Nasdaq’s $1.1 bln ISE buy comes with hidden gem 14 Mar 2016 CEO Bob Greifeld struck a fair price for Deutsche Boerse’s options unit. The deal also doubles Nasdaq’s holding in Options Clearing Corp to 40 pct. OCC is a utility that’s deep in a restructuring. Once revitalized, though, Nasdaq’s stake could make the ISE deal look a bargain.
Hotel spree sates China’s taste for overseas glitz 14 Mar 2016 Foreign hotels are becoming corporate China’s trophy assets of choice. Buyers want to reduce their exposure to a slowing domestic market and capture the growing flow of overseas tourist dollars. Anbang Insurance’s mooted $6.5 bln takeover of Strategic Hotels won’t be the last.
Gripes suggest internet governance reboot has byte 11 Mar 2016 Several countries and U.S. lawmakers oppose a plan to strip Uncle Sam of control over domain names. Yet American cyber spying and the web’s global reach mean international oversight makes sense. The proposal’s strength is in granting more power to users – not governments.
ETE funding for Williams deal widens differences 11 Mar 2016 Stuck with its badly timed $14 bln purchase of rival pipeline group Williams, Energy Transfer has issued convertible stock to shore up its balance sheet. Instead of being reassuring, though, the move exposed divisions between the companies – and left investors more skeptical.
Rail strike is one of a thousand cuts for Wall St 11 Mar 2016 New Jersey transit workers may walk out on Sunday, disrupting travel into New York City. Delays could cost financial firms $2 mln an hour in lost productivity. The unions haven’t had a contract since 2011. For once it’s not regulation, but banks can still blame officialdom.
Mooted $11 bln gas deal signals energy M&A thaw 10 Mar 2016 TransCanada’s interest in Columbia may end a dearth in industry tie-ups. Both are among the better-positioned players in a sector where falling oil and gas prices sparked fears about a wave of bankruptcies. Perkier crude may lubricate similar mergers between industry survivors.
Fintech’s growing pains are only just beginning 10 Mar 2016 Shares of mobile payments firm Square fell up to 8 pct on so-so earnings. SoFi started a fund to buy its own loans as other sources proved harder to tap. And competition is getting fiercer, including from banks. Lower fees, riskier business mixes and failure are on the horizon.
Best U.S. health-insurance merger may be none 10 Mar 2016 UnitedHealth’s four main rivals are fighting to push their deals past state and federal regulators. The $115 bln UnitedHealth will look smart if the mergers, each worth about $70 bln in current combined market value, are blocked. It might even win out if the deals pass muster.
Twitter’s staff handouts add to "profit" flattery 10 Mar 2016 The $11 bln microblog is giving people more stock, and cash, to keep them sweet after losses on shares already granted. Aside from defeating the point of making employees owners, it ensures Twitter’s custom metrics, which exclude stock-based pay, become even less realistic.
Carlos Slim builds Spanish empire at skinny price 10 Mar 2016 The Mexican tycoon has been building stakes in builder FCC and property firm Realia. He has made bids for both, at low premiums, after exceeding a 30 pct threshold. Slim has no incentive to offer target shareholders a sweeter offer unless the regulator forces his hand.
John Gutfreund takes old Wall St model to grave 10 Mar 2016 The ex-Salomon Brothers boss led investment banks from partnerships into prop trading – and ended up in a scandal. His era was, at least, one where bankers’ excesses didn’t put the system at risk. That lends his kind of risk taking a degree of perverse charm that will be missed.
U.S. pipeline firms can go with bankruptcy flow 9 Mar 2016 Insolvent oil and gas drillers can shed contracts with companies that move their product, says a N.Y. judge. The ruling may rattle investors who assumed the agreements supplied safe revenue streams. No need to panic, though: The deals will probably be renegotiated, not canceled.
Wanda’s U.S. cinema rollup unlikely to get rewrite 9 Mar 2016 An unhappy investor thinks Chinese-controlled AMC Entertainment is underpaying for rival American theater chain Carmike. The 20 pct premium is no blockbuster, but it’s no flop either. And after a year of hawking itself, the $1.1 bln deal may be the best the company could get.
American oversight of financial tech looks so 2007 9 Mar 2016 U.S. regulators are falling short of policing this emerging industry, partly because of the outdated patchwork of state rules. The UK and others are further ahead in addressing the sector in fresh ways. Creating a modern, federal regime to oversee these firms is a priority.
Valeant’s new directors portend suits and sales 9 Mar 2016 The drug firm’s challenges can be seen in its new board appointees: an M&A specialist, a law professor and retired judge, and a drug entrepreneur with experience selling companies. These directors can help Valeant prepare for a future chock-full of litigation and divestitures.
Why the Yankees are swinging their bats at Comcast 9 Mar 2016 The $140 bln cable operator is sticking by a decision to drop the channel that airs the team’s baseball games, risking the ire of Bronx Bombers fans as the season starts. The fracas underscores bigger problems in the pay-TV universe as distributors become choosier about networks.
U.S. tech sanctions more risky than bank crackdown 9 Mar 2016 America has used its dominance of international finance to force foreign lenders to cut ties with enemy states. New restrictions on Chinese telecom firm ZTE extend the principle to technology. But that could have much bigger ramifications for U.S. firms.
Amex boss needs better credit with shareholders 8 Mar 2016 Ken Chenault this week faces investors tired of missed targets, slow growth and an underperforming stock. A mega-merger fix isn’t possible, and some issues are industry-wide. But he has to sell owners on his plan for boosting results – or risk having them find him in default.
U.S. anti-gun rulings put freer markets in sight 8 Mar 2016 Courts have upheld assault-weapons bans, adding heft to a Connecticut suit that tests laws shielding firearms firms from liability. The case is still a stretch, but growing assent to gun-rights limits may force the likes of Remington to compete without unfair legal protection.
U.S. banks may distrust watchdogs’ hints at easing 8 Mar 2016 Some officials reckon lenders have gone too far to prevent money-laundering risk, cutting vulnerable people off from the banking system. The concern is valid, but tough enforcement has made banks allergic to gray areas. They’re unlikely to accept regulators’ pleas to relax a bit.