ICOs validate old-school “follow the money” mantra 19 Oct 2017 One of the biggest so-called initial coin offerings to date, $230 mln for what are known as tezzies, has led to a spat between its architects and a Swiss foundation that controls the digital cash. Where crowd-funding and crypto-currencies meet IPOs, traditional motivations apply.
Unilever struggle gives hope to predators 19 Oct 2017 The consumer giant that fended off Kraft Heinz earlier this year reported weak third-quarter sales. Growth in developed markets is slow and consumers are fickle. CEO Paul Polman is sprucing up brands, but the more pedestrian Unilever’s performance, the more vulnerable it becomes.
Publicis pick-up the exception to ad land gloom 19 Oct 2017 The French group reported higher revenue, defying rivals WPP and Havas which binned growth targets this summer. That’s cold comfort for advertising bulls. Publicis seems to be taking a bigger share of a still-challenged market. Past underperformance makes it a poor barometer.
Rolet hands LSE successor a triple quandary 19 Oct 2017 The London Stock Exchange boss is going to exit once his replacement is found. The Frenchman expanded and diversified but failed to clinch a deal with Deutsche Boerse. His successor will inherit a company confronting big shifts in technology, capital markets and politics.
Danone’s chair-CEO blend leaves sour taste 18 Oct 2017 Boss Emmanuel Faber is taking on both roles three years after the yoghurt maker split them. Yet shareholders are increasingly unhappy with such poor corporate governance at French companies. And with an activist to contend with, the board’s decision looks complacent.
Spanish toll-road bid steamrollers Benettons 18 Oct 2017 ACS has made a 17 billion euro offer for infrastructure operator Abertis, using the balance sheet of its German unit Hochtief. The price is better than a rival bid from Atlantia, controlled by Italy’s Benetton family. It owes more to cheap debt than economic sense.
Revamped Reckitt has yet to clean up its act 18 Oct 2017 A restructuring is eclipsing the Dettol-to-Durex maker’s poor third quarter results. Parking brands that are more exposed to competition in a separate unit is smart but makes the company costlier to run. Nor does that address the sales problems caused by shifting consumer habits.
Private equity margarine bet needs activist backup 18 Oct 2017 Buyout firms may pay up to 7 billion euros for Unilever’s spreads unit. The new owners will need to stem falling sales as shoppers shun artificial produce. Acquiring other brands from food companies under pressure from uppity shareholders could be one way of boosting returns.
Mistimed writedowns lesser of mining M&A evils 18 Oct 2017 Rio Tinto has been accused by the SEC of hiding the plunging value of a coal mine it bought in 2011. The charges are serious, but at least accounting procedures are fairly clear. If only there were rules that could prevent mining bosses getting carried away during M&A upswings.
Heads or tails, Mark Carney loses 17 Oct 2017 British inflation has hit 3 percent, the highest level since 2012. No wonder the Bank of England chief is hinting policy rates may soon rise. Carney’s problem is that he will be criticised for hurting a slow-growing economy if he hikes and accused of inconsistency if he delays.
Credit Suisse breakup faces trading conundrum 17 Oct 2017 An activist investor wants to split the Swiss bank into three parts. On paper, the private banking and asset management units alone justify its $41 bln market value. But the ailing investment bank – including an estimated $250 bln of derivatives – would struggle to stand alone.
Vivendi can live with Italy’s “golden power” move 17 Oct 2017 Premier Paolo Gentiloni wants Telecom Italia to install state-backed directors and a special appointee to handle security matters. It’s a headache for top shareholder Vivendi. But government sentinels are preferable to being forced to spin off assets or accept state investment.
Pearson’s improved report card could be erased 17 Oct 2017 The education publisher issued a slightly more optimistic forecast for operating profit and said its U.S. textbook business is unlikely to repeat its catastrophic 2016. But Pearson has misread its key market before. The shift to digital publishing still looks painful.
Danone has to work to milk turnaround tale 17 Oct 2017 Strong third-quarter sales lifted the French yogurt maker’s shares to record highs. Rebounding Chinese demand will help make the most of a strong portfolio of brands. But cost cuts and making a success of its WhiteWave acquisition are key ingredients for an even richer valuation.
Blame for Deutsche Bank woe extends beyond CEO 16 Oct 2017 Reports of boardroom tension at the German bank are adding to unease among investors already rattled by a sliding share price. While boss John Cryan may be in the firing line, Chairman Paul Achleitner helped set the strategy. He shares some responsibility for the bank’s malaise.
China is third-best option for Saudi Aramco 16 Oct 2017 With its $2 trln public offering in the balance, the Saudi oil giant may bring in a Chinese investor. That would provide cash the state doesn’t urgently need. The other perks of an international IPO, like regional influence and financial discipline, aren’t to be found in Beijing.
Europe poorly placed for Austria’s rightward drift 16 Oct 2017 The far-right Freedom Party scored well in the country’s election and may enter government. It has been in power before. However, its presence could make Europe’s immigration problem harder to manage, and further integration harder to agree. Centrifugal forces have not gone away.
FirstRand makes punt on post-Brexit housing market 16 Oct 2017 The South African bank has offered 1.1 billion pounds for Britain’s Aldermore. Shares in the mortgage lender had slipped amid concerns about the slowing property market. At 8 times expected 2018 earnings, FirstRand could be getting a bargain – provided bad loans don’t shoot up.
Aramco IPO logic is going up in smoke 13 Oct 2017 With oil prices under pressure and OPEC potentially extending cuts, the Saudi oil company’s IPO always seemed a stretch. Aramco had yet to pick an exchange, and would have had to get its books into shape. With private capital abundant, there's little purpose to all the hand wringing.
EU banks can tolerate a watered-down capital rule 13 Oct 2017 Global regulators could soon agree on restricting lenders’ leeway to assess their assets’ riskiness. The so-called output floor may be higher than European lenders wanted at 72.5 pct, but the formula involved may prove easier. Less aggressive U.S. watchdogs will help them, too.