Companies & Funds

SPAC figureheads need to seal their deals

15 June 2021

One of Michael Klein’s blank-check vehicles may buy small-brand collector Thrasio. If that deal and another for Lucid Motors close, some 70% of his $7 bln in SPAC cash would be invested. Chamath Palihapitiya is not far behind. The market's future hinges on both gurus’ success.

The Exchange: IAC Chairman Barry Diller

15 June 2021

The media mogul has backed businesses ranging from travel to gambling to dating and more. Plus, he’s behind Little Island, a new park in New York. Diller shares his thoughts on the reopening of the world, IAC’s unique model and why Netflix has already won the streaming war.

Disney has enough magic without Hulu

15 June 2021

The Mouse House is rocketing ahead with its video service, Disney+. So it’s odd that it still owns two-thirds of the less successful Hulu. While Disney can buy the rest of Hulu from rival Comcast from 2024, it might make more sense to sell, and spend the money closer to home.

Chancellor: Bears will survive meme-stock assault

15 June 2021

Short sellers now live in dread that one of their bets, from AMC to GameStop to Wendy’s, will be talked up on WallStreetBets and pounced on by Robinhood day-traders. Many have gone into hiding. But history validates the need to maintain a healthy balance between bulls and bears.

Bolloré and Ackman will beat the Vivendi activists

15 June 2021

Agitators including Dan Loeb own stakes in the French tycoon’s conglomerate. A messy plan to list most of music label Universal, while selling 10% on the cheap to Bill Ackman’s SPAC, gives them plenty to aim at. But Vincent Bolloré’s near-30% control means he has the upper hand.

Armani’s smartest fit is on Agnelli shoulders

15 June 2021

The suit maker’s 86-year-old founder, Giorgio, is measuring up prospective buyers, ideally from his native Italy. Despite some pandemic creases, the brand could fetch 8 bln euros. A sale to the Turin dynasty, rather than rivals Prada or Moncler, would preserve more of his legacy.

Capital Calls: Airbus-Boeing, SoFi SPAC, Emirates

15 June 2021

Concise views on global finance: A truce in the 17-year EU-U.S. spat over aerospace subsidies shifts the focus to Beijing; the online finance company gets a helping hand from new backer Chamath Palihapitiya; Dubai’s state airline averts financial disaster with huge job cuts.

Tech IPO gives bad SPAC deals run for their money

15 June 2021

Macquarie-sponsored Nuix’s CEO and CFO resigned after poor earnings and forecast revisions within six months of taking the Australian software maker public. Blank-cheque deals like Lordstown are known for hype and under-delivery, and now this ordinary listing has managed it too.

Beijing finally gives China shorts a helping hand

15 June 2021

Central government crackdowns and the collapse of U.S.-based fund Archegos have delivered selective relief to investors betting against Chinese companies listed in New York. Caution is warranted as outbound investment quotas ease. Patriotic reinforcements are on the way.

Big Tech will dodge Congress’s sharpest arrows

14 June 2021

Lawmakers have included the power to break up firms like Amazon in one of five bipartisan bills designed to curb tech giants' market heft. It's unlikely to pass. Less onerous plans on data portability and merger fees have a better shot. Watchdogs will be left with blunt weapons.

SPAC boom gets “come to Jesus” moment in Lordstown

14 June 2021

The electric-pickup-truck maker admitted some pre-orders were nebulous, saw its CEO and CFO step down and warned it may not remain a going concern. This implosion, less than a year after going public, makes it easy for critics and regulators to latch onto specific SPAC problems.

Capital Calls: U.S. malls are a tale of two REITs

14 June 2021

Concise views on global finance: Shopping center operator Washington Prime filed for bankruptcy protection, but the outlook is a bit rosier for premium mall owners.

Fashion moves to the centre of activist crosshairs

14 June 2021

Covid-19 has exacerbated the $2.5 trln industry’s ESG-unfriendly flogging of cheap clothes. Recycling is no more than a partial fix for the problem. Inditex and H&M are insulated by their big family holdings, but Boohoo, Adidas and ASOS look vulnerable to investor attacks.

Shell’s U.S. rethink betrays lack of wiggle room

14 June 2021

The Anglo-Dutch driller may sell assets worth $10 bln in Texas. Not so long ago the U.S. Permian Basin was a key oil major growth area, but now Shell is under pressure to cut emissions. Restricting carbon while earning a financial return is increasingly determining strategy.

Exxon defeat could lead drillers back to Texas

11 June 2021

The $265 bln fossil fuel giant’s board upheaval will prompt other drillers to merge higher returns with greener investments. Buying Texas oil ironically could fit that bill. Deals not only offer companies a way to cut costs. Acquisitions can actually help them look greener, too.

Bank climate stress tests scarier than they look

11 June 2021

UK and European lenders that flunk green exercises will not face higher capital charges. But past evidence suggests investors will use the new disclosure to penalise funders of pollution. That will either throttle carbon financing – or shift it to the non-bank sector.

Greener Acciona comes with stiff family discount

11 June 2021

The $9 bln Spanish group’s valuation is yet to reflect the potential uplift from spinning off its renewables unit. That may be because the clan that owns Acciona will also control the new entity. Even so, investors may warm to the fact it could be worth more than its parent.

Selfridges $6 bln deal would be rich bet on London

11 June 2021

The Weston family may sell the luxury department store. At nearly 5 times sales, the mooted price looks punchy. Given the dicey prospects for physical retail and the UK capital after Brexit, buyers will have to be more interested in owning a trophy asset than financial returns.

Didi embarks on ultimate IPO road-test

11 June 2021

The Beijing-based ride-hailing giant, last valued at $62 bln, unveiled plans to go public in New York. It’s growing quickly, but cruising into record-high markets, U.S. political pressure on Chinese issuers and tech crackdowns at home. The fare could be steep for new investors.

Capital Calls: Biden’s Big Corn battle

11 June 2021

Concise views on global finance: The U.S. president is caught between oil refiners and farmers in biofuel mandate.