Management & Leadership

Sands’ Sin City sale might fund pivot to Australia

4 March 2021READY SOON

The $50 bln casino company has filled its war chest after negotiating a rich price for Las Vegas assets. Crown Resorts would be an affordable addition to their Asia-Pacific empire, and the group founded by the late Sheldon Adelson would be welcomed by watchdogs Down Under.

Stellantis finds limits of cost-cutting

3 March 2021

The 43 bln euro Franco-Italian carmaker’s shares rose after its maiden results following January’s merger. Savings bolster CEO Carlos Tavares’ ambitious profitability goal. To raise the group’s lowly valuation, he needs to expand in Asia and have a bolder electric vehicle plan.

Wall Street bosses’ pay sets course for conflict

3 March 2021

Morgan Stanley gave James Gorman a raise; JPMorgan kept Jamie Dimon’s pay at $31.5 mln. Goldman and Citi bosses took cuts because their banks misbehaved. Yet U.S. lenders benefited hugely from government Covid measures in 2020. That could make proxy season contentious.

Danone’s governance fudge sours activist defence

2 March 2021

Under pressure from shareholders, the $47 bln French food and dairy group said that Emmanuel Faber will give up his CEO role, but stay on as chairman. Faber’s continued influence may deter potential successors. The board’s decision to back his strategy also makes change harder.

UK engineer bets that buyers will pay dual premium

2 March 2021

Renishaw’s two octogenarian creators want to use their 53% stake to sell to an entity that keeps its “heritage and culture”. That might deter private equity, while the engineer’s 5 bln pound-plus valuation is beyond domestic trade buyers. That could mean a pretty short shortlist.

Walmart’s fintech gain hints at Goldman’s loss

1 March 2021

Omer Ismail is leaving the Wall Street bank for a job at the $368 bln retailer, just two months after becoming head of Goldman’s consumer bank. Walmart could become a force in finance. But it’s also a sign that Goldman’s retail bank is losing some shine.

Unizo mess could make Japan M&A less hospitable

1 March 2021

Less than a year since the hotelier’s $2 bln takeover battle, it is under pressure from the massive debt used to repay buyout backer Lone Star. An aggressive deal structure exacerbated pandemic risks. The danger is that Japan Inc’s more open-minded approach to deals closes again.

Capital Calls: Soho House, Aston Martin

25 February 2021

Concise views on global finance in the Covid-19 era: The private members’ club shrugs off lockdowns to plan a New York IPO; The loss-making luxury carmaker’s shareholders need to buckle up.

McKinsey’s public problem may have public solution

24 February 2021

The ouster of boss Kevin Sneader following a $573 mln opioid bill suggests a firm that peddles advice is struggling with its own direction. McKinsey could consider an IPO. Outside investors are no cure-all, but they can help self-absorbed companies see themselves more clearly.

Capital Calls: Pharma, Volvo delay, Hotels

24 February 2021

Concise views on global finance in the Covid-19 era: Big Pharma’s new popularity could give it leverage in Congress; China’s Geely can profit from Volvo IPO delay; and boutique hotels feel the heat.

Lloyds’ wealth push could use an M&A shove

24 February 2021

The 28 bln pound bank has emerged from the crisis with a slow core business and mediocre valuation. A plan to manage more clients’ money could help, but the lender is starting from a low base. Luckily, incoming CEO Charlie Nunn has about 5 bln pounds of spare cash to play with.

Japan Inc faces Olympic sexism trial

24 February 2021

A woman replaced the games’ boss after chauvinist comments. His attitude is common; women make up 13% of directors at large listed companies. Tokyo’s bourse will push for better representation on its new “Prime Market”, but a thin pipeline of female managers risks tokenism.

Boeing stares down a future that’s a bit like GE

22 February 2021

The $127 bln aircraft maker run by General Electric alum David Calhoun now has problems with some engines it uses. It comes just as 737 MAX issues are in the rear view. Boeing's future is burdened by inertia and a growing debt load. As GE shows, that can take decades to unwind.

India Insight: Soy sauce flavours global finance

22 February 2021

Century-old Kikkoman recently served its signature condiment to Mumbaikars as part of a rollout campaign. This latest overseas expansion evokes its post-war U.S. strategy. Despite rampant protectionism, the Japanese company offers a glimpse of the next wave of foreign investment.

Intel fab spinoff might double its value

19 February 2021

The $250 bln chipmaker trades at a big discount to both peers that design processors and rivals that produce them. Splitting would help new CEO Pat Gelsinger close the gap. But Intel’s size and worldwide capacity constraints mean a complete separation will take years.

Danone CEO upsets activist’s Nestlé-fication hopes

19 February 2021

Artisan wants the $47 bln yoghurt maker to dump food and water laggards and prioritise higher-margin lines. A focus on medical nutrition echoes the health science push of the Swiss giant, which has outperformed under pressure from Dan Loeb. But boss Emmanuel Faber is in the way.

New Honda CEO seeks fix for mediocrity

19 February 2021

R&D boss Toshihiro Mibe is taking the wheel at the $52 bln Japanese carmaker. Current chief Takahiro Hachigo slashed costs and forged an important alliance with GM. But shareholders didn’t benefit much. Without a spark of fresh inspiration from Mibe, margins will underwhelm.

Crown Resorts raises Aussie governance stakes

19 February 2021

The $5 bln casino operator just lost one gaming licence and another is now threatened by a new regulatory probe. A board shakeup should help its case, but director candidates are in short supply. The usual suspects fill too many seats: Crown Chair Helen Coonan is a prime example.

Clayton’s new Apollo role is a non-spicy jalapeño

18 February 2021

The former SEC head is becoming lead independent director at the buyout firm, keeping an eye on sidelined founder Leon Black. In some companies, the role is used to avoid naming a separate board chair. In this case, it looks like a way of deferring the clean break Apollo needs.

JPMorgan London hire is at smart end of new trend

18 February 2021

Linklaters Senior Partner Charlie Jacobs is joining the U.S. group as co-head of UK investment banking. He’s the latest in a string of senior outsiders to transfer to the industry, including ex-UK Chancellor George Osborne. Lawyers are better prepared to make a successful switch.