GM speeds away from Einhorn toward nastier traffic 6 Jun 2017 More than 90 pct of shareholders rejected the hedge-fund manager’s stock-split proposal. That removes a distraction for CEO Mary Barra. But GM’s stock is flatlining, U.S. car sales are sluggish and the competition for connected and self-driving cars is just getting on the road.
Private equity bets water will wash its face 6 Jun 2017 Clayton, Dubilier & Rice is paying $2.5 bln for Waterworks, HD Supply’s pipes, sewer, storm and fire unit. It’s a wager on the need for upgrades to U.S. infrastructure – and in a sector where dealmaking is coming to a boil. That should give CDR options to engineer a clean exit.
LBO orphan J.Crew tries patch-up job with new CEO 6 Jun 2017 Owners TPG and Leonard Green have effectively written off the ailing retailer. Now long-serving boss Mickey Drexler is out. His replacement, James Brett, has to deal with falling sales, bickering creditors and vultures preparing for bankruptcy. Survival will be a tall order.
Buffalo Wild Wings is recipe for CEO nervousness 5 Jun 2017 Marcato got three nominees elected and forced longtime boss Sally Smith to quit – the activist's original goal. That makes the other directors look oblivious to the omens before Friday's vote. Other leaders of companies under pressure can expect dwindling board loyalty.
Trump air-traffic plan flies with rare substance 5 Jun 2017 That's because it's based on Canada's model, years of debate and a 2016 House bill. Updated tech is overdue and the non-profit structure would cut out government without risking a private-sector windfall. Yet it's still no easy win, underlining the challenge for vaguer policies.
Fear of no choice helps Amazon’s cloud rivals 5 Jun 2017 The online giant's web-services division has monopoly-like features – size makes it operationally and financially more efficient. Yet Jeff Bezos’ firm won’t walk away with all the spoils. Customers are worried about being locked in, and that will keep competitors in business.
Most of U.S. economic might keeps faith with Paris 2 Jun 2017 Cities and states representing 60 pct of the nation’s GDP have pledged to support the climate accord despite Donald Trump’s withdrawal. They have a big say over local energy policies. Their stance can sustain a shift to a low-carbon economy despite the president’s cold shoulder.
Blackstone sells China some unlikely trophy assets 2 Jun 2017 The buyout firm is cashing in on an appetite for logistics by selling Logicor to CIC for 12.3 bln euros. A European e-commerce boom and shortage of property is driving up valuations and rents. Prime warehouses now have better yields than a luxury store in London’s Mayfair.
Blue Apron offers tasty food, nauseating numbers 2 Jun 2017 The meal-kit delivery firm that's going public serves up delicious meals and sales growth. But look closely at the ingredients. New-customer acquisition costs are surging, they're ordering less and competition is fierce. Like Groupon, the product is fine, the stock best avoided.
Hadas: Climate not real loser from Trump tantrum 2 Jun 2017 The decision to quit the Paris climate-change accord won’t have a big effect on either global warming or the fight against it. What is truly dangerous is the U.S. president’s frontal attack on the still underdeveloped system of global governance. A vigorous defence is now vital.
Review: Tragedy makes Facebook a better place 2 Jun 2017 COO Sheryl Sandberg’s "Option B," a moving exploration of grief, emerged from the death of her husband. Top executives rarely reveal so much. She has also changed Facebook's policies. More so than "Lean in," Sandberg's new book sets her up as the $450 bln firm's best ambassador.
Tight U.S. job market tests White House thinking 2 Jun 2017 Employers added 138,000 jobs in May, below projections. Unemployment is so low that a slowdown was inevitable. One problem now is supply, with baby boomers retiring. Boosting immigration and encouraging more women to work would help. Trump's policies so far act against both.
Top U.S. CEOs revolt against reality TV version 2 Jun 2017 Donald Trump’s rejection of the Paris climate pact drew swift opposition from corporate bosses, including those of GE and Goldman. The Tesla and Disney chiefs quit his advisory council. Losing business support this early bodes poorly for the administration’s economic promises.
Viewsroom: Donald Trump can’t melt Paris accord 1 Jun 2017 The president is pulling America out of the climate pact signed by 195 countries in 2015. But the continued commitment from cities, companies, investors and other states will limit the damage. Meanwhile Goldman Sachs steps into a Venezuelan mess. Plus: advertisers as activists.
Packaged-food firms rush to same M&A recipe 1 Jun 2017 Conagra is interested in buying $8 bln Pinnacle Foods, and both are eyeing Reckitt Benckiser’s North American food unit. Stagnating sales are pushing firms to bulk up in search of greater profits. With everyone looking to buy, selling is likely to generate the tastiest results.
GOP gives small-bank M&A an odd shot in arm 1 Jun 2017 Republicans have dashed hopes of regulatory relief for mergers that take assets above $10 bln. Compliance costs go up then, too. Ironically, that should spur a raft of mergers to justify crossing the threshold. It helps that the Fed is growing comfortable with deals of that size.
Deere deal is paved with good intentions 1 Jun 2017 The $40 bln U.S. farm-equipment maker is diversifying further into road building, paying $5.2 bln for Germany's Wirtgen. It's a big deal and overseas, but Deere's pitch on strategy and price sound reasonable. It will need to work out better than Caterpillar's Bucyrus bet, though.
Chicago emigration is warning of Detroit endgame 1 Jun 2017 More people quit the Windy City in 2016 than left any other U.S. metropolis. Chicago's pension funds and schools are already strapped for cash. A sustained exodus can only worsen the financial squeeze. If it's not reversed, the long-term risk is Motown's bankruptcy and blight.
Cox: Sgt. Pepper also taught the board to play 1 Jun 2017 It was 50 years ago that the Beatles spawned a music boom. The industry has changed, but the album's messages still resonate, even in the business world. As Warren Buffett or Steve Jobs might attest, if we work together, experiment and fix holes, things get better all the time.
Akzo is emblem for new “fortress Europe” 1 Jun 2017 The Dutch maker of Dulux paint thwarted a generous 25 bln euro takeover attempt from U.S. rival PPG without putting forward a convincing financial defence. As European governments reach for more power to fend off unwanted mergers, Akzo has shown how shareholders can lose out.