DoorDash delivers mixed messages for Just Eat 2 Dec 2020 On the one hand, the U.S. market leader's $27 bln pre-IPO valuation suggests Just Eat got a bargain buying Grubhub. On the other, cut-throat competition led by DoorDash has cost Grubhub market share and profit. The American home-delivery recipe isn't yet long-term tasty.
Cox: Mediobanca could be UniCredit’s white knight 2 Dec 2020 Italy’s No. 2 lender was rocked by the ouster of its French CEO amid fears of government meddling. It needs new management, more fee income, scale and protection from Rome. Alberto Nagel’s smaller Milan investment bank offers all four. Come si dice “reverse merger” in Italiano?
Corona Capital: Merck sells Moderna stake 2 Dec 2020 Concise views on the pandemic’s corporate and financial fallout: The U.S. drugmaker is banking its winnings on an investment in Covid-19 vaccine producer Moderna that dates back to 2015.
GardaWorld opens door for G4S escape 2 Dec 2020 The Canadian security firm raised its bid for the UK group to 3.7 bln pounds, having argued much less was fair on Monday. The new price is hardly a knockout either. CEO Stephan Cretier’s erratic handling of the offer and a possible counterbid give investors reason to hold out.
SoftBank derivatives U-turn fuels governance hopes 2 Dec 2020 CEO Masayoshi Son will ditch an unpopular options strategy, Bloomberg reported, only months after launching it. That’ll please investors who want the Japanese group to focus on asset sales and share buybacks. Their next target should be his $17 bln portfolio of technology stocks.
Healthcare IPO examines value of China’s big tech 2 Dec 2020 The unit of e-commerce giant JD priced its $3.5 bln offer at a reasonable 13 times sales. Virtual consultations and pharmacies are booming, supporting an official push for a healthy China. It’s a timely reminder that powerful internet platforms have valuable uses for Beijing.
Xiaomi $4 bln cash raise exploits peak market 2 Dec 2020 The $81 bln Chinese smartphone maker is using its 143% share rally this year to raise $4 bln - a record Hong Kong follow-on. Shares are now pricier than Apple’s, which should please founder Lei Jun, a Steve Jobs imitator. He has his work cut out justifying that valuation.
Will ICE let another big fish wriggle away? 1 Dec 2020 The $59 bln stock exchange operator watched LSE grab Refinitiv, and now stands on the sidelines as S&P gobbles up IHS Markit. It has proven to be a disciplined deal-doer, and IHS is relatively expensive. Still the companies could fit, and ICE may be tempted to jump in.
VW boss dilemma is about more than Herbert Diess 1 Dec 2020 The $90 bln carmaker’s CEO wants a contract extension beyond 2023. Diess is gaffe-prone but has the right strategy for moving to electric vehicles and extracting efficiencies. His contract debate is a proxy for whether VW’s board can face down unions trying to muddle that shift.
Airbnb IPO price deserves more stars than DoorDash 1 Dec 2020 The two are seeking similar IPO valuations: up to $30 bln for the home-sharing app and $27 bln for the delivery firm. That doesn't compute. Airbnb’s scale and proven cash-generating ability are more appealing. Moreover, the pandemic’s end will boost Airbnb and hurt DoorDash.
The Exchange: Eating worms is good for the planet 1 Dec 2020 Growing global demand for food is putting a squeeze on available land and one French startup says it has the answer: indoor insect farming. Ynsect co-founder Antoine Hubert on how growing mealworms for fertilizer will benefit the environment – and eventually our diets too.
Corona Capital: Bitcoin, Lonely Planet 1 Dec 2020 Concise views on the pandemic’s corporate and financial fallout: Bitcoin hit a record, buoyed by inflationary fears, new fans and plain old speculation. Meanwhile Lonely Planet has found a new owner, as it wrestles with an anything-but-lonely market for travel information.
Credit Suisse wins latest bank boss musical chairs 1 Dec 2020 The group hired Lloyds’ António Horta-Osório as its next chairman. Perennial CEO contender Jean Pierre Mustier will soon be up for grabs after leaving UniCredit. Passing around talent works for those who woo top names, but smacks of an industry struggling to bring in fresh blood.
Philip Green’s retail roulette hits the little guy 1 Dec 2020 The Monaco-based tycoon’s Arcadia empire has collapsed. His decision to pay wife Tina a 1 bln pound dividend took chips off the table, but left the Topshop owner poorly placed for the internet. With pensioners and small suppliers on the hook it’s a stark lesson in moral hazard.
Meituan delivers food slathered in EV spice 1 Dec 2020 The $220 bln Chinese food delivery group saw earnings rise 374% in the third quarter, mostly thanks to an equity stake in an electric car maker. Blistering portfolio gains only emphasize the bland performance of Meituan’s core business – and its expensive share price.
China’s lengthening lowball list lures lawyers 1 Dec 2020 A bid to take $4.8 bln China Biologic private is the latest underpriced offer for a U.S.-listed Chinese firm. Cayman Islands’ dockets are filling up with shareholder complaints about similar deals. Miring transactions in lawsuits may force acquirers to pay more up front.
CEO sudden exit leaves UniCredit exposed 30 Nov 2020 Jean Pierre Mustier is resigning from Italy’s second biggest bank after clashing with the board over M&A. He succeeded in cleaning up the lender but did not restore it to growth. His successor faces a tricky merger with Monte Paschi even as the bank is losing ground at home.
GM takes weak middle road with banged-up Nikola 30 Nov 2020 The $65 billion automaker says it will sell its fuel-cell tech to the troubled zero-emissions-truck company, but has shelved plans to take an equity stake. Cutting ties or doubling down with Nikola, whose value halved since early September, would have been bolder choices.
Facebook squeezes in M&A play before game turns 30 Nov 2020 The $791 bln social network bought customer-relations platform Kustomer, which could be worth more than $1 bln. Even with all the pushback, regulatory reviews under U.S. President Donald Trump will be easier than successor Joe Biden. Its streak of buying startups is ending.
S&P’s IHS swoop opens door to messy bidding war 30 Nov 2020 The U.S. index giant has offered to buy its domestic rival for $44 billion including debt. The deal brings synergies and scale in the hot area of financial data, but the returns look skinny. And the premium is not big enough to see off a counter bid from the likes of ICE.