not exciting, that allows owners to pocket generous dividends.