Yahoo sale would carry a warning from print 3 Dec 2015 The internet company may be putting itself on the block. Private equity is interested – and perhaps in L.A. Times parent Tribune, too. Both are plagued by a long-term decline in advertising revenue. LBO shops fell victim to that disease with newspapers a decade ago.
Congress punts gas tax hike in favor of bank raid 3 Dec 2015 A $305 bln transport spending plan may soon be law. Rather than raise the absurdly low U.S. fuel levy, though, lawmakers are plugging a $70 bln shortfall by swiping the Fed’s rainy-day funds and dividends it pays lenders. Creative, perhaps – but it’s no long-term solution.
Diageo drinks to Silicon Valley-style disruption 3 Dec 2015 As AB InBev brews mega-beer, the $74 bln distiller of Johnnie Walker and Smirnoff wants for potent takeover targets. Instead of waiting for big brands like Jack Daniel’s and Bacardi, Diageo is seeding booze entrepreneurs who are building new ones. Doing so quietly is the twist.
Unlikely activist rides against inbred energy deal 2 Dec 2015 David Tepper usually sticks to distressed debt. But the mass of potential conflicts behind SunEdison offshoot TerraForm’s bid for Vivint Solar assets has spurred the boss of hedge fund Appaloosa to change horses and take a 9 pct stake. It may augur greater scrutiny for the sector.
Zuckerberg’s supervoting shares prove double-edged 2 Dec 2015 Investors may one day regret the founder’s grip on Facebook. For now, though, it allows him to retain control while starting a long process of giving away 99 pct of his $45 bln of stock. The beneficiaries of Zuckerberg’s charity will see the silver lining to the governance flaw.
Yahoo CEO has run out of time for a turnaround 2 Dec 2015 After three years, it’s clear neither Marissa Mayer – nor maybe any top executive – can save the flailing internet company. The board’s job now should be to determine the best way to tidy up the firm’s affairs. Mayer’s best legacy may be that she got a good price for the core business.
Mark Zuckerberg raises philanthropic bar to 99 pct 1 Dec 2015 It’s not disruption, but Facebook’s founder has built on The Giving Pledge championed by Warren Buffett and Bill Gates. Zuckerberg will give away nearly all his wealth, not half, in his lifetime. After moving fast and breaking things, he’s moving judiciously and learning things.
Cox: Two signs of M&A bacchanal’s last hurrah 1 Dec 2015 The boom just topped $4 trln, helped along by one telltale massive deal and another much smaller one. Pfizer’s takeover of Allergan is clearly predicated on exploiting tax loopholes while a U.S. retailer is getting into the pizza racket. Both indicate a cycle well past its peak.
Morgan Stanley tackling final profits puzzle piece 1 Dec 2015 CEO James Gorman may lay off a quarter of fixed-income traders. The unit’s wild quarterly swings usually decide whether the firm hits or misses financial-return targets. While cuts will help, what the bank does with the division’s product mix and capital would be more telling.
Puerto Rico debt payment marks end of fiscal rope 1 Dec 2015 The cash-strapped U.S. territory scraped together $355 mln for creditors, avoiding default on its government-guaranteed debt. A $945 mln payment due on Jan. 1 will be harder to deliver. Unless Congress offers relief soon, bondholders will still face a messy restructuring.
BlueCrest pinpoints major drag on returns: clients 1 Dec 2015 The $8 billion hedge fund will return capital to investors. High costs, increasingly risk-averse clients, and uninspiring performance didn’t mix well. From now on, BlueCrest will be free to chase higher returns, but finding them means taking on much more leverage.
Sumner Redstone’s health ails corporate governance 1 Dec 2015 The mental capacity of the Viacom and CBS chairman is being called into question again, this time in a lawsuit filed by a former girlfriend. At this point, shareholders in both media companies deserve a clearer idea of whether the ailing 92-year-old is fit to lead the boards.
China will find schmoozing IMF was the easy bit 30 Nov 2015 The yuan has made it into the global lender’s basket of reserve currencies, despite China’s patchy reform record and clumsy market interventions. For Beijing politicians, getting into the IMF’s club is itself a reward. Persuading investors to want more yuan will be tougher.
Billionaires add thrust to clean-energy moon shot 30 Nov 2015 Bill Gates, Mark Zuckerberg, Jeff Bezos and Jack Ma are among those pledging to pool their lucre for big investments in climate-friendly R&D. The aim is worthy but such ambitious projects have a mixed record. At least these entrepreneurs know how to tolerate serious cash burn.
Bankers catch a crumb in critical conflicts case 30 Nov 2015 Delaware’s top court chided RBC in its upholding of a $76 mln penalty against the firm for working both sides of a deal. In a footnote, though, the tribunal toned down a lower court’s notion that advisers must save directors from themselves. The buck still stops in the boardroom.
AB InBev’s SABMiller deal losing big-brand fizz 30 Nov 2015 The Budweiser brewer may sell SAB’s Peroni and Grolsch labels to speed antitrust clearances, reports say. The Molson venture in the U.S. has already gone and China may demand disposals. AB InBev will retain some gems, but the SABMiller empire could soon be unrecognizable.
Bank living-will laggards risk capital punishment 30 Nov 2015 Big American lenders will soon hear whether their resolution plans are to be rejected for a third time. New global bail-in rules remove the pressing need for regulators to break banks up. But in an election year they could punish insolence by insisting on higher capital buffers.
Climate will supplant shale as top energy disruptor 27 Nov 2015 The world’s politicians may be about to get serious on cutting greenhouse gases at the U.N. Paris confab. And shareholders are pushing Big Oil to disclose global warming risks. The consequences for the industry will be longer lasting than the recent oil production revolution.
Review: Another "Minsky moment" may be on the way 27 Nov 2015 Hyman Minsky didn’t just predict the global financial crisis 10 years in advance, a new book on him argues. The maverick economist also explained how the cure – bailouts by the Federal Reserve and other central banks - would drive the financial system to the brink yet again.
Britain’s “Black Friday” better left on the shelf 27 Nov 2015 The Thanksgiving shopping orgy, recently adopted by the UK, is unhelpful for all concerned. Consumer credit is spiralling, confidence falling and retail margins are under pressure. If shoppers and retailers take a rational view of low prices, the festival will snuff itself out.