GE can get ahead of chairman-CEO trend 25 Apr 2018 The conglomerate defeated a shareholder proposal to separate the top jobs. But 41 pct of investors supported the measure, up from 24 pct a year ago. Double-titled boss John Flannery could pre-empt an embarrassing rebuke next year, and improve governance, by embracing a split now.
United and Equifax boost GE chairman-CEO splitters 24 Apr 2018 The airline says having an independent chair lets CEO Oscar Munoz focus on running the company. Equifax is keeping the double act it adopted after last year’s massive hack. It’s recognition there are two jobs that need doing. Beleaguered GE is looking increasingly out of step.
Subsea 7 can still save McDermott from itself 23 Apr 2018 The Oslo-listed oil services group has lobbed in a $2 bln offer for its U.S. counterpart. Subsea 7’s bid looks low, and hinges on McDermott ditching an agreed deal with CB&I. But CB&I’s sale of Stone & Webster to Toshiba is a bad precedent, and Subsea 7 can afford to pay more.
India is prize worth keeping for Uber 20 Apr 2018 The ride-hailing giant says it won’t exit the market with a minority stake as it did in Southeast Asia and China. Uber has a narrower gap with local rival Ola and the country can serve as a good test-bed for new ideas. Without India, Uber would also look less global in an IPO.
GE offers 100 bln reasons to divorce CEO and chair 20 Apr 2018 That’s how many dollars of investor booty the industrial group has incinerated since John Flannery replaced Jeff Immelt. The new boss wants to create more accountability. But that starts at the top. An investor proposal to separate the roles deserves shareholder support.
Royal Mail’s best Amazon defence is to stay cheap 20 Apr 2018 The UK postal group has appointed Rico Back to replace departing CEO Moya Greene. The 5.7 bln pound company is staking its future on growing its parcel business. That requires it to both partner and compete with the online giant. Keeping delivery costs low will keep Amazon close.
French telco jigsaw missing key regulatory piece 17 Apr 2018 Bouygues could bid for Altice’s French business, Bloomberg reports, to end a painful price war. It’d make more sense than failed 2016 talks with state-owned Orange. But regulators may still prefer four less-profitable operators to three stronger groups with power to raise prices.
VW changes boss to better effect than Deutsche 13 Apr 2018 Both companies replaced their boss mid-term. The automaker also unveiled management changes to help reduce costs and is preparing its trucks business for a potential listing. Volkswagen’s messy governance endures, but unlike Deutsche, its strategy has a better chance of success.
Apollo’s Greyhound bet looks past UK politics 12 Apr 2018 Transport operator FirstGroup has rejected an approach from the U.S. buyout giant. The offer is bold given the UK backlash against rail privatisation. But the company’s American operations, including the iconic long-haul buses, help support its 1.3 bln pound market value.
DSM has ingredients for long-term health 12 Apr 2018 Shares in the Dutch vitamin and chemicals group hit a record high after it reported strong first-quarter sales. A fire at German rival BASF’s plant cut supply, prompting a spike in vitamin E prices. A healthy underlying business shows the valuation boost needn’t be temporary.
Trump trade war risks European carmaker backfire 10 Apr 2018 BMW and Daimler sell a surprising number of American-made vehicles in China. Were the U.S. president’s tariff-war rhetoric to become reality, carmakers could shrink stateside production. If Trump wants to keep rather than lose jobs, he should seize Beijing’s latest olive branch.
Tenneco and Icahn pull a mini DowDuPont 10 Apr 2018 The U.S. auto-parts maker is paying $5.4 bln including debt for Federal-Mogul, owned by the investor’s listed entity. The plan is to break the merged company into two, boosting the overall value. Shareholders shoulder risk when deals have several steps. But the logic holds up.
Rail strikes will test French appetite for Europe 9 Apr 2018 President Emmanuel Macron’s plans to overhaul the state-run train company have sparked mass walkouts. He’s not the only one with much to lose. If voters turn against rail reforms, they may also blame EU laws that are forcing the pace of change and grow more critical of Brussels.
Siemens’ slimming strategy is half-hearted 3 Apr 2018 A part-sale of medical unit Healthineers has failed to shrink the German company’s conglomerate discount. After all, the 84 bln euro group still spans trains, energy and factories. Siemens’ exit from the lighting and mobile businesses offers CEO Joe Kaeser a useful template.
Melrose wins battle for GKN, UK M&A may be loser 29 Mar 2018 The takeover specialist's 8 billion pound bid for engineering group GKN has won the day. It now needs a turnaround plan that squares with pledges that were made to placate politicians. And potential bidders for other UK companies know they face a more interventionist government.
Tricky Renault-Nissan deal would be rewarding 29 Mar 2018 The French and Japanese groups chaired by Carlos Ghosn may merge to create a carmaker that trades as a single stock. The Gallic state, which owns 15 pct of Renault, would put up roadblocks. But after 19 years of cooperation, margins are low enough to make the union worth a try.
Carlyle’s $12.6 bln Akzo deal has good chemistry 27 Mar 2018 The U.S. private equity group is buying a speciality chemical unit that the Dutch company put on the block after a failed PPG bid. Carlyle knows the industry and has slashed costs at Axalta. While there may be less scope for huge cuts this time, decent returns are still on offer.
Dana keeps GKN defence hopes alive 26 Mar 2018 The U.S. car parts maker raised its cash and shares offer for GKN’s auto unit by $140 million to thwart Melrose’s bid for the whole UK engineering group. The extra cash only compensates for recent falls in Dana’s share price. But given how tight the race is, any increase helps.
Smurfit Kappa is boxed in by sweetened bid 26 Mar 2018 The Irish packaging group rejected International Paper’s improved 8.9 bln euro approach. A heftier cash component is largely offset by the U.S. bidder’s falling share price. That makes the offer easier to snub but adds to pressure on Smurfit to cut costs and roll out automation.
GKN owners should stick with the devil they know 23 Mar 2018 The UK engineer’s shareholders must choose whether to accept Melrose Industries’ $11 bln hostile cash-and-share bid. The buyer has a record for turnarounds, while GKN has missed targets. But Melrose’s plans are vague and riskier. GKN deserves the benefit of the doubt.