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.
Bank of America’s prudence is at odds with times 14 Oct 2021 The U.S. lender lags peers in trading, investment banking and digital growth. That’s because CEO Brian Moynihan keeps a tighter lid on risk. What shareholders lose in good times won’t come back in bad ones if the Fed always steps in during downturns to keep market forces at bay.
Viewsroom: IMF’s big brouhaha, European retailing 14 Oct 2021 The multilateral lender’s boss, Kristalina Georgieva, rode out data-rigging charges. Now she has got a lot to prove. Swaha Pattanaik ticks through how she can remake her legacy and reform the institution. Aimee Donnellan walks through the aisles of French supermarket finance.
Breakdown: Buy Now, Pay Later’s bill is coming due 14 Oct 2021 The instalment-lending tool is reshaping how consumers buy online and could reach $300 bln by 2024. Banks are scrambling to catch up with upstarts like Klarna and Affirm, while regulators worry about unsustainable debts. Breakingviews explains why a reckoning is on its way.
Capital Calls: Worker shortages spread to IT staff 14 Oct 2021 Concise views on global finance: It’s not just lorry drivers and warehouse labourers who are in short supply. British white-collar recruiter Hays on Thursday reported record revenue from finding technology employees.
Tata’s new backseat drivers charge electric course 14 Oct 2021 The Indian carmaker added $4 bln in market cap after buyout firm TPG and others backed its battery-powered passenger-vehicle unit at a $9 bln valuation. Extra funding is welcome in the capital-intensive business. It should help Jaguar’s owner race ahead in a fast-growing market.
Private equity’s German bank raid targets IT jewel 14 Oct 2021 Advent, Centerbridge and TowerBrook have bid 1.7 bln euros for Wiesbaden-based Aareal. Despite its dismal profitability, the target’s appeal lies in its fast-growing digital real estate unit. That could on its own cover the cost of the deal, making the humdrum bank a freebie.
Higher gas prices are a long-term corporate thorn 13 Oct 2021 It’s tempting to dismiss soaring values of the fossil fuel as another temporary spike. But prices will stay elevated in the short term, while supply may keep falling short of demand in the longer run too. Sensible businesses should plan for higher energy bills.
JPMorgan waits for animal spirits to jump species 13 Oct 2021 The U.S. lender’s 25% third-quarter earnings growth owed much to deal-chasing CEOs betting with other people’s money. Customers who take risk on their own behalf, like credit-card users, are still being eerily cautious. That’s a drag for all banks, but JPMorgan most of all.
IPO could be the next spin for WPP’s PR combo 13 Oct 2021 The $16 bln ad firm’s Finsbury Glover Hering is merging with Sard Verbinnen to make a $917 mln group. The latter’s owners get a partial exit and option to sell out later on. But, by dangling a potential float, WPP gives the company’s spinners an incentive to make the merger work.
Investors emit hot air in Aussie bank climate row 13 Oct 2021 Commonwealth Bank shareholders rejected a push for more stringent net-zero action. The lender at least is open to adjusting targets to new data. But a win would have sent a signal to fossil-fuel firms trying to force banks to keep cash flowing, and to the dithering government.