Volvo Cars’ IPO valuation is suitably smoggy 19 Oct 2021 The marque owned by China’s Geely could be listed at around $21 bln. Hiving off the combustion engine unit was meant to boost its green bona fides. Yet a reliance on gas guzzlers and optimistic battery targets mean the Swedish group will struggle to stand out from dirty rivals.
Goldman plays with hot tar in Japanese buyout 19 Oct 2021 Minority investors reckon the Wall Street bank, partner Eneos and target Nippo are steamrolling them with a bid valuing the roadbuilder at $4 bln. They have a point: The offer looks cheap and the deal governance subpar. The onus is on Goldman to show it’s managing any conflicts.
Time to end Richemont’s online fashion drag 18 Oct 2021 The Cartier owner may sell its e-commerce business YNAP just three years after taking it over. A deal with Farfetch or other rivals might reap at most 3.6 bln euros. Yet, by cutting exposure to a lossmaking unit, boss Johann Rupert would smarten up his company’s dowdy valuation.
Crypto puts U.S. and El Salvador in the same boat 18 Oct 2021 Hispanic and Black people are top American owners of digital currencies. Discrimination and lagging access to financial services are drivers and are among the better reasons why the Central American nation turned to bitcoin. It’s a lost opportunity for traditional banks.
Merck has upper hand with Acceleron dissidents 18 Oct 2021 The biotech target's 7% shareholder, Avoro Capital, is among funds that reckon the roughly $11 billion price Merck is offering is not high enough. There are arguments on both sides. But knocking the deal off course will be tough, especially as other bidders didn't emerge.
Capital Calls: Klarna, French vaccine, Philips 18 Oct 2021 Concise views on global finance: The $46 bln Swedish buy-now-pay-later company tries to outrun Britain’s financial watchdogs; Valneva’s Covid-19 shot may prove better than the UK’s home-grown version; the industrial giant sees light at the end of the supply-chain tunnel.
Russian IPO salad hides some dodgy ingredients 18 Oct 2021 Helped by a global boom, new listings by the country’s companies are at their most active since 2007. Investors are more used to sanctions risk, while Covid-19 has spruced up hopefuls such as real estate website Cian. Others, like St Petersburg’s bourse, may be lumpy leftovers.
London’s IPO revamp gets its cautionary tale 18 Oct 2021 THG’s founder is giving up his golden share in the stricken online retailer, just as regulators prepare to make it easier for executives to keep control after listing. It’s a timely reminder of the benefits of “one-share-one-vote” governance. It’s not too late to turn back.
Evergrande contagion may be nearing its peak 18 Oct 2021 China’s central bank reckons the indebted property developer is a bad apple in an otherwise “healthy” industry. That’s too generous: Evergrande’s woes may yet drag weaker players down and have wider impacts. But the chance of a domestic systemic financial crisis is falling.
Online jackpot tempts ambitious $2.9 bln bet 18 Oct 2021 Australia-based Aristocrat is paying a chunky 58% premium to buy UK gambling software maker Playtech. The tech-related stakes are big, but plans to close in some areas will come at a cost. Backlash against giddy growth in online wagering also lowers the odds of financial success.
Solo Brands IPO tests investor taste for “DTC” fad 15 Oct 2021 The direct-to-consumer hawker of a bevy of products, from fire pits to paddle boards to swim trunks, is going public. While the precedents aren’t particularly encouraging, Summit Partners-backed Solo may just get a $1 bln valuation by pitching itself as a traditional M&A rollup.
Goldman takes Wall Street’s precarious crown 15 Oct 2021 Investment banks in the U.S. are inundated with advisory fees and trading profit, and David Solomon’s firm grew fastest. Since 2019, the biggest five look to have made over $70 bln more than in normal times. It may attract regulators’ attention, but it’s a victory fairly won.
Jana Macy’s rejig sounds more like a sales pitch 15 Oct 2021 The agitator that took Whole Foods and Outback to task wants the $7 bln retailer to hive off its e-commerce unit. This Saks-like paper-shuffling could help Macy’s double in value. The idea may work better, though, as a teaser to persuade more lucrative bids for the whole company.
Review: Index funds are (still) changing the world 15 Oct 2021 Investments that track benchmarks at low cost have radically reshaped finance. The rise of BlackRock and other market giants has raised questions that aren’t yet answered. In “Trillions” Robin Wigglesworth recounts the revolution with flair. The book will need a sequel, though.
Capital Calls: Real estate distress is tricky call 15 Oct 2021 Concise views on global finance: Barry Sternlicht’s Starwood Capital has raised a $10 bln fund to buy struggling buildings. With the pandemic's long-term effects unclear, the key will be avoiding those destined to remain empty.
Glencore CEO’s top M&A pick is Glencore 15 Oct 2021 With a strategy set under predecessor Ivan Glasenberg, new boss Gary Nagle has few ways to make his mark. Record coal and copper prices and unique cobalt assets mean his own shares look cheap. He could buy them back, but a more striking gambit would be a full sale to Rio or BHP.
Belgian biotech casualty defies Darwinian logic 15 Oct 2021 Galapagos has few drugs, a departing CEO and is worth just 3.1 bln euros, less than the cash on its books. It should be a takeover candidate, but the influence of key investor Gilead is a complication. It’s a cautionary tale of the challenges of drug discovery and creative M&A.
Chancellor: Bring surveillance capitalism to heel 15 Oct 2021 Traditional capitalism aims for perfect competition in which many firms vie to deliver goods and services to customers. Social media is dominated by impregnable monopolies that enjoy vast economies of scale and scope. Facebook’s latest scandals provide grounds for genuine reform.
Elliott REIT activism exploits real estate oddity 14 Oct 2021 The activist is pushing healthcare office owner HTA to sell. The CEO left and the $7 bln trust can’t outbid private equity real estate funds that can lever up cheaply. But it can sell to them, and then investors can turn around and buy another public REIT.
Cox: Arrivederci Alitalia, you won’t be missed 14 Oct 2021 After 74 years, Italy’s once-glamorous national carrier disappears for good tonight. The airline had become the butt of bad jokes and a dent to Italian pride. Poor management was a factor in its demise. But there are reasons to celebrate Alitalia’s end, and ITA’s new beginning.