Activist lays multiple chips on silicon strategy 21 Nov 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.
Trump administration scrambles media signals 21 Nov 2017 The DOJ wants to block AT&T’s merger with Time Warner over concerns the two will use content to stiff rivals. But another agency intends to scrap rules that force internet providers to treat web traffic equally. It’s a confusing mix that makes for a blurry regulatory picture.
HelloFresh barely clears low hurdles 21 Nov 2017 The German meal-kit service delivered soaring revenues and better margins for its first results as a listed company. Shares are down 2 percent since flotation. That is hardly a runaway success but better than shelved listings in Britain and U.S. rival Blue Apron’s public mauling.
Randall Stephenson makes his last stand 20 Nov 2017 The AT&T boss is fighting U.S. regulators who sued to block his $85 bln merger with Time Warner. Faced with similar opposition six years ago, he gave up a $39 bln tilt for T-Mobile US. This time he has left no room for retreat. Anything less than all-out victory would be fatal.
Mastering effluent can make a financial splash 20 Nov 2017 Some 80 pct of global wastewater goes untreated, causing health and other societal problems. That leaves untouched 1 trln gallons of sludge that could be harnessed for energy, fertilizers and reusable water. With a potential fivefold return, investors need not hold their noses.
Powell’s mystery Fed board poses continuity risk 20 Nov 2017 As expected, Janet Yellen will leave the U.S. central bank when her successor takes over. Jay Powell will inherit a skeleton board in need of four more Trump appointees. The lack of holdovers, amid a pivotal shift away from crisis-era policies, could make for a bumpy transition.
Market will trump politics on Keystone pipeline 20 Nov 2017 Nebraska’s green light for the controversial project is a victory for President Trump but doesn’t guarantee it will be built. Years of delays have let rivals steal a march while low prices sap interest in drilling Canadian oil sands. The economic grounds for proceeding are soft.
Uber-Volvo deal scrapes self-driving surface 20 Nov 2017 Providing 24,000 vehicles for the ride-hailing service’s autonomous fleet could pump $1 bln into the Swedish carmaker’s tank. While a decent chunk, the car industry of the future ought to generate multiples of that from running robo-taxis and selling a plethora of other services.
Marvell suits up well for growing chipmaker wars 20 Nov 2017 The value of cost cuts easily covers the premium in its $6 bln offer to buy rival Cavium. The deal also welds together two sets of mostly complementary business, strengthening the combined company’s portfolio. That should set it up well for further M&A in a consolidating market.
Viewsroom: AT&T’s $85 bln deal runs into static 17 Nov 2017 The telecom firm’s acquisition of Time Warner, owner of CNN, may hit regulatory hurdles in D.C. President Trump’s caustic tweets against the news network look self-interested, but watchdogs could yet legitimately rethink norms of competition. Plus: GE searches for a way forward.
Tesla takes crowdfunding to 250 mph 17 Nov 2017 Elon Musk’s money-losing $53 bln electric-car maker unveiled a surprise new Roadster model while showing off a battery-powered truck. Pre-orders for the first-edition supercar, available in 2020, may raise $250 mln up front. It’s a reminder of Tesla’s constant thirst for capital.
Chinese authorities throw down gauntlet to HSBC 17 Nov 2017 Scrapping the limit on foreign bank ownership could in theory enable the lender to raise its 19 percent stake in Bank of Communications. But tying up more capital in China’s fifth-largest bank looks inferior to HSBC’s own expansion plans. Better to sell and redeploy the proceeds.
Fox hunt gives Murdoch rare chance to play defense 16 Nov 2017 The acquisitive media mogul who once put Dow Jones into play now finds himself a target. Comcast, Verizon and Disney want portions of the Fox empire. Rupert Murdoch has been an able hunter, but if he's reluctant prey he may need protection from reinvigorated U.S. trustbusters.
Sandell asks Barnes & Noble to pick an adventure 16 Nov 2017 Flip to chapter “flimsy proposal” to see the activist try a buyout of the struggling bookstore chain without financing. Turn to chapter “worse than before” to trade liquid stock for private shares without founder backing. Stay here if you don’t want to see how this story ends.
Cox: Amazon to become biggest impact investor ever 16 Nov 2017 Jeff Bezos' $550 billion creation has become a Shiva-like force, threatening whole swaths of the retail industry and its jobs, while paying a relative pittance in taxes. By choosing a second HQ in 2018 where it's needed most the company can forestall a social and state backlash.
DOJ warns dealmakers that a new sheriff is in town 16 Nov 2017 Antitrust chief Makan Delrahim isn’t a fan of behavioral remedies like the ones Comcast made to buy NBC. In his first major policy speech, he said he prefers divestitures to address competition issues. AT&T’s bid for Time Warner wasn’t cited, but he’s clearly ready for a fight.
Norway’s oil exit is a wake-up call for industry 16 Nov 2017 The country’s $1 trln sovereign fund wants to unload oil and gas stocks for diversification. It makes sense given the state’s dependence on fossil fuels, but the world’s biggest equities holder is sending a broader signal: petroleum majors need to prepare for a low-carbon future.
Third time might be a charm for Time 16 Nov 2017 Publisher Meredith is reportedly again in talks to buy the owner of Time magazine, along with the Koch brothers. A deal could pass financial muster, based on the market’s reaction last time around. And the conservative billionaires may be less focused on monetary returns anyway.
Sorry is the hardest word for central bankers 16 Nov 2017 Bank of England Chief Economist Andy Haldane says rate-setters should speak simply and honestly to the public. The first is easier than the second. Admitting past mistakes or doubts about the present is tough for institutions whose clout depends on an aura of omnipotence.
Emerson ratchets up heat on Rockwell – and itself 16 Nov 2017 The U.S. industrial group raised its bid for the automation specialist to $29 bln. A near-30 pct premium puts pressure on Rockwell’s long-serving leadership to come to the table. In pursuing a long-term logical tie-up, though, Rockwell looks to be punishing its own shareholders.