Molson gets tasty chaser in giant beer deal 11 Nov 2015 The Coors owner is paying SABMiller $12 bln for its 58 pct stake in their U.S. venture. By helping ease antitrust pressure on the UK-listed brewer’s $105 bln sale to AB InBev, Molson avoids a premium. Some $200 mln of annual cost savings, plus a sizeable tax perk, are pure gold.
Fed feeds Goldman conspiracy-theory machine 10 Nov 2015 Hiring former dealmaker Neel Kashkari to run Minneapolis means the investment bank’s alumni are in charge of three of the central bank’s 12 regional branches. It’s great fodder for those seeking evidence of a system in thrall to Wall Street and Goldman. The reality is less juicy.
AB InBev’s deal skills turn into an embarrassment 10 Nov 2015 The 11 pct increase in the brewer’s shares since it agreed in principle to buy rival SABMiller for $105 bln has made its cash offer less attractive. Announcing big cost savings, AB InBev’s forte, would make the problem worse. AB has good reason to subtly play down its prospects.
Tech crunched between clashing U.S.-EU privacy law 10 Nov 2015 Facebook got dinged in Belgium for secretly tracking visitors, while Spokeo’s similarly nosy conduct will probably go unpunished in America. Yet in neither case could victims prove they were harmed. The disparate outcomes highlight the need for more uniform data-gathering rules.
Banks and big media wake up to aggregation risks 10 Nov 2015 An array of websites and apps allow consumers to see multiple financial accounts in one place. BofA is the latest lender to resist. Similarly, Netflix aggregates TV shows and media companies are showing more hate than love. Both traditional industries are fighting the tide.
Savings may get $50 bln rail deal across the line 10 Nov 2015 The $22 bln Canadian Pacific could try to buy slightly larger Norfolk Southern. If CP can boost its U.S. rival’s efficiency to match its own, the result would be some $7 bln worth of cuts. That’s enough to cover a premium and compensate for the risk of an antitrust derailment.
China insurer adds U.S. to overseas M&A splurge 10 Nov 2015 Anbang has popped $1.6 bln Fidelity & Guaranty Life into its basket. In 12 months it has spent $4.4 bln on financial groups in South Korea, the Benelux and now America. The strategy is vague and funding opaque. For sellers, though, the Waldorf Astoria owner livens up any auction.
Match’s IPO profile is alluring but with strings 9 Nov 2015 The dating-sites owner pegs its worth as high as $3.6 bln. Much of that derives from Tinder, its fast-growing swipe-to-like app. The numbers make for an attractive and credible stock. It’s a risky proposal, though, and Barry Diller’s IAC looks like an overbearing chaperone.
New York coal settlement could be climate canary 9 Nov 2015 Peabody’s deal with state prosecutors over misleading atmospheric risks may inform a similar probe of Exxon. Though the lack of fines is a weak sign, the miner at least must share its assessment of possible climate rules. That could expose the danger of stranded energy assets.
Yahoo needs truth rather than report from McKinsey 9 Nov 2015 The struggling internet site has hired the firm for advice on new opportunities. It’s unclear, though, what management consultants can do to arrest the company’s descent that a procession of CEOs hasn’t already tried. A blunt memo recommending a sale would make better reading.
New $23 bln woodland monster looks good on paper 9 Nov 2015 Forestry giant Weyerhaeuser is paying a 14 pct premium for Plum Creek, a $7 bln timberland REIT. That’s modest but fair, given $100 mln of expected cost savings and a planned $2.5 bln stock buyback for both sets of owners. Weyerhaeuser’s long transformation looks near complete.
Job data rarely work as gauge of economy’s health 6 Nov 2015 U.S. employers did lots of hiring last month, but that means less than investors may think. Nonfarm payroll numbers are volatile, imprecise and prone to revision. They’re important mostly because traders, analysts and journalists give them outsized attention. A demotion is overdue.
Square’s down round offers cautionary unicorn tale 6 Nov 2015 Jack Dorsey’s payments firm may go public for $3.5 bln, or 41 pct below its last private valuation. Rising competition, losing Starbucks’ business and deflating markets are only partly to blame. It’s a sign to well-funded upstarts that good ideas don’t always guarantee success.
Exxon investors may rue climate-risk indifference 6 Nov 2015 The oil major’s shares barely budged on news New York is investigating whether the company misled owners about global warming. The probe adds legal teeth to the carbon-bubble debate and may spread to rivals. Shareholders seem more worried about oil prices. That looks shortsighted.
Valeant CEO gets called on $100 mln excess 6 Nov 2015 Paying bosses in equity nudges them to serve shareholder interests. The pharma giant went to extremes, allowing chief Michael Pearson to borrow heavily against his shares. The tumbling stock forced him to repay the debt - an example of how skewed incentives have rocked Valeant.
Bill Ackman pushes limits of activism at Valeant 5 Nov 2015 The hedge fund boss hinted the drugmaker’s CEO may need to go and was invited into the boardroom mid-crisis, according to a newspaper report. Ackman also seems to have usurped Valeant’s defense. The $55 bln of quickly lost market value suggests his involvement isn’t helping much.
Shale drillers can do little more with any less 5 Nov 2015 Apache joined a handful of U.S. companies that have raised production forecasts in recent days, despite sharp reductions in investment. Improved efficiency and lower costs are keeping volumes buoyant. Another big drop in the price of oil, however, would test their resolve.
Barclays, not HSBC, should mull quitting the UK 5 Nov 2015 HSBC caused a scene by suggesting it might move its HQ to Hong Kong. But it makes more sense for UK-based peer Barclays to move to New York. Its new CEO is American, the U.S. is better able to house a systemically important bank, and Barclays might dodge UK bank and bonus rules.
Facebook a master at hooking users on mobile habit 4 Nov 2015 The social network reported more than 1 bln active daily visitors, a testament to its success in persuading people to check in on smartphones and tablets. Its reward was a 40 pct rise in ad revenue. Future growth may depend on pushing this kind of digital addiction.
Expedia finds back door to Airbnb’s market 4 Nov 2015 The travel site is paying $3.9 bln for HomeAway. Though the vacation-rental firm lacks the urban clout of its better-known rival, moving in with its new parent will help. Cost cuts are low, but HomeAway’s cash pile will ease the blow to Expedia of shelling out a 28 pct premium.