Dutch lawmakers give Ahold backup in activist spat 10 Apr 2018 Activist CIAM wants the supermarket to scrap its foundation that can be used to block takeovers. But with the Netherlands eyeing new laws to stymie hostile bidders, companies may not need these arcane tools much longer. Shareholders will suffer either way.
Wall Street gets its money-mining canary back 9 Apr 2018 Jefferies’ owner, the $8 bln Leucadia, will offload non-financial units, take its traditionally trading-heavy investment bank’s name, and move to a November year-end. The industry will again have an early-warning stock – and long-time boss Richard Handler’s task will be clearer.
Smucker places a risky bet on dogs 5 Apr 2018 The Jif peanut-butter maker is moving deeper into the pet-food aisle by buying the maker of Rachael Ray pet food for $1.9 bln. Premium pet-food sales are growing fast, but the modest returns on this high-priced deal may not justify the debt. Smucker may find itself on a PB&J diet.
Chinese food-to-flights app offers half-baked IPO 29 Mar 2018 Meituan-Dianping may float in Hong Kong this year. That looks premature, as fights loom over takeaways and taxis. Stock investors could punish the $30 billion startup for burning cash to win market share. It would be better to stay private until it has a clearer edge over rivals.
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.
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.
HNA’s Swiss airplane food IPO is far from gourmet 6 Mar 2018 The former Chinese deal machine is listing up to 65 pct of Gategroup to help ease its liquidity crunch. The maker of in-flight meals has expanded since HNA paid $1.5 bln for it in 2016. Factor in an IPO discount, though, and HNA will do well to recoup its original investment.
Booker boss is pied piper of Tesco deal 28 Feb 2017 The UK wholesaler’s shareholders approved Tesco’s 4 bln pound takeover, despite a slim premium and activist calls for a beefed-up price. Booker CEO Charles Wilson will work on finding synergies with Tesco. A history of stellar returns made investors willing to follow his lead.
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.
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.
Rite Aid a weak prescription for Albertsons’ ills 20 Feb 2018 The Cerberus-owned grocery chain is buying the $2.3 bln pharmacy for little premium. It’s a way for Albertsons to go public after aborted IPO efforts. But pharma’s problems and Rite Aid’s lack of scale offer a wobbly crutch for the buyer’s flat sales and declining EBITDA.
Stuffed KFC only has itself to blame 20 Feb 2018 The fried-chicken chain owned by Yum Brands had to close hundreds of UK restaurants after running out of poultry. Its plan to cut costs by ditching a long-term supplier for a cheaper one backfired. The cock-up shows that chasing higher margins is no sure way to feather your nest.
Nestlé’s tepid year poses bigger questions 15 Feb 2018 Lacklustre 2017 sales have focused investors on issues the Swiss group would rather avoid. Not renewing a shareholder agreement with L'Oréal suggests a rethink of its stake is underway. But the future of sugary brands and a push into health supplements need clearer explanation.
Investors’ eyes are bigger than Chipotle’s stomach 14 Feb 2018 The burrito chain’s shares soared 14 pct after hiring Taco Bell’s boss as CEO. But Brian Niccol’s fast-food nous may not mix well with Chipotle’s wish to be a health-conscious brand. And the firm is wrapped up in poor governance that may hamper efforts to spice up the top line.
Danone’s Yakult sale points to a healthier future 14 Feb 2018 The dairy giant is selling most of its stake in Japan’s Yakult and will rake in roughly 1.4 billion euros. The value of the investment that it made in 2003 has nearly quadrupled. The proceeds will help the company meet its debt-reduction goal. The capital discipline is welcome.
Heineken’s number two status brings marginal costs 12 Feb 2018 The Dutch brewer is one of the few global groups still increasing beer volumes. However, acquisitions will weigh on operating margins in 2018. Heineken needs to invest in its new Brazilian brands to take on market leader AB Inbev. That limits the scope for boosting profitability.
Tyson dual shares turn water reform into a washout 8 Feb 2018 An undemocratic ownership structure has allowed the largest U.S. meat producer to ignore investors’ overwhelming call to manage pollutants better. Complying would save the $27 bln company money and show that even the governance-challenged can set a decent environmental standard.
Yum China looks appetising despite iffy pizza 8 Feb 2018 The mainland operator of KFC grew revenue 8 pct last year and boosted operating profit by 23 pct. Pizza Hut is a work in progress, but shows signs of improvement. Overall, Yum’s spinoff strategy has delivered a straightforward and affordable bet on Chinese consumer appetite.
Dr Pepper settles too readily on drinking partner 30 Jan 2018 The $21 bln beverage group’s deal to sell itself to coffee maker Keurig leaves shareholders some 25 pct richer. It’s not the greatest brand. But based on savings achieved in other mergers, Dr Pepper should be able to extract more. Either rivals lack ambition or the company does.
Mondelez slurps Coke’s returns in Dr Pepper deal 29 Jan 2018 The Ritz cracker maker looks to have doubled its $2 bln investment in coffee maker Keurig, now merging with drinks group Dr Pepper. Mondelez’s gain is largely the result of others’ efforts. Pity Coca-Cola, which sold a stake in Keurig just as things started to get interesting.