Deliveroo’s IPO cash hunger leaves sour aftertaste 30 Mar 2021 The UK food delivery firm’s offering values it at 7.6 bln pounds, the bottom of the target price range. Despite its rapid growth and big ambitions, investors face post-pandemic uncertainty. Boss Will Shu’s order for 1 bln pounds of fresh cash suggests profitability is a way off.
Capital Calls: BlackRock’s Archegos angle, SPACs 30 Mar 2021 Concise views on global finance in the Covid-19 era: The fallout from the collapse of Bill Hwang’s family office gives regulators reasons to focus on funds, not fund managers; and bosses of blank-check companies don’t take investor questions.
AstraZeneca could use a shot of under-promising 29 Mar 2021 The pharma group got caught in a spat between states over vaccine supplies, partly due to PR gaffes and overhasty pledges. A refresh of the board and chairman would be one way to overcome an episode that has hurt credibility and hampered rollout of a good product millions want.
Credit Suisse has PAF to redemption over Greensill 26 Mar 2021 Funds linked to the collapsed supply-chain firm may have billions of dollars in bad debt. The bank and its employees are culpable and should share losses with clients. Reviving a post-2008 asset-backed bonus vehicle would be one way for senior staff to shoulder some of the risk.
Capital Calls: Sports versus the Trump slump 26 Mar 2021 Concise views on global finance in the Covid-19 era: Political news startup Axios may merge with sports site The Athletic.
Pinduoduo governance cleanup misses some spots 26 Mar 2021 The $156 bln e-commerce company’s departing founder Colin Huang has given up his supervoting stock. But it’s not clear he’s relinquishing other holds on power. Insiders can exert outsize influence on the board. And Pinduoduo still lacks a finance chief. There’s more work to do.
Deliveroo’s main sustainability doubt is financial 25 Mar 2021 Some fund managers are shunning the food delivery group’s IPO over its treatment of workers. Unlike most ESG laggards, the $11 bln group is loss-making. Concern about labour rights and founder Will Shu’s super-voting stock are secondary to whether it can turn a consistent profit.
Russia has defences against U.S. sabre-rattling 25 Mar 2021 Given the U.S. president reckons his Russian counterpart is a “killer”, new sanctions on Russian government debt are possible. Jumpy prices forced Moscow to cancel a bond auction. But with a trade surplus and low external debt, Kremlin finances will hold up.
Capital Calls: Twitter time-wasting, News Corp 25 Mar 2021 Concise views on global finance in the Covid-19 era: Congressional hearings on Big Tech get ever less productive; meanwhile, the parent of the Wall Street Journal snaps up Investor’s Business Daily.
Capital Calls: Defence IPO, ViacomCBS and GameStop 24 Mar 2021 Concise views on global finance in the Covid-19 era: Italy’s Leonardo postpones the initial public offering of its U.S. unit; ViacomCBS and GameStop's rising stocks give them both a chance to raise fresh cash.
The Exchange: The old GE is gone and that’s ok 23 Mar 2021 Jeff Immelt ran GE for 16 years, during which time its market value roughly halved. His new book “Hot Seat” attempts to put that rocky period into context. The former GE boss chatted with John Foley about his part in the decline of an American industrial icon.
New OECD head may be West’s next anti-China weapon 23 Mar 2021 Australia’s Mathias Cormann will be the organisation’s next boss. His country is no stranger to trade disputes with Beijing. Look for the policy wonks he will lead to furnish evidence of competition-distorting practices that could help Uncle Sam and its partners push for change.
Exxon’s inexperienced board leaves it exposed 22 Mar 2021 The $240 billion oil giant’s shares have fallen by more than a third in five years. Even with three new members, energy experience is limited. Showing shareholders that it will be solid stewards of capital is imperative. Otherwise, rival Chevron has a takeover opening.
Capital Calls: Leon Black, Happiness index 22 Mar 2021 Concise views on global finance in the Covid-19 era: Apollo’s founder still has his imprint on the Museum of Modern Art and Dartmouth College; people are proving surprisingly resilient in the pandemic, a recent poll suggests.
Suez brings water pistol to French sewage shootout 22 Mar 2021 CEO Bertrand Camus proposed carving up the group or swallowing an “irreversible” poison pill if Veolia doesn’t raise its 11.3 bln euro bid. Rival boss Antoine Frérot can afford to pay more. But in the absence of other bidders he can first try to kick out Suez’s board.
Danone’s purpose will survive chairman’s departure 22 Mar 2021 Emmanuel Faber’s sustainability credentials did not prevent the yoghurt maker from ousting him. But fears the group will disavow its ESG ideals are misplaced. The standards are embedded in the French company’s operations and legal status. Besides, investors still support them.
Capital Calls: Bank M&A, Wine trades 19 Mar 2021 Concise views on global finance in the Covid-19 era: Sabadell’s decision to keep its UK unit nixes hopes of a deal with BBVA; U.S. vintner Duckhorn’s IPO ups pressure on Treasury Wine.
Naspers can tackle one-third of Tencent problem 19 Mar 2021 Despite listing a Dutch subsidiary in 2019, the South African company still trades at a big discount to its $239 bln stake in the Chinese internet giant. Its inability and unwillingness to sell are enduring factors. An outsize weight on the Johannesburg bourse is easier to fix.
UK governance overhaul faces messy application 18 Mar 2021 The government wants company directors to face bans and pay clawbacks if they cause losses or failure. The proposals’ fuzzy language may warp incentives, and lead to legal disputes. PM Boris Johnson’s desire to attract listings to Britain after Brexit may also blunt their teeth.
Founder move confirms Pinduoduo’s coming of age 17 Mar 2021 Colin Huang is stepping back from the $197 bln e-commerce upstart and relinquishing special voting rights three years after taking it public. It’s a bold move by a Chinese tech tycoon as Pinduoduo nips at rivals’ heels. But it leaves a shortage of top talent as rising costs bite.