Ray-Ban heirs inherit wasteful Mediobanca feud 9 Aug 2022 Eyewear tycoon Leonardo Del Vecchio, who died in June, bought nearly 20% of the Italian bank as part of a fight with CEO Alberto Nagel. Making a return on the $1.5 bln stake will test his successors. Backing Nagel in his hunt for a target may be the more prudent choice.
Gautam Adani takes new tycoon risk to next level 9 Aug 2022 The world’s fourth-richest man is using the $220 bln empire he founded to amass critical energy and infrastructure assets. Financial profligacy broke many of his Indian rivals. Politics, complexity and opacity are bigger concerns for a billionaire starting to get too big to fail.
Carlyle’s next gen needs to be more than its CEO 8 Aug 2022 Boss Kewsong Lee stepped down at the $14 bln asset manager and co-founder Bill Conway will be in charge as they look for a replacement. That’s a step back in Carlyle’s transition. Success hinges on finding a leader who, like the business, is a commodity not a star.
Capital Calls: Nelson Peltz under pressure 8 Aug 2022 Concise views on global finance: A group of shareholders has replaced the chairman of a London fund managed by the legendary activist investor.
India’s war on foreign tech risks misfiring 4 Aug 2022 New Delhi is raiding offices of Chinese smartphone makers, banning Singaporean and Korean games, and nudging U.S. firms to integrate their e-commerce platforms. The crackdowns and cajoling underscore official efforts to reshape India’s growing tech sector. A lot could go wrong.
Italy loafer buyout is a bet on a higher price tag 3 Aug 2022 Two decades after listing shoemaker Tod’s, founder Diego Della Valle is taking it private at the same 40 euro share price. His hope, with partner LVMH, may be that the group is worth more split up than his 1.4 bln euro bid implies. Weary investors may take the cheap offer anyway.
Capital Calls: Uber’s cash starts to flow 2 Aug 2022 Concise views on global finance: The $56 billion car-hailing service is growing rapidly and has started generating positive cash flow. It’s still overvalued, though.
HSBC’s cross-border ties are paying dividends 1 Aug 2022 CEO Noel Quinn promised a 12% return on tangible equity and higher payouts to shareholders as the global bank rebuffed Ping An’s breakup call. Higher U.S. interest rates help, but if the Chinese insurer has spurred the $125 bln bank to raise its game, all investors will benefit.
Atlassian CEOs give Elon Musk mission-creep lesson 1 Aug 2022 The $53 bln software company’s two bosses are using their own cash for dealmaking side projects. They’re avoiding getting too distracted from their day job by having experts mostly run the show. It’s a useful example of how the Tesla chief can avoid a repeat of his Twitter mess.
Cheery bank CEOs have the edge on gloomy investors 29 Jul 2022 Santander, BNP, ING, Lloyds and SocGen have lost 27% of their value since mid-February, on fears higher rates will cause defaults to rise. Chief executives, meanwhile, expect returns to stay high. Share prices implying steeper losses than 2020 suggest the selloff is overdone.
Jack Ma’s exit would smooth Ant’s IPO march 29 Jul 2022 The Alibaba founder may cede control of the fintech giant. This could mark a big advance in Ant's efforts to clean up governance and placate the officials who derailed its $37 bln float in 2020. A simpler ownership structure puts the company one step closer to a revived listing.
Time for Volkswagen to park its Porsche IPO 28 Jul 2022 The 82 bln euro German group’s plan to list the luxury marque has been tarnished by its decision to name the same CEO for both companies. The IPO could be a distraction at a time when carmakers face a recession. The best option right now is a delay, plus a governance rethink.
Credit Suisse revamp risks being bad copy of UBS 27 Jul 2022 Like its rival in 2012, the $14 bln group is shrinking its trading businesses and cutting costs to focus on wealth management. Yet heavy losses and dicey markets will constrain new CEO Ulrich Koerner, who has never run an investment bank. A respectable valuation may take longer.
UBS’s growth dip cements discount to U.S. rivals 26 Jul 2022 Shares in Ralph Hamers’ $50 bln bank fell 6% after wealthy clients all but stopped investing new money in the second quarter. It’s a setback for his strategy, which rests on boosting revenue. Reversing the trend is key to earning a valuation multiple closer to Morgan Stanley’s.
Capital Calls: Philips disappoints again 25 Jul 2022 Concise views on global finance: Shares in the 17 bln euro Dutch medical technology group dive after handing investors another unpleasant outlook surprise.
VW’s CEO ouster heralds less noise, more muddle 25 Jul 2022 The $86 bln carmaker replaced Herbert Diess with Oliver Blume. It loses a bold champion of electric vehicles, but also one prone to gaffes and weakened by union battles. The decision to keep Blume in charge of both VW and Porsche, meanwhile, muddies the latter’s looming IPO.
Review: Lex Greensill epitomised post-2008 finance 22 Jul 2022 The Australian’s firm was one of many loosely regulated shadow banks that sprang up after the last crisis. Duncan Mavin’s “The Pyramid of Lies” explains how Greensill duped big lenders, investors and politicians. As interest rates rise, he’s unlikely to be the last failure.
Capital Calls: LVMH succession, Swedish Match 22 Jul 2022 Concise views on global finance: Bernard Arnault insures the luxury group against future family feuds; the oral tobacco company’s results will embolden deal resisters.
Gap’s business is retro in all the wrong ways 18 Jul 2022 The retailer tossed aside CEO Sonia Syngal after just two years but its problems go back further. In 20 years Gap’s revenue hasn’t grown, even as Americans roughly doubled their apparel spending. As investor patience frays, the best thing the new CEO inherits is low expectations.
Capital Calls: Citi’s luck, BlackRock’s blues 15 Jul 2022 Concise views on global finance: Citigroup’s second-quarter earnings were buoyed by its focus on trade flows and helping companies. Meanwhile, the world’s largest asset manager thinks investments will shift further into bonds but that business is less lucrative.