Toshiba axing PwC would be ugly bid to stay listed 26 Apr 2017 The Japanese group may ditch its recently hired Big Four auditor for a smaller firm, the Nikkei reports. That won't win back trust from regulators and investors. But Toshiba is desperate to retain its stock market presence, and the impasse with finicky PwC put that at risk.
IPO delay lifts spotlight off China’s shadow banks 25 Apr 2017 The first listing of a mainland trust company in 20 years is up in the air after it missed a Hong Kong regulatory deadline. This is a pity. The listing would have helped outsiders decipher the high-yielding trust products at the core of China’s intricate shadow-banking industry.
Activist in Japan ups the ante and gets results 24 Apr 2017 Hong Kong hedge fund Oasis forced Panasonic to change tack and sweeten its offer for the rest of subsidiary PanaHome. Floating its own counterbid made the difference. But the new $839 mln cash offer is still far from a knockout. There could be more moves and countermoves ahead.
Taiwan, not China, is its own worst enemy 24 Apr 2017 Complacence has left the island in an economic funk. China-sceptic President Tsai, elected on a tide of domestic discontent, has a $29 bln stimulus package to bolster growth, but bolder reforms are hobbled by politics. That may leave Taiwan even more dependent on its neighbour.
Heineken ought to depose the King of Good Times 21 Apr 2017 The Dutch brewer is the largest shareholder in India's biggest beer maker. An embarrassing agreement with arrested tycoon Vijay Mallya leaves Heineken bound to accept him as chairman. Heineken should lead a charge to sack him anyway and hope to win any resulting legal battle.
Markets are wary of new blot on Japan Inc’s image 21 Apr 2017 Fujifilm has discovered dodgy accounting in its Kiwi unit. It is merely a $200 mln flub. But investor anxiety is understandable. What looked like a manageable accounting problem at Toshiba spiralled out of control. The photocopier-maker's mediocre governance is unhelpful too.
UK proves itself a so-so green energy investor 20 Apr 2017 The government has sold its Green Investment Bank to Macquarie for 2.3 bln pounds. A 5 pct annual return over five years gives taxpayers some benefit. But as with other recent public sales, the risk is private capital reaps benefits that could have stayed with the public purse.
China’s Aramco pitch puts pressure on Tokyo’s bid 20 Apr 2017 A Chinese consortium is angling for a cornerstone role in Saudi Aramco's IPO, Reuters says. This bolsters the case for a Hong Kong listing. Riyadh will like the prospect of easy money with few strings attached. Japan, also competing for the deal, may need to step up.
Samsung’s enemies pick the wrong battle 20 Apr 2017 Politicians in Seoul want to stop Samsung restructuring using treasury stock. They argue it's a trick for the ruling Lee family to gain more control cheaply. But the resulting firms would be worth more, and be better run. Keeping the status quo would be a Pyrrhic victory.
Hadas: Governments are businesses too – sort of 19 Apr 2017 A new McKinsey report says “best practice” tools used by private companies could help the public sector provide more good things for less. There are easy global gains, where increased efficiency hurts no one. But vested interests and cultural challenges are serious obstacles.
India loan waiver opens financial doors for Modi 19 Apr 2017 The country's biggest state will write off farm loans worth $5.6 bln. Pressure is building for a nationwide move that might cost 2 pct of GDP. That would be bad for credit and fiscal discipline but help win votes, ease rural economic stress, and give cover to any bigger bank bailout.
Australia’s Tatts could wring more out of KKR team 19 Apr 2017 A buyout consortium has made a fresh attempt to gatecrash the betting group's takeover by rival Tabcorp. At $4.7 bln, this broadly matches Tabcorp in value. Hard cash is nice, but investors will forgo some potential upside. Tatts could open its books and push for a little extra.
Huishan board implosion begs for director reform 19 Apr 2017 Mass resignations have left a troubled Hong Kong-listed firm without a working board. Independent directors were first to eject as problems mounted. Investors need more competent and reliable sentinels. Stronger minority representation could do the trick.
Mallya arrest could energise India bad debt fight 18 Apr 2017 Liquor baron Vijay Mallya fled to the United Kingdom after banks sued to recover $1.4 billion. If his arrest leads to extradition it would make an example of the poster child of India’s bad loan problem. That would help New Delhi sell any bailout of state banks to the public.
Weetabix goes better with U.S. cereal than congee 18 Apr 2017 Bright Food is selling the UK breakfast staple for $1.8 bln. This trailblazing cross-border deal has gone soggy, with EBITDA flat over five years. Grape Nuts maker Post Holdings is a more natural owner than a state enterprise. For once, China's outbound M&A machine is in reverse.
Deal flop will force Anbang to fly low in the U.S. 18 Apr 2017 The $1.6 bln takeover of Fidelity & Guaranty Life is off, after the Chinese insurer apparently baulked at revealing ownership details. This, the latest in a string of failed deals from China, shows opacity can be as much of a deal-killer as inexperience or security risks.
Private sector tells awkward truth on China growth 18 Apr 2017 First-quarter growth beat expectations at 6.9 pct. But investment and consumption were unhealthily focused on property and infrastructure. Wariness among retailers and service providers illustrates the difficulties China still faces in rebalancing its economy.
Chinese news app gets a sci-fi valuation 18 Apr 2017 A recent fundraising values Toutiao at $11 bln. Mainland advertisers are flocking to mobile apps, and Toutiao has a huge user base. But news feeds are not new and the business model has disappointed in the West. Buzzwords such as AI and big data are like clickbait for investors.
Jack Ma gives rival a new way to win M&A fight 17 Apr 2017 Ant Financial's sweetened $1.2 bln bid for MoneyGram is 20 pct higher than rival Euronet's. Cost cuts alone can't justify a new counteroffer. Given Anbang's struggles to close its deal with Fidelity & Guaranty, Euronet is better off waiting to see if regulators clear the way.
Trump finds markets, too, are complicated beasts 13 Apr 2017 The U.S. president no longer wants to label Beijing a currency manipulator. He belatedly learned the yuan hasn’t been purposely devalued for a while. He's also warming to the dovish Janet Yellen and the Export-Import Bank. As with healthcare, he seems to be learning on the job.