$13 bln dental combination looks a bit off-white 16 Sep 2015 Dentsply and Sirona have set what they call a merger of equals. The global providers of single-use supplies and dentistry equipment, respectively, are complementary. But investors don’t love the amalgam so far. Owners of the smaller and techier Sirona might ache for a premium.
Asset-stripping Yahoo could mean profitable relief 15 Sep 2015 The company’s plan to spin off its $25 bln Alibaba stake tax-free may not fly. Buying Yahoo and selling its parts – and taking the tax hit – would be brutal, but simpler and quicker than faffing about with clever structures. A 25 pct premium might still offer upside.
Goldman late to party for alumni in highest places 15 Sep 2015 Many powerful résumés feature the firm, but Malcolm Turnbull, Australia’s new prime minister, is its first head of government. Rivals won the race to top jobs in places like New Zealand and Pakistan. It may be a while, though, before ex-bankers run large Western democracies.
If Fed cares about stocks, rates are due a hike 15 Sep 2015 U.S. shares suffered this summer from the prospect of a Chinese slowdown. With employment solid and inflation on target, some pundits turned to market volatility as a reason for the Fed to hold back. Even after recent equities weakness, though, history suggests rates can go up.
Rob Cox: The pope, Bernie, Jeremy walk into a bar 15 Sep 2015 … only to find they have far too much in common to make a joke of their fictional congregation. On economics, the Vermont senator surging in Democratic polls and the new UK Labour leader owe more to the bishop of Rome’s encyclical than prevailing capitalist orthodoxy.
Quiksilver’s next wave may turn mushy 14 Sep 2015 The once far out surf-wear pioneer’s Chapter 11 filing has been a long time coming. Oaktree is bankrolling a revamp, but Quiksilver’s glide downward in sales and a consistently weak ride from competitors like Billabong suggest it’s unlikely to get serious air any time soon.
Dealmakers meet match in Obama’s deal breakers 14 Sep 2015 The president’s trustbusters are unbeaten challenging big mergers, including ones proposed by Comcast and Sysco. That puts the likes of Staples and Aetna on notice. Previous administrations filed more cases, but few chalked up as much success. Quality over quantity is working.
U.S. shale may confound oil market optimists 14 Sep 2015 The International Energy Agency expects a sharp drop in crude output in 2016 as producers adjust to lower prices. But the industry’s structure is unusual, and Goldman reckons stronger companies could keep on drilling and pumping. If so, oil prices could go lower still.
Revolving door from Silicon Valley worth spinning 11 Sep 2015 A new proposal in Congress aims to crack down on financiers taking a turn in government. The sometimes suspect rotation from public service to lobbying also persists across industries, including technology. What Washington could use, though, is more computer nerds in high places.
Review: A premature obituary for capitalism 11 Sep 2015 The mutating global system is nearly dead, argues left-wing journalist Paul Mason. Faced with climate change, stagnation and debt crises, we need a new plan. The urgency of “Postcapitalism” is welcome. But its prescription of a collaborative information economy is less convincing.
Google in China faces moral and financial hurdles 11 Sep 2015 Censors forced the web giant to retreat from the People’s Republic in 2010. Now it’s reported to be mulling a return with a Chinese version of its mobile app store. Harsh regulation would test Google’s principles, while fierce competition will make profit harder to come by.
Rob Cox: Immelt pins GE colors to Alstom’s mast 10 Sep 2015 If the revised math actually works, buying the French energy provider is a steal of a deal. GE’s big acquisition also serves as a symbol of its shrewd refocus on industry over finance. On this 14th anniversary of being at the helm, Jeff Immelt is staking his legacy on Alstom.
Staples-Office Depot spread beckons the brave 10 Sep 2015 Shares of Office Depot are trading 27 pct below the implied value of rival Staples’ $5.6 bln offer. The retail office trade is a challenged business, but with Staples down just 18 percent since January, Office Depot looks like a cheap option on the deal passing antitrust muster.
Tough talk on jailing bosses is ultra-cheap 10 Sep 2015 U.S. lawmen are touting new rules to nail people not just their employers. It’s a bit late and also glosses over that the failure to prosecute individuals really comes down to the difficulty of making a case. The C-suite won’t be intimidated until regulators walk the walk.
Jeb Bush tax plan features impractical good sense 9 Sep 2015 The White House wannabe vying for attention with Donald Trump wants a simpler tax code with lower rates and fewer giveaways. Ideas like ending corporate interest deductions are on the right lines. But even if he could quell special interests, Bush would need huge spending cuts.
National Geographic takes refuge in Fox house 9 Sep 2015 The 127-year-old non-profit society is handing control of its yellow-bordered magazine and other operations to Rupert Murdoch’s TV company for $725 mln. Like Sesame Street’s deal with HBO, it’s a sign of the media times. The digital upheaval is making for strange new bedfellows.
KKR and Marshall Wace marry need with ambition 9 Sep 2015 The buyout shop’s purchase of 25 pct of Marshall Wace creates an odd beast: KKR doesn’t get control, and the precedents are mixed. Still, asset managers want scale and diversity, and the buyout business is challenged. If the tensions can be managed, it looks a logical trade.
Jefferies may be canary in shuttered Wall St mine 9 Sep 2015 Unlike the rest of the U.S. securities industry, the firm controlled by $7.7 bln Leucadia isn’t barred from proprietary trading. So its quarterly results could offer some insight into just how much the Volcker Rule helps or hinders the likes of Goldman Sachs in volatile markets.
Moving millennials may unpack $600 bln punch 9 Sep 2015 Despite better job prospects, many young Americans are living longer with their parents. That curbs spending on housing, as well as on internet service, refrigerators and such. A Breakingviews analysis suggests millennials exiting attics could add 4 pct to GDP within a few years.
Heineken crafts telling move away from global beer 9 Sep 2015 The Dutch beer giant has bought into a Californian brewer of pale ale. The undisclosed financials will be small in the context of this 40 bln euro company. But strategically it is a big deal. Heineken is accepting it needs more than fizzy beer in green bottles.