Thai beer float needs market fizz for top value 8 Feb 2021 Thai Beverage’s move to float 20% of its brewing business has strong echoes of the 2019 IPO of Budweiser’s Asia unit. To reach a mooted $10 bln equity value, it will need to match a bubbly valuation too. But it’s less profitable and Singapore listings aren’t known for froth.
Jeff Ubben’s soft touch could help hardened Exxon 5 Feb 2021 The activist behind Inclusive Capital may join the $204 billion oil giant’s board. He helped usher Ballmer out of Microsoft and encouraged an aging Adobe to transform. With vocal and quiet agitators at Exxon, shareholders need a diplomat. Ubben’s experience could prove useful.
Corona Capital: Peloton, Star SPAC, Italian bank 5 Feb 2021 Concise views on the pandemic’s corporate and financial fallout: Peloton needs to keep pedaling faster to keep up its subscriber pace; baseball’s Alex Rodriguez is jumping in the special purpose acquisition company game; and Intesa Sanpaolo makes good on M&A.
Enel will be hard to dislodge from green perch 5 Feb 2021 The Italian utility has become one of the world’s top renewable energy players and achieved stellar returns under CEO Francesco Starace. A booming green market and a big project pipeline mean its lead will outlast his tenure. Oil majors entering the market will trail behind.
Lazard bucks Aussie investment banking trend 5 Feb 2021 The $5 bln advisory shop is scaling back as financiers from UBS and elsewhere decamp to startups such as Barrenjoey and Jarden. Boss Ken Jacobs has struggled to gain traction Down Under. With an M&A boom potentially on the horizon, though, it’s an odd time to shrink.
Hong Kong retail mania one-ups U.S. short squeeze 5 Feb 2021 Kuaishou shares nearly tripled on their $5.4 bln debut. One in four working-age Hong Kongers bid for a stake in the Chinese video app, putting up $162 bln. Dubious rallies without organised campaigns like GameStop’s provide stronger evidence of a frenzy getting out of hand.
Japan’s largesse cuts big banks much-needed slack 5 Feb 2021 Lower credit costs helped Mitsubishi UFJ and Mizuho post better than expected earnings. Thank government stimulus, not least for slowing bankruptcies. With the central bank able to offer just token help, it’s the only relief on hand for the country’s long-suffering lenders.
Small-stock mania calls for big-picture thinking 4 Feb 2021 Treasury Secretary Janet Yellen and other market sheriffs are convening to discuss the impact of the GameStop saga. There may be a case for throwing sand in the gears of retail investing, to offset fee-free trading and gamification. But the less regulators intervene the better.
Branson splices cash and hype into 23andMe 4 Feb 2021 The consumer genetics company is combining with the British billionaire’s SPAC in a $3.5 bln deal. Revenue from testing is shrinking, but all that personal data could be valuable. While 23andMe’s valuation looks high, the $1 bln in cash should buy some time to grow into it.
Stellantis boss Tavares faces triple challenge 4 Feb 2021 The new Italo-French carmaker trades at a discount to peers. Carlos Tavares’ cost-cutting record offers investors some comfort he can get 5 billion euros of annual savings. To go beyond that he’ll need to figure out China, e-vehicles and revive struggling brands like Alfa Romeo.
UK grocer’s $10 bln LBO just about fits in trolley 4 Feb 2021 The Issa brothers and TDR will put in only $1 bln to buy Asda. The deal makes canny use of generous debt and property markets. Borrowing, while high, looks manageable so long as the gas pump tycoons can manage the triple threat of discounters, Amazon and Brexit.
Viewsroom: Bezos takes step back, Draghi steps up 4 Feb 2021 Amazon founder Jeff Bezos is handing the baton to Andy Jassy so he can spend more time with his rockets, a move that’s not always smooth sailing, Jennifer Saba tells Rob Cox. Meantime Mr. Whatever It Takes, Mario Draghi, is summoned to save Italy and Europe’s Hamiltonian moment.
Kaz Minerals minorities should quit while ahead 4 Feb 2021 The copper miner’s two biggest investors have increased their takeover bid to 3.7 bln pounds. The new offer is still not exactly a knockout, but Kaz Minerals warrants a discount given much of its value is tied up in one risky project. Minorities should take what’s on the table.
Corona Capital: McKinsey/opioids, Bumble IPO 4 Feb 2021 Concise views on the pandemic’s corporate and financial fallout: Consulting firm McKinsey settles over its role in the U.S. opioids scandal; and dating site Bumble boss Whitney Wolfe Herd looks smart to be holding back in the company’s initial public offering.
Deutsche’s trim investment bank is model for peers 4 Feb 2021 CEO Christian Sewing’s 2019 decision to scrap equities trading, while shrinking costs and capital, hasn’t undermined the remaining wholesale business. The lender’s fixed-income units may even be gaining market share. HSBC, Credit Suisse and others needn’t fear a radical overhaul.
Shell’s strength jars with sedate green strategy 4 Feb 2021 The $140 bln oil giant earned $4.8 bln last year as rivals made losses. Next week’s strategic overhaul is unlikely to involve big cuts in crude output or BP-style wind power targets. The cautious approach runs counter to its green-leader image – and the prevailing investor mood.
Cellnex reloads for phone mast M&A shoot-out 4 Feb 2021 The acquisitive Spanish telecoms tower firm is asking investors for another 7 bln euros. That’s more than it needs for its latest 5.2 bln euro purchase. CEO Tobias Martinez will have spare ammunition to fight off heavyweight invaders like American Tower and Britain’s Vodafone.
China property credit crisis drags in Ping An Life 4 Feb 2021 China Fortune Land Development's $814 mln of overdue loans have local officials warning its collapse could create systemic risk. Over 200 financial institutions are involved. Beijing might let CFLD serve as a warning, unless the life insurance giant steps in to save its stake.
Amazon exposes flip side of tech’s governance ills 3 Feb 2021 Jeff Bezos built a $1.7 trln e-commerce firm without the dual-class shares or majority stakes that entrench founders at Alphabet and Facebook. So as he drops his CEO role, his remaining executive duties matter a lot. Microsoft offers some lessons that Amazon seems to have heeded.
Rupert Murdoch’s ESG flaws hurt more than ever 3 Feb 2021 Despite efforts to pare down and improve disclosure, $12 bln News Corp trades at a curiously deep discount, based on Breakingviews calculations. Online real estate and Dow Jones may be underappreciated. The media mogul’s bad governance and newspaper fetish also get in the way.