Canada pipeline bid takes M&A momentum too far 1 May 2017 Pembina’s C$5.7 bln bid for Veresen comes after rising oil prices and hopes of favorable U.S. policies lifted valuations. But the 4 pct drop in the buyer’s stock suggests investors still require the basics: cost cuts that cover the deal premium and down-to-earth expansion plans.
AllianceBernstein shakeup sends active sell signal 1 May 2017 The firing of CEO Peter Kraus is the latest wakeup call for Wall Street stock pickers. Diversification efforts at the AXA-controlled firm failed to offset a long decline in its once-potent equities business. The upheaval suggests other active managers also have nowhere to hide.
Collegiate corporate finance may prove infectious 1 May 2017 Indiana's top public university is gambling its reputation for a shot at disruption. Purdue is buying online diploma mill Kaplan from the Graham family. The deal could either pre-empt a digital education revolution - or spread the bad behavior of for-profit schools even wider.
TV deal stirs ghosts of erratic Murdoch past 1 May 2017 Not long ago, Fox boss James Murdoch told investors to "rest easy" about the idea of the company buying more local U.S. stations. Now, it's looking at $6 bln Tribune with Blackstone. The reversal amid its messy Sky merger is a throwback to Rupert Murdoch's capricious ways.
Review: A disappointingly tepid Circle of hell 28 Apr 2017 The movie of Dave Eggers' 2013 novel "The Circle,” starring Emma Watson and Tom Hanks, explores a cultish, all-seeing internet company. The film's take on the near future reflects real privacy and surveillance issues. But like its protagonist, its sense of identity is weak.
Oil majors surge into mid-cycle sweet spot 28 Apr 2017 Exxon and Chevron reported sharp first-quarter upswings thanks to higher oil prices and better margins. Prudent asset sales helped too. It’s a turnaround from early 2016. Now, though, the risks go both ways: crude could slump again or, if prices hold up, costs will start rising.
Cautious consumers provide new sort of Trump bump 28 Apr 2017 The U.S. economy grew slower than expected, at just a 0.7 percent pace in the first quarter. Less spending on cars was a big factor. The year typically starts slowly, but consumers have been less confident than investors. That could put a hitch in the president's ambitious plans.
Bayer exemplifies Germany’s too-powerful boards 28 Apr 2017 A big institution is unhappy the chemicals group didn’t give it a say on its value-burning $66 bln purchase of Monsanto. German companies can do deals without putting them to a vote and often have carte blanche to raise capital. The wound is self-inflicted and possibly avoidable.
Amazon well of web profit may gush a bit slower 27 Apr 2017 The online giant’s retailing arm shredded rivals in the first quarter, and investors cheered a 41 pct increase in earnings. Yet web services, lately a seemingly limitless source of revenue, showed decelerating growth. It could be that rivals are finally sipping from the firehose.
Alphabet ad autopilot heads for profit and bother 27 Apr 2017 The $610 bln Google parent racked up another strong quarter with a 22 pct increase in revenue. Its deepening digital-advertising duopoly with Facebook helps make growth more predictable – but may also bring the companies closer to a face-off with antitrust watchdogs.
Viewsroom: Europe’s electoral frenzy 27 Apr 2017 France is about to choose a new president. The UK has called a surprise election. Germans head to the polls soon and Italians and Greeks could be close behind. As Brexit gets in motion and President Trump settles in, Europe’s election season will bring risks and opportunities.
Henry Kravis finds polite barbarian at his gate 27 Apr 2017 ValueAct disclosed a nearly 5 pct interest in KKR. Jeff Ubben's firm is usually friendlier than many activists and sounds positive on the buyout shop's prospects. Private-equity stocks have lagged bullish valuation hopes, though, and that could lead to a push for bigger changes.
Pharma deal offers new buyout double-dip trial 27 Apr 2017 Carlyle and Hellman & Friedman are swapping stakes in drug tester PPD while increasing its paper value 2.5 times, to $9 bln. The firm’s growth may justify the valuation but shuffling buyouts is opaque and can harm returns. As fund-to-fund deals grow, this risk will loom larger.
Archived tax plan could help White House close gap 27 Apr 2017 Donald Trump's bullet points, summarizing earlier campaign ideas, would add trillions to U.S. deficits over 10 years. Ex-Congressman Dave Camp sketched out a more balanced plan three years ago. It may offer a blueprint, albeit with smaller business-rate cuts than Trump wants.
Lazard’s buy-side bets deserve shareholder love 27 Apr 2017 Roger Altman’s Evercore trades at a higher multiple than rival Ken Jacobs’ firm due to faster M&A growth. But equity-market upheaval is hitting its trading business while Lazard’s asset-management unit is weathering industry changes far better. Its shares should reflect that.
Cox: Proximity to Trump no blessing for stocks 27 Apr 2017 Equity-market winners and losers from the president's first 100 days are surprising. "Failing" New York Times shares have surged. White House talent providers Goldman Sachs and Exxon are down. Blackstone and Fox are flat. Distance from the Oval Office may prove a virtue.
Dole’s latest IPO could leave owner sucking lemons 26 Apr 2017 David Murdock wants to take his fruit and veg empire public again four years after a controversial buyout that landed him in court. Even after paying down some debt, Dole may only be worth enough for Murdock barely to break even. That’ll please the investors he stiffed in 2013.
FCC puts dubious faith in U.S. broadband oligopoly 26 Apr 2017 New Chairman Ajit Pai wants to roll back rules that classify high-speed internet as a utility. He reasonably points to reduced investment following their implementation. A defanged regulator overseeing dominant providers of a crucial service, however, would be bad for customers.
Trump’s sketchy tax math will fail Congress test 26 Apr 2017 The president’s plan for big rate cuts relies on the unrealistic assumption that GDP will hit 3 pct and be enough to cover any revenue shortfall. The U.S. deficit, though, is growing at an alarming pace. Republican lawmakers are likely to demand a do-over before giving it a pass.
Chipotle partly fulfills Bill Ackman’s order 26 Apr 2017 Recovering sales at the $14 bln burrito chain helped keep the pushy investor's big bet on a roll. A new payments data breach could make investors queasy again, though. Chipotle has a long way to go before it cooks up the kind of return Ackman's Pershing Square typically craves.