Israel

Israel’s military effort has an economic shield

17 May 2021

Hostilities are entering a second week. Despite the struggle to form a new government, a strong vaccine record and a solid current account surplus mean the economy is in relatively decent shape. The conflict would have to drag on for a few months and escalate for that to change.

Viewsroom: The jabbed and jabbed nots, Jardine

18 March 2021

Vaccination programmes are running apace in the UK, U.S., Israel and other nations, but they have worryingly stalled in Europe. This reflects more than just differing health systems, Breakingviews columnists argue. Plus, more on the shakeup of a historic Hong Kong trading house.

Labelling vaccine hares and tortoises is premature

8 January 2021

The UK and Israel are rapidly inoculating against Covid-19, while France lags. Final success is likely to hinge on a disciplined rollout from a centralised hub to a receptive populace. Israel appears to have all three; investors may soon see that France, Britain and peers do not.

Nvidia chip deal big on vision and price

11 March 2019

The $94 bln graphics-chip company’s $6.9 bln acquisition of Mellanox, which makes hardware for data centers, is a bet that data will grow rapidly, and chip speeds only slowly. That view looks solid. But the price, pumped up by competing bids, presupposes a lot of success.

Pepsi’s fizzy water deal may have flat aftertaste

20 August 2018

As CEO Indra Nooyi departs, the drinks giant is buying SodaStream for $3.2 bln. Diversifying into the high-growth carbonated water market has strategic logic, and Pepsi has cash. But new boss Ramon Laguarta will need sparkling revenue growth to make a decent return.

Scent makers’ $7 bln M&A splash-on has funny smell

7 May 2018

IFF is touting cost cuts worth almost double the premium it’s paying for Frutarom. The deal also sprays the buyer with a healthy dose of products made with natural ingredients. But IFF’s investment return looks low. That may be why investors are turning their noses up at it.

Teva’s feverish bailing efforts deluged by reality

14 December 2017

The drugmaker is suspending its dividend and cutting 25 pct of its workers to try to stop a debt-laden 2015 deal sinking the company. But most of the savings will probably be eaten up by shrinking sales for its blockbuster drug and falling prices for other generic medicines.

Activist lays multiple chips on silicon strategy

21 November 2017

In its latest semiconductor play, activist Starboard is seeking to push Israel’s Mellanox into a deal. It also owns a chunk of Marvell, a potential buyer whose prior approach was rebuffed. With technology and economics driving rapid consolidation, it makes sense to spread bets.

Teva’s new chief faces a tricky recovery

11 September 2017

Installing former Lundbeck boss Kare Schultz as CEO has given the Israeli drugmaker’s shares a shot in the arm. The new boss now needs to cut costs, and manage the group’s $35 bln debt pile. That’s hard given Teva’s challenges, and a tough market for generic drugs.

Israeli water deal is a glass half full

7 August 2017

Mexichem leaked $220 mln of value on its $1.9 bln purchase of Permira- and kibbutz-backed Netafim. With global populations, drought and pollution growing, though, the drip-irrigation pioneer should fill its new owner’s coffers. India and China, especially, have yet to be tapped.

AstraZeneca’s 3 billion pound CEO is overvalued

13 July 2017

That is how much was wiped off the drugmaker’s market value after a website reported Chief Executive Pascal Soriot will join Teva. Any such exit would hardly inspire confidence, coming after another senior departure and before a key medical trial. But the reaction is excessive.

Only Russia can make OPEC great again

23 May 2017

Moscow is giving the cartel more pricing clout. A mooted deal to extend output cuts and drain global crude stockpiles can only succeed with the continued support of the world’s biggest crude producer. With U.S. drillers recovering, it may be time to make the alliance permanent.

Intel puts self-driving pedal to financial metal

13 March 2017

Buying Mobileye for $15 bln values the autonomous-car parts supplier at 30 times estimated revenue. It’s possible to see how Intel’s gamble could pay off in this rapidly growing market. But its M&A record is patchy and the price assumes near-perfect success in a far-flung future.

Teva’s new boss has bitter medicine to administer

7 February 2017

The Israeli pharmaceuticals company has lost its second chief executive in four years. Its next CEO faces tough times in America, where drugmakers’ pricing is under attack. Homegrown problems include bad acquisitions, tricky governance and an over-reliance on one drug.

Review: Undermining the foundations of rationality

6 January 2017

Economists Daniel Kahneman and Amos Tversky changed our understanding of how people make decisions. "The Undoing Project" by Michael Lewis is a vivid and insightful account of their partnership. However, it also raises questions about why faith in rational humans is so enduring.

Perrigo shows danger of overplaying M&A defense

12 September 2016

The $13 bln drug company fought off Mylan's hostile takeover bid last year. Now it's missing the targets it set to persuade investors to reject the deal. It's a common infraction that in Perrigo's case has prompted activist Starboard to dive in. Overpromising is a fool's errand.

Tesla velocity causes supplier spinout

26 July 2016

Mobileye shares plummeted up to 18 pct after it said it would stop supplying advanced cameras to Elon Musk's electric-car maker in 2018. Sales to Tesla are too small to warrant such a crash. It's a reminder that the shift to autonomous vehicles is too early for investors to call.

Toyota, VW jump on cartech desperation bandwagon

24 May 2016

The Japanese automaker’s deal with Uber and its German rival’s with Gett come after GM invested in Lyft and Fiat Chrysler hooked up with Google. Each can learn from the other, but the technologists see opportunity while the manufacturers have more to fear about their fate.

Israel may give Silicon Valley run for its money

5 April 2016

Tech and cyber-security know-how, startup spirit, VC funds and even climate make the Middle East’s startup hub a bit like the Bay Area. Jerusalem is keeping Tel Aviv on its toes. Israel has other advantages, too – a global outlook and perhaps greater hunger than in the Valley.

Teva exits Mylan mess with $40.5 bln Allergan deal

27 July 2015

The Israeli pharma firm has been locked in a bitter battle to take over the Dutch drugmaker. Now it has agreed to buy the generic business from Allergan. The swap makes sense. Friendly is far easier than hostile, and the Allergan businesses are just as attractive as Mylan.