Toshiba adds accounting fog to strategic blur 11 May 2015 Accounting irregularities at the Japanese group are more serious than it first thought, yet disclosure remains vague. The shares have tumbled. Clarity is valuable for investors trying to decode a conglomerate that makes everything from flash memory chips to steam turbines.
Alibaba generation shift treats investors as kids 8 May 2015 The e-commerce group is swapping its chief executive for a younger insider. The plan was drawn up before the company’s IPO. Yet Alibaba has offered no explanation. Founder Jack Ma wants to promote young leaders, but investors deserve adult answers on who makes decisions and why.
Fitbit IPO flaunts refreshing financial health 8 May 2015 The maker of wearable fitness trackers marks a rare Silicon Valley stock sale with strong profit alongside fast sales growth. Fitbit’s founders also exhibit an uncommon focus. A dual-class share structure runs with the crowd, however, and Apple is just now sprinting in this race.
Alibaba owners: be careful what you wish for 7 May 2015 The $220 bln Chinese e-commerce group turned in better-than-expected numbers for the quarter to March, sending shares up 10 pct. The trouble is, that’s enabling forays into unrelated businesses which are eating into margins. Jack Ma’s creation is not for fretful investors.
U.S. interloper likely to win IT server tussle 7 May 2015 Things are hot in the air-conditioned data-centre business. Equinix is eyeing a $3.5 bln bid for Telecity that would kill the UK outfit’s all-stock purchase of Interxion. It’s hard to see Interxion biting back. Telecity owners are being offered 28 times 2015 earnings.
Would Microsoft really want to own Salesforce? 5 May 2015 Buying the cloud-based customer-service software could make businesses less likely to ditch Office. It might, however, cost Microsoft some $60 bln, more than all past deals combined. A bold bet for boss Satya Nadella would create earnings dilution that annoys his shareholders.
Guest View: Fixing a U.S. immigration bottleneck 5 May 2015 Outdated immigration policies are again preventing the supply of coveted visas from matching the demand from American companies, says former U.S. Treasurer Rosario Marin. Reforming the H-1B visa program would dramatically lift economic growth and deserves bipartisan support.
Holdout investor gaffes threaten M&A golden goose 5 May 2015 Appraisal suits help shareholders win higher payouts and deter dodgy deals. But T. Rowe Price sued over Dell’s buyout after technically voting in favor - and several hedge funds couldn’t beat the merger price after years of litigation. Such flubs may lead to limits on the tactic.
Cisco safely and slowly routes leadership change 4 May 2015 After two decades as CEO, John Chambers will pass the baton in July to another company veteran, Chuck Robbins. Unlike Microsoft’s Steve Ballmer, Chambers withstood an investor uprising and learned from it. The rare feat for a long-tenured boss should make the transition smoother.
LinkedIn shareholders not endorsing lower growth 30 Apr 2015 The social network for jobseekers lost over $7 bln in value after it said 2015 revenue and earnings would be lower than expected. Investors assumed its niche assured fast and steady expansion, allowing them to rationalize a nose-bleed valuation. Reality is biting.
Salesforce’s slow growth may prompt hunt for buyer 29 Apr 2015 The $47 bln software outfit is said to be on the market. Oracle and Microsoft want to beef up cloud capacity, making them possible suitors. Founder Marc Benioff has been offloading shares, and persistent losses and disappointing revenue could tempt him to hawk the whole thing.
Twitter may reap unexpected gain from Tweeted leak 28 Apr 2015 The microblogging service had trading in its stock halted after data miner Selerity found and released its earnings early – on Twitter. The company forecast awful sales, and looked chaotic as its shares plunged. The upside may be that users decide Twitter offers investing edge.
No harm, no foul deserves courtroom kudos 28 Apr 2015 The U.S. Supreme Court will consider whether search website Spokeo can be sued for making someone look too good. Posting the false data online may have breached a federal statute, but it’s hard to argue anyone was hurt. That’s reason enough to toss the case and others like it.
Disrupting payments: A guide for the perplexed 28 Apr 2015 Smartphones are changing how people spend money. Whether from Apple, Google, Facebook or startups, banks face competition in a $700 bln industry they once dominated. There’s plenty of room for all, though: most newcomers cannot operate without the help of the old guard – for now.
Huge Apple payouts play catch-up with China growth 28 Apr 2015 The $760 bln iPhone behemoth is adding $50 bln more to its buyback plans. Quarterly numbers, though, show the Middle Kingdom overtaking Europe as Apple’s second-biggest market after 71 pct growth. CEO Tim Cook is in danger of taking more fire for returning cash too slowly.
U.S. watchdog bites hacking victims too randomly 27 Apr 2015 The FTC has fined the likes of hotelier Wyndham over cyberattacks on the grounds that breached defenses were “unfair” to consumers. That encourages tighter security but doesn’t define what’s sufficient. Rules based on useful standards would be better than arbitrary penalties.
Capgemini reboots with big bet on North America 27 Apr 2015 The once-cautious French group is bidding $4 bln for private equity-backed IGATE. The friendly deal is at a pricey 22 times 2015 earnings. Still, the boldness could pay off. The IT services giant gets a faster-growing, higher-margin business, heft stateside, and tax benefits too.
Tokyo Electron flop shows limits of M&A diplomacy 27 Apr 2015 Applied Materials’ $12.8 bln all-share takeover of the Japanese firm broke taboos in a country that is wary of foreign buyers. But after 19 months, U.S. regulators scuppered the tie-up. Investors will hope it doesn’t discourage other Japanese groups from considering bold deals.
Time Warner Cable’s greed comes home to roost 24 Apr 2015 When boss Rob Marcus lunged for Comcast’s $45 bln bid, he gave in to the buyer’s demand that it pay no fee if the deal got torpedoed. Now Marcus is empty-handed in a rapidly changing industry. Rival suitor Charter may return, but Time Warner Cable’s negotiating power is weaker.
Google’s Schmidt again plays adult in DE Shaw buy 24 Apr 2015 The tech giant’s executive chairman is taking 20 pct of the hedge fund firm off bankrupt Lehman Brothers’ hands. The billionaire was brought into Google to supervise its young founders. Not for him the frivolity of, say, a sports team investment like Steve Ballmer’s.