Peltz may go from nice to nasty at P&G 8 Jan 2018 The activist, now on the $230 bln consumer-goods giant’s board, has said P&G should slash costs and steal market share. That may boost the stock by over 10 pct, Breakingviews calculates. To get much more, Peltz might suggest a deeper cut: offloading razor maker Gillette.
Guest view: Proxy fights as commonplace in 2018 5 Jan 2018 Though 2017 was the year of big-time contests like Trian versus P&G, get ready for more contentious and expensive battles for control of Corporate America, argues Columbia Business School's Wei Jiang. She offers four key factors that boards and investors should consider.
Wanda’s sports spinoff would help trim flab 5 Jan 2018 The Chinese conglomerate could float sports assets acquired in haste, including a sports marketer and a triathlon organiser, Reuters says. Fresh funds could help cover offshore debts. Streamlining might also persuade regulators to let the main property unit list onshore.
HNA may have to check out of some big deals 18 Dec 2017 A bond buyback meant to shore up confidence was quickly offset by a bank alleging “temporary liquidity difficulties”. HNA says this is not the case. Even so, rethinking an attachment to trophy assets such as stakes in Hilton and Deutsche Bank could help calm the market’s nerves.
Control could justify tycoon’s pricey Saigon pint 15 Dec 2017 A $4.6 bln bid from Charoen Sirivadhanabhakdi for 51 pct of Sabeco, maker of Bia Saigon, relies on political influence and a pliable local partner. That might help the ThaiBev owner to skirt foreign ownership rules, and wring out efficiencies to stack up a frothy valuation.
Ambani is programmed to punch through $100 bln 13 Dec 2017 Mukesh Ambani's Reliance Industries could be India's first mega-cap stock. His refineries are at the mercy of oil prices, but his bid to dominate Indians’ digital lives is generating excitement. A potential listing of his upstart telecoms business will add to the upward momentum.
Anti-LBO activist could benefit Toshiba investors 12 Dec 2017 A hedge fund says the Japanese conglomerate need no longer divest its $18 bln memory unit after raising $5 bln in equity. It has a point: the deal was a fire sale. A quick halt is unlikely, but a U-turn would be possible and desirable if the transaction doesn’t close by March.
Fossil-fuel slowdown spreads pain at GE and beyond 7 Dec 2017 The conglomerate is laying off 12,000 people in a power division that lights up 30 percent of the world. It blamed overcapacity amid a shift from coal and gas to renewables. Other divisions closely tied to fossil fuels are also ailing. GE’s woes suggest a wider shakeout ahead.
Wanda’s asset shuffle buys brief Beijing reprieve 5 Dec 2017 The indebted Chinese conglomerate is shuffling assets around, including a $470 million cash injection from its founder, as officials pressure firms to deleverage. The cash will help pay down $1.7 bln in offshore loans, but it will take more to escape the government penalty box.
Uber backers face head-on collision with greed 28 Nov 2017 SoftBank is offering to buy shares in the ride-hailing firm at a $48 bln valuation. Even with a 30 pct markdown to the last fundraising, investors could cash out and make many multiples of their money. The prospect of a $500 bln colossus, however risky, will cloud the thinking.
Toshiba’s fresh funds provide for hard reboot 20 Nov 2017 The ailing Japanese group is raising $5.3 bln, or nearly half its market value again, by selling new stock. That ensures it avoids delisting. Buyers must see value in Toshiba’s residual interest in memory chips, plus the potential for turnaround elsewhere.
P&G proxy fiasco is black mark on CEO David Taylor 15 Nov 2017 Five weeks after the Tide and Pampers maker triumphantly declared victory in keeping Nelson Peltz off its board of directors, an independent arbiter says the activist won. It's hard to conjure up a better illustration of P&G's insularity than its handling of the whole affair.
GE’s shaman exorcises ghosts of false expectations 13 Nov 2017 It doesn't take much imagination at work to grasp John Flannery's approach to the $178 bln conglomerate. He has halved the dividend, cut earnings guidance and questioned GE's portfolio of industrial assets. Next up is a total restructuring of GE's bloated, under-engaged board.
Indian proxy firm successfully hits a nerve 7 Nov 2017 ITC, the $50 bln hotels-to-tobacco group, is alleging defamation over criticism of its board. Institutional Investor Advisory Services didn't persuade shareholders to vote against the chairman's pay. The case nevertheless is a turning point for scrutinizers of Indian governance.
GE has become the ultimate industrial lightweight 23 Oct 2017 Earnings that even new CEO John Flannery called “horrible” put fresh pressure on a stock down over 25 pct this year. The last surviving original Dow member now has by far the lowest weighting of any share in the index. It’s an embarrassing sign of the storied firm’s troubles.
P&G’s ho-hum quarter a gut check for management 20 Oct 2017 The $230 bln diapers-to-soap conglomerate contorted to keep Nelson Peltz off its board. Though it modestly beat quarterly earnings expectations, its underlying issues haven’t changed. Boss David Taylor is under pressure to make headway with full accountability for any stumbles.
Spare GE jet is symbolic target of Flannery sweep 19 Oct 2017 Scrapping a second plane that followed former boss Immelt around, just in case, is an easy sop for shareholders. The new CEO needs them on side as he mulls possible bigger changes at the $200 bln industrial giant, such as dropping long-held earnings targets or cutting dividends.
Even a distressed sale may not revive Bombardier 16 Oct 2017 The Canadian firm is weighing a sale or new investor for its aerospace division. That’ll be a tough task as its regional jet business is shrinking and U.S. tariffs threaten its bid to compete with Boeing. Bombardier’s cash burn points to a continued decline.
Honeywell puts Dan Loeb in his place 10 Oct 2017 The conglomerate is spinning off two small, low-margin risky businesses rather than the aerospace unit the activist had targeted. It’s a smarter way for new CEO Darius Adamczyk to improve returns without much pain, especially on top of the better margins he’s already producing.
GE needs Nelson Peltz’s help – and takes it 9 Oct 2017 The $200 bln U.S. industrial giant, now with a new CEO, still seems unable to get people excited about owning its shares. A board seat for the activist investor’s top lieutenant may help. It’s a contrast with P&G, which is resisting Peltz – potentially to shareholders’ detriment.