SoftBank rally makes case for more radical surgery 28 Jul 2020 CEO Masayoshi Son’s asset sale and share buyback plan worked: the $120 bln group’s shares doubled since March. SoftBank's conglomerate discount has narrowed, but it's still 50%. Investors might wonder why Son doesn’t go further, for example by shrinking his giant Alibaba stake.
All sides could gain from $42 bln NorNickel reset 28 Jul 2020 An agreed management shakeup would protect the role of CEO Vladimir Potanin, who holds 35% in the Russian miner, and dodge legal disruption. Rusal, with 28%, could eke out more control. Other investors would get a better-run company, and a lower risk of ecological catastrophe.
Corona Capital: Baseball, Gas cloud, Luxury goods 28 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: Baseball’s Covid-19 cases put popular college sports competitions in jeopardy; a recovery in drilling for gas is bad news for the environment; Gucci and other luxury retailers finally embrace the digital revolution.
Europe bank investors can bear more dividend pain 28 Jul 2020 Hopes for payouts this year have been dashed by top supervisor Andrea Enria, who told lenders to wait until 2021. If profits hold up, investors will only suffer a delay, not a loss. Covid-19 is special, but investors can worry about creeping regulatory control of dividends.
Reckitt’s deep clean needs more elbow grease 28 Jul 2020 Frantic washing during lockdown helped the $70 bln maker of Dettol and Durex beat forecasts. The Covid-19 boost and CEO Laxman Narasimhan’s turnaround have sent the shares up 25% this year. The next part of his overhaul, including reviving the infant food unit, will be harder.
Three-pronged Brazil mobile assault can succeed 28 Jul 2020 Telecom Italia, Telefonica and America Movil have offered $3 bln to buy the wireless business of bankrupt Oi. With an established presence in Brazil, the three have an edge over a rival private equity offer. With the price already full, however, a bidding war could get costly.
Investors lead the rush back into India’s offices 28 Jul 2020 Singapore’s state funds are top investors in the IPO of Blackstone-backed Mindspace, a $2 bln real estate investment trust. Work-from-home woes will prop up property demand as developers face a liquidity squeeze. The high yields on offer are a strong pull as interest rates fall.
Ant IPO will clear Tencent’s low bar on governance 28 Jul 2020 A Hong Kong-Shanghai debut of Jack Ma’s $150 bln fintech giant could put dual class shares and Alibaba’s quirky partnership structure out of reach. Ant may even need to follow a stricter listing code than its local arch-rival. That would be a win for minority shareholders.
Trump’s Venezuela curveball smashes more norms 27 Jul 2020 The U.S. belatedly asked a district court to reverse a decision allowing the forced sale of shares in refiner Citgo – a crown jewel among Venezuela's assets. Despite D.C.’s weak logic and wishful premise, it could muck up the case. There may be broader damage, too.
Shopify rival’s IPO belongs in discount basket 27 Jul 2020 BigCommerce has double-digit revenue growth and shrinking losses in a rapidly expanding market. Based on Shopify’s valuation, the software provider that sets up firms’ online stores could be worth $8 bln. But its small size and deep-pocketed competitors warrant caution.
Walgreens Boots CEO goes back to the future 27 Jul 2020 Stefano Pessina is to step down as boss of the $34 bln pharmacy chain and become executive chairman. He had similar roles in predecessor companies, which gave free rein to his penchant for dealmaking. And he remains Walgreens’ biggest shareholder. More M&A could be in play.
China wallets will decide winners in bling rebound 27 Jul 2020 The pandemic may shrink global sales of fancy handbags and shoes by up to 35% this year. And it will make fashion houses even more dependent on rich Middle Kingdom buyers. Owners of brands with strong local appeal, like Richemont’s Cartier or LVMH’s Louis Vuitton, stand to gain.
SAP may bank a lucky Qualtrics IPO win 27 Jul 2020 The German IT giant will float its U.S. survey business, for which it paid $8 billion in 2018. It’s an admission that all sides would be better off if the unit had more autonomy. A saving grace is the rise in tech valuations: Qualtrics may be worth more now than two years ago.
Corona Capital: Precious metals, Share sales, Toys 27 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: The virus and central banks’ response to it is a rich seam for gold and silver prices; UK companies’ growing preference for bonds rather than stock is a warning sign; Hasbro and Mattel vie to see who loses less.
Ryanair pain will be milder than rivals’ misery 27 Jul 2020 CEO Michael O’Leary is focusing on preserving cash and cut staff costs by 77% in the first quarter. Competitors that have more unionised employees can’t tighten their belts as much. Another big wave of infections would be even worse for them than the 11 bln euro budget carrier.
China’s Huawei holds a 5G trump card 27 Jul 2020 The telecom kit maker’s stack of next-gen wireless patents will be essential as a global standard for 5G emerges. So even as Vodafone and others ditch Huawei hardware, they might end up licensing its intellectual property, and doing so on Chinese terms. That could be punishing.
Hostile takeover tests Japanese love for free food 27 Jul 2020 Restaurant chain Ootoya rejected a bid from Colowide, saying it would spoil its home-style ethos. The company is hoping its retail investors will remain loyal to the dining coupons they get for holding shares. They would be better off taking the 46% premium, and dining elsewhere.
Goldman Sachs’ 1MDB scar is already fading 24 Jul 2020 It’s paying $2.5 bln to Malaysia over its role in the scandal, four times its fees. Next comes closure with U.S. regulators. The cost in cash and reputation no doubt stings, a bit. But it's too small to amount to more than one extra line on Wall Street’s mile-long rap sheet.
Saks and Neiman Marcus deserve each other 24 Jul 2020 The prospects for floggers of high-end shoes and handbags are worsening daily. But the rival retailers that sell Chanel and other lux goods overlap significantly. With Neiman in bankruptcy and Saks holding together by a thread, the only outstanding question is who will buy whom.
Corona Capital: Movies, Sports 24 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: Walt Disney is pushing back the highly anticipated movie “Mulan,” with a domino effect for “Avatar” and “Star Wars” sequels; and sport stars are still making it rain when it comes to pay.