Fiat offspring are racy hedge against anti-rich Xi 23 Sep 2021 BMW, Mercedes and others would be hit hard if China’s “common prosperity” drive extends to premium vehicles. Ferrari can power through, while Stellantis’ low sales in the world’s top car market would offer investors cover, if rivals don’t offload vehicles on the cheap elsewhere.
IPO investors get the Toast without the jam 22 Sep 2021 The $20 bln restaurant booking group priced its offering above the target range amid strong demand for market debutants. Investors are shrugging off wider concerns including a possible economic slowdown in China. Yet even if the stocks pop, IPOs are trailing the broader market.
Capital Calls: Zoom glitches, Pret A Manger pivots 21 Sep 2021 Concise views on global finance: The video-conference company’s $13.6 bln deal with call-center software firm Five9 could slip away, and that’s no bad thing; the sandwich-to-coffee chain’s 100-million-pound post-pandemic overhaul is a punt on an untested formula.
Italy will be first to light up Europe’s weed biz 22 Sep 2021 A nationwide plebiscite will seek to legalise cannabis. Taxing recreational dope may add some 6 bln euros to strained state coffers, and production for medical and other uses will also rise. As the U.S. experience shows, if Rome crosses the sticky line, neighbours will follow.
DraftKings UK bookie punt is risky multiplier bet 21 Sep 2021 The U.S. fantasy-football specialist may buy Entain in a $22 billion cash-and-stock deal. Together, they’d be a giant in the U.S. sports-betting market. But the price tag looks steep, and the target’s joint-venture partner, MGM, could make life difficult after any tie-up.
Time for sports data’s also-ran to Be Like Mike 21 Sep 2021 The $7.6 bln Sportradar’s shares are below last week’s IPO price, and its valuation multiple lags rival Genius Sports. On the plus side, famously competitive basketball icon Michael Jordan now advises the board. Maybe he can help it see that the businesses aren’t that different.
U.S. Bancorp’s $8 bln deal is the mostly good kind 21 Sep 2021 The acquisition of Mitsubishi UFJ’s retail bank castoffs in the U.S. looks a bold move after President Biden called for tougher scrutiny of mergers between lenders. But the finances stack up and, save nitpicks, so does the case for uniting smaller banks to challenge the giants.
Funky fund IPO puts premium on Goldman factor 21 Sep 2021 Petershill, which owns stakes in buyout groups and hedge funds sourced by the Wall Street firm, is targeting a value up to $5.9 bln. That’s much more than the value of its assets, and closer to a listed investment manager. Investors are placing their faith in Goldman’s contacts.
Capital Calls: Airline partnerships, Labor market 21 Sep 2021 Concise views on global finance: An alliance between American and JetBlue could fall foul of the U.S government, even though Washington could benefit from it; U.S. Bancorp’s promised savings in its deal to buy MUFG Union may be easier than usual to achieve without firing people.
UK bus groups bet on future bumps in the road 21 Sep 2021 National Express, the 1.4 bln pound transport company, is in talks to buy rival Stagecoach for over 400 mln pounds. An 18% premium in shares isn’t particularly attractive. But given rising labour costs and a potential slow recovery of traffic, neither is the alternative.
Universal spin makes case for even slimmer Vivendi 21 Sep 2021 Tycoon Vincent Bolloré has enriched himself and other shareholders by listing the $53 bln label behind artists like Taylor Swift. But his remaining media business still trades with a hefty discount. Offloading his Italian holdings, and putting a stop to M&A, would help fix that.
Wall Street will learn to love Evergrande’s crash 21 Sep 2021 New York woke up to the developer’s problems on Monday, moving stocks and bond prices. Offshore exposure to Evergrande debt is opaque; a Chinese real estate crisis would be painful. But contagion risk is limited, and a housing correction has upsides for frustrated foreign banks.
Big miners are steeled against falling iron ore 21 Sep 2021 The mineral’s price has collapsed in two months, bucking inflationary trends. Rising supply, China’s cooling economy and changing consumer spending habits portend a further decline. Capital discipline and diversification will cushion the blow for BHP, Rio and Fortescue.
Pru’s $3 bln Asia shift sets up new AIA battle 21 Sep 2021 The London-based insurer is completing its pivot to the fast-growing region by selling new shares in Hong Kong. The Fragrant Harbour is already home to the $137 bln rival that Prudential failed to buy a decade ago. Now they’re set to compete over punchy valuations.
BP’s hard baptism goes with transition territory 20 Sep 2021 The UK oil major has sold choice assets to control debt since embarking on its green pivot a year ago, and CEO Bernard Looney just replaced the boss of his key renewables arm. If he needs a boost, Danish wind star Orsted looked equally bumpy at a similar stage of its evolution.
Capital Calls: Vaccinating kids, U.S. eases travel 20 Sep 2021 Concise views on global finance: Pfizer says its Covid-19 jab is good for children, paving the way for more parents to be able to work; Joe Biden is finally allowing vaccinated Europeans to visit the United States – a boost for airlines, but only a step towards the old normal.
UK power market deficiencies flash red at bad time 20 Sep 2021 Britain may spend hundreds of millions of pounds propping up its energy sector. Soaring prices are a global problem, but the UK has a more liberal market and fewer alternative power sources. It’s a poor look as Boris Johnson prepares to lecture others on cutting carbon emissions.
Guest view: Hold auditors to account on climate 20 Sep 2021 The risks of global warming are missing from companies’ financial statements. Accounting firms must share the blame alongside directors, writes Natasha Landell-Mills of Sarasin & Partners. Investors have the power to demand better, while governments can help speed the shift.
Shinsei poison pill is acid test for Tokyo reforms 20 Sep 2021 The $4 bln lender wants to thwart online rival SBI’s push for effective control by diluting the unwelcome bidder’s stake. Voting it down is a no-brainer, not least for the government: Its 22% holding is under water and its campaign for better governance could do with a boost.
PR firms step into big-ticket merger lull 17 Sep 2021 Global dealmaking hasn't yet surged after America's Labor Day holiday. It may yet happen. In the meantime two big M&A communications firms, WPP-backed Finsbury and Sard Verbinnen, are considering a merger of their own. The combo would get a top league-table spot to shout about.