Sberbank’s homeward pivot is a no-brainer 30 Jan 2018 The Russian bank is in talks to offload its majority stake in Denizbank. Sanctions had already taken the shine off Sberbank’s expansion abroad. But selling the Turkish lender at its $3.2 bln book value would bolster capital and help it become even more dominant in Russia.
Thomson Reuters deal puts financial over risk 30 Jan 2018 The Canadian group is in talks to sell 55 pct of its data and analytics business to Blackstone at a $20 bln valuation, including debt. That implies a market discount for the remaining legal and tax arms. Carving up the company may end a run of lagging peers’ stock performance.
Philips still waiting for valuation health-check 30 Jan 2018 The Dutch group has shed its consumer electronics legacy and now earns almost all its income from health technology. Low profitability means CEO Frans van Houten has yet to be rewarded with a valuation worthy of the sector. Full-year results for 2017 at least show he’s on track.
Brexit leak nudges UK towards softer withdrawal 30 Jan 2018 State papers reportedly show the country will lose in every scenario after it leaves the EU. That will inflame tensions within the Conservative Party and government. Sadly for anti-Brexiteers, the upshot is more likely a less abrupt schism than a scrapping of the entire process.
Sanofi’s M&A bloodlust comes at a high price 29 Jan 2018 The French group is buying blood disorder biotech Ablynx for 3.9 bln euros. That’s 50 pct more than rival Novo Nordisk bid, including protections against drug flops. Combined with last week’s $11.6 bln purchase of a haemophilia group, Sanofi’s new acquisitiveness lacks caution.
Italo valuation underpinned by racy growth 29 Jan 2018 Europe’s first private fast-train operator will list next month. The track Italo runs on is owned by Italy’s incumbent rail group, a competitor, and a 1.7 bln euro valuation assumes rapid growth. But low-cost efficiency and EU train liberalization provide a rationale.
Beware the Davos bubble’s dubious emissions 29 Jan 2018 Each January, the Swiss mountain gathering provides a snapshot of elite thinking. Often it proves to be wide of the mark. This year the global economy, Italy’s election, the importance of crypto-currencies and Saudi reform produced what may be the surest examples of groupthink.
MbS gains either way from Saudi anti-graft endgame 29 Jan 2018 Prince Alwaleed is free after months of detention. If the billionaire and fellow freed royals have paid up to leave the Ritz-Carlton/jail, it will help Crown Prince Mohammed bin Salman repair his Kingdom’s finances. Even if he has paid nothing, the power play has served a purpose.
Blackstone takes calculated risk on Nordic oil 26 Jan 2018 The private equity giant is backing a $1 bln venture to buy fields in Norway. Unpredictable demand for the black stuff means it’s a risky bet. But Blackstone is no stranger to the North Sea, and there’s logic in picking up profitable assets discarded by capital-hungry oil groups.
Trump reworks “America First” for the global elite 26 Jan 2018 For the finale of the World Economic Forum, the U.S. president laid out in unexpectedly statesmanlike fashion how favouring the interests of his citizens could benefit the rest of the world. The demand for reciprocity remains, but the inclusive-sounding vision is an improvement.
Hohn’s LSE/U.S. mashup is tantalising but tricky 26 Jan 2018 After a failed boardroom coup, hedgie Chris Hohn reckons the $20 bln London Stock Exchange could be bought by a U.S. rival, according to Sky. A deal with, say, ICE, would create savings and scale in derivatives clearing. But the latter could prompt the UK government to object.
Italy’s flat-tax talk rests on shaky ground 26 Jan 2018 Silvio Berlusconi and his centre-right allies want to replace progressive income taxation with a flat levy. Italy’s fiscal code needs a revamp: it’s unjust and complex. But the idea won’t fly without budget cuts. A serious pledge to fight tax cheats is also missing from the debate.
Viewsroom: Trump solar tax is more burn than balm 25 Jan 2018 The U.S. president seems to be trying to right past trade wrongs. But business has long since moved on, meaning tariffs on washing machines and solar panels will do more harm than good. Also, Merkel and Modi disappoint in snow-ravaged Davos. Plus: Spotify’s Wall Street snub.
Mario Draghi is ill-equipped for currency wars 25 Jan 2018 The European Central Bank chief took a potshot at the United States for flouting an international agreement not to manipulate currencies. The rate-setter has limited policy room to resist a strong euro. European politicians who take up the cudgels risk escalating the fight.
Xi Jinping wannabes flub their lines at Davos 25 Jan 2018 Leaders including Emmanuel Macron of France and Germany’s Angela Merkel predictably spoke up for global cooperation ahead of Donald Trump’s finale. Unlike the Chinese president last year, however, their rhetoric fell flat. Competition for investment further muddles the message.
Fiat Chrysler powers ahead in carmaker wacky races 25 Jan 2018 Its shares are the industry's best performer of the past year, and its multiple leaves sleeker rivals for dust. Yet earnings are only so-so. Investors may be expecting a sale, or only clocking short-term results. It's a tricky lead for CEO Sergio Marchionne's successor to defend.
Rupert Murdoch’s next foe: Sky hedge fund holdouts 25 Jan 2018 The tycoon’s Fox looks set to deflect regulators’ objections to his bid for UK TV group Sky. But hedge funds could block the deal. The deep pockets of Disney, soon to own Fox, and the hope that cheaper soccer rights will boost Sky’s profit may stir them to seek a higher price.
City’s #MeToo moment is tipping point and catalyst 25 Jan 2018 The charity behind a men-only London dinner where female hostesses were groped has closed down. The scale of justified public censure means such events have no future. But the furore may also give new impetus to appoint more women to boards and redress gender pay inequality.
Activists beat bearable retreat in Clariant feud 25 Jan 2018 White Tale has surprisingly sold its stake in the Swiss chemical maker to SABIC. That may be a recognition its bid to shake up the group would fail. Exiting now may leave some money on the table, but the hedge fund consortium has probably made a decent return.
Romer exit flags World Bank’s human capital limits 25 Jan 2018 The academic known for his work on economic growth is leaving the bank after just 15 months. The attempt to shake up a staid institution fits his theories’ emphasis on new ideas. But his brash manner shows how organisations can be less than the sum of their inputs.