SAP-Qualtrics deal may be mutually good experience 12 Nov 2018 Rather than go public the U.S. customer and employee feedback outfit is selling to the German giant for $8 bln, over $3 bln more than IPO expectations. Though it casts aside the Qualtrics founders’ desire for control, it could still be a smart long-term choice for both companies.
New Tesla chair will have to get tougher 8 Nov 2018 Robyn Denholm, CFO at Aussie telco Telstra, is moving from her boardroom seat at the $60 bln electric-car maker to the head of the table to oversee erratic CEO Elon Musk full-time. Splitting the top jobs is good, but Denholm has been part of a group unable to rein him in so far.
Australia’s CKI veto scrambles the China message 8 Nov 2018 Canberra is set to block the $9.4 bln takeover of its biggest gas pipeline company by an arm of Hong Kong's CK Hutchison. APA shares have lagged, hinting at some risk. Timing the news to coincide with a much-vaunted trip to repair ties with Beijing, though, looks careless.
Macquarie widens gap at home and abroad 2 Nov 2018 The $28 bln Aussie bank is set for a record year, thanks to a first-half lift from commodities. Return on equity stands apart and local lenders are under intense scrutiny. New boss Shemara Wikramanayake will need to keep up the impressive resilience in far choppier markets.
ANZ sets flat tone for contrite Aussie banks 31 Oct 2018 The $52 bln lender has reported a 5 pct drop in full-year earnings, hit by clean-up costs. Given regulatory heat, it could have been worse. Yet bank shares remain pricey. That suggests pain ahead as a boom, fed by a rosy economy, household debt and pricing power, winds down.
Hostile buyer may lose at Hong Kong hide-and-seek 26 Oct 2018 Private equity firm PAG is trying to bypass a property owner’s management with its takeover bid. Local conventions make it hard to track down Spring REIT’s many small investors and there are restrictions on contacting them directly. It’s time to rewrite the rules of the game.
The Exchange: Kevin Rudd 23 Oct 2018 Australia's prime minister in 2008 told Breakingviews how his government decided to spend some 6 pct of GDP on tax breaks, infrastructure and cash payments to citizens. That helped the country heavily exposed to China, commodities, finance and housing avoid a recession – just.
Cooled coal IPO singes commodities exuberance 22 Oct 2018 Private equity-backed Coronado shrunk a $1 bln share sale Down Under to just $550 mln and priced it at the bottom of the range. A rosy comparison to Rio Tinto’s recent asset sales came up short. And it is the latest sign of shakier prospects for steel and China demand.
Copper caught in crossfire of trade war 4 Oct 2018 Escalating tensions between Washington and Beijing have helped drag down the red metal by some 14 pct since June. The price is now well below levels required to inspire mining giants to invest in new supply, even though existing pits are ageing fast and green demand is on a tear.
BHP can hide behind Unilever dual-listing mutiny 2 Oct 2018 Some big shareholders oppose the Dove soap maker’s plan to switch to one, Dutch, headquarters. Pushy investor Elliott has been calling for a similar corporate overhaul at the world’s largest miner. There are differences, but the campaign for simplicity just got more complicated.
Barrick and Randgold wisely explore M&A riches 24 Sep 2018 The $12 bln Canadian miner led by former Goldman banker John Thornton is set to unite with its African-focused rival. A deal this big would shake up a sector long cowed by past mistakes. Given weaker prices, falling output and a geographic fit between the two, the idea has logic.
Aussie office bid war offers easy investor exit 19 Sep 2018 U.S. private equity giant Blackstone is fighting with a Canadian pension fund over $3 bln of Australian commercial property. The market has boomed but Investa, the target, has underperformed of late. The ensuing rally gives shareholders a chance to relocate at a nice premium.
Australia’s $11 bln telco deal dials up high hopes 30 Aug 2018 TPG Telecom and the Vodafone Hutchison joint venture are coming together. The merger reduces chances of a price war and the market is implying hefty synergies can be achieved. It should ease Vodafone’s exit and even rival Telstra may come out ahead.
Australian politicians play with economic fire 24 Aug 2018 Malcolm Turnbull has been forced out, ushering in the country's sixth prime minister in a decade. Political turmoil contrasts with 27 years of unbroken growth. But reforms are hard to implement and voters are disgruntled. The economy’s immunity to upheaval in Canberra is waning.
Australia’s Huawei ban undercuts “Made in China” 23 Aug 2018 Security and political concerns prompted Canberra to block the telecom titan from backing the country’s 5G network. It’s a setback for Huawei, but also for Beijing. The world-beating national champions it wants to cultivate are increasingly seen as dangerous arms of the state.
Santos doubles down on independence with Quadrant 23 Aug 2018 Fresh from rejecting a $10.8 bln takeover bid, the Australian energy group is buying its Perth peer for $2.2 bln. The move tests a newly healed balance sheet, but investors value Santos equally as predator and prey. It’s a big bet on Quadrant’s new discoveries and the oil price.
Australian telco M&A logic trumps messy governance 22 Aug 2018 Vodafone and Hutchison’s mobile joint venture may combine with the A$7 bln TPG. Mergers of equals are hard enough without three parties, and the embattled broadband group looks like an unequal match. The benefits of less competition mean both sides have reason to hold their nose.
Healthscope’s property trick is takeover poison 22 Aug 2018 Having rejected two acquisition bids, the struggling Australian health group will put A$1 bln of hospitals into a trust in which it will sell 49 pct - then rent the facilities back. The cash will be useful, but operating costs and risk will rise, deterring more generous suitors.
Copper-bottomed BHP can now dig into bigger issues 21 Aug 2018 The $125 bln miner has tidied its portfolio and, as the latest results show, repaired its balance sheet and generated ample cash for shareholders. That gives the board and CEO Andrew Mackenzie room to consider important strategic questions about sticking with oil, gas and potash.
Cautious miners leave room for new swashbucklers 17 Aug 2018 Heavyweights like BHP have retreated from promising projects in tough spots. Even daring Glencore is fretting about Congo. The result is a long list of untapped resources and few buyers outside China. An intrepid fresh player could step in - if it can access private capital.