Cox: Aramco and Amazon encourage bad behavior 15 Mar 2018 Global financial capitals are prostituting themselves to accommodate the Saudi oil giant's IPO. Amazon's competition for a second HQ is provoking U.S. municipalities to similarly ingratiate themselves. This "Aramazon" effect exemplifies how races to the bottom get started.
Unilever exit is double setback for London 15 Mar 2018 The Dove soap maker has picked Rotterdam as its global base in a corporate streamlining. Scrapping its Dutch trust office will help reassure investors that the move is not a takeover defence. However, the reshuffle may also rob the FTSE 100 index of one of its larger members.
Activist adds governance flub to drab Newell pitch 14 Mar 2018 Starboard’s three top board picks will buy $25 mln of stock in the consumer-brands outfit if it wins a proxy fight. That’s a fraction of their unpopular payoff after Newell bought their firm, Jarden, and highlights Starboard’s lack of vision. Investors should leave it on the shelf.
Inditex still deserves its fashionable premium 14 Mar 2018 Zara’s owner plans to open less new space as purchases shift online, and overall sales growth slowed in its fourth quarter. But web-based sales are strong, and peers are struggling more. It’s trendy to be down on retailers, yet Inditex merits its valuation lead.
Volkswagen investors are stuck in the past 13 Mar 2018 The carmaker’s shares are priced at a 20 pct discount to German rivals Daimler and BMW. That’s despite fast growth, a rising operating margin and scale that gives it an edge in electric vehicles. Cost cuts and a full year without unexpected diesel provisions would help close the gap.
Prada’s valuation is fancy even in luxury land 12 Mar 2018 The Italian brand is trading at roughly the same multiple of expected earnings as super-elite Hermès. Nascent signs of a turnaround after four years of falling sales, especially in its lucrative handbag business, are helpful. But investors are giving credit before it is due.
China’s iQiyi channels Netflix with a twist 12 Mar 2018 The Baidu-backed video-streaming site wants to raise at least $1.5 bln in an IPO. It's growing quickly and spending cash on new programmes for 50 mln paying customers. But iQiyi also broadcasts live events and sells ads. That makes it a tantalizing hybrid that's hard to value.
Beijing’s Heineken pint will be tough to craft 9 Mar 2018 Chinese giant CR Beer is in talks to buy the local assets of its Dutch rival for over $1 bln. Premium international brews are attractive in a stagnating market. But fixing the deal terms will be tricky: global players are fiercely protective of their brands.
Jardines can benefit from a spot of retail therapy 9 Mar 2018 Underlying earnings at the Anglo-Asian conglomerate soared to $1.6 bln in 2017. But Jardine Matheson’s food-retail arm is lagging, hampered by Southeast Asia. Exiting hypermarkets, while investing more in e-commerce and convenience stores, would be a good way forward.
China courts tech and Taiwan with Foxconn IPO 9 Mar 2018 The Apple assembler is set to list a $50 bln-plus subsidiary in Shanghai. Speedy approval shows China is serious about luring tech giants onto mainland exchanges. The People’s Republic is also keen to deepen financial ties with Taiwan, even as diplomatic relations sour.
Kraft Heinz next M&A meal could be breakfast 7 Mar 2018 The $83 billion food company looks due for a deal. Mondelez is a logical target but is expensive. Hershey is growing but gives Kraft less room for error. Kellogg is cheaper and offers room to cut costs, so long as Kraft can convince insiders to sell.
Ctrip may lose altitude as China travels 7 Mar 2018 The $25 bln online travel agency built a dominant position by aggressively buying small rivals. Now ones backed by giants Alibaba and Tencent are taking off in far flung cities, where tourism is booming. Ctrip's early lead looks precarious now it will have serious competition.
BlackRock puts gun-complex boards in crosshairs 2 Mar 2018 The $6 trln asset manager outlined steps to ensure the makers and sellers of AR-15s it owns through index funds make "a positive contribution to society." The philosophy of engagement can be more effective than divestment. For directors, their jobs are at stake.
AB InBev is one step short of a strong footing 1 Mar 2018 The world’s top brewer served up better-than-expected EBITDA in the fourth quarter and a welcome chaser of volume growth. That will soothe investor worries that ruthless cost cuts are hurting sales. Now it needs to reverse falling market share in its most important U.S. market.
Momo pairs well by swiping right on China’s Tinder 27 Feb 2018 The $7 bln social network is buying Tantan for at least $600 mln. It's yet another shift for Momo, whose original online courtship effort flopped and led it into video. Though lucrative, competition and censorship are getting stiffer. This new partner should spice things up.
Alibaba delivery deal could be tasty side dish 27 Feb 2018 The $500 bln e-commerce outfit may buy the rest of Chinese startup Ele.me, which gets meals from restaurants to homes. Simply battling rival Meituan Dianping would be costly. If it can enhance Alibaba's payments, groceries and parcels businesses, though, it makes much more sense.
AIA’s warchest is good omen for investors 27 Feb 2018 After a 28 pct surge in new business last year, the Asian life insurer is sitting on a cool $12 bln. It is hard to see all of that being consumed by modest M&A or investments in growth. That means before long shareholders should be in line for a big special dividend or buyback.
George Foreman Grill maker gets leaner, not meaner 26 Feb 2018 The maker of the famed kitchen device – as well as bits and bobs ranging from faucets to fish food – is combining with its majority owner in a deal valued at $10 billion. Spectrum Brands comes out with a neater structure. Its collection of businesses, though, is still messy.
Cox: Gun lobby meets match with economic protests 23 Feb 2018 Civil rights movements often embrace boycotts. Think of Gandhi's Salt March, suffragette strikes, South African divestment or MLK's final speech, where he told followers not to buy Coke. Now it's the NRA's turn, as consumers force all manner of companies to sever ties.
General Mills pays runaway price for Blue Buffalo 23 Feb 2018 The Cheerios maker is throwing an $8 billion bone at the natural-pet-food producer to beef up sales to furry darlings. The prospect of taking over the pantry is as appealing. But to make the investment stack up, General Mills’ new pet will need to grow faster than a puppy.