Cisco pays fantastical price to capture unicorn 25 Jan 2017 The networking giant's core switch and router businesses face tough times. Buying software firm AppDynamics for $3.7 bln offers some respite from hardware woes. At an estimated 12 times revenue, Cisco is paying over the odds to add a bit of excitement to its story.
Blackstone prices its housing fixer-upper to move 23 Jan 2017 The biggest portfolio of U.S. single-family rental homes should tempt investors. The buyout giant is pitching the $1.5 bln IPO of Invitation Homes in line with rivals despite superior fundamentals. The cautious approach is sensible given the headwinds facing the housing business.
Snap makes any good-governance pretense disappear 20 Jan 2017 The messaging app whose photos vanish wants to sell only non-voting stock in its upcoming IPO. Facebook and Alphabet waited years to move from dual-class feudalism to such derisive treatment of shareholders. What should be designed to fade away instead is these share structures.
Viewsroom: Davos goes topsy-turvy 19 Jan 2017 Team Trump is AWOL at the World Economic Forum's annual alpine shindig while Theresa May's Brexit plan has people on edge. That left it to China's Xi Jinping to defend globalization. Elsewhere, U.S. bank earnings disappoint. And Snapchat considers making investor rights disappear.
HK listing crackdown is warning to Chinese banks 18 Jan 2017 The Hong Kong securities watchdog is cracking down on market misconduct. On Monday the SFC sued UBS, StanChart and others over the 2009 IPO of a troubled Chinese company. Fines and licence freezes are likely. Chinese banks, which now dominate local listings, should pay attention.
China has back to the wall on IPO reform 17 Jan 2017 A Monday flash crash in Shenzhen was fuelled by fears of a flood of new initial public offerings. Beijing's micromanagement of the pace and pricing of IPOs has encouraged a zero-sum mentality amongst investors. Reform could cause a deeper correction, but a healthier one.
China’s search dinosaur struggles to find new life 4 Jan 2017 The search engine arm of Sohu, known for its online portal in the early 2000s, wants to list. That could free up resources for its parent to push into areas like video streaming, competing with giants like Baidu and Tencent. But Sohu's costly reinvention looks like a long shot.
Saudi’s IPO gusher will lay dormant 28 Dec 2016 A $2 trillion flotation of oil producer Aramco, once planned for 2018, is likely to slip further down Riyadh's agenda. Politics makes the IPO complicated, and recovering oil prices make it unnecessary. While Saudi's bankers may wish it otherwise, postponing is the logical choice.
Uber may encounter rough IPO ride 20 Dec 2016 The ride-hailing service led by Travis Kalanick has spent the past several years racking up impressive growth. Uber also has raised at least $15 bln easily, in the process inflating its value to some $68 bln on paper. That could make the next round, publicly in 2017, tougher.
Sinopec gears up for another round of expansion 16 Dec 2016 China's $100 bln energy titan is selling assets to bolster its balance sheet and replace reserves as oilfields generating over half its economic profit age. The state group blew $45 bln in its last spending spree before oil prices cratered. Perhaps it has learned its lesson.
Hong Kong gets temporary face-lift from selfie IPO 15 Dec 2016 The city has burnished its financial centre credentials with photo-app Meitu's $629 mln listing, the biggest tech deal in a decade. Other Chinese entrepreneurs are watching intently. But Hong Kong's lacklustre aftermarket may still send mainland unicorns galloping to New York.
IPO bankers unleash steady-as-she-goes sales pitch 12 Dec 2016 Athene's $1.1 bln debut came in the middle of the range and with a 10 pct pop. That may seem mediocre after the recent U.S. market rally. But Wall Street's equity sales teams have had a bad year. Proving they can crank out a textbook deal may be the best advert for a better 2017.
JBS delivers a cleaner cut on second carve-up 6 Dec 2016 The $8 bln Brazilian meatpacker is trying to list its overseas arm again after a government shareholder nixed an earlier plan that could have put the Sao Paulo-based rump under control of a foreign parent. The new deal should lower capital costs, but with fewer complications.
Fosun’s $3 bln U.S. sale is an orderly retreat 6 Dec 2016 Selling U.S. insurer Ironshore is a welcome sign of caution from one of China's most aggressive dealmakers. The deal will shore up Fosun's balance sheet and sharpen its focus on emerging markets. The U.S. will only become tougher for Chinese firms to navigate.
Chinese selfie IPO only works in certain light 30 Nov 2016 Meitu wants a valuation up to $5.2 bln in its Hong Kong listing. Its user base is growing, thanks to features like virtual makeup and skin whitening. But most of its sales comes from selling smartphones. Mainland investors might buy the hype but the look doesn't travel so well.
Jose Cuervo exhibits early case of Trumpophobia 25 Nov 2016 The Mexican tequila maker delayed its IPO after the U.S. election roiled markets. A weaker peso should help Cuervo, but a trade war would be bad for business. Given how hard it is to pin down the president-elect's policies, many companies may have to take a wait-and-see approach.
Snap IPO developing into a photo op 22 Nov 2016 The messaging app is laying groundwork to go public next year. At just five years old, its growth roughly matches Facebook's and Twitter's when they were the same age. Their divergent paths may worry investors, but in the big picture Snap's $25 bln valuation could be a bargain.
JPMorgan payout would put princelings in context 17 Nov 2016 The bank is close to reaching a $250 mln-plus settlement with U.S. authorities over hiring the relatives of Chinese officials. That's relatively small compared to other recent banking fines, suggesting the case wasn't clear-cut. It offers hope for others still under scrutiny.
Siemens gives itself chance to prove it can do M&A 10 Nov 2016 The engineer will spin off its healthcare unit, and probably retain a majority stake. The margin-rich business could be worth $40 bln, fetching a 38 pct premium. The increased M&A firepower will give Siemens a chance to correct a record on deals which is rather less impressive.
Hong Kong can stand up to Jack Ma 4 Nov 2016 Jack Ma has threatened to list the $60 bln Ant Financial elsewhere if Hong Kong won't innovate. That sounds like code for allowing something like the special sway he enjoys over Alibaba. Conceding to Ma won't fix the exchange's problems. Nor does Ant have someplace better to go.