Postal bank’s $8 bln IPO scrapes through the door 13 Sep 2016 Postal Savings Bank of China is roughly worth its trailing book value at the middle of the price range. SOE listings can't pass at a discount. But that's where rivals with higher returns trade. The bank's safer lending profile, and anchor investors, should stop logic taking hold.
Renesas programs model outbound Japan deal 13 Sep 2016 The world's No. 3 chipmaker has agreed to buy U.S. peer Intersil for $3.2 bln. Unusually for a Japanese buyer, Renesas has large, clear synergy targets. These are mostly based on higher sales but if achieved, would more than cover the deal's near-$1 bln premium.
Yahoo gets sale right after exhausting alternatives 12 Sep 2016 CEO Marissa Mayer spent too long pondering various spinoffs before pulling the trigger to offload the hobbled internet firm's core business. Then it took nearly six months to strike a $4.8 bln deal with Verizon. But a filing reveals an intensive process with little wasted time.
Samsung heir emerges from governance smoke 12 Sep 2016 Jay Y. Lee, son of the Korean technology group's chairman, is joining the company's board of directors. Lee already pulled strings, but from a less visible position. As the company deals with a rash of smartphones catching fire, this gesture towards transparency is helpful.
Samsung’s handset fires singe its brand 12 Sep 2016 The tech giant is speeding up a recall of Galaxy Note 7 phones, after reports of fires and explosions, while airlines have banned in-air use. Samsung shares have fallen sharply. The immediate financial hit looks manageable but the reputational damage could be worse.
Zika fear effect can create Asian contagion 12 Sep 2016 The virus is taking hold in Singapore and countries around the finance hub. The SARS crisis showed how changes in human behaviour can hurt growth more than an epidemic. Zika's grim effect on babies also adds a fear factor. Asia can ill-afford to see visitors stay away.
Indian bank’s failed capital hike misses open goal 9 Sep 2016 Investors are keen on the country's private sector lenders. But Yes Bank has been forced to shelve a $1 bln deal. It was pushy on price and careless in execution, talking up the issue on TV and leaving it in the market too long. It's a masterclass in how not to raise capital.
China digs itself into a hole over coal 9 Sep 2016 The fuel is the big success in China's war on overcapacity. But even though production cuts have helped push prices up more than 40 pct, mines want to dig up coal faster. This and other commodity prices are in for a bumpy ride as competing interest groups resist reform.
China tosses trading partners some import scraps 9 Sep 2016 In August, for the first time in 22 months, imports turned positive. But most foreign exporters and China bashers can keep the bubbly on ice. The data's timing has a whiff of diplomacy. Beijing will keep its aggressive trade policies in place so long as they serve other goals.
China’s HNA startles with smart-looking M&A 7 Sep 2016 The aviation conglomerate is a notoriously flaky acquirer. Yet it has made a surprisingly sensible bid for U.S. bank CIT's plane-leasing unit that makes financial and industrial sense for both sides. HNA's challenge is to ensure it doesn't flood the market with unneeded capacity.
Mario takes Nintendo up a level in mobile gaming 8 Sep 2016 Nintendo unexpectedly unveiled a Super Mario game at Apple's new phone launch. Following Pokemon's wild success, this confirms the Japanese group is no longer dragging its feet on reform and is ready to use top characters on mobile. It boosts the case for the new-look Nintendo.
Ctrip’s cash call heralds exotic adventures 8 Sep 2016 China's top online travel group has raised at least $2.4 bln. That will help the firm backed by Baidu and Priceline diversify as local airlines fight back against its core ticketing business. If recent deal making is a guide, Ctrip's latest haul will take it off the beaten track.
Anbang’s deal slowdown sounds unconvincing 7 Sep 2016 The Chinese insurer pledges fewer deals after a $16 bln-plus spree. That seems like a pitch for respectability before a Hong Kong IPO. But the bold, opportunistic group will probably keep finding new distractions to buy. That will be a turn-off for prospective investors.
Rakuten jig highlights Japan’s warped benchmark 7 Sep 2016 Shares of the shopping website leapt on news it would join the Nikkei 225. It shows the power of an arbitrary index weighted by share price instead of fundamentals like size or free float. The Bank of Japan's $60 bln-a-year push into index funds will only amplify the distortion.
DoCoMo spat adds odd twist to India scare stories 6 Sep 2016 The Japanese telco is struggling to enforce a London arbitration award ordering Tata Sons to pay it $1.2 bln. Tata says it wants to pay. India refuses to approve. Despite a slew of reforms, high-profile legacy disputes with foreign firms hurt the idea India is open for business.
Past returns don’t justify a wrong Birla merger 6 Sep 2016 Kumar Mangalam Birla's history of delivering strong returns is no reason to let pass a $9 bln merger of two holding companies. The deal gives the Indian tycoon more control of a hot finance arm at the expense of minority shareholders. On its own terms, the deal doesn't stack up.
Hong Kong vote shows deepening divide with China 5 Sep 2016 Protest leaders have won seats in the legislative election, and pro-democracy groups overall retained their veto. That will prolong political paralysis and may anger Beijing. The city's polarised politics cast an ever-larger shadow over its status as a global financial hub.
Samsung Note 7 fires offer glimpse of new leader 5 Sep 2016 Faulty batteries have forced the $230 bln giant to recall its latest smartphone. The financial fallout may be manageable. But it gives outsiders a way to assess heir apparent Jay Y. Lee, who is trying to assert his authority on the conglomerate. Drastic action is encouraging.
South Korea’s shipping collapse will be contained 5 Sep 2016 The plight of shipping giant Hanjin is causing global ripples. It is emblematic of the strife facing the maritime industries that powered the rise of South Korea. Yet conglomerates and the state are making tough choices. That suggests Hanjin won't drown others as it sinks.
China banks’ shadow addiction needs harsher remedy 2 Sep 2016 Recent curbs on lucrative shadow lending haven't done the job. Shadow loan portfolios at some smaller banks nearly doubled in the first half of this year. The $2 trillion business poses a growing threat to financial stability. Stronger medicine is needed.