Unizo mess could make Japan M&A less hospitable 1 Mar 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 Feb 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 Feb 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 Feb 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 Feb 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 Feb 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 Feb 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 Feb 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 Feb 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 Feb 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 Feb 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 Feb 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 Feb 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 Feb 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.
Capital Calls: Walmart, Buffett/Chevron 18 Feb 2021 Concise views on global finance in the Covid-19 era: Walmart gets an unfair ding from investors over its latest earnings report; and the Sage of Omaha takes another bet on the profit still to be made from fossil fuels.
Credit Suisse traders give CEO strategic quandary 18 Feb 2021 The Swiss bank trailed rivals in profiting from volatile markets in 2020. Boss Thomas Gottstein may hope for a better showing post Covid-19, but Credit Suisse’s trading strengths offer limited benefits to its main wealth division. Further shrinkage looks painful but sensible.
BlackRock can push harder on climate change 17 Feb 2021 The $9 trillion asset manager will require heavy polluters to disclose their full carbon dioxide footprints and set short-term targets to cut emissions. That’s an improvement. But until BlackRock leans on index providers to up their game too, it’s not deploying all its heft.
Capital Calls: Tribune, Shopify 17 Feb 2021 Concise views on global finance in the Covid-19 era: Chicago Tribune sells to a hedge fund known for stripping out newsroom costs; Shopify’s strong year doesn’t shield it from competition.
Darktrace is ultimate test of IPO risk appetite 17 Feb 2021 The cyber group’s top investor, Autonomy founder Mike Lynch, is facing U.S. extradition on fraud charges. Its top ranks are packed with his former colleagues. UBS has dropped out of the $5 bln listing. Pushing ahead despite such red flags suggests investors may pinch their noses.
Nestlé, private equity find riches in water flush 17 Feb 2021 The $325 bln group is selling U.S. brands like Poland Spring to One Rock Capital and Metropoulos for $4.3 bln. The buyers get the assets on the cheap, at just 1 times 2019 sales. But the disposal helps Nestlé CEO Mark Schneider’s green goals and protects his premium valuation.