EQT spins Micro Focus misfortune into gold 26 Apr 2021 The Swedish buyout firm may float software group SUSE for up to $10 bln, having paid its struggling UK owner $2.5 bln in 2018. It’s a classic corporate carveout on steroids. One lesson is that CEOs should put more effort into retaining possible upside when selling their castoffs.
Capital Calls: The $2 trln toybox 23 Apr 2021 Concise views on global finance: Mattel’s 47% sales growth tees up a spree of discretionary spending, as American consumers raid pandemic savings.
Corporate “flywheel effect” is mostly bad spin 23 Apr 2021 Management guru Jim Collins coined the term 20 years ago to describe how great companies gradually improve. Now groups from fintech Allfunds to online retailer Wish claim it works for them. Given the later troubles faced by Collins’ case studies, new fans might consider a U-turn.
Capital Calls: Chubb and Hartford, Swimming pools 22 Apr 2021 Concise views on global finance: The company led by Evan Greenberg twice raised its bid for its Connecticut rival, but so far to no avail; a blowout quarter for private-pool maker Pool Corp points to buoyant wealth and spending trends, but only for some.
China medical IPO comes with health warnings 22 Apr 2021 Tencent-backed We Doctor boasts the country's first e-hospital offering online consultations and more. A mooted $12 bln valuation looks punchy next to rivals focused on lucrative drug sales. We Doctor's mounting losses and untested business model may give investors heartburn.
Oatly’s IPO health depends heavily on China 20 Apr 2021 A partnership with Starbucks in the People’s Republic boosted the Swedish oat milk maker’s sales and profile. Major investor China Resources should help with future growth. But the state-backed group’s involvement is also a risk for buyers of its mooted $10 bln U.S. listing.
Next Danone CEO can serve up faux-milk spinoff 20 Apr 2021 The $50 bln Activia maker is searching for a new boss to lead its turnaround. Listing its Alpro unit would be a tasty way to tap into investor demand for dairy substitutes. Even at half the sales multiple that rival Oatly is seeking in an IPO, the unit could be worth $11 bln.
UiPath’s $28 bln IPO may be as hot as Snowflake 19 Apr 2021 The company's revenue from software robots that replace humans doing boring back-office tasks is growing 80% annually. A valuation of over 40 times last year's sales looks feverish in objective terms, but cheap relative to in-demand technology peers like data outfit Snowflake.
Capital Calls: SXSW 19 Apr 2021 Concise views on global finance: Rolling Stone publisher Penske Media is taking a 50% stake in hipster arts festival South By Southwest.
Impossible Foods may outdo Beyond Meat’s recipe 16 Apr 2021 Shoppers already have two big alt-meat brands to choose from, and soon investors may too. Impossible is a latecomer, but may be less exposed to the supplier risks and sales swings that have troubled its rival. If Beyond’s IPO was a whopper, Impossible’s could be supersized.
Capital Calls: Goldman Sachs, U.S. currency report 16 Apr 2021 Concise views on global finance: The Wall Street bank’s communications veteran, Jake Siewert, goes back to the future, sort of; Taiwan is dubbed a forex interventionist but avoids manipulator label.
Applovin slump may be prelude to IPO downer 16 Apr 2021 The mobile gaming firm’s near-20% plunge on its first day of trading makes it an IPO-market outlier. Applovin is growing, and while it has fierce competition, that was well flagged. Still, even if the IPO game is coming to an end, backer KKR should win either way.
Coinbase float is crypto’s paradoxical moment 14 Apr 2021 The digital currency exchange’s direct listing on Wednesday may value it at more than $100 bln. The validation will fuel bitcoin, already at an all-time high, as well as Coinbase itself. The figure also presents a puzzle. If Coinbase is worth this much, competition is coming.
Capital Calls: Christine Lagarde, Bernie Madoff 14 Apr 2021 Concise views on global finance: The European Central Bank president’s quest for inflation will take a while to achieve its goal; investor gullibility will live on after the death of the Ponzi schemer in a U.S. federal prison.
Capital Calls: LVMH surges back to full health 13 Apr 2021 Concise views on global finance: The 300 billion euro luxury conglomerate’s first-quarter sales surpass pre-Covid-19 levels.
Honest is a baby consumer firm on the make 12 Apr 2021 Jessica Alba’s eco-friendly diaper company filed to go public and could be worth some $3 bln due to fast-growing sales and a focus on wellness. It’s also a tempting target for bigger groups gobbling up startups. But any whiff of brand insincerity is just one of many risks.
Vaccine fiasco casts long shadow over Oxford IPO 12 Apr 2021 A university spinoff behind the AstraZeneca jab is listing for a mooted $700 mln. Vaccitech’s technology might combat diseases from cancer to hepatitis. Yet lingering doubts over efficacy and side-effects on Covid-19 patients are a risky legacy in a highly competitive sector.
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.
Capital Calls: Netflix, GameStop 9 Apr 2021 Concise views on global finance in the Covid-19 era: The video-streaming service sprays webs of money to secure movies; GameStop’s “Chewy of Gaming” strategy.
Anglo American tests shareholders’ ESG bona fides 8 Apr 2021 The miner is giving investors one share in its spun-off thermal coal unit for every 10 already held. The commodity’s kryptonite status means many European institutions will want to get rid of them for the same reason as Anglo. But rising coal prices may turn some heads.