Unilever piles pressure on GSK spinoff plan 17 Jan 2022 GlaxoSmithKline rebuffed the sauce-to-soap group’s 50 bln pound bid for its consumer unit. Unilever’s plan faces challenges. But a listing is unlikely to earn a higher valuation for the Advil maker. To placate investors, GSK boss Emma Walmsley needs other buyers like J&J and P&G.
Unilever can still avoid Danone’s fate 14 Jan 2022 The $137 bln Dove maker’s stock has lagged rivals, activist Nelson Peltz may be circling, and other investors are grumbling. The recent ouster of the French yoghurt maker’s boss is a warning. CEO Alan Jope could pre-empt any revolt with clearer targets to sell struggling brands.
Capital Calls: Biogen hits Medicare wall 12 Jan 2022 Concise views on global finance: An unusual decision by the U.S. government program to restrict payment for the firm’s Alzheimer’s drug is likely to be an exception rather than becoming the rule.
Inflation will dent U.S. consumers’ rosy mood 12 Jan 2022 Prices of goods and services rose 7% in December, the fastest annual pace in 40 years. The hit to their wallets has yet to puncture Americans’ optimism about the economy. Persistent hefty increases in housing costs and other basics could, however, change that this year.
Citi’s Mexico exit leaves it neater but not better 12 Jan 2022 Boss Jane Fraser is shrewdly selling a business that she once oversaw, and which her predecessor Mike Corbat stubbornly refused to jettison. The lender is growing more focused under its new chief executive but what’s left, in particular Citi’s U.S. consumer bank, lacks oomph.
Turo IPO falls short of being Airbnb for autos 12 Jan 2022 The car-sharing startup backed by Barry Diller’s IAC has filed to go public. If it can keep growing as an intermediary like Airbnb, it could be worth $7 bln. The risk is it ends up with heavier cost burdens like Uber - or even Hertz, which would peg its worth below $2 bln.
Boots buyout 2.0 requires growth shot in the arm 12 Jan 2022 Private equity firms CVC and Bain may be eyeing a bid for Walgreens’ UK pharmacy chain for a mooted $8 bln, some 15 years after KKR’s acquisition. This time round, new owners could juice up its online sales and health business. The threat from Amazon makes it a riskier bet too.
Jefferies’ lucrative SPACs deliver a triple thwack 11 Jan 2022 The investment bank has made a niche for itself in underwriting, advising and sponsoring blank-check firms. Its profitable work in all three roles has left regular investors underwater. Jefferies isn’t the only one, but a smaller firm could take a bigger hit to its reputation.
Digital ad hogs leave room at the trough 11 Jan 2022 Google and Facebook dominate U.S. online advertising, but the overall pie is growing quickly. Even if the twin giants take their usual share, that leaves an additional $50 bln up for grabs, Breakingviews estimates. That’s an opportunity for the likes of Snap and Microsoft.
Disney can follow WarnerMedia breakup blueprint 7 Jan 2022 Mickey Mouse’s parent company has a sprawling business that, like AT&T’s soon-to-be-former content service, isn’t getting full credit for its value. WarnerMedia’s decision to ditch one of its networks has sticking points. But Disney could benefit from doing a spinoff 2.0.
Nelson Peltz needs to choose his asset manager 7 Jan 2022 The activist's Trian wants board representation at Janus Henderson, backed by its 17% stake. But Trian also owns 10% of Janus competitor and potential merger partner Invesco. If it came to a deal between the two, Peltz would look conflicted and that could discredit his arguments.
Walmart gets taste of the Lotte treatment in China 7 Jan 2022 Officials lambasted the U.S. retailer for network security problems, in what looks like blowback over allegations that Xinjiang-made products were yanked from shelves. The South Korean chain was hounded out of China by similar methods. Worst case, Walmart could share that fate.
Capital Calls: HSBC and China, Dr. Martens 6 Jan 2021 Concise views on global finance: The Asia-focused lender has a chance to take greater control of its mainland brokerage after recent positive noises from Beijing; buyout firm Permira picks a good time to offload shares in the $5 bln bootmaker.
Reliance channels its name in 40-year bond 6 Jan 2022 It sold the longest tenure paper by an Indian firm as part of a $4 bln deal, on the back of a big successful expansion into consumer businesses. Bagging cheap funding now looks smart. But as China’s tech upheaval shows, four decades is plenty to test India’s reliance on Reliance.
SocGen $6 bln car deal leaves shares in slow lane 6 Jan 2022 The French bank is helping fund the purchase of LeasePlan by its automotive unit ALD. Returns look high and the move helps the pair shift to an electric future. But since investors prefer focused banks, rather than conglomerates, CEO Frédéric Oudéa won’t get much credit.
Finding China’s Moderna is a financial long shot 6 Jan 2022 The U.S. biotech giant’s Covid-19 vaccines have inspired copycats in the People’s Republic, where cities are scrambling to contain fresh outbreaks. With foreign jabs yet to be approved, the $13 bln Walvax looks promising. Feverish valuations leave little margin for error.
Moderna’s boosted valuation has Tesla-like spin 5 Jan 2022 Its Covid-19 vaccine is one of the world’s biggest medical products, yet that doesn't justify even half of Moderna’s $94 bln market value. Like Elon Musk’s $1.2 trln carmaker, the company is now a bet on dominating markets yet to exist. That suggests a volatile future for investors.
Toyota’s U.S. triumph comes with an asterisk 5 Jan 2022 The Japanese automaker sold the most cars in the U.S. in 2021, knocking General Motors off pole position for the first time since 1931. But Toyota’s early advantage of hoarded semiconductors is evaporating. And it’s well behind in the race to transition to electric vehicles.
Capital Calls: Beyond Meat’s faux chicken 5 Jan 2021 Concise views on global finance: The plant-based meat company’s shares jumped 5% on news KFC will offer its product. The extra value assumes benefits beyond selling buckets of substitute fried chicken.
Microsoft and Satya Nadella to be tech standouts 4 Jan 2022 The $2.5 trln software giant has outpaced most Silicon Valley peers over several years. A slowdown might seem inevitable. But the company’s CEO since 2014 is poised to deliver again. That could make him the most successful second-generation tech boss ever in market value terms.