Conglomerates

Brazilian billionaire buys time from Gulf

26 Mar 2012

Eike Batista may be the richest man in Latin America’s biggest economy, but he runs a cash-hungry empire. His sprawling oil and mining group is in its infancy. The $2 bln infusion of patient Abu Dhabi money should help Batista try to make good on his promise.

Congratulations Google, you’re now a conglomerate

15 Feb 2012

U.S. and EU antitrust authorities have cleared the search firm’s $12.5 bln purchase of Motorola. Its hardware foray might open new markets - or be a vital means of defending its advertising business. But on Wall Street, diversification like this merits a valuation discount.

Thermostat spat puts old heat on new cool

9 Feb 2012

Honeywell says Nest Labs stole its ideas, though some seem obvious. True or not, the upstart outdid the old-line firm with a temperature controller of Apple-like elegance. When new companies produce something better, older ones should flex competitive muscles before legal ones.

Multinationals tell real China growth story

8 Feb 2012

Earnings of companies like Yum Brands, Siemens and LVMH say what China’s official data often doesn’t. Consumer brands show inflation is still a concern. Industrial firms tell of rapidly slowing investment. As for luxury firms, their success shows the rich are doing just fine.

GE gives the world a healthy reality check

20 Jan 2012

Four years ago, General Electric shocked investors with a profit warning foreshadowing calamity ahead. Today the conglomerate merely missed revenue estimates by 5 pct. Shareholders may not like that, but as a bellwether for the global economy the results should be reassuring.

Thomson finally completes takeover of Reuters

2 Dec 2011

Tom Glocer’s bankerly CEO skills no longer suit the publishing giant. He restructured Reuters and deftly engineered its well-timed sale. But the company needs to grow – and the controlling Thomson family is weary of waiting. How it does so, though, still seems far from clear.

Buffett steals page from odd playbook: Murdoch’s

30 Nov 2011

The Berkshire Hathaway boss is buying his local newspaper publisher, defying his own investment advice. The Sage of Omaha can’t need more influence in his own backyard. But like other fogeys including Rupert Murdoch, he can’t shake a soft spot for print and its enduring clout.

Tata keeps things in the family

23 Nov 2011

Cyrus Mistry’s appointment as Ratan Tata’s successor continues the habit of dynastic succession in Indian companies. That may not be such a bad thing. But Mistry can promote outside talent by stepping back from the chairmanships of Tata Steel and Tata Motors.

Thomson at last sees fit to merge with Reuters

28 Sep 2011

Three years after uniting, the onetime rivals are forcing the professional and financial publishing arms together. The acquired Reuters side retained a certain clout in 2008, but has struggled since. The Thomson family now seems to be reasserting control to make the deal work.

Berkshire buyback a move best left to Buffett

26 Sep 2011

The Sage’s conglomerate has taken the highly unusual step of repurchasing shares, at up to a 10 percent premium over book value. It doesn’t mean it’s a strategy to be followed, though. If shares of other companies were truly undervalued, Berkshire probably wouldn’t be buying its own.

Tyco sets new example for conglomerate bondholders

19 Sep 2011

When the industrial group last broke into three in 2007, an ugly fight with creditors ensued. This time, Tyco’s paying them more heed. It plans to spread $4 bln of debt evenly rather than dump it into one unit. Lenders to other breakup candidates may want to gird themselves.

GE payback of Buffett reflects climb from crisis

13 Sep 2011

Like clockwork, the industrial giant notified the Sage of Omaha on Tuesday of its intention to buy back the $3 bln of preferred stock he bought at the height of the 2008 panic. Amid widespread market pessimism, it’s a reminder of how much stronger GE and the system have become.