Law

Capital Calls: Green investors, ASOS, Renren

11 October 2021

Concise views on global finance: Al Gore’s asset manager finds listed equities can influence a larger chunk of global emissions; the online retailer parts company with its CEO; the startup investor’s $300 mln settlement with aggrieved investors is likely to be an exception.

Capital Calls: NatWest’s guilty-plea logic

7 October 2021

Concise views on global finance: The UK lender could receive a lower money-laundering fine for accepting culpability.

World Bank has a shareholder-engagement problem

17 September 2021

Leaders, including now-IMF head Kristalina Georgieva, pressured staff to boost China’s ease of doing business ranking, a probe said. This isn’t realpolitik mitigating inherent U.S. bias. Such tactics detract from the bank’s work, damage credibility and impair its future role.

Today’s Theranos would have gone public via a SPAC

8 September 2021

Elizabeth Holmes’ blood-testing outfit touted novel technology and big future sales. Holmes, on trial, blurred lines between marketing and fraud. Trevor Milton, founder of electric-truck firm Nikola, now faces similar charges. A key difference: Nikola is already publicly traded.

Capital Calls: SPACs’ defense, Zoom

31 August 2021

Concise views on global finance: Nearly 60 corporate law firms put their names to a rejection of recent suits against blank-check firms; the video-conferencing company reported slowing growth in the second quarter.

DWS greenwash probe could be ESG tipping point

26 August 2021

The German asset manager’s shares slumped 12% amid a U.S. investigation into alleged overstatement of its green credentials. A lack of consistent ESG metrics and terminology is a long-running, sector-wide problem. The desire to avoid similar attention could fast-track a cleanup.

Dating outscores gaming in app store showdown

25 August 2021

A U.S. judge is considering an antitrust suit against Apple’s online shop as lawmakers pile pressure on the iPhone maker and rival Google. Despite games dominating their outlets’ $111 bln in annual sales, a cut in the tech giants’ 30% fee may boost daters like Match more.

Bill Ackman’s SPAC is a treat that is going moldy

19 August 2021

A shareholder is suing the hedge fund manager, claiming his blank-check company acted like an investment company and should be governed as such. U.S. regulatory ambiguity creates scope for such disputes. Clearer guidelines would help, but for now, some managers will be deterred.

Chancellor: Bringing down the Red Curtain

4 August 2021

Recent shocks from Beijing are reminders that while investors in the West are protected by the rule of law, China’s markets are characterised by the “rule by law”. Investors shouldn’t forget Beijing has the final say on how capital is allocated and who gets paid and who doesn’t.

Allianz’s DOJ tangle will mostly hit M&A ambitions

2 August 2021

The $95 bln insurer’s shares fell 10% after it warned a U.S. Department of Justice probe could materially impact earnings. Allianz boss Oliver Baete has a sturdy enough balance sheet to withstand a substantial hit. It may mean fewer deals to augment his growth strategy, though.

Capital Calls: Duolingo IPO valuation

26 July 2021

Concise views on global finance: The language learning app has increased its price by almost 20%.

EU dirty money watchdog sounds less toothless

21 July 2021

Brussels wants to set up a single agency to prevent future Danske Bank-style scandals. The new body will take time to set up and could be watered down by politicians. But direct oversight of the EU’s riskiest financial entities and scope to levy big fines are a step forward.

UK credibility on China inward M&A gets wafer-thin

8 July 2021

Britain’s government initially declined to review Chinese-owned Nexperia’s $87 mln deal to buy the country’s largest semiconductor plant. It has now U-turned, which makes sense given the world chip shortage. But the mixed messages hardly inspire confidence in the process.

Capital Calls: U.S. jobs, Didi probe, Pharma LBO

2 July 2021

Concise views on global finance: The U.S. added 850,000 jobs in June but the recovery isn't happening everywhere. Meanwhile, Didi is hit with an investigation by a Chinese regulator days after its U.S. listing, and a pharma buyout by EQT and Goldman is a game of hot potato.

South Africa’s arm of the law gets slightly longer

29 June 2021

Jailing ex-President Jacob Zuma for contempt of court is far from a conviction. Still, it’s another sign of the country’s institutions losing patience with graft and waste. With his predecessor neutralised, Cyril Ramaphosa can speed up reforms, including at power giant Eskom.

Capital Calls: Infrastructure, Doximity, Deliveroo

24 June 2021

Concise views on global finance: President Biden’s $1 trln bipartisan plan for U.S. infrastructure is a feat of political engineering. Meanwhile, medical-themed social network Doximity finds riches in niches, and UK delivery outfit Deliveroo serves up a favorable court ruling.

EU bond ban is smarter way to police errant banks

16 June 2021

The bloc froze 10 lenders out of its first recovery bond sale because of past market-rigging, the FT reported. The direct hit for JPMorgan and others is small. But they can only rejoin the fold by proving they’ve changed. That’s a keener incentive to stay clean than fines.

Pharma CVRs are an unhealthy M&A habit

4 June 2021

A lawsuit claims Bristol Myers slow-walked a cancer drug approval to avoid a $6.4 bln top-up payment on its buyout of Celgene. Aggrieved investors may get something but should have known better. Contingent value rights are illiquid, dispute-prone and best given a wide berth.

Oil giants’ setbacks turn BP from tortoise to hare

27 May 2021

Investors were initially sceptical about the UK major cutting fossil fuels, preferring the fuzzier plans of its U.S. and European rivals. Shell’s legal defeat and an investor revolt at Exxon Mobil change the game. Clarity on cutting emissions will increasingly support valuations.

Capital Calls: Airbus signals liftoff, Bill Gates

27 May 2021

Concise views on global finance: The global aircraft industrial complex got a boost after the European plane maker said it hopes to churn out more of its A320 short-haul workhorses per month than expected; Microsoft founder’s huge private investment vehicle under scrutiny.