Atos’ brassy Gemalto bid promises thin cashback 12 Dec 2017 The French group wants to buy the digital-security firm for $5 bln. Gemalto’s shares had fallen 41 pct this year after profit warnings. Its units that make chips for bank cards and phones are struggling, and even generous cost savings would give Atos a mediocre return.
Zurich Insurance gets a fair dinkum deal from ANZ 12 Dec 2017 The Swiss insurer is buying the Australian bank’s life insurance businesses for $2.1 bln, giving it a big distribution network and positioning it as the largest operator in retail life insurance Down Under. The reasonable price rewards Zurich for helping ANZ streamline.
Bitcoin futures set scene for more gambling 11 Dec 2017 The 20 pct surge on new CBOE cash-settled contracts is sedate by crypto-currency standards. There’s still cause for concern. Rather than being a useful hedge, futures make it easier to trade bitcoin without actually owning it. For now they have little utility beyond speculation.
U.S. hands HSBC CEO perfect going-away gift 11 Dec 2017 The end of a five-year agreement over money-laundering lapses removes the threat of authorities yanking the bank’s U.S. licence. HSBC devoted 8 pct of its operating expenses to compliance last year. Though those costs will stay, departing boss Stuart Gulliver can leave on a high.
Steinhoff is priced for unvarnished truth 11 Dec 2017 An accounting scandal and debt downgrade has cast doubt over the furniture maker’s future. Retail assets and investments should comfortably cover net debt of 6.5 billion euros. With shares down 80 percent in less than a week, however, investors are anticipating more bad news.
Bank of England transfer defies financial gravity 11 Dec 2017 Britain’s opposition Labour party says it may move parts of the central bank to Birmingham. That may appeal to voters, but both the BBC and HSBC have found relocating expensive and difficult. The idea also ignores the reasons London’s financial centre exerts such a strong pull.
The Exchange: Marcus Ruiz Evans 8 Dec 2017 The president of Yes California leads a campaign arguing that the Golden State should become an independent country – an idea increasingly referred to as Calexit. He explains why secession would be good for the state’s economy and how he’ll get the rest of the nation to buy in.
Britain heads for Brexit in name only 8 Dec 2017 Theresa May’s deal with the European Union averts a chaotic divorce for now. But a fudge about the Irish border exposes the difficulty of preserving trade while leaving the bloc. A transition phase will create scope for May - or another prime minister - to make new concessions.
BASF’s odd oil deal may create a valuable compound 8 Dec 2017 The 87 bln euro German chemicals firm agreed to merge its oil unit with Russian billionaire Mikhail Fridman’s DEA. It’s a complex transaction, with a messy structure. Yet pooling the business will create savings and may eventually help BASF shed its huge conglomerate discount.
Leonardo is a masterpiece of Saudi contradictions 7 Dec 2017 Crown Prince Mohammed bought the $450 mln “Salvator Mundi,” a report says. The heir to an absolute monarchy professes to be a reformer and corruption fighter, yet is spending with unseen extravagance. That may not go down well at home, or with potential investors in Aramco.
New bank rules are kind without being weak 7 Dec 2017 Big lenders will need a trifling 27.6 billion euros of fresh equity capital under new Basel regulation. Rules on the use of internal models are no worse than feared, and kick in slowly. This is hardly draconian – but that’s because banks have already done much of what was needed.
Bitcoin looks like speeded-up unicorn hype 7 Dec 2017 A sheen of futurism, fear of missing out, a lack of fundamental value, and an inability of big backers to sell without crashing the market are factors pumping up the digital currency’s price. It’s like accelerated startup funding rounds. The danger is a Theranos-like bloodbath.
Orange can squeeze out a higher valuation 7 Dec 2017 The telco’s share price has been held back by high investment, price wars, and the French state’s holding. But the company is ahead of rivals in laying fibre broadband and can pay bigger dividends. That will narrow the 16 percent discount at which it trades to European peers.
GVC plays regulatory roulette with Ladbrokes bid 7 Dec 2017 The Foxy Bingo owner is offering up to 3.9 bln pounds for the UK bookie. That’s despite a government review that may hurt Ladbrokes’ gaming-machine business. Moving quickly makes sense for GVC, and natty financial structuring will improve its odds. The bet could still backfire.
Whitbread can give activist a hospitable welcome 7 Dec 2017 Jitters about UK consumer spending have pushed the Costa Coffee and Premier Inn owner’s valuation to a 10-year low. U.S. fund Sachem Head, which has taken a 3.4 pct stake, sees upside. Selling property or spinning off the coffee unit are among a menu of value-creating options.
UK gender pay data needs rigorous audit 7 Dec 2017 Some British companies have suspiciously reported no gap between the pay of male and female employees, the Financial Times found. The government thought transparency would help close the divide. To be credible, though, the data must be audited – and offenders punished.
France and Germany look too alike to bond market 6 Dec 2017 The gap between French and German bond yields this week hit its lowest since 2009. Plans to revamp the way the euro zone works may spur investors to overlook differences between countries’ public finances. But a lack of discrimination is premature, and stores up fresh problems.
Steinhoff meltdown shows market fallibility 6 Dec 2017 The furniture retailer shed more than half its market value after a probe was launched into accounting irregularities and its CEO stepped down. Investors who had ignored red flags such as a 2015 investigation and oddly low tax rates are paying the price of being too trusting.
Hammerson finds cheeky cure for retail sickness 6 Dec 2017 The UK shopping centre landlord is buying smaller rival Intu for 3.4 billion pounds. The deal offers scale at a time when rents are under pressure from internet shopping and consumer demand. Intu’s lowly valuation also helps. Given the sector’s challenges, more deals are likely.
Elliott’s usual playbook is unsuited to Uniper 6 Dec 2017 Paul Singer’s activist fund has a 5.3 percent stake in the German energy group that is being targeted by Finland’s Fortum. Unusually, the buyer may be willing to live with less than full ownership for a while. That could reduce the scope for Elliott to hold the bidder to ransom.