Vedanta’s failed buyout is Agarwal’s comeuppance 12 Oct 2020 The indebted tycoon’s effort to take private his $5 bln Mumbai company has backfired. Technical glitches compounded a quirky delisting process that empowers minority investors. After years of Agarwal’s opportunistic toying with the stock market, shareholders have the upper hand.
Corona Capital: NBA, Polish e-commerce, Tesco 12 Oct 2020 Concise views on the pandemic’s corporate and financial fallout: A major basketball bake-off fails to pull in the online crowds; Poland’s biggest e-commerce company flies from the shelves; and UK grocer Tesco wrestles with supply chain problems.
Citi’s past mistakes send new CEO back to future 8 Oct 2020 A U.S. regulator has fined the mega-bank $400 mln for repeatedly failing to bring risk management and other controls up to snuff. It helps explain why gaffe-prone Citi trades at just half its book value. Incoming boss Jane Fraser will start the job fighting decade-old problems.
Daimler drives into faster lane with luxury refit 6 Oct 2020 The German automaker plans to cut costs by 20% at its Mercedes brand by 2025 and double sales of Maybach luxury cars. Hitting the goals could grow operating profit by nearly two-thirds. Even so, boss Ola Kaellenius may at best catch up with, rather than overtake, rival BMW.
Guest view: CEOs learn value of long-term vision 5 Oct 2020 The disruption of the pandemic underscores the importance of planning ahead, write Mark Machin of Canada’s CPP and McKinsey’s Kevin Sneader. Long-term management not only creates more jobs and greater value. It’s also embedded in behaviors that CEOs and board members can learn.
Altice’s vexed minorities may have a trump card 5 Oct 2020 Minority investors are livid at Patrick Drahi’s lowball 4.9 bln euro take-private offer for the European telco. On the face of it, the Franco-Israeli billionaire can use his 78% voting rights to steamroller their views. But a new piece of Dutch law may give them the last laugh.
The Exchange: UBS CEO exit interview 29 Sep 2020 After 10 years leading Switzerland’s biggest bank, Sergio Ermotti is handing off to Ralph Hamers and becoming chairman of Swiss Re. In a wide-ranging conversation with Rob Cox, he shares his views on banking, M&A, his tenure as CEO and the advice he offered his successor.
Corona Capital: Shale merger, Logistics startup 28 Sep 2020 Concise views on the pandemic’s corporate and financial fallout: Two Permian Basin oil drillers agree to merge to share their coronavirus demand-shock woes; and delivery upstart ShipBob gets some SoftBank cash to help it compete with Amazon.
Daimler’s new driver can jump-start electric drive 28 Sep 2020 Ex-CEO Dieter Zetsche is not taking charge of the $55 bln Mercedes maker’s supervisory board. That’s a rare win for critical shareholders. Still, the company’s plans to almost double its share of battery cars are behind rival BMW. Daimler could use an outsider at the wheel.
Review: GE’s decline is the story of corporate BS 25 Sep 2020 This is the main lesson from “Lights Out”, an account of how America’s once-admired industrial conglomerate lost its way. GE bosses from Jeff Immelt on down believed they, and the company they worked for, were infallible. Mistaking a story for a strategy is how companies die.
Corona Capital: Vaccines, Olive Garden, Oil 24 Sep 2020 Concise views on the pandemic’s corporate and financial fallout: Vaccine concerns are bad for the economy; cravings for never-ending pasta bowls return; and oil practitioners tell sad truths.
Joe Biden has edge in assembling economic talent 22 Sep 2020 If the former vice president wins in November, he’ll have a bevy of business execs and ex-bureaucrats to help him. Rival President Donald Trump has cycled through dozens of aides, leaving him a hollow bench. Breakingviews imagines their economic roster in an interactive graphic.
Goldman M&A moves suggest times aren’t a-changing 21 Sep 2020 Despite CEO Solomon’s goal of banking companies with diverse boards, his new crop of M&A heads and chairmen is predictably white and male. Goldman may want to be an agent of change, but making a break with the past is hard – especially when the M&A top spot is Solomon’s to lose.
Founder’s exit shines headlights on Nikola backers 21 Sep 2020 Trevor Milton is stepping down at the "pre-revenue" zero-emissions vehicle maker. Investors have nixed almost half the company's worth since fraud claims surfaced. Proving Nikola is worth its remaining $9 bln value falls on partners like GM and CNH and on new Chair Steve Girsky.
Richard Branson is late arrival at SPAC party 17 Sep 2020 The billionaire Brit is touting his Virgin brand to raise $400 mln via a blank-cheque company. Jumping on the well-trodden bandwagon is hardly disruptive. After recent setbacks, the 70-year-old may struggle to persuade potential investors and targets he has still got his mojo.
Natixis split could create a European BlackRock 17 Sep 2020 The $8 bln French lender has suffered trading losses and blowouts at its asset management arm. New CEO Nicolas Namias needs to fix these and sever the investment bank. If he can, the funds business could be worth $11 bln and create a tasty potential partner for Amundi or UBS.
Beauty IPO is risky test for UK governance retreat 16 Sep 2020 The Hut Group’s shares soared after a $7 bln float. The skincare and clothing retailer’s fast growth meant investors shrugged off shaky voting rights and a watered-down listing. Its success opens the door for others, if founder Matthew Moulding can grow into his rich valuation.
Cox: Bernard Arnault is acting like a spoiled brat 15 Sep 2020 Europe’s richest man had to have Tiffany when times were good and agreed to pay too much for the American jeweller. When Covid-19 hit the fan, LVMH’s boss got buyer’s remorse. Now he's throwing all the toys out of his cashmere-lined crib to get his way. Which he probably will.
Corona Capital: Kraft Heinz, U.S. poverty 15 Sep 2020 Concise views on the pandemic’s corporate and financial fallout: The food giant is boosting advertising outlays, even as it continues cutting costs; and the poverty rate in the United States hit a low at the end of 2019, according to new data, only to run into a Covid reversal.
Rio Tinto gets bad recruitment steer from Canberra 15 Sep 2020 Australia’s treasurer wants the miner’s next CEO to be Australian, after Frenchman J-S Jacques stepped down over the destruction of an Aboriginal site. Cultural sensitivity is a priority, but the goal can be achieved in other ways. Shareholders deserve the best boss Rio can find.