William Hill three-way merger would be big gamble 25 Jul 2016 The $3.6 bln bookmaker is being courted by rival 888 and casino operator Rank. While the suitors could benefit from greater scale, William Hill has less to gain even though it has sacked its boss after poor online showings. Integration risk warrants a hefty, all-cash premium.
UK slaps capitalism in its “unacceptable” face 25 Jul 2016 Lawmakers angry at retailer BHS's collapse are mulling further regulation to protect jobs and pensions. The fiasco epitomises what Prime Minister Theresa May decries as "anything goes" business. It takes UK corporate life into interesting - and potentially painful - moral areas.
LVMH hints at timely wardrobe edit 25 Jul 2016 Selling Donna Karan to U.S. fashion company G-III for $650 million is a rare fashion cast-off for the French luxury group. More underperforming brands may be sold as global sales of designer goods slow. That presents opportunities for smaller but ambitious luxury players.
Carlyle’s dentist bond is full of cavities 25 Jul 2016 The private equity firm's bond for a British dentist chain sets new precedent in loose debt covenants. The UK vote to leave the EU has not tamed investors' animal spirits. With central banks promising ever looser policy, it's easy for issuers to extract generous terms.
Chancellor: Inequality breeds outbreak of populism 23 Jul 2016 The rich have enjoyed most of the fruits of globalisation, just as they did in 19th-century America. Unless politicians can enact benign policies to rectify the widening gap between the have-somes and have-lots, more unpleasant alternatives will loom on the horizon.
Burst of UK takeovers may be a false signal 22 Jul 2016 Bids for British companies like ARM and Odeon have sent acquisition volumes surging in the weeks since the EU referendum. The weak pound is a factor, but these overtures were planned well in advance. Current executive gloominess implies dealmaking activity could soon dry up.
Sports Direct scandal debunks UK employment glory 22 Jul 2016 UK lawmakers have issued a damning report on the retailer and say working conditions hark back to Victorian times. Founder Mike Ashley has big problems to fix. But there’s a wider economic malaise if workers put up with such poor treatment even when the jobless rate is very low.
Portugal’s three bad B’s: banks, budget, Brexit 22 Jul 2016 Lisbon’s banks are saddled with bad loans, and need capital. The government is caught between Brussels’ fiscal rules and a weak coalition. And the UK vote to leave the EU may hurt already grim growth. The three B’s may imperil Portugal’s BBB rating, and blow up its bond yields.
UK’s currency pounding cracks door wider for yuan 22 Jul 2016 Chinese state media have griped that last month's Brexit vote hobbles London's ability to help internationalize the yuan. But there are pluses, too. For one thing, the sterling selloff has made the free-floating democratic pound look a lot less safe next to the steadier renminbi.
Mega beer merger develops case of the shakes 21 Jul 2016 An offer of 71 billion pounds that SABMiller accepted from AB InBev in November no longer looks generous - and not just because sterling has plunged. SAB’s board still has time to push for a better deal, or at least get a second opinion.
FX market haunted by past bad behaviour 21 Jul 2016 A senior HSBC manager has been arrested for trading ahead of a big order in 2011. U.S. prosecutors’ case evokes the disregard for clients and flawed incentives that were the hallmark of past market-rigging cases. It compounds pressure on the FX market to show it has changed.
EasyJet is post-Brexit bet for the brave 21 Jul 2016 The UK airline says it doesn’t know what security scares, currency turmoil and Britain’s exit from Europe will do to earnings. The shares have fallen around 30 pct in less than a month. Yet in past downturns easyJet has snatched market share. There’s no reason it can’t again.
UK grocers pedal themselves down bumpy path 20 Jul 2016 Sainsbury's is trialling a one-hour bike-delivery service in London. A third of Britons have access to Amazon Prime Now, putting pressure on grocers to match it on speed. But with retailers struggling to make money online, being sucked into a delivery war won't help profit.
Unilever’s razor-club buy is a sharp move 20 Jul 2016 The consumer-goods giant may be paying $1 bln for Dollar Shave Club. At five times sales, that's a fair price if Unilever grows the business well. Owning a scrappy startup that has already blunted the market for pricey razors at rival Procter & Gamble's expense doubles the edge.
VW profit rebound may run out of gas 20 Jul 2016 While the emission scandal's costs are rising, Volkswagen has beaten second quarter operating profit forecasts by a mile. Successful cost cutting and rising sales point to inherent strengths. Yet a new risk looms: a possible slump in car demand due to the shock of Brexit.
UK economy tiptoes down predictably gloomy path 20 Jul 2016 A new Bank of England report hints at rising prices, risks to investment and delayed hiring plans since Britain voted to leave the EU. Even more worrying, there are reports that demand for loans is easing. This medley of problems wasn't hard to forecast, but is hard to fix.
ASML could be cousin to ARM in next tech wave 20 Jul 2016 Like the UK chip-designer Japan's SoftBank has agreed to buy, ASML is a niche but dominant player. Its tools make chips smaller and punchier. ASML would be harder to take over than ARM, but if big data and the internet of things merit the hype, it's in a good position to cash in.
Pimco’s new boss adds welcome pep 20 Jul 2016 Emmanuel Roman's contribution as head of Man Group was to make decent acquisitions and be a prominent figurehead. That should suit his new employer. There are deals to be done in asset management, and Pimco never quite filled holes left by Bill Gross and Mohamed El-Erian.
Hadas: The realist’s approach to Brexit 20 Jul 2016 It's easy to think of things Britain might want to keep if it leaves the European Union. But an alternative approach is to work out what aspects it most wants to cast off. That leads to a difficult conclusion: what the UK really wants is what it already has.
Slovenian twist puts Italy on straight and narrow 19 Jul 2016 Europe’s top court said Ljubljana was right to hit creditors when recapitalising banks. That’s unhelpful for Italian premier Matteo Renzi, who has banks to rescue but doesn’t want to punish their bondholders. He may have to play it straight, which would be no bad thing.