KPMG woes force South Africa to consider Big Three 18 Apr 2018 The audit firm’s future in the country is in doubt after it was sacked by the government – its biggest client – following the second scandal in under a year. Regulators have long worried about losing one of the Big Four global firms. South Africa provides a reluctant test case.
Hammerson’s M&A fumble leaves defences down 18 Apr 2018 The shopping centre operator ditched a 3.4 bln pound plan to buy rival Intu after shareholder pressure. The group will now sell assets and focus on posh malls, but the U-turn makes it vulnerable. The UK’s strict takeover rules give rejected suitor Klepierre a narrow way back.
Danone pasteurised debt gives novel way to go green 18 Apr 2018 Banks led by BNP Paribas will charge the French dairy group a lower margin on a 2 billion euro credit line if it hits social and environmental targets. Perversely, lenders would gain if Danone drags its feet. But shareholders now have a clear incentive to do the right thing.
French telco jigsaw missing key regulatory piece 17 Apr 2018 Bouygues could bid for Altice’s French business, Bloomberg reports, to end a painful price war. It’d make more sense than failed 2016 talks with state-owned Orange. But regulators may still prefer four less-profitable operators to three stronger groups with power to raise prices.
Intesa offers partial hope for Italy’s dud loans 17 Apr 2018 The Italian lender is nearing a deal with Swedish group Intrum to shed 10.8 bln euros of dodgy loans from its balance sheet. Domestic peers will be cheered by the price, which is higher than rivals have attained in similar transactions. Then again, Intesa is a better bank.
VW changes boss to better effect than Deutsche 13 Apr 2018 Both companies replaced their boss mid-term. The automaker also unveiled management changes to help reduce costs and is preparing its trucks business for a potential listing. Volkswagen’s messy governance endures, but unlike Deutsche, its strategy has a better chance of success.
Hammerson has walked away from wrong deal 13 Apr 2018 The mall operator’s aversion to Klepierre’s 5 billion pound offer has driven away the suitor. The UK company is now free to pursue the takeover of a smaller rival in its home market. But the drawbacks of the plan and its clumsy defence risk irking investors.
Sage has a big software glitch to fix 13 Apr 2018 Shares in the UK tech group lost a fifth of their value after 2018 sales guidance was cut by an eighth. A U.S. acquisition is growing well. But fewer customers are signing up for the most lucrative contracts. Investors are right to worry the company is still too optimistic.
Cerberus Alitalia carve-up would not fly with Rome 11 Apr 2018 The private equity firm is reported to be plotting a three-headed bid for the Italian airline. It would see easyJet take short-haul routes and Air France-KLM long ones, while Cerberus puts up the cash. But a breakup plan will not pass muster with a new nationalist government.
Busting EU sport cartel lines already fat pockets 11 Apr 2018 Antitrust authorities raided groups including Fox in a TV-sports cartel probe. Usually, such moves help consumers. But if the cartel had helped hold down inflated media rights, the main beneficiaries from its end would be already loaded teams and athletes.
Trump trade war risks European carmaker backfire 10 Apr 2018 BMW and Daimler sell a surprising number of American-made vehicles in China. Were the U.S. president’s tariff-war rhetoric to become reality, carmakers could shrink stateside production. If Trump wants to keep rather than lose jobs, he should seize Beijing’s latest olive branch.
New VW boss would only part-solve its problems 10 Apr 2018 The German carmaker may replace CEO Matthias Mueller after just two-and-a-half years. Probable successor Herbert Diess brings a welcome outside perspective having only joined 2015. His difficulty will be getting the conservative board’s approval for radical moves like spinoffs.
Swiss treasure helps AXA pay for XL folly 10 Apr 2018 The French insurer is restructuring its Swiss life insurance business, freeing up $2.6 bln of capital. The move provides some extra funding for its $15 bln takeover of Bermuda reinsurer XL. Reduced financial risk is welcome, but doesn’t help justify what remains a pricey deal.
Dutch lawmakers give Ahold backup in activist spat 10 Apr 2018 Activist CIAM wants the supermarket to scrap its foundation that can be used to block takeovers. But with the Netherlands eyeing new laws to stymie hostile bidders, companies may not need these arcane tools much longer. Shareholders will suffer either way.
Aston Martin can race Ferrari in IPO test 9 Apr 2018 James Bond’s carmaker is eyeing a listing six years after an emergency pit stop. Rich margins and racy growth make it a close match for the prancing horse, justifying a $7bln valuation, and sixfold return for rescuer Andrea Bonomi. But Ferrari’s scarcity premium could be dented.
Rail strikes will test French appetite for Europe 9 Apr 2018 President Emmanuel Macron’s plans to overhaul the state-run train company have sparked mass walkouts. He’s not the only one with much to lose. If voters turn against rail reforms, they may also blame EU laws that are forcing the pace of change and grow more critical of Brussels.
Italy’s TIM grab gives investors two messy options 5 Apr 2018 State investor CDP may buy 5 pct of Telecom Italia. If it sides with Elliott, the activist fund could take control from top shareholder Vivendi. The French group’s oversight of TIM has been dysfunctional. But protectionism coupled with complex ownership is also unappealing.
Leaving Intu at till is first step for Hammerson 5 Apr 2018 The UK shopping centre owner is waiting to see whether rival Klépierre makes a formal bid before it commits to buying smaller Intu Properties. Shareholders have already turned down their thumbs at the Intu deal. A sweeter offer from the French group would be a better outcome.
Hadas: Populist economics can be sensible 28 Mar 2018 U.S. President Donald Trump, Italy’s 5-Star Movement and other modern populists are floundering with outdated or bad economic plans. They would do more to help those left behind by globalisation if they used higher taxes to create better jobs and strengthen welfare security nets.
Unilever-FTSE standoff is test of index power 28 Mar 2018 The benchmark compiler must decide whether to keep the Marmite maker in the FTSE 100 after it opted for a Dutch head office. Recent tax changes and activist pressure may prompt similar rejigs at heavyweights Shell and BHP. The index may have to bend its rules to retain its clout.