UK credibility on China inward M&A gets wafer-thin 8 Jul 2021 Britain’s government initially declined to review Chinese-owned Nexperia’s $87 mln deal to buy the country’s largest semiconductor plant. It has now U-turned, which makes sense given the world chip shortage. But the mixed messages hardly inspire confidence in the process.
Wall Street enlists Main Street for IPO advantage 29 Jun 2021 Clear Secure’s underwriters are allocating 1% of its offering to trading platform Robinhood. That tips bankers off if the airport security firm creates retail buzz. If so, it should enable them to leave less value on the table while also giving Robinhood traders a chance to play.
Dan Loeb cybersecurity IPO has winds at its back 22 Jun 2021 SentinelOne is targeting a $7 bln valuation, 100 times its worth when Third Point first invested. The fund is buying more. Connected devices and cyberattacks are both proliferating. The company is also gaining market share. If that continues long enough, the bet will pay off.
Capital Calls: HSBC, MRNA scramble, Cable project 18 Jun 2021 Concise views on global finance: The UK bank’s France sale disappoints; Danaher snaps up Moderna supplier for $9.6 bln; geopolitics sinks internet cable.
Capital Calls: GEO meme, United Parcel Service 9 Jun 2021 Concise views on global finance: The meme stock good-vs.-evil fairy tale is wearing thin with the private prison operator; the logistics company is focusing on high-margin deliveries rather than volume, and investors aren't loving it.
Bitcoin passes the ransom test 14 May 2021 Sure, the crypto-asset isn’t widely accepted. But its appearance as a ransom in Colonial Pipeline's hack shows it shares useful features with the U.S. dollar – such as being easy to exchange. That unconventional sign of success means regulators are going to get even twitchier.
U.S. pipeline hack is loudest warning yet 10 May 2021 The ransomware attack on Colonial Pipeline, a big U.S. fuel distribution network, is the latest reminder of cyber vulnerabilities. Companies, governments and lawmakers aren’t keeping up with the bad guys. It will take more money, a sharper focus, and coordination.
Capital Calls: Apple, UK SPACs 30 Apr 2021 Concise views on global finance: Apple’s European antitrust problem may start a global trend; UK regulators scramble to join SPAC party.
Capital Calls: Jerome Powell, Shopify 28 Apr 2021 Concise views on global finance: The clock is ticking on the Fed boss’s taper timeline; the e-commerce firm grew even as it warns of a post-pandemic lull.
Darktrace’s cut-price IPO still looks risky 26 Apr 2021 The cyber firm’s $2.6 bln float values it at around 10 times 2020 revenue, well below listed CrowdStrike and Zscaler. But the loss-making business is vulnerable to rivals. Close links with investor Mike Lynch, who’s facing U.S. fraud charges, could also leave investors exposed.
Eleven-digit cyber LBO looks sober in crazy world 26 Apr 2021 Thoma Bravo is paying $12 bln for Proofpoint, a 34% premium. It’s the largest U.S. buyout this year, and the biggest software LBO on record. The target boasts low debt and strong growth, and the multiple isn’t crazy. Even in toppy markets, good deals still exist.
Capital Calls: U.S. CEO pay 12 Apr 2021 Concise views on global finance: The median big-company boss is ending up with $13.7 mln for the 2020 pandemic year, a payout that's heading for a record.
Darktrace is ultimate test of IPO risk appetite 17 Feb 2021 The cyber group’s top investor, Autonomy founder Mike Lynch, is facing U.S. extradition on fraud charges. Its top ranks are packed with his former colleagues. UBS has dropped out of the $5 bln listing. Pushing ahead despite such red flags suggests investors may pinch their noses.
Capital Calls: KKR, the investment bank 9 Feb 2021 Concise views on global finance in the Covid-19 era: The private equity firm run by Henry Kravis is building a useful capital-markets business, with almost half its deals last year for outside clients.
Sensitive U.S. hack is one more problem for Biden 14 Dec 2020 Network software used by America’s armed forces and big companies was compromised for months, possibly by Russia. The maker, Texas-based SolarWinds, has egg on its face. For users in D.C. and elsewhere, it’s a reminder that cybersecurity can’t be ignored, even in a pandemic.
Nokia makes a meal of its Huawei free lunch 29 Oct 2020 The $19 bln telecom giant’s shares slumped after it slashed operating margins. New boss Pekka Lundmark is right to beef up investment to improve its 5G offering as China’s Huawei battles U.S. hostility. But right now Nokia is losing out on new business rather than snapping it up.
Corona Capital: U.S. tests, UK loans, Man U groans 21 Oct 2020 Concise views on the pandemic’s corporate and financial fallout: Abbott Laboratories has a bumper third quarter; UK banks look at a workaround for their Covid-19 loan problem; and Manchester United reveals a predictably ropey set of annual results.
TPG rides IPO wave with McAfee deal 29 Sep 2020 A bubbly public reception to software firms like Snowflake has left an opening for the buyout shop to float the cybersecurity company at three times its 2016 takeover valuation. McAfee has improved, but its owners have bonkers investors rather than better performance to thank.
Garmin’s cyber-attack lesson: sprint don’t jog 29 Jul 2020 The maker of sports watches and navigation tools fell prey to a hack less than a week before reporting earnings, and for days left users mostly clueless. There’s no one-size-fits-all way to handle complex cyber-incursions, but for future victims, being fleet of foot is a must.
Apple and peers could lose “when in China” shield 16 Jul 2020 The iPhone maker is one of many firms that tailors products to suit China’s demands, recently deleting an app used by Hong Kong protesters. Such decisions could soon be treated by U.S. authorities as foreign lobbying. That would curtail a delicate – and profitable – dance.