ECB fiat anoints unlikely bank dividend heroes 16 Dec 2020 The regulator capped payouts as a proportion of earnings and assets. Well-capitalised lenders with richer valuations, like Nordea and KBC, now offer tiny yields compared with minnows like Liberbank. The risk is that a slow recovery causes restrictions to last beyond September.
Repsol stake sale could speed up green shift 16 Dec 2020 The 13 bln euro Spanish oil group may offload 25% of its gas stations arm. Flogging a chunk of what is a relatively highly valued business could raise 2.5 billion euros. That would provide critical firepower to get Repsol’s renewable energy capacity closer to rivals like Total.
Drahi’s hedge fund spat ends in acceptable defeat 16 Dec 2020 The telecoms mogul raised his lowball offer to buy out shareholders in his group Altice to 6.4 bln euros. That has won support from activists including Elliott, avoiding a legal tussle. Still, a final valuation below some peers suggests the gambit has partially succeeded.
Corona Capital: Filming drama, Spanish bank 16 Dec 2020 Concise views on the pandemic’s corporate and financial fallout: Actor Tom Cruise’s outburst about social distancing may not have been scripted, but it’s on point; Spanish bank Sabadell lines up a new leader.
Rubber-glove selloff gets out of hand 16 Dec 2020 The pandemic quadrupled the value of Malaysia’s Top Glove, the world’s biggest maker of protective handwear, to $13 bln. But investors eying vaccine developments are now deeply discounting its shares. As the herd hastily dumps Covid trades, there will be value left behind.
LG missteps into chaebol-challenge spotlight 16 Dec 2020 A pushy investor is unhappy with a spinoff plan by the South Korean empire’s $12 bln holding company. The carve-up’s financial benefits are hard to identify. That brings unwanted attention to a pioneer in corporate restructuring just as the country angles for stricter measures.
Chopper deal, like SPACs, is for aspiring moguls 15 Dec 2020 Blade, which helicopters the wannabe 1% to the Hamptons, is being bought by a blank check firm and kettle of plutocrats for $825 mln. The price assumes sales grow 16 times in four years, brassy considering 2020’s slump. Blade dreams big like the vehicle it’s riding to go public.
Europe wields foam hammer at big U.S. tech groups 15 Dec 2020 Competition Commissioner Margrethe Vestager proposed new rules governing the behaviour of Amazon.com, Facebook and others. The potential fines are large, but that is a flimsy deterrent. Recommendations on sharing data with rivals are a neat idea but look narrow in scope.
The Exchange: Guy Hands on private equity’s future 15 Dec 2020 The British buyout baron, best known for his disastrous purchase of music group EMI in 2007, now focuses on more modest deals. He joins Liam Proud to discuss Covid-19, ESG, and why the private equity industry’s returns are likely to fall.
Sheriffs take overdue ride into ESG wild west 15 Dec 2020 French and Dutch regulators have called for greater oversight of ratings and products that gauge companies’ green credentials. Nailing down a coherent approach will be tricky. But the breakneck growth of sustainable investing makes clearer ground rules critical.
Corona Capital: New York City, Fed/climate change 15 Dec 2020 Concise views on the pandemic’s corporate and financial fallout: New York City’s exodus puts local government in a tight spot; the Fed’s belated move shows a change in Washington.
Credit Suisse growth plan is refreshingly utopian 15 Dec 2020 CEO Thomas Gottstein will invest up to 200 mln Swiss francs in new initiatives to juice revenues in wealth management and investment banking. It’ll be hard to achieve that without taking more risk. At least he’s trying to buck the prevailing mood of declinism across the sector.
Volkswagen pact helps CEO more than returns 15 Dec 2020 The German carmaker has made a statement in support of boss Herbert Diess, allowing him to appoint key allies and cut some costs as it moves to electric cars. The agreement should end a long-running dispute with unions. Investors hoping for higher returns face a lengthier wait.
China rental woes show excess creative destruction 15 Dec 2020 New York-listed Danke is the latest property middleman to implode, embarrassing Beijing in more ways than one. It’s a problem for President Xi Jinping's affordable housing push, and yet another good business idea warped by price wars, financial engineering and vague regulation.
ByteDance ends discordant 2020 on a high note 15 Dec 2020 TikTok's Chinese parent is raising $2 bln at a $180 bln valuation amid U.S. pressure to sell the video unit. The company is also on track to hit a full-year sales target of $30 bln, thanks to its local apps. A booming home market more than makes up for stalled global expansion.
Tech IPOs uncork too much of a good thing 14 Dec 2020 First-day pops like Airbnb and DoorDash’s look like success, but have left rivals hesitant. Gaming platform Roblox and payments startup Affirm are delaying IPOs after peers left billions on the table. Firms like a share-price jump but exaggerated moves leave losers close to home.
Elliott can clean house in Public Storage 14 Dec 2020 Paul Singer’s fund wants the U.S.’s largest self-storage provider to junk its ultra-cautious debt strategy, plow cash into the business, and shape up governance. It’s an activist trifecta. But changes are needed to keep pace with the industry. Elliott has found easy pickings.
Sensitive U.S. hack is one more problem for Biden 14 Dec 2020 Network software used by America’s armed forces and big companies was compromised for months, possibly by Russia. The maker, Texas-based SolarWinds, has egg on its face. For users in D.C. and elsewhere, it’s a reminder that cybersecurity can’t be ignored, even in a pandemic.
Ferrari’s next boss will need luxury credentials 14 Dec 2020 The race is on to replace CEO Louis Camilleri, who suddenly quit. Fiat boss Mike Manley ticks many boxes, but John Elkann, chair of both groups, needs him to smooth a merger with Peugeot. Leading $42 bln Ferrari will be as much about enhancing its bling status as engine parts.
U.S. gaming giants find extra gear in UK developer 14 Dec 2020 Electronic Arts offered $1.3 bln in cash for London-listed Codemasters, overtaking rival Take-Two Interactive. The $40 bln group clearly sees scope to squeeze more value out of its target’s “F1” driving game. Shareholders can sit back and watch the race unfold.