Oil markets too calm over Qatar ultimatum 23 Jun 2017 Doha’s Gulf neighbours have imposed a 10-day deadline to comply with demands including reparations, closing Al Jazeera and regular inspections. Markets have assumed the standoff won’t turn violent and impact oil supply from the region. That assumption is looking less secure.
Bolloré clan’s deal sums don’t add up 23 Jun 2017 Vincent Bolloré’s Vivendi is buying ad group Havas, run by his son Yannick. The younger Bolloré says it may create at least 390 mln euros of value, justifying the premium. That’s dubious: the premium is arguably bigger than he claims, and the return on investment still looks low.
Italy’s broadband farce risks state overreach 23 Jun 2017 Ministers are threatening to punish Telecom Italia for building broadband in poor areas. The snag is that it is competing with government-linked rival Enel. Telecom Italia’s French ownership also adds complexity. Whatever the motive, attacking private investment is a risky move.
IPO puts Altice USA’s best program behind it 22 Jun 2017 Bankers directed a flawless show for the public offering of the Dutch-based cable-TV company’s American business. Altice USA now trades at a higher multiple than Charter and Comcast yet has more onerous debt and no clear path to expand. Shareholders may want to change channels.
Qatar’s American Airlines ticket not just politics 22 Jun 2017 Buying a stake in the carrier has all the hallmarks of a politically motivated deal. Flexing its financial muscles in the United States sends a defiant message to its enemies circling in the Gulf. But American Airlines also offers commercial value on top of diplomatic leverage.
Cox: Milan is dark horse in post-Brexit bank race 22 Jun 2017 The city that taught London about lending lags Paris and Frankfurt in pitching its appeal as a financial center. Fashionable lateness is a Lombard charm. So are fine universities, clever financiers, tax incentives, a strong work ethic – and easy access to beaches and mountains.
Saudi Aramco IPO is exercise in reverse valuation 22 Jun 2017 The oil producer is worth $2 trillion, say its owners. The question might not be whether that valuation is right, but what Aramco’s owners and bankers will have to do to get it. A Breakingviews calculator suggests this will be a stretch of reason.
Harley-Davidson’s Italian drive could prove pricey 22 Jun 2017 The U.S. motorcycle maker might pay up to 1.5 bln euros for rival Ducati, Reuters reported. The racy Italian brand would bring younger riders and more international customers. But unless Harley can rev up Ducati’s lacklustre earnings any deal would be financially corrosive.
Diageo deal has pension chaser for George Clooney 21 Jun 2017 The drinks giant will pay up to $1 bln for a tequila brand founded by the actor and two buddies. Casamigos is a fast-growing firm ripe for international expansion. The worm in the bottle is that Clooney has to promote the tipple until he turns 66 to collect the full check.
Theresa May’s plan still has hard Brexit core 21 Jun 2017 The quest for a parliamentary majority has forced Britain’s prime minister to curb her ambition. Planned reforms to pensions, schools and company pay have been shoved aside. Support for her Brexit-heavy agenda is uncertain, though. The government’s future remains in the balance.
Hadas: The constant challenge of deep-set problems 21 Jun 2017 The deadly fire in London’s Grenfell Tower has exposed the UK’s deeply flawed approach to housing. But serious policy flaws aren’t exclusively British. Americans fail in healthcare and Greeks won’t pay taxes. The only cure is a values revolution.
As Saudi’s new crown prince rises, so could oil 21 Jun 2017 Mohammed bin Salman has replaced his cousin as heir. That gives him a firmer hand to push through economic reform, but maybe less incentive to do so. Where he is likely to make a bigger mark is in squabbles with Gulf neighbours and taking firmer action over a low oil price.
Economics rather than ethics will harm big tobacco 21 Jun 2017 Aviva is the latest investor to quit cigarette stocks. The sector has yet to suffer any material harm. Nor does it lack capital. Yet there are good reasons to be nervous: growing regulatory risk and competition from electronic alternatives make current valuations unsustainable.
Lab deal tests positive for overexcitement 20 Jun 2017 A wave of consolidation and buyouts among drug outsourcers generated plenty of bids for latest target Parexel. The prospect for cost cuts ought to have given rival companies the upper hand. Yet private-equity shop Pamplona won by offering $4.5 bln, suggesting it paid too much.
RWE can sparkle with a dirty energy merger 20 Jun 2017 The German utility risks turning into a mere holding company after spinning off clean power unit Innogy. It can avoid this fate by bulking up on coal and gas. An 8.4 billion euro bid for rival Uniper would create value even before synergies and fire up the group’s revival.
Barclays fraud case serves justice lukewarm 20 Jun 2017 Britain’s graft watchdog charged the lender and four former executives over its 2008 Qatari capital raising. It’s significant as the first set of charges brought against a major UK bank for crisis-era activity. But in the intervening decade Barclays, and the world, have moved on.
Orange has grounds to lose confidence in BT 20 Jun 2017 The French telecoms company is cutting its stake in the British firm. That is a wise move. BT, whose shares have fallen nearly 40 percent in two years, is at the mercy of regulators and faces increasingly high costs as it battles to keep up with rivals such as Sky.
Food IPO to deliver Rocket Internet relaunch 19 Jun 2017 Germany’s struggling tech investor is on the cusp of its first startup listing. The cash that it will pocket if fast-growing food logistics group Delivery Hero meets its aim of raising $1 billion will come in handy. The morale boost from a successful exit is even more important.
Co-op Bank rescue requires a fair wind 19 Jun 2017 The hedge funds who own the ethical UK lender’s debt and shares are in a good position to drive a tough bargain. If they could agree to buy the bank for a little less than the 750 mln pounds Co-op says it needs, their investment could pay off. But the numbers are finely balanced.
Italy tests EU’s bank bail-in regime to the limit 19 Jun 2017 European regulators will block Rome’s plan to rescue two small lenders, according to a report. A scheme to save Monte dei Paschi has also run into trouble. Spain’s example of winding down failing banks is hard to follow. The government may yet have to help in any solution.