Exxon and gas markets tell different stories 26 Apr 2024 CEO Darren Woods denies fossil fuels are in decline, thanks to growing populations and rising petrochemicals demand. Yet a glut of natural gas – which reined in quarterly profit at Exxon and rival Chevron – is a real problem, and one that could weigh on prices for a long time.
Thoma Bravo UK cyber deal looks a little too good 26 Apr 2024 The buyout firm finally agreed a takeover of long-term target Darktrace, an IT security specialist. Despite the generous-looking 44% premium on offer, the buyer’s returns seem juicy given a nascent US push. That may raise the chance of shareholders asking for more money.
BHP investors throw CEO too short an M&A leash 26 Apr 2024 The miner’s stock fell 4.6% after the company proposed to buy Anglo American at a $39 bln valuation. It suggests shareholders fear boss Mike Henry will end up overpaying. But with his low-ball opener leaving plenty of wriggle room to justify upping the bid, that looks premature.
CVC’s Darwinian pay policy puts rivals on the spot 26 Apr 2024 The buyout shop, which manages $200 bln, allocates 40% of fund profits to staff on a deal-by-deal basis, rather than pooling the spoils. Rivals say it hurts teamwork, but CVC’s returns suggest it works. If the newly public firm keeps out-raising peers, others may follow suit.
Through Aramco, Peak China courts Peak Oil 26 Apr 2024 Buying a 10% stake in petrochemical firm Hengli will ramp up the Saudi giant’s presence in the People's Republic. Aramco is boosting ties with an important long-term customer. Beijing gets to tout foreign inflows as other sources dry up. It's a critical match.
Who can serve up the Goldilocks recipe for AI? 25 Apr 2024 Investors slapped down Facebook owner Meta for hefty spending on artificial intelligence with uncertain returns. Conversely, they have feted chipmaker Nvidia for its real-life revenue from AI tools. Microsoft and Alphabet are doing a decent job of landing in the middle.
Anglo American has grounds to play hard to get 25 Apr 2024 The London-listed miner has received an all-share $39 bln bid from BHP. Anglo’s recent woes explain why, but its jumble of assets could be worth more. If boss Duncan Wanblad can show as much by outlining a plan B, he may yet see its $149 bln rival off – or extract a higher offer.
Detroit’s revenue engines finally start to fire 25 Apr 2024 Ford and GM haven’t grown US electric sales since 2022, despite investing billions of dollars. But under the hood, GM’s new models are gaining momentum, and Ford is focusing on its cash-generating trucks and vans. It helps that they are accelerating in different directions.
Vote no to bashing proxy advisers 25 Apr 2024 Corporate leaders at JPMorgan and AstraZeneca bridle when ISS and Glass Lewis criticize their governance. No wonder: Some high-stakes shareholder votes this year will be uncomfortable for feather-bedded bosses. Proxy firms are problematic, but they do more good than harm.
European banks have little to lose from rate cuts 25 Apr 2024 Tighter monetary policy boosted revenue at BNP Paribas, Deutsche and Barclays, who now face ECB and BoE loosening. Markets expect some 50 basis points of rate cuts, but that shouldn’t hurt bank income much. Deposits may get cheaper, while old loans keep rolling onto higher rates.
BHP CEO tests his M&A promise in Anglo American 25 Apr 2024 Mike Henry has long sworn off overpaying for deals. A 30% premium for its $37 bln smaller rival looks justifiable. The buyer would then become the world’s largest copper miner and gain better iron ore for green steel. The real trial will come if peers like Rio join the fray.
Meta’s spending habits have strange power to shock 24 Apr 2024 The Instagram owner lost 16%, or $200 bln, of market cap after saying 2024 capex could hit $40 bln, more than flagged earlier. Maybe a debut dividend dazed investors, but boss Mark Zuckerberg’s track record leaves little doubt he’ll run full throttle into a cutthroat AI race.
TikTok’s fate matters only up to a point for Meta 24 Apr 2024 Under a new US law, owner ByteDance is likely to sell the app without its secret sauce, suffer a ban or win a court challenge. Mark Zuckerberg’s social-media colossus should capitalize on the first two scenarios. Even the third allows it to make decent headway against its rival.
How one firm made child’s play of tricky M&A games 24 Apr 2024 Imagine buying a company without tedious negotiations, rival bids or pricey premiums. A Saudi investor pulled it off by snapping up enough shares to gain control of US retailer The Children’s Place. The feat will be hard to replicate, but there’s now a model for deal masterminds.
Time for Kering’s king to consider a step back 24 Apr 2024 François-Henri Pinault, heir to the family fortune, has been at the helm of the 40 bln euro French luxury conglomerate for nearly 20 years. With returns shrinking and as flagship brand Gucci struggles, Kering may benefit from fresh blood – and possibly a new CEO.
New Hong Kong bourse CEO needs everyone onside 24 Apr 2024 Anaemic trading activity has halved the market operator’s share price, and first-quarter earnings show it can no longer count on investment income to cushion the blow. There are early signs Bonnie Chan may get support from Beijing to turn things around. Hong Kong can do more too.
Beijing powers up into car wars battleground 24 Apr 2024 The city’s auto show returns, with some 700 exhibitors, for the first time since the pandemic. Foreign brands from Volkswagen to Toyota have to show how they can defend themselves as China’s BYD and new threats like Xiaomi chase market share at home and abroad.
Tesla thumbs a ride on uncertain low-cost future 23 Apr 2024 Elon Musk’s automaker is accelerating a plan to make cheaper electric car models. Yet its recent performance disappointed, and rivals like GM are resurgent. Tesla wants investors to believe the future will be better than the present, and as good as the past. It’s a stretch.
Cruise-ship IPO bets the rich will always float 23 Apr 2024 Viking is seeking an $11 bln valuation in its US listing — a premium price relative to the larger Carnival and Royal Caribbean. As ballast, it offers a focus on high-end customers and less debt than peers. Investors will be reliant on the whims of the few, in more ways than one.
Kate Spade deal veto is lucky dip for trustbusters 23 Apr 2024 US competition cops want to stop Tapestry, owner of the handbag brand, from buying rival Capri. The $8.5 bln merger is a tempting target: well-known products, few political issues, and none of Big Tech’s mighty resources. That offers a chance to road-test novel legal theories.