Peter Thiel is Exhibit A for medieval law revival 4 Jun 2016 The Silicon Valley billionaire’s funding of Hulk Hogan’s case against Gawker might have violated archaic prohibitions on stirring up lawsuits for spite. U.S. courts largely bounced those rules as stifling access to justice. Thiel’s free-speech smackdown could merit a comeback.
Life lessons from a German corporate failure 3 Jun 2016 With six profit warnings, four CEOs and its share price halving over two years, German industrial services group Bilfinger is a huge corporate disappointment. Now it is finally dismantling itself. Other companies can learn from some of Bilfinger's more glaring mistakes.
Cox: Disruption flops will spare old-line targets 2 Jun 2016 Venture capitalists have wagered on plenty of highly valued startups to destroy the established corporate order. But some so-called unicorns, probably including Theranos, will turn out to be mythical. A wave of “gluenicorns” would be good news for public companies under threat.
MSCI can still afford to shun China stocks 2 Jun 2016 The index compiler must once again decide whether to add mainland shares to global benchmarks. Though regulators have made some reforms, memories of last summer’s mass suspensions and state intervention are still fresh. Another delay would give China more reason to open up.
Uber receives ultimate disruptor stamp of approval 1 Jun 2016 The taxi-hailing app has snared a $3.5 bln investment from Saudi Arabia’s Public Investment Fund. It’s not just a hedge against the kingdom’s oil dependency. It also confirms Uber as one of the probable central players in the shift to electric, autonomous vehicles.
Hermes shows scarcity is still a classic 1 Jun 2016 A Birkin handbag fetched $300,000 at auction in Hong Kong, a new world record - even though sales in the wider luxury sector are hitting the skids. The lesson for rivals is that rarity still elicits demand. That's cold comfort for luxury brands that have grown too big
Pakistan deserves more investor love 30 May 2016 The country could return to the influential MSCI emerging market index. Pakistan’s stock market is the best performing in Asia this year and is still cheap. The economy is also not in bad shape. For investors who can stomach the political risks, Pakistan looks enticing.
Wanda’s $4.4 bln buyout bid is just good enough 30 May 2016 Wang Jianlin is offering his property firm’s Hong Kong investors a stingy 10 pct premium to the IPO price 17 months ago. The Chinese tycoon will pocket better returns if it relists on the mainland. Yet while minority investors have reason to hold out, doing so would be risky.
Review: Craft-beer memoir goes down easy 27 May 2016 Jim Koch’s tale of brewing Samuel Adams is refreshingly candid about battles with Budweiser, a controversial IPO and other troubles. Unlike many stale business books, “Quench Your Own Thirst” reads like a pub chat. Only Koch’s pride in bad governance leaves a bitter aftertaste.
AstraZeneca glitch cements M&A discount 27 May 2016 A blockbuster drug the UK group bought in a $2.7 bln deal has been delayed. The production glitch could mean just a few months holdup, but highlights why Astra trades at a lower valuation than peers. Buying and selling businesses is a risky way to manage a looming patent cliff.
Activist pushes on U.S. retailer’s open door 26 May 2016 Hedge fund Barington wants two board seats and costs slashed at struggling Chico’s. It owns just a 1.4 pct stake at the $1.5 bln seller of women’s clothing. The company also is already shaking things up with its own new qualified directors. This investor aggression is overdone.
Spotify’s next investors may face the music 26 May 2016 The streaming service increased revenue by 80 pct last year to $2.1 bln. More than 80 cents of each dollar pay for songs, however. Even assuming generous growth and operating leverage, Spotify will need to do still more to merit a higher valuation than its latest of $8.5 bln.
European IPO market regains its senses 26 May 2016 Danish renewable energy utility DONG priced its initial public offering at up to $16 bln, suggesting a forward EBITDA multiple in line with stricken carbon-heavy peers. If it sounds dull, that’s the point. European IPOs are still a buyer’s market, but maybe now a rational one.
Banco Popular flags trials of holding bank equity 26 May 2016 The Spanish bank’s 2.5 bln euro rights issue better protects it against real estate losses, but is still a surprise for shareholders. Pain is also not being shared with equity-like CoCo holders. Dealing with the uncertainty would be easier if returns were more compelling.
Debenhams plucks new CEO from arms of its nemesis 26 May 2016 Amazon is the worst thing that could happen to stodgy old department stores. Yet that’s where Britain’s Debenhams found new boss Sergio Bucher. That makes it one of a handful of UK high-street names headed up by a digital ace. The hire sounds odd, but could be inspired.
Exxon, Chevron climate obstinacy comes at a price 25 May 2016 Both are rejecting pushes from big investors like CalPERS to beef up disclosure about business risks from global warming. It leaves them trailing peers and may put them at odds with U.S. officials and the G20. Refusing to adapt has serious consequences, now and in the future.
Facebook has new free-speech problem: Peter Thiel 25 May 2016 The venture capitalist has been revealed to be a secret backer of Hulk Hogan’s lawsuit against Gawker. That calls into question his media neutrality just as the social network is under fire for bias. As a director, Thiel’s First Amendment position is at odds with Facebook’s.
Lockheed-Boeing rocket JV feels competitive heat 25 May 2016 Elon Musk’s SpaceX just broke the monopoly on military satellite launches enjoyed by the defense contractors’ alliance. Congress may help the pricey venture by allowing it to buy more sanctions-tainted Russian rocket engines. That’d be a strike against efficiency and innovation.
New M&S boss fashions disappointing revamp 25 May 2016 Turnaround plans unveiled by new chief Steve Rowe have one big wrinkle. His makeover for the UK retailer involves short-term pain but may not solve its main problems - fierce competition for customers and a muddled offering. Bolder thinking is needed in such a tough sector.
Snapchat’s $20 bln worth could have staying power 24 May 2016 That’s the figure implied by new funding. Evan Spiegel’s firm has raised cash regularly and avoided some of the bells and whistles that distort the numbers. Unlike its messages and the stratospheric price tags on some other startups, Snapchat’s value may not evaporate.