Electric-vehicle deals get racier than ever 10 Nov 2021 Even more revealing than Rivian’s immodest IPO price is the $1.4 bln sale of battery-powered-van maker Cenntro to a lingerie merchant. The SPAC-like transaction models rather flattering growth curves. Only in a risqué market could there be a hint of logic to such naked ambition.
China property chaos unearths insurance landmines 10 Nov 2021 The $2 bln developer Yango is scrambling to avoid default. But a 2020 share sale to backer Taikang Life puts it on the hook to pay out generous dividends. Such opaque debt-like equity deals with insurers are common in the sector. They threaten to undermine restructuring efforts.
DoorDash’s $8 bln bite supersizes its ambitions 9 Nov 2021 The $64 bln food delivery giant's acquisition of Finnish rival Wolt gives it a foothold in the hypercompetitive European market. The deal looks expensive, and won't obviously boost DoorDash's profit, but it serves up more of what investors are greedy for: growth.
Hertz goes wheels off in post-bankruptcy listing 9 Nov 2021 The rental car firm inked a $20 bln valuation, including debt, in its stock deal. A rise in travel and surge in Avis’s shares helps justify the price. But a car shortage restrains growth and ride-sharing is still a secular threat, and Hertz is now worth more than in 2019.
GE breakup is common sense, at least in theory 9 Nov 2021 Carving up the $120 bln conglomerate is no longer the drastic step it would have seemed under CEO Larry Culp’s predecessors. After Culp’s cleanup, three separate, more focused businesses could be worth more. But financial engineering often disappoints – especially at GE.
The Exchange: Bank of America boss Brian Moynihan 9 Nov 2021 With a $2.8 trln balance sheet, BofA is one of the largest banks in the Glasgow Financial Alliance for Net Zero. Moynihan tells Rob Cox what this means operationally, how the bank is helping “hard to abate” firms to transition, and what it’s like to be back at conferences.
Consumer rivals can beat buyout firms in GSK scrum 9 Nov 2021 The $106 bln drugmaker’s plan to spin off its Advil unit has drawn interest from industry giants and private equity firms. A leveraged buyout would stretch even the most daring financial buyers and leave GSK with a chunky stake. Selling to a rival like P&G looks a cleaner option.
Rolls-Royce nuclear plans piggyback green success 9 Nov 2021 The UK engineer and partners are pumping 195 mln pounds into a unit to build small commercial reactors. As with wind and solar, the British government is helping by promising to buy the plants’ electricity. It should mean a lucrative side hobby for the group run by Warren East.
Capital Calls: Couch-potato habits help Roblox 9 Nov 2021 Concise views on global finance: The video game app’s shares surged 36% on Tuesday after it said sales nearly doubled in the quarter.
Well-behaved Chinese property giant shows stress 9 Nov 2021 Vanke has kept leverage under control. With peers like Country Garden racing to acquire distressed rivals and home sales falling, the country's third-largest developer is finally listing its property management unit to raise some $2 bln. It may have waited too long.
Indian startup repackages deliveries for investors 9 Nov 2021 Delhivery has grown its reach by relying on partners for warehousing and last mile, so it owns fewer assets than FedEx and Chinese peers. That leaves it more dependent on tech and exposed to volatile costs like rising rents. A $5.5 bln IPO valuation might be slow to stack up.
Aussie bank’s wobbles mask its enviable strengths 9 Nov 2021 Shareholders sold off $70 bln NAB as revenue fell and costs rose. But the country’s third-largest lender has been building more momentum than peers outside the bubbly housing market and remains the most efficient of the top four. That gives boss Ross McEwan room to maneouvre.
Euronext and Nasdaq can scratch backs in Europe 8 Nov 2021 After buying Borsa Italiana, the $12 billion pan-EU exchange needs another deal. Nasdaq’s Nordic business, worth say $3 bln, is an ideal target. Euronext boss Stéphane Boujnah will need to convince the U.S. group’s CEO Adena Friedman that a sale could accelerate her data pivot.
McAfee buyout puts risky spin on cybersecurity 8 Nov 2021 Advent and Permira’s $14 bln buyout of the U.S. software firm could double their money if McAfee keeps motoring as expected and valuations stay elevated a few more years. While former owner TPG has left some juice to suck out, a hefty $9 bln of debt provides an extra-thick straw.
America’s swing senator can save or scorch planet 8 Nov 2021 Joe Manchin effectively controls the fate of global climate policy as a centrist Democrat in a split Senate. He rejected a clean electricity plan; green tax credits may be next. President Joe Biden’s influence over other nations rests on where the coal-state lawmaker comes down.
Tech gabfest shows conferences a real-world future 8 Nov 2021 To see how the pandemic has changed the conference business it makes sense to observe the tech-savvy. The 43,000 people who descended on Lisbon for last week’s Web Summit showed face-to-face gatherings have enduring value, even for those making their living in the digital realm.
Capital Calls: Hedge funds, Rogers, Inmarsat 8 Nov 2021 Concise views on global finance: The industry’s assets are above a new threshold, but it’s a business reaching a limit; the head of the Canadian telecom giant has won a court victory; U.S. rival Viasat pulls the UK-based satellite operator into its orbit for a pricey $7.4 bln.
Elon Musk caught recklessly tweeting again 8 Nov 2021 He vowed to sell 10% of his Tesla stake if Twitter users said he should while tastelessly taking aim at a U.S. senator. It evokes his 2018 “funding secured” fiasco. Even absent any SEC scrutiny, it exposes the $1.2 trln carmaker and its bad governance to more unwanted attention.
Richemont activism is more coaxing, less conflict 8 Nov 2021 Funds including Dan Loeb’s Third Point may push the Cartier owner to close a 20%-plus valuation discount to luxury peers. With half of the voting rights, Chairman Johann Rupert is in firm control. Unlocking value will depend on convincing him to make sensible strategic changes.
African telcos finally get their big fintech prize 8 Nov 2021 After years of delay, Nigeria’s central bank is letting phone firms offer basic banking via handsets. For the regulator, it’s a way of staying relevant as consumers dabble in cryptocurrencies. For operators like MTN and Airtel Africa, it’s a multibillion-dollar payday.