Accor’s hotel sale has unwelcome discount 28 Feb 2018 The leisure group sold half its property empire for 4.4 bln euros. The low price and a cut on the fees it earns to manage the hotels suggests its partners got the better deal. A buyback will keep investors sweet, but leave less firepower to fend off competitors like Airbnb.
Stability the only threat to Sberbank’s dominance 28 Feb 2018 Russia’s biggest bank reported a 24 pct return on equity in 2017. A financial crisis and looser central bank allowed the state-controlled lender to cut deposit rates. Sberbank’s pricing power means it it trades at a chunky 1.7 times book value. But fat margins may face a squeeze.
McCall’s next job: show ITV has a future 28 Feb 2018 The former easyJet boss’ first earnings at the broadcaster were depressingly familiar. The terrestrial TV business is shrinking, and its online audience is barely making any money. A lower payout may irk investors, but makes space for critical investment in digital advertising.
Poste Italiane tries to catch some Amazon sparkle 27 Feb 2018 The mailing incumbent is targeting a 60 pct EBIT jump to 1.8 bln euros by 2022. Its loss-making delivery business is a drag on the lucrative financial segment, but parcel shipments should rise as Italy catches up with a global e-commerce boom. If Amazon grows, Poste can follow.
European tech tax grab risks U.S. backlash 27 Feb 2018 The EU may tax groups like Google 5 pct of sales based on where users are located. It’s an unsubtle solution to a real problem. But after recent U.S. reforms intended to keep profit at home, the two are reaching for the same slice of pie. The danger is a harmful tax tit-for-tat.
Murdoch holds winning hand in Sky poker game 27 Feb 2018 Comcast’s $31 bln offer for the European pay-TV firm poses a dilemma for Disney’s Bob Iger. He can try to outbid Brian Roberts or reduce his price for Fox’s assets, excluding its Sky stake. Either way, Rupert Murdoch looks set to come out ahead as the seller in a seller’s market.
Comcast’s $31 bln Sky bid spoils Disney-Fox party 27 Feb 2018 The U.S. cable group is offering 12.50 pounds per share in cash for the UK broadcaster controlled by Rupert Murdoch. That complicates the mogul’s plan to sell his entertainment assets to Disney boss Bob Iger. Murdoch must enter a bidding war for Sky or re-think the broader deal.
StanChart shareholders pay Winters a compliment 27 Feb 2018 The Asia-focused lender rewarded investors by resuming dividends. Yet return on equity is still dire at just 1.7 pct. With shares near to tangible book value, investors must believe boss Bill Winters is on track to hit ambitious sales and return targets. That looks optimistic.
Provident Financial faces cleaner but leaner future 27 Feb 2018 The UK doorstep lender is raising 300 mln pounds to settle with regulators over complex loans, and fix its capital. The business that emerges should be better run but less profitable. Shareholders would have been better off with the lower-octane version to start with.
Hadas: Billy Graham’s great missed economic chance 26 Feb 2018 The evangelist, who died last week, lived through a global debate over the Christian responsibility to help society. He put preaching before activism. If he had spoken out – as many European Catholics did – America might have a stronger welfare system now, and less populism.
Corbyn turns soft Brexit into hard politics 26 Feb 2018 The Labour leader says Britain should stay in a customs union when it leaves the EU. Though his Brexit vision is fuzzy, it may appeal to voters and galvanise a parliamentary challenge to embattled Prime Minister Theresa May. UK political instability looks set to step up a gear.
Latvian bank failure raises 8 bln euro question 26 Feb 2018 That’s the amount foreigners have deposited in the Baltic nation’s lenders. Now ABLV, the third-largest bank, is being wound up following U.S. money-laundering charges. The cost to Latvian taxpayers is limited. Containing the fallout for the overall banking system will be harder.
Deutsche Bank IPO highlights capital conundrum 26 Feb 2018 The German lender may raise 2 bln euros by listing a 25 pct stake in its fund management arm, boosting already strong capital ratios. In normal times Deutsche could return some excess to shareholders. But volatile investment banking revenue means it cannot be too generous.
McKinsey’s next leader inherits a big project 26 Feb 2018 Kevin Sneader has been chosen to run the elite consultancy. He’s a traditional-looking candidate but a stint in Asia suggests growth markets are a priority. The challenge is to keep digital reinvention on track and avoid embarrassments like that recently suffered in South Africa.
Geely wheels Mercedes into its chop shop 26 Feb 2018 The Chinese carmaker's founder has bought a 10 pct stake in Daimler, parking it next to Volvo, Lotus, London cabs and Swedish trucks. It's another strange turn in Geely's route to global growth. This new $9 bln part will be hard to fuse onto what has otherwise been a sweet ride.
Standard Life Aberdeen sale exposes core problem 23 Feb 2018 The recently merged group sold its insurance business to Phoenix for 3.2 bln pounds. Though the price looks unexciting, the deal releases capital and leaves behind a pure fund manager. But as long as the group continues to lose assets, the benefits of scale remain unproven.
RBS is a step away from ending its lost decade 23 Feb 2018 The state-owned UK lender made its first after-tax profit in 10 years. A 4 pct rise in revenue and falling costs moves boss Ross McEwan closer to his return on tangible equity target. Settling U.S. charges over mortgage securities is the last hurdle to restarting dividends.
Viewsroom: Chipmaker battle fries M&A circuits 22 Feb 2018 Broadcom has lowered its hostile bid for Qualcomm after its target upped its longstanding offer for NXP. That decreases the chance the two larger rivals can strike a deal – assuming regulators wouldn’t nuke it. Plus: Credit Suisse shines a rare light on Asian investment banking.
CVC’s $5 bln Spanish gas punt is more than hot air 22 Feb 2018 The buyout shop is using its newly-raised 16 billion euro fund to buy Repsol’s 20 pct holding of Gas Natural. Acquiring minority stakes in listed utilities is not the stuff of private equity lore. But leverage and board seats could still deliver a respectable return.
“Angry Birds” belongs in a bigger gaming henhouse 22 Feb 2018 Finland’s Rovio, maker of the addictive mobile game, lost half its market value after saying 2018 revenue would be flat at best. That’s what happens when a company puts all its eggs in one basket. Like “Candy Crush” maker King, a sale to a larger player may be the logical finale.