Chesapeake may need to sacrifice more than assets 29 May 2012 The embattled U.S. gas producer is already dispensing with energy fields to raise cash. Now investors, including uppity Carl Icahn, want directors ousted. Replacing two up for election without Chesapeake’s OK is near impossible. But resistance is counterproductive at this stage.
Buffett steals insider-trading show in absentia 29 May 2012 The Berkshire Hathaway chairman didn’t appear in a New York courtroom last week. But his presence loomed over Raj Gupta’s insider-trading trial in more ways than one and dredged up the still-unsettled role his former lieutenant David Sokol played in last year’s Lubrizol deal.
BP’s latest Russian spat spells more aggro 28 May 2012 The UK oil major is at odds with its oligarch partners in TNK-BP after one of them quit as the joint venture’s CEO. Mikhail Fridman’s exit could be a passing storm. But as BP’s force in Russia declines, such drama is more likely to presage a messy endgame to the partnership.
Prosecutors gain early edge in Raj Gupta trial 25 May 2012 Judge Rakoff largely adopted their version of a preliminary jury instruction a week after allowing them to introduce wiretaps. The former McKinsey boss and Goldman director hasn’t put on his case yet. But he’ll need some breaks soon if he’s going to beat insider trading charges.
Wal-Mart shareholders can make their protest count 25 May 2012 With half the votes sewn-up by the Walton family, directors tainted by the retailer’s Mexican bribery scandal look safe in their seats. But investors disturbed by Wal-Mart’s cover-up should make their displeasure known just the same by targeting Chairman Robson Walton himself.
Blankfein enjoys rare moment of public approval 24 May 2012 The Goldman Sachs boss emerged from the firm’s annual meeting not just unscathed but praised. The Wall Street bank had already headed off a vote to split the chairman and CEO roles. With protestors scarce and a regular past critic absent, Blankfein had an easier AGM than rivals.
Chesapeake could use a fresh start in a new home 24 May 2012 The embattled U.S. gas producer faces a shareholder vote to reincorporate in Delaware. The board’s argument that Oklahoma’s stiff takeover defenses better serve shareholders is a stretch. Chesapeake needs a governance overhaul. A new legal address would be a good first step.
Mike Lynch should try to buy Autonomy back 24 May 2012 The software group’s founder is leaving HP months after the U.S. tech giant bought it for $11 bln. Other Autonomy execs had already gone. Having overpaid, HP is suffering the cultural woes of M&A. As for Lynch, he could yet exploit the mess to buy his baby back at a decent price.
JPMorgan’s board could use some new blood 23 May 2012 It takes a lot for Citi and BofA to make JPMorgan look out of step. Jamie Dimon’s Paleolithic board does just that, though. Last week’s governance protest vote and the CIO losses highlight the need for new directors with relevant financial experience to keep the CEO on his toes.
One reason for Facebook IPO mess: Zuck didn’t care 23 May 2012 From the get-go, Mark Zuckerberg made clear he had little interest in welcoming public shareholders. His voting advantage codified the fact. A strong CEO can temper short-term urges elsewhere. But when he’s indifferent, it makes a failed process like Facebook’s more likely.
Did Chesapeake miss Enron lessons? 22 May 2012 There have been no allegations of fraud. But the embattled U.S. natural gas producer’s vast trading operation, fondness for complicated holdings and relationships, and corporate generosity are among the traits that call to mind some of the defunct energy giant’s flaws.
JPMorgan loss kicks succession race into high gear 21 May 2012 Wall Street is buzzing about the possibility that the bank’s trading losses will cost CEO Jamie Dimon his job. While highly unlikely, the whale fail’s cleanup has put two potential successors clearly in the running - it’s not yet two ferrets in a sack, but the contest has begun.
Risk of testifying could pay off for Raj Gupta 18 May 2012 The smart money says the former McKinsey boss and Goldman Sachs director won’t take the stand at his insider trading trial. But the prosecution’s case is circumstantial, leaving him room to explain. With the public lusting for a boardroom scalp, this is no time to play it safe.
Temasek makes unlikely corporate governance hero 18 May 2012 The Singaporean fund abstained from backing several Standard Chartered directors, apparently because the UK lender’s board had become less independent. Temasek would gain much by speaking out on such topics - even if it sits uneasily with its growing investments in Chinese banks.
Buffett’s investing gets sappy – read all about it 17 May 2012 The Oracle is doubling down on newspapers, buying 63 local rags. The cost is negligible for Berkshire, but Buffett’s thesis is behind online trends. Revenue may fall faster than he thinks, as other buyers have learned the hard way. The bet seems more about sentiment than value.
Pru vote heralds new normal for investor protest 17 May 2012 A third of shareholders voted against the UK insurer’s pay report, miffed at retrospective tinkering with targets. A solid performer like Pru might once have suffered only mild gripes. But the shareholder spring means transgressions now meet with much meatier disapproval.
Filling CEO hole was the easy bit for 3i 17 May 2012 Britain’s biggest listed private-equity firm has quickly elevated Simon Borrows, the M&A banker who joined last year as investment chief. If Borrows closes 3i’s big discount to net asset value, his next public company role will be much grander. The snag is there’s no quick fix.
JPMorgan shareholders give Dimon slap on wrist 15 May 2012 The U.S. mortgage hangover eclipsed last week’s trading losses at the bank’s annual meeting. And subdued investors were mostly supportive of Dimon. But they didn’t let him off entirely: 40 pct voted to split the chair and CEO roles. While falling short, it’s still a protest vote.
Chesapeake’s evasive tactics compound crisis 14 May 2012 After securing $3 bln of emergency funds, the gas producer’s CFO couldn’t say how much of its credit line had been drawn. Chesapeake was also vague with investors about the loan’s net proceeds and terms. Such guile doesn’t inspire confidence that a cash crunch has been avoided.
Dan Loeb enters pantheon of bad-ass investors 14 May 2012 Résumé-gate claimed Yahoo CEO Scott Thompson. But the hedge fund manager still needs to articulate a credible plan to return the internet also-ran to relevance. What’s undeniable is that Loeb has proven to Corporate America that underestimating him can prove perilous.