Capital Calls: Warren Buffett’s taxes 8 Jun 2021 Concise views on global finance: A ProPublica report unveils the true tax rate of the Sage of Omaha, Jeff Bezos and other members of the uber-rich elite.
Hong Kong devolving into economic monoculture 8 Jun 2021 Banks including Citi and UBS are hiring in the city, but other industries are looking to move headcount to Singapore or Shanghai. The financial hub is becoming dangerously one-dimensional: a recipe for rapid stagnation, not the renaissance Beijing promises.
Electronic waste unearths green China unicorn 8 Jun 2021 Used-phone retailer Aihuishou wants to go public at a $5 bln valuation. Thanks to frugal and environmentally conscious shoppers, demand for second-hand goods is booming. The company has yet to turn a profit, but backer JD's deep pockets and rare ESG credentials should appeal.
Alzheimer’s drug feeds U.S. healthcare cost spiral 7 Jun 2021 The approval of a treatment will bring hope to millions and might bring maker Biogen over $20 bln of revenue a year. But there’s little evidence it works. By taking a flier, regulators may be intensifying the trade-off between patients’ hope and Americans’ financial health.
Danish hydrogen adds hygge to market green malaise 7 Jun 2021 Green Hydrogen Systems is planning a Copenhagen float that will value the electrolyser maker at $500 mln. Of late, pulled IPOs reflect investor scepticism about so-so renewable energy listings. The green gas’s key role in cutting EU carbon emissions may make this a comfier fit.
Wall Streeters outpace Europeans back to office 7 Jun 2021 JPMorgan CEO Jamie Dimon wants staff in by summer, and Goldman’s David Solomon called home-working an “aberration”. Deutsche, HSBC and Barclays are taking a laxer approach. Sidewalk-pounding bankers at U.S. firms might win more client facetime, and an even greater share of deals.
Anglo spinoff points to darker future for coal 7 Jun 2021 The mining giant’s thermal coal unit, Thungela, was valued at just $250 mln on its market debut. That’s a third of the EBITDA its South African mines may earn this year. It’s a stark reminder of the black stuff’s rapidly declining worth, and of public investors’ aversion to it.
Capital Calls: Medline’s money machine 7 Jun 2021 Concise views on global finance: Blackstone and partners’ purchase of a majority stake in the $34 bln medical equipment maker could generate a big windfall for its founding family, without the clan members handing over the keys to their empire.
Software deal contains two-sided logic errors 7 Jun 2021 Sydney-listed Altium spurned a $3.9 bln takeover bid from larger U.S. peer Autodesk. It’s an odd response given recent struggles and the chunky 42% premium on offer. The maths doesn’t compute for the suitor either. In wild M&A markets, such behaviour is a feature rather than a bug.
India Insight: Facebook losing one of its besties 7 Jun 2021 The social network’s WhatsApp messaging service is suing New Delhi over encryption. Even if it prevails, there’s growing support to get tough on foreign tech goliaths making the country their top market. Facebook’s $6 bln Reliance investment is becoming an important hedge.
Taxes are good first, knotty global step forward 7 Jun 2021 A G7 accord on a 15% minimum corporate tax, plus at-source levies on big firms helps rich nations shore up pandemic-hit coffers. Details are hazy but after years of wrangling it raises hopes of resolving harder multilateral challenges, principally in combatting climate change.
Pharma CVRs are an unhealthy M&A habit 4 Jun 2021 A lawsuit claims Bristol Myers slow-walked a cancer drug approval to avoid a $6.4 bln top-up payment on its buyout of Celgene. Aggrieved investors may get something but should have known better. Contingent value rights are illiquid, dispute-prone and best given a wide berth.
UFC has to earn its valuation belt 4 Jun 2021 The mixed martial arts powerhouse was valued at nearly $10 billion in deals struck alongside owner Endeavor’s IPO. That’s in line with big-talking UFC boss Dana White’s assessment. It’s a lot pricier than rival sports franchises, though. It could take some big hits to justify it.
Ackman SPAC falls flat with Universal denouement 4 Jun 2021 After sniffing at Airbnb and Bloomberg, the billionaire’s blank-cheque firm may instead buy 10% of the music label for $4 bln. It’s a fair price but Universal was going public anyway. And Bill Ackman’s “Tontard” acolytes could get it cheaper simply by buying its parent, Vivendi.
Credit Suisse fantasy M&A roads all lead to UBS 4 Jun 2021 The embattled $26 bln bank is a hypothetical takeout target. HSBC, JPMorgan or Morgan Stanley make strategic sense. But international interest would pile pressure on UBS to come up with an all-Swiss solution. An already-mooted Zurich mashup would also yield the most cost savings.
Capital Calls: Turkish gas, Generali, Garuda 4 Jun 2021 Concise views on global finance: President Erdogan’s “good news” on hydrocarbons smells off; the Italian insurer’s 1.5 bln euro bid for NN Group’s asset management unit may trigger a shootout; the Indonesian flag carrier’s long struggle to avoid bankruptcy is coming to a head.
Tesla disrupted by traditional mechanics 4 Jun 2021 May orders nearly halved in China, The Information reports, after safety concerns. This week’s triple recall in the United States makes a deeper dent in its reputation. Car upstarts have quality crises like everyone else, but they do more damage on the bleeding technology edge.
Aussie M&A silly season gets sillier 4 Jun 2021 Link Group and investment bank Barrenjoey managed to get a better IPO deal for PEXA. But Roc Partners’ brawl over Vitalharvest is getting messier, and Betmakers’ $3 bln bid for a Tabcorp unit is blowing up. It sends a message to this unusually fractious market: “Calm down.”
GoTo steers e-tail to smarter, fiercer last mile 4 Jun 2021 The enlarged Indonesian tech group will make gains in data analytics, helping it keep pace with $130 bln Sea. Getting goods closer to customers will trim order costs and boost on-demand services. It hints at complexities in the pair’s reliance on third-party logistics too.
Test-tube baby-making market is ready to pop 3 Jun 2021 Declining sperm counts, delayed fertility decisions and lower birth rates are trends fueling an investment segment casually known as “femtech.” Societal and governmental reluctance can get in the way of financial returns. But for investors, where there's a will, there’s a way.