Corona Capital: KKR/music, IMF 11 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: Private equity giant KKR buys a stake in hip OneRepublic music royalties; and the International Monetary Fund half-heartedly bumps up its target lending cushion.
Tech and auto bosses form an awkward carpool 11 Jan 2021 Shares of South Korea’s Hyundai are up 30% on reports of a tie-up with Apple for self-driving vehicles. Selling software could ramp up margins for carmakers and alleviate technology headaches. But joining forces is a shortcut that could prove hazardous down the road.
Infrastructure funds get case of private jet envy 11 Jan 2021 GIP has outgunned rival Blackstone with a $4.6 bln bid for Signature Aviation, offering a 51% premium for the aircraft servicer. Catering to the flying habits of the mega-rich is hardly a stable business, though, and private aviation faces climate-change clouds on the horizon.
Becoming a bank would shrink but not squash Ant 11 Jan 2020 Regulators are set to treat Jack Ma’s financial group more like a regular Chinese lender. Though it has enough capital to support its online credit business, growth would be crushed. A bank-like valuation would imply it’s barely worth a tenth of its previous $300 bln price tag.
Chinese delisting push warrants some jumps too 11 Jan 2021 The dizzying reversals on what to do with three telecom operators has settled on ousting them from the Big Board. Other state-backed companies may be targeted too by Washington. Most derive little benefit any more from their NYSE presence. It’s time to pack up anyway.
Corona Capital: U.S. jobs, Covid-19 tests 8 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: The U.S. job recovery is stalling as the pandemic surges, increasing the chances of more stimulus; a Covid-19 testing startup may be the reason for a rise in cases in Los Angeles.
Labelling vaccine hares and tortoises is premature 8 Jan 2021 The UK and Israel are rapidly inoculating against Covid-19, while France lags. Final success is likely to hinge on a disciplined rollout from a centralised hub to a receptive populace. Israel appears to have all three; investors may soon see that France, Britain and peers do not.
Co-pilot Bill Gates can swing private-jet dogfight 8 Jan 2021 The Microsoft founder has checked in with Blackstone to offer $4.3 bln for Signature Aviation, which runs small airports for the mega-rich. Rival Carlyle may trump that. But Gates’s 19% stake and the already-high price makes it harder for a counter-bid to get off the ground.
Intel woes provide timely lesson for Samsung 8 Jan 2021 The South Korean giant will end 2020 with a 26% rise in quarterly operating profit, thanks largely to its chip dominance. Its U.S. peer, by contrast, has fallen behind rivals and faces calls to break up. The prolonged leadership vacuum at Samsung risks a similar gradual decline.
China plugs big loopholes in real estate crackdown 8 Jan 2021 Beijing has capped bank property loans as a percentage of total credit, a blunter, harsher approach than previous efforts. Indebted developers will suffer, as will lenders. It’s a sign of official confidence that the economic cost of restraining housing speculation is bearable.
Boeing gets off easy as life grows harder 8 Jan 2021 The 737 MAX maker is paying $2.5 bln to settle U.S. criminal charges tied to crashes, with over 70% going to airline customers. Other companies have been hit with steeper fines and heavier oversight for lesser offenses. The penalty looks light, but Boeing only can afford so much.
Roblox float seeks to share public-listing love 7 Jan 2021 The gaming platform scrapped its IPO for a direct listing of its shares. That’s an easier financial decision with $520 mln of new funds raised at a valuation of nearly $30 bln – more than 7 times its worth a year ago. But it also offers more stakeholders a chance to participate.
Viewsroom: Siege of the Capitol, Where’s Jack Ma? 7 Jan 2021 The violent occupation of Congress by protesters contesting Donald Trump’s loss of the presidency puts America’s financial safe-haven status to a major test, John Foley tells Rob Cox. And Pete Sweeney weighs in from Hong Kong on the mystery of the Alibaba founder’s whereabouts.
Team Trump should be an ESG red flag 7 Jan 2021 It’s common for former U.S. officials to pop up on company boards. But cabinet members who stuck by the president as he rejected the election result can’t be relied on to respect the will of shareholders. Investors who value governance should ensure the revolving door stays shut.
Yellen can kick off Biden’s more open government 7 Jan 2021 The $7 mln the former Fed chief earned giving speeches to Wall Street and other firms could haunt Janet Yellen as Treasury secretary. For one, she’ll need progressives to back her policies. Transparency, like releasing transcripts of those talks, could help set the right tone.
Atos CEO’s risky lunge for DXC could add up 7 Jan 2021 Elie Girard approached $7 bln U.S. rival DXC Technology about a deal. At almost three-quarters of its market value, and with the French group still digesting past deals, DXC looks like a lot to swallow. But the math may work, and Girard’s go-it-alone plan is dull by comparison.
Corona Capital: Video rental stores, Conagra 7 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: A last surviving U.S. video rental chain shutters, Conagra’s boosted sales aren’t enough for investors.
LafargeHolcim’s U.S. deal is an overdue Plan B 7 Jan 2021 The $36 bln Swiss cement maker’s 2015 merger hasn’t really worked. Branching out into roofing by acquiring the U.S. division of Japan’s Bridgestone for $3.4 bln could pay off if a stateside stimulus spurs infrastructure spending. But LafargeHolcim’s bet looks relatively pricey.
Rome’s UniCredit M&A gift is of questionable value 7 Jan 2021 The lender’s shares rose after Reuters said the government may absorb 14 bln euros of its dud loans to ease a Monte dei Paschi merger. It makes a deal with the basket-case bank more palatable. But UniCredit investors should care more about legal risks and future government sway.
A big Chinese backer would be roll of dice for MGM 7 Jan 2021 Investor Snow Lake wants the casino operator to sell 20% of its $6 bln Macau business to a local buyer. There are merits to the idea, including the edge it could provide for a new licence in the world’s biggest gambling hub. It would also, however, complicate other deals.