Viewsroom: Disney, Comcast go from zero to berserk 21 Jun 2018 The Magic Kingdom and the cable company are driving up the price for parts of Twenty-First Century Fox in a global M&A battle that throws financial logic out the window. But does it make sense strategically? Plus: India’s cricket league takes a few pages from the NFL playbook.
India will test Xiaomi’s two-pronged strategy 21 Jun 2018 The Chinese maker of affordable phones has scaled down its IPO with plans now to raise $6 bln. Much of the valuation hangs on internet services, which Xiaomi is starting to roll out in its top overseas market. Rivals in India are plentiful, though, and hungrier for content.
Air India sale could take off again 20 Jun 2018 New Delhi has shelved the disposal of the indebted national carrier after failing to attract bidders. It’s a bad time to push privatisation, with a general election looming. If Premier Narendra Modi wins the poll, though, the p-word could still be his big reform set piece.
Bank exits leave India lacking female role models 19 Jun 2018 The boss of $30 bln ICICI Bank is on leave pending a misconduct inquiry. If she departs, the sector will lose its third female CEO in just months. That is an unhelpful coincidence in a country where far too few women work, creating a dire shortage of senior figures to emulate.
India’s taxi-app war enters China territory 15 Jun 2018 Local operator Ola lost over $700 mln in the year to March 2017 despite growing revenue 70 pct. That’s nearly as much as Uber was burning when it was battling China’s Didi. The U.S. company’s commitment to India suggests losses will keep piling up for both SoftBank-backed firms.
ThyssenKrupp can forge better steel deal with Tata 14 Jun 2018 The German group has outperformed its Indian rival since they agreed a European steel joint venture last year, and now produces more than twice as much EBITDA. Tata could pay cash or give up dividends to close the gap. Walking away from the hefty synergies would be too painful.
India Insight: IPL bats for global sports crown 11 Jun 2018 More people may have tuned in for the final of the 11th season of the Indian cricket league than the NFL’s Super Bowl. Salaries are starting to rival English soccer’s Premier League, and advertising dollars are rising fast too. It’s a stunning Indian growth story with room to run.
India’s central bank finds comfort in the crowd 6 Jun 2018 A 25 basis point hike in the main rate comes as the rupee is one of the worst performing regional currencies this year. By acting now, the Reserve Bank of India ensures it doesn’t look like a laggard. But higher rates and oil prices mean the recent growth spurt may soon wane.
Indian growth spurt could prove fleeting 31 May 2018 The economy outpaced China by growing 7.7 pct in the three months to March. The fastest annual rate of growth since New Delhi scrapped high-value bank notes in 2016 is unlikely to last. Higher oil prices are bad for the current account. And more inflation will force a rate hike.
Vedanta’s tin ear is a problem for shareholders 30 May 2018 After deadly protests forced the closure of a plant, Chairman Anil Agarwal is blaming a foreign conspiracy. That is no way to reassure rattled investors in the Indian miner, especially given Vedanta’s controversial history. At least a new incoming CEO can set a better tone.
Oil rally puts New Delhi in a bind 29 May 2018 As a major energy importer, India is in a tight spot. Taxes introduced when crude was cheap are now squeezing consumers. The government can’t reverse course without creating a budget hole – unless it makes up the shortfall by taxing ONGC and other producers instead.
Indian hospital deal merits a second opinion 24 May 2018 A Fortis Healthcare director was ousted by shareholders after three others facing a similar fate resigned a day earlier. It’s a rebuke of the decision to sell a minority stake to local tycoons. A fresh review of four other offers by a new board should lead to a better prognosis.
ArcelorMittal paying an odd bid “premium” in India 21 May 2018 The world's largest steelmaker is ready to cover $1 bln of debt in a tiny rival it no longer backs so it can buy bankrupt Essar. A quirky rule bans owners of defaulting companies from acquiring distressed assets. It's a sign of how India’s bankruptcy law is a work in progress.
Settling 1MDB scores will be easier than debts 18 May 2018 Malaysia’s new government can reopen investigations in the state fund but they are stuck with its debt. Reckless promises of support, and a previous desperate clean-up, put the state on the hook for about $8 bln. Trying to dodge these obligations would do more harm than good.
Viewsroom: 1MDB rears head in Malaysian election 16 May 2018 The $5 bln sovereign-wealth fund’s scandal played a role in voters replacing Prime Minister Najib Razak with nonagenarian Mahathir Mohamad. Its resurgence could mean bad news for Goldman Sachs and Najib himself. Plus: Walmart nabs Flipkart in a big bet on e-commerce in India.
India Insight: Narendra Modi has lost the boardroom 14 May 2018 Executives who once touted him as a three-term prime minister are grumbling and wondering if he can even win a second. Modi still has broad popular support. But the relationship between New Delhi and bollygarchs is one he can’t afford to let sour for too long.
Hardy Indian hospital auction takes sickly turn 11 May 2018 A divided Fortis board chose selling a minority stake to two investors with little experience running hospitals over four other offers, including a $1.3 bln takeover. Half the directors may be gone before shareholders vote. The disarray leaves room for a hostile bid.
Walmart wages dangerously big online war in India 9 May 2018 Even as an e-commerce push at home stumbles, the mega-retailer is plowing $16 bln into Flipkart. It pits Walmart against Amazon in a huge unprofitable market, and also challenges Alibaba, which backs Paytm Mall. After missteps in China, this will be a make-or-break overseas deal.
Indian hospital penta-scrum poses board quandary 9 May 2018 Five bidders want to invest in ailing Fortis, valuing it at up to $1.4 bln. Offers range from small stakes to a full takeover. Lenders and hedgies may want a quick exit, but in a critical care business, directors would do well to consider a treatment that works for the long term.
Flipkart bid would be rare defensive one by Amazon 3 May 2018 It'd be a coup if the e-commerce titan took control of its larger rival in India. Chasing the business started by former Amazon employees would suggest boss Jeff Bezos is worried by the idea of Flipkart uniting with Walmart. The battle underscores the significance of the market.