Cowen’s China play involves more than just money 29 Mar 2017 Peter Cohen’s banking boutique is selling a stake to energy group CEFC China and raising $275 mln. Cowen needs capital to keep growing and its partner’s modest securities business could use expertise. Unlike some recent China-U.S. finance deals, the logic here just might add up.
Nominee’s industry ties risk side effects for FDA 29 Mar 2017 President Trump pledged to close the revolving door, yet FDA nominee Scott Gottlieb is taking his second whirl. Experience in government and industry is valuable, but his potential conflicts with pharma firms may hamper the agency. Recusal isn’t a prescription for effectiveness.
M&A mavens huddle in one swamp to assess another 29 Mar 2017 Esoterica like appraisal rights are on the formal agenda for this week's dealmaker jamboree in sub-sea-level New Orleans. The more salient debates, though, will be about Trump's antitrust chief and whether a bullish outlook for mergers can withstand the chaos in Washington.
Trump regime perverts Dodd-Frank chamber’s purpose 29 Mar 2017 The Financial Stability Oversight Council will focus more on coordinating the White House regulatory rollback than identifying risks. The post-crisis body may also force watchdogs to streamline enforcement actions. Shifting duties could cause regulators to miss emerging threats.
EU takes trustbusting into future with Dow remedy 29 Mar 2017 European regulators will let DuPont and Dow merge, but first they must divest DuPont’s labs. The goal is to ensure future pesticides make it to market. It’s a logical consequence of technology’s importance, but Brussels struggles to preserve competition today, much less tomorrow.
Mexico drives a train through Trump border wall 29 Mar 2017 The $2 bln purchase of a Florida railway by miner Grupo Mexico is a timely reminder that the countries' relationship is not all one-way traffic. The outward-looking Mexico the deal exemplifies is better for U.S. business than the more hostile neighbor Trump's wall plan portends.
Unilever can take page from GE’s activist playbook 29 Mar 2017 The 139 bln-euro Magnum ice-cream owner may attract uppity investors for the same reasons Kraft Heinz came calling: low margins and relatively little debt. CEO Paul Polman could keep them at bay by aping GE and seeking an activist's advice. But he'd have to be willing to act.
Hadas: U.S. deaths are economic and social failure 29 Mar 2017 Americans are dying younger due to drugs, drink and suicide. The rise in such "deaths of despair" comes from the fatal interaction of a weak welfare system, inadequate healthcare and decaying communities. These national flaws also help explain the lack of a political response.
Akzo activists are useful and best ignored 29 Mar 2017 Holders of a quarter of the Dutch paint maker’s shares think it should engage with hostile bidder PPG, claims activist fund Elliott. Yet by rushing into talks, Akzo would play a trump card too early. Appearing lukewarm, but with shareholders still keen, may lure a better offer.
Tencent drifts off course with Tesla 29 Mar 2017 The Chinese tech giant can easily afford a near-$2 bln stake in Tesla. But Elon Musk's electric cars are not a great fit with its cash-cow businesses, social media and mobile games. Making a huge, venture capital-style bet like this is a worrying sign of indiscipline.
Darden owners get too gluttonous over cheesy deal 28 Mar 2017 Shares of Olive Garden's parent had their best day in nine years after snagging rival casual-dining chain Cheddar’s for $780 mln. It's a decent enough deal, and scale helps improve margins in the restaurant trade. But it hardly merits a rally equal to the price paid.
GM is better off avoiding David Einhorn’s detour 28 Mar 2017 The hedge-fund boss wants the automaker to split its shares into one class that collects dividends and another reliant on growth. The plan, which he once pitched to Apple, underestimates GM's cyclical and tech challenges. With bailout memories vivid, it's wise to steer clear.
Utilities to pay price of Westinghouse bankruptcy 28 Mar 2017 A Chapter 11 filing would jolt the company’s key clients, Scana and Southern. Continuing with their nuclear plants could leave the utilities exposed to further cost overruns, while pulling the plug won’t end liabilities. Either way, the firms’ earning power will be cut.
Climate ship has sailed despite Trump’s sea-change 28 Mar 2017 The president says man-made global warming is a hoax and he's set to reduce its role in U.S. energy policy. Scientists, consumers, his military and, increasingly, investors disagree. They're well armed to do battle with fresh polar-ice data and advancements in renewable power.
American Airlines buys China upgrade, earns points 28 Mar 2017 The carrier is joining forces with China Southern, and taking a sub-3 pct stake for $200 mln. AA ought to end up with more Chinese passengers and fewer empty seats. Ideally it wouldn’t have to buy a stake to do so. Consider it one of the irksome hidden costs of air travel.
China’s soccer dreams lead to strange bedfellows 28 Mar 2017 Elliott is saving a Chinese takeover of Italian club AC Milan with 300 mln euros of funding, Reuters says. The U.S. hedge fund must be driving a hard bargain. But the buyers may have been boxed in by Chinese curbs on moving capital and the prospect of losing a hefty down-payment.
White House struggling to learn arcane D.C. math 27 Mar 2017 After failing to repeal Obamacare, Republicans are turning to tax reform. It's an even more complex endeavor. Like healthcare, tax policy is constrained by an obscure law that limits the effect on the U.S. deficit. Trump may loathe Washington process, but the numbers have to add up.
M&A lawyers confronted with ETE’s convenient truth 27 Mar 2017 Delaware's top court ruled that the U.S. pipeline operator, having failed to secure an important tax opinion, had a right to end its unwanted deal with Williams. In a dissent that may resonate, however, Chief Justice Leo Strine raised his eyebrow about pressure on outside advisers.
Dubai mall owner throws sand in Amazon’s face 27 Mar 2017 Emaar Malls has challenged the U.S. retailer with an $800 mln counterbid for Souq.com. Amazon has technical expertise and deep pockets. But the owner of Dubai’s largest retail park has local knowledge, powerful allies and, most importantly, an existing business model to defend.
Kushner brings conflicts not aptitude to new role 27 Mar 2017 Donald Trump wants his son-in-law to harness business nous to make Washington work better. Jared Kushner was AWOL during last week’s healthcare fiasco and his family may be seeking Chinese cash to bail out its property business. His record offers little that government needs.