Conglomerates

Refiner uses crude tactics in Japanese M&A tussle

4 July 2017

Idemitsu’s bosses are trying to clinch a merger with a rival, over objections from Idemitsu’s own founding family. Diluting the family through a $1.2 bln share sale is a value-destructive workaround. The move reflects corporate Japan’s disdain for investor rights.

GE’s CEO choice pushes the boundaries

12 June 2017

By anointing John Flannery to succeed Jeff Immelt the industrial titan is doubling down on a strategy that transcends its U.S. roots. Flannery knows restructuring and has run GE units from India to Argentina. Geographically and structurally, the company's lines may be redrawn.

HNA slowdown makes financial and political sense

5 June 2017

The Chinese conglomerate plans less M&A this year, after spending tens of billions of dollars on everything from aircraft leasing to a stake in Deutsche Bank. That should let managers get a handle on their vastly expanded empire. It’s a good time to adopt a lower profile, too.

HNA sees Value in connecting East and West

23 May 2017

The deal-hungry Chinese conglomerate reportedly wants to buy into Value Partners. The $2 bln fund manager trades on a lofty percentage of assets under management, thanks partly to high fees. Still, if HNA wants to link Chinese investors with the wider world, this could be handy.

Toshiba pays price for bad Japanese habits

11 April 2017

The energy-to-electronics giant says there is doubt about its survival, with shareholders' equity going negative and further huge exposure to bankrupt nuclear-construction unit Westinghouse. Conglomerate sprawl, weak governance and ill-judged overseas M&A all played their part.

Toshiba’s $18 bln sell-off breaks the mould

3 April 2017

Foreigners rarely get to buy big Japanese outfits. Even when they do, the company is either in deep trouble or at least needs some attention from a new owner. Toshiba's memory chip unit is a huge, healthy business in a concentrated market. No wonder bidders are queuing up.

Empire-building sets HNA on a risky trajectory

3 April 2017

The Chinese travel firm has snapped up land, hotels, leasing firms and even part of Deutsche Bank. These are just opening gambits by an outfit aspiring to own trillions of dollars in assets. Diversifying is all well and good - provided it does not end in a hard landing.

Fosun may hit M&A trail again after CEO leaves

29 March 2017

The co-founder of Club Med’s Chinese owner suddenly quit, citing health reasons. He had helped improve the insurance-to-leisure giant's finances. Power is now concentrated with acquisitive chairman Guo Guangchang. A new deal binge could unsettle both creditors and shareholders.

Li Ka-shing sails through choppy global seas

23 March 2017

The Hong Kong tycoon’s CK Hutchison saw net profit rise 6 pct in the full year. That is impressive given stuttering growth at home and Brexit pains. Globally, the allure of conglomerates is fading. But the results vindicate the East-West strategy of Asia's "superman".

Sceptics of Vodafone’s Indian merger have a point

21 March 2017

A big merger of the British telco's India unit with Idea Cellular should create $10 bln of synergies. Yet Idea investors are pricing in barely one third of the benefits. It underscores fear that the new entity will not be in a much better position to take on cut-throat rival Jio.

Toshiba has bigger headaches than share stigma

15 March 2017

Relegation to a lesser section of Tokyo's stock market would be humiliating, and prompt some forced selling. A delisting would hit investors harder. Whatever happens to the shares, management has more existential problems to fix, especially in its nuclear unit.

SoftBank loses focus with $100 bln Vision fund

9 March 2017

The Japanese giant may inject an $8 bln stake in chip designer ARM into the tech fund, at the behest of the latter. Other recent buys will also be offered. That would help SoftBank pare debt. But the benefits of Vision are tainted by a related deal frenzy and murky relationship.

Toshiba meter sale may ease chip selloff pressure

3 March 2017

The stricken Japanese group is mulling a sale of its power meter subsidiary for $2 bln. The proceeds are unlikely to shore up finances much. But disposing of a non-core, underperforming unit is sensible, and it may help Toshiba hold on to more of its prized chip unit.

Hadas: Enough with the cult of Warren Buffett

1 March 2017

The sage of Omaha's folk wisdom and America cheerleading have been big factors in the unwarranted worship of his style of financial capitalism. Buffett's investing prowess is laudable. He is, however, a big winner in a zero-sum game, and that actually does little for the economy.

Warren Buffett risks losing his own winning wager

26 February 2017

The Berkshire Hathaway boss devotes a big portion of his latest missive to extolling the virtue of index funds. He has proved his point in a successful bet with a market pro that hedge funds wouldn't overcome the S&P 500. By one metric, Buffett is struggling to do the same.

Kraft Heinz has to settle for marinating Unilever

19 February 2017

The ketchup-and-cheese giant withdrew a $143 bln bid for its Anglo-Dutch rival after an inopportune leak put British politicians' knickers in a twist. But the idea of pairing 3G's ruthless cost management with Unilever's bent for innovation is embedded in shareholders' brains.

KKR powers ahead with Japan dealmaking

13 January 2017

The U.S. buyout firm has offered $1.3 bln for Hitachi's power-tool unit Hitachi Koki, KKR's second Japanese deal in three months. The PE group is winning its long game as Japan Inc. slims down. Hitachi benefits too earning a generous premium selling a business distraction.

Tata’s new chief is good step toward redemption

13 January 2017

IT whizz Natarajan Chandrasekaran is the closest thing to an outsider to lead the Indian group; he gives Tata Sons a real shot at fixing thorny governance issues. He can also help his successor at cash cow Tata Consultancy tackle a tough job as the U.S. cools on visas.

Korea scandal shows risk of pension giant

29 December 2016

Prosecutors detained the head of South Korea's $450 bln pension fund over suspicion that it voted for a Samsung merger under government pressure. The case highlights how the country's largest investor could be manipulated at shareholders' expense. Korea could use a safeguard.

Tata is $10 bln poorer post-Mistry

20 December 2016

Ousted Chairman Cyrus Mistry has ended his boardroom battles at India's Tata. The value of Tata's main listed firms has shrunk over the two-month saga, underperforming a weak market. The damage illustrates the value of good governance and a strong reputation to public companies.