Boots exit may smooth way for Walgreens buyout 6 Dec 2021 The $40 bln drugstore operator may sell its UK chain, less than a decade after buying it. A sale could raise $8 bln for the U.S. group to beef up its own in-store clinics. And if Chairman Stefano Pessina wants one last big deal, a leaner Walgreens would be an easier target.
Capital Calls: Fund services M&A, Mattress mystery 6 Dec 2021 Concise views on global finance: Shareholders of Amsterdam-listed Intertrust dodge a regulatory crackdown with a 1.8 bln euro sale; the western man credited with Chinese retailer DeRucci’s success finally has his identity revealed.
DocuSign shows risk of investing along dotted line 3 Dec 2021 A slowdown in demand ripped $18 bln off the digital document-signing firm’s market value. The company’s response – spending more to revive sales – adds to the near-term pain. For profitless companies reliant on ambitious forecasts, sharp corrections are a signature move.
Transatlantic food delivery value gap will narrow 3 Dec 2021 DoorDash and Just Eat Takeaway have similar revenue and growth prospects, but the $57 bln U.S. firm is worth four times as much as its Dutch rival. Better profitability and an earlier move into groceries helps explain the gap. DoorDash’s push into Europe suggests it won’t last.
Bruised UK fund manager throws pricey counterpunch 2 Dec 2021 After years of struggling to hang onto assets, Abrdn is buying consumer platform Interactive Investor for 1.5 bln pounds. It brings growth and a chance to steal share in personal savings. The challenge is ensuring its expensive new bauble shines inside a stodgy asset manager.
Lululemon-Peloton union makes more sense than feud 2 Dec 2021 The exercise firms are locked in legal tussles and each is encroaching on the other’s turf. Given the bike maker’s share price has fallen two-thirds this year and there are obvious costs to cut, the sporty clothing specialist’s better option is to make an offer for its adversary.
Pharmacy bidding war stands to get more feverish 2 Dec 2021 Aussie supermarket chain Woolworths has offered 13% extra to buy Priceline owner API over an agreed deal with Wesfarmers. The premium now stands at a whopping 53%. Deep-pocketed buyers, a frenzied M&A market and the implied returns are a prescription for additional sweeteners.
Exxon climate pledges pick low-hanging fruit 1 Dec 2021 The oil giant will meet its 2025 goal for cutting carbon emissions four years ahead of schedule. It now plans to cut company-wide output by 20% by 2030, without lowering returns on investment. New activist directors have more to do if Exxon is to catch up with European peers.
Fed facelift will provoke frowns on Wall Street 1 Dec 2021 Former CFPB boss Richard Cordray’s mooted candidacy to lead supervision at the U.S. central bank signals a tougher watchdog. A return to qualitative stress tests, which banks used to complain were too onerous, is likely. Lenders lobbying lawmakers have only least-bad choices.
Manscaped SPAC shaves public investors’ consent 30 Nov 2021 The “below-the-belt” grooming company is offering cheaper shares to private investors in its deal with a blank-check firm, which can close even if shareholders pull their cash out. SPAC sponsors are incentivized to keep deals flowing at all costs. This adds to the overall look.
Retail has golden opportunity to stay in the black 29 Nov 2021 American consumers are on track to spend record amounts during the holiday season, despite scarce discounts and low confidence. That suggests retailers have some pricing power, which at least gives them some room to offset the squeeze they’re facing from workers and suppliers.
Jack Dorsey leaves one company, helps out two 29 Nov 2021 Twitter is better off without its co-founder, who was also busy being CEO of fintech firm Square. The $38 bln social network hasn’t set a clear strategic direction, unlike rival Facebook. Square, meanwhile, could use the extra attention as it faces a growing crowd of rivals.
UK energy shakeout will hit price comparison sites 26 Nov 2021 Britain is pumping $2.3 bln into collapsed gas and electricity provider Bulb, the latest in a string of bankruptcies. The clear-out should mean a healthier array of UK energy suppliers. But having fewer operators will hurt the firms that make their money from customers switching.
Airline investors weigh up more pandemic baggage 24 Nov 2021 U.S. travelers may log their busiest day since the pandemic during Thanksgiving. In Europe, government clampdowns may crimp winter travel. And airlines on both sides still have to contend with what happens in China, which could knock some wind out of valuations.
The Exchange: Fintech evolves 23 Nov 2021 Companies from JPMorgan to Goldman Sachs are upgrading their banking businesses. Al Goldstein, one of the pioneers of peer-to-peer lending and online funding, tells Lauren Silva Laughlin how he reshaped those areas and why he is moving into private equity and venture capital.
Bezos could be $90 bln richer with Amazon breakup 19 Nov 2021 The $1.8 trln giant manages its AWS cloud group separately from e-commerce. On its own, the former may be worth as much as the entire company is now. J&J, GE and Toshiba are heading to splitsville. The world's richest man could become even wealthier by adding Amazon to the list.
Capital Calls: Biden’s deficit, Austria lockdown 19 Nov 2021 Concise views on global finance: A nonpartisan analysis finds a $160 billion hole in the U.S. president’s social programs; while new Covid restrictions spark selloff in European airlines and hospitality.
Icahn’s Southwest Gas mixtape has all the hits 19 Nov 2021 The activist is blasting overspending, making a hostile tender offer, criticizing a major deal and pushing for a breakup in his campaign at the $4 bln U.S. utility. They are classic Icahn tactics. But history suggests investors might do best if he gets only some of what he wants.
Capital Calls: SEC turns tables on vote advice 18 Nov 2021 Concise views on global finance: The U.S. watchdog wants to reverse Trump-era rules restricting firms that advise investors how to vote on corporate matters.
Elliott seeks hidden tech treasure in dull grocer 17 Nov 2021 Paul Singer’s fund took a 3% stake in $35 bln retailer Ahold Delhaize. Rather than cost cuts, the activist’s interest lies in the Dutch group’s online unit, worth perhaps $8 bln. But competition is fierce and rich valuations may not last. Elliott’s bet also needs good timing.