TuSimple $8 bln IPO destination looks out of range 8 Apr 2021 It values the self-driving truck firm run by financiers and a gamer at 4,260 times 2020 sales. Volkswagen’s Traton, UPS and others are partners. But autonomous vehicles are years off, TuSimple is hauling a load of governance issues and has an investor in a U.S. regulatory probe.
Who wants to be an electric-car billionaire? 8 Apr 2021 In China, who doesn’t may be the better question. Dishwasher maker Haier, property developer Evergrande and smartphone maker Xiaomi are piling into the over-invested sector. They may disrupt the industry; they will certainly accelerate the coming bloodbath.
Fox’s FanDuel shoot-out has all or nothing odds 7 Apr 2021 Rupert Murdoch’s empire is suing Flutter to try to get last year’s price on a stake in its U.S. sports betting firm. Comparable companies suggest FanDuel’s value may be four times higher. Fox gets little out of paying a toppy price. Given the split, it’s worth going to the mat.
SPACs can reverse listings decline with SEC’s help 7 Apr 2021 Blank-check vehicles are flawed, but they bring new businesses to public markets. If the hot first-quarter pace keeps up, SPACs could double the number of firms traded on U.S. exchanges in maybe four years. Even if activity slows, it’s a reason watchdogs may treat them gently.
Dimon’s mega-missive has more spin than substance 7 Apr 2021 The JPMorgan chief’s annual open letter offers trenchant views on capital rules, stress tests and the fintech threat. Then there’s the other 50-odd pages. Lengthy musings on leadership and racial justice say more about the cult of the CEO than the case for investing in the bank.
Applovin IPO is magic money chest for KKR 7 Apr 2021 The private equity giant invested $400 million in the mobile app and gaming company in 2018 and helped it expand. Now that the firm is seeking a valuation of up to $30 billion, the buyout baron is going to turn a tidy profit. Relations with Apple could be the only small hitch.
Investment behemoth IPO can fly without Reddit mob 7 Apr 2021 Asset management platform Allfunds will list in Amsterdam. Its model of channelling banks’ clients into funds means it will miss the amateur share trading frenzy. But its 1.2 trln euros of assets, profitability and growth record make a mooted 7 bln euro valuation attractive.
Capital Calls: Trucking IPO 7 Apr 2021 Concise views on global finance in the Covid-19 era: Startup TuSimple will be listing shares via a traditional initial public offering.
SocGen fund sale is good enough to spur copycats 7 Apr 2021 The French bank is set to sell its passive investing unit to Amundi for 825 mln euros. While below some estimates of 1 bln euros, CEO Frederic Oudea’s price is adequate and he’s solving a strategic problem. Other banks with subscale fund arms, like UBS, may follow suit.
Covid-testing IPO is bet on long hypochondria 7 Apr 2021 German diagnostic tester Synlab is planning to float with a mooted $7 bln valuation. A receding pandemic may mean its 38% revenue growth in 2020 isn’t repeated. But the price reflects that, and consumers may well continue to obsess about other aspects of their health.
CVC’s Toshiba bid puts a breakup on the table 7 Apr 2021 The buyout barbarians at Tokyo’s gates may be offering more than $20 bln for the conglomerate. Toshiba has been struggling amid governance issues. But its assets could collectively be worth more than double CVC’s bid. Carving up the company could give shareholders a better deal.
Didi’s IPO could be as bumpy as Dida’s 7 Apr 2021 The Chinese ride-hailing firm is navigating toward public markets and a $100 bln valuation. Its smaller, similarly named rival's listing effort has stalled in Hong Kong after hitting regulatory, legal, and operational potholes. Didi will have to buckle up for a comparable ride.
Mozambique’s gas loss could be green energy’s gain 6 Apr 2021 Islamic State attacks near future LNG sites have shattered the African state’s dreams of gas production. Plants planned by Total and Exxon Mobil constitute 8% of current world demand. If they are never built, a mid-decade price spike may hasten a global pivot to renewable power.
Capital Calls: Bling deal 6 Apr 2021 Concise views on global finance in the Covid-19 era: Signet, the owner of jewelers Zales and Kay, is buying rental firm Rocksbox.
Credit Suisse’s spring clean has barely started 6 Apr 2021 Risk chief Lara Warner and investment bank boss Brian Chin are leaving after the Swiss bank unveiled a $4.7 bln hit from Archegos’ collapse. New board investigations should include deeper soul-searching over recent scandals. Restructuring and business disposals may be necessary.
Air France-KLM’s latest rescue tests marriage bond 6 Apr 2021 The European carrier is swapping a loan from the French state for hybrid equity and raising 1 bln euros from investors. The capital rejig should help it stay aloft if the recovery is delayed. But Paris’ increased stake will strain its already tricky relationship with the Dutch.
Capital Calls: Icahn’s new CEO, Google vs. Oracle 1 Apr 2021 Concise views on global finance in the Covid-19 era: Activist investor Carl Icahn takes on a GE veteran adept at building businesses up and breaking them down; why Google’s win in the U.S. Supreme Court ought to benefit startups too.
Wall St may get greater of two bank capital evils 5 Apr 2021 Financial firms just lost a regulatory perk that had allowed them to guzzle Treasuries with abandon. They may yet get a reprieve since looser leverage limits help the central bank too. But if the Fed tightens other capital rules instead, lenders could be even worse off.
UK’s Gupta merits net zero rescue in all senses 1 Apr 2021 The steel entrepreneur’s tottering industrial empire is a tricky candidate for a state bailout. But it could give the government a chance to decarbonise a major source of emissions. Done smartly, it may help Britain hit green goals and stabilise a perennially flaky sector.
Corporate America has its born-again moment 1 Apr 2021 Covid-19 trashed profitability in the second quarter last year. April 1 kicks off a new period that, for many U.S. companies, will look stellar by comparison. If 50%-plus year-on-year earnings growth comes to pass, it might even justify current valuations.