Bayer’s modest bump puts target Monsanto on spot 14 Jul 2016 The German chemical giant raised its offer for the American seed purveyor to $64 bln, including debt. It's a token $2 bln increase from Bayer's initial bid. That should scotch hopes that Bayer will go a lot higher. For Monsanto boss Hugh Grant, decision time is fast approaching.
Monsanto-BASF talks smell like a red herring 14 Jul 2016 The besieged U.S. seedmaker is reportedly in talks about buying the German group's agrochemicals unit. A deal could see off Bayer's $62 bln bid for Monsanto. Persuading BASF to sell will be tricky. Still, the gambit might be a way of forcing Bayer to sweeten its offer.
Deutsche Boerse has case for go-slow on LSE merger 14 Jul 2016 Almost all the UK exchange group's shareholders voted in favour of merging with its German rival. Index funds are slowing Deutsche Boerse's process. Still, local takeover regulations and post-Brexit difficulties in selling the deal mean it's in DB's interests to take its time.
Positive earnings surprise marks peak Daimler 12 Jul 2016 The German carmaker performed much better in the second quarter than analysts had expected, beating operating profit forecasts by more than 5 percent. Unfortunately, it could be Daimler’s last good news for a while. A Brexit-related slump will dent car sales in Europe.
Workers on boards only small step in UK governance 11 Jul 2016 Theresa May, perhaps Britain's next prime minister, wants employees among company directors. Germany's 40-year-old union-heavy "Mitbestimmung" model - which goes further than the UK would - hasn't been the disaster predicted by industry, but it also has its downsides.
ECB takes off hair shirt; puts on kid gloves 8 Jul 2016 The euro zone central bank's vice-president hinted that restrictive Brussels state aid rules get in the way of sorting out banks. Even if that reflects reality, it jars with the ECB's mission. Wavering over state aid makes the laudable goal of banking union harder to achieve.
China’s M&A spree will face growing backlash 5 Jul 2016 German politicians are the latest to get jittery about a Chinese takeover bid. In the absence of global foreign investment rules, countries can block deals they don't like. China's reluctance to open its markets means surging cross-border acquisitions will spark more resistance.
Stress-test failures a warning for European banks 29 Jun 2016 Deutsche and Santander again botched the Fed's exams. It's embarrassing, though more surprising for the German lender. The problem for Europe's financial giants is they have to set up U.S. holding companies by July 1 – bringing more of them into a process as alien as baseball.
Monsanto’s bid defense withers on the vine 29 Jun 2016 The U.S. seedmaker’s disappointing third-quarter performance makes it hard to see how Monsanto can lure chemical group Bayer into sweetening an already frothy $62 bln offer. The suitor may be willing to look past a cyclical dip, but its negotiating position now looks stronger.
Adidas enlists House Kardashian in siege of Nike 29 Jun 2016 The German sportswear maker signed up hip-hop superstar Kanye West in a partnership just after Nike announced weak quarterly results. Adidas still lags its swoosh-logoed rival in market share and profitability. Adding Mr. Kim Kardashian to its ranks may help close the gap.
Hadas: Britain picks the wrong time to play games 29 Jun 2016 After the vote to leave the EU, politicians on both sides have taken pride in abdicating their responsibility. It comes not from respect for democracy, but for another British tradition: treating things as a game. Young people lost this round, but may even the score in future.
Credit Suisse beats Deutsche despite rotten year 29 Jun 2016 The banks' stocks are down 50 pct since they switched leaders last July. Deutsche boss John Cryan had the harder task. But while Credit Suisse's Tidjane Thiam botched an investment bank revamp, geographic and business mix suggests he's more likely to restore shareholder value.
Kuka shows bargaining power of China’s M&A targets 29 Jun 2016 Foreign companies with prized technology can demand much more than a fat premium from Chinese bidders. That is the message from Midea's extensive binding agreement to keep the robotics maker's headquarters, factories and jobs in Germany for the next seven and a half years.
America’s top cops can still take a bite out of VW 28 Jun 2016 The German carmaker will pay a record $15 bln for its emissions scandal. It’s a lot of money but in line with regulatory tallies. But a criminal case is still pending that offers to test the Department of Justice’s pledge to better hold individuals liable for company misconduct.
After Dieselgate, VW faces new big bad 28 Jun 2016 A $15 bln settlement with U.S. regulators all but buries the German carmaker’s emissions fraud. Now for the next crisis: falling sales. Since Britain plunged Europe into uncertainty, markets have priced in a 13 pct drop in 2017 earnings. That calls for zealous cost-cutting.
Brexit fails to deter Henkel’s lust for detergent 24 Jun 2016 Amid the worst market meltdown in ages, the German consumer goods giant is forking out $3.6 bln for U.S. home-care rival Sun Products. The price is rich and the timing bold. But at least today Henkel looks smart to lower its European exposure and transform its position in America.
How Europe can contain damage from Brexit 24 Jun 2016 There are two ways for the EU to avoid copycat referendums. One is to doggedly insist that free movement and free trade are inseparable. The other is to flex that ideal. Doing so could neutralise populism and avoid a breakup of the euro zone.
EU rethink of bank debt better late than never 22 Jun 2016 The European Commission wants to harmonise rules for bank bail-inable debt. The current patchwork of different national regimes is confusing and impedes resolution. A single model would be simplest, but could limit flexibility. At the very least more standardisation is desirable.
LSE-Deutsche Boerse hangs over Brexit precipice 22 Jun 2016 UK equities could crash if Britons vote to leave the European Union. Among other things, this could upend the carefully composed share split in the British and German exchanges’ merger. For Frankfurters carping at where the new company would be based, it could be the final straw.
VW’s poor governance back on the spot 22 Jun 2016 Germany’s financial watchdog wants a probe into whether the carmaker’s former management manipulated the market. The legal bar for a conviction is high. But it adds to the pressure on chairman and former finance chief Hans Dieter Poetsch. VW really needs an outsider at the top.