Plains $7 bln swap simplifies only so much 13 Jul 2016 The U.S. pipeline operator is restructuring its MLP arrangement and cutting its dividend to conserve cash. Plains also is collapsing the governance of two separate listed entities under a single board. The group structure nevertheless remains complex and debt levels too high.
Boosting bank earnings requires more creativity 13 Jul 2016 Trading, stock deals and mortgage refinancing picked up in the second quarter. That's a relief after a poor start to the year. But bank returns mostly remain too low and new business too scarce. It puts the emphasis on finding new ways to cut costs and harness technology.
Dimon helps steer value debate beyond shareholders 12 Jul 2016 JPMorgan's CEO is raising pay for 18,000 lower-level workers like bank tellers, after similar moves by Gap, Wal-Mart, Starbucks and others. Helping shrink the income inequality gap is a good step, especially by sharing spoils often reserved for Wall Street staff and investors.
Xerox-Donnelley deal would be epic paper shuffle 12 Jul 2016 Binding together the iconic photocopier maker and the printing group would create a $14 bln giant – which Xerox would then break up. That would increase integration risk and wouldn't necessarily solve each company's dilemma of being print-heavy in an ever-more digital world.
Cox: Dismantling Dodd-Frank is a Trump distraction 12 Jul 2016 Republicans and their presumptive leader want to overhaul the financial-reform law. Recent stress tests and narrowing funding costs between big and small banks suggest that swapping reliance on regulators for bankruptcy courts is a bad idea, even if Trump knows the latter well.
Tough U.S. trade talk may hurt investment flow too 12 Jul 2016 Backers of the Trans-Pacific Partnership have managed to keep blatant opposition to the deal out of the party platforms. Strong rhetoric against it persists, however. A recent recovery made in attracting overseas companies and funds could be put at risk by the trade backlash.
Pokemon GO hints mixed reality beats virtual kind 11 Jul 2016 The mobile game where users capture imaginary creatures in the real world is a smash. Within a week of launch GO may have more users than Twitter. Entirely computer-simulated worlds get the attention, but overlaying the digital on the physical may be the disruptive killer app.
Boeing and Airbus could use Obama’s help on Iran 11 Jul 2016 The U.S. Congress wants to block the sale of about 200 planes to Iran Air. Easing sanctions on Tehran after the nuclear deal made transactions like this doable. Firms have been encouraged to open their doors. But they aren't getting enough cover from the White House once they do.
UFC’s $4 bln sale falls short of a sports knockout 11 Jul 2016 The mixed martial arts group is being bought by the talent agency behind Matt Damon and Gisele. Though finances are hard to come by, WME-IMG appears to be paying a higher valuation than WWE or Manchester United fetch. The NFL and owners of the New York Knicks are still champs.
New fintech firms hit early by same old problems 11 Jul 2016 Avant's woes put it in league with Prosper and Lending Club. Technology helped such modern-day credit providers find better ways to lend, but like other nonbank finance firms they rely on fickle sources of funding. This time it didn't even take a credit crunch to spark a rout.
Tech deal reboot exemplifies valuation disconnect 11 Jul 2016 Videoconference gear maker Polycom scrapped a plan to be bought by Mitel and opted for a $2 bln LBO instead. Hefty synergies in the original merger orchestrated by Elliott oddly failed to impress investors. It's not just the newest technology where valuation thinking is screwy.
U.S. healthcare mega-deals get grim diagnoses 8 Jul 2016 Aetna's $34 bln acquisition of Humana and Anthem's $44 bln plan to buy Cigna are risky propositions to shrink the industry from five big insurers to three. Investors now expect both mergers to die. If right, the companies also would return to independence worse than they began.
Plugging Chipotle’s drain takes more than coupons 8 Jul 2016 When a mere tweet of customer illness sends the $11 bln burrito chain's shares sliding, it's clear the firm has a systemic image problem resulting from food-safety issues. It's hard to see how bountiful discounts and free guacamole can nurse Chipotle back to a full recovery.
Theranos hobbles toward gluenicorn fate 8 Jul 2016 The blood-test upstart's value was already racing from $9 bln to zero. Now a U.S. watchdog is set to ban Elizabeth Holmes' company from the industry for two years. Theranos' aims were appealing, but reinventing technology, regulation and governance in one go is hard.
Kellogg’s café is millennial-friendly billboard 8 Jul 2016 The $29 bln food giant just opened a cereal outlet in Times Square. Despite the big-name restaurateurs involved, it's unlikely to challenge McDonald's for breakfast or nearby candy stores for dessert. Lazy millennials aside, it's more like a novel advertising gimmick aimed at reviving sales.
U.S. jobs volatility obscures still steady gains 8 Jul 2016 A whopping 287,000 new positions were created in June. But May was revised down to almost none. Beneath the choppy numbers, even the three-month average has only slowed to 150,000 a month. And that's after replacing all 8.7 mln jobs lost after the crisis and 5.7 mln more.
Grizzly-proof cooler maker defies IPO bear market 7 Jul 2016 Yeti, which sells ultra-rugged ice chests endorsed by pro bass fishermen and BBQ pitmasters, could be the biggest U.S. float of 2016. Building a cooler, um, cooler – and flaunting it – is the key to its success. But copycat competitors will soon be biting at Yeti's big feet.
Ken Griffin gives Wall Street sour taste of future 7 Jul 2016 The hedge-fund manager has shunned seasoned traders to instead hire Microsoft COO and ex Wal-Mart exec Kevin Turner as CEO of Citadel Securities. It's more than a nod to the rise of e-trading; it hints at larger industry changes where traditional skills may not be as relevant.
U.S. anti-inversion push has a harmful flipside 7 Jul 2016 Treasury's plan to rein in tax-motivated overseas M&A takes aim at intercompany loans. It's a good idea to curb so-called earnings stripping where deductible interest is sent to an overseas parent. The proposed rule is broad, however, and could hurt normal funding practices.
Kit Kat could give finger to most Hershey suitors 6 Jul 2016 The $23 bln U.S. candy company licenses the British snack from Nestlé, which could take the American rights back if Hershey is sold. That would melt value for suitor Mondelez or any rivals – except for Nestlé itself. It gives the Swiss group leverage to play kingmaker.