French plutocratic raiders rally around their kind 26 May 2020 LVMH’s Bernard Arnault helped the activist-besieged owner of Paris Match by snagging 25% of the Lagardere family’s holding company. And Vivendi’s Vincent Bolloré raised his stake in the media group to 16%. Mogul overcrowding risks blunting Amber’s bid for better governance.
Sony embraces its inner conglomerate 20 May 2020 The Japanese giant is buying the rest of its financial arm for $3.7 bln as part of a broader shakeup. A new holding company structure clumsily tries to reposition Sony beyond its electronics roots. At least it’s managing the sprawl while thumbing its nose at activist Dan Loeb.
TikTok’s new boss will be hitting the road to D.C. 19 May 2020 Former Disney streaming-video exec Kevin Mayer is to become boss of ByteDance’s popular video app. He was the M&A maestro behind the Magic Kingdom’s acquisitions of Fox and the Star Wars empire. But he may have to learn some new moves to navigate U.S.-China tensions.
Nomura circulates an awkward startup pitchbook 19 May 2020 Boss Kentaro Okuda unveiled his plan for a digitally savvy investment bank catering to entrepreneurs. Buzzwords like AI and disruptive growth accompanied slides full of arcs and arrows. The clunky approach only makes it harder to believe Nomura can pull off this belated strategy.
Exxon activists attempt to hit CEO where it hurts 13 May 2020 Some U.S. investors prefer the top executive and chair to be different people; most don’t care. Exxon will test the theory this month. Even if the arguments are theoretical, stripping the boss of a status-boosting title sends a message. That's why Darren Woods should worry.
Hong Kong bourse walks fine line on CEO succession 7 May 2020 Boss Charles Li plans to step down by October 2021. Ample lead time helps HKEX shareholders and should ensure a clean handover, but he also risks becoming a long-term lame duck. Finding someone equally able to balance the interests of Beijing and foreign investors will be tough.
BNP CEO’s “trust me” routine is only half credible 5 May 2020 First-quarter earnings at the French bank fell 33%, driven by losses in equities trading. Boss Jean-Laurent Bonnafé argues that superior risk control means 2020 profit could fall by just one-fifth. Investors are rightly dubious that the lender’s bad debt charges will stay so low.
Deal squawkers spread their remorseful wings 5 May 2020 A flock of buyers is citing Covid-19 to wriggle out of acquisitions. Legal flaps may determine the fates for targets Moss Bros, Delphi, Metlifecare and a Bed Bath & Beyond business. Despite some questionable arguments, negotiating power favours the yellow-bellied birds of prey.
Brazil’s finance minister: right place, wrong time 4 May 2020 Chicago-trained Paulo Guedes helped achieve needed pension reform and topped privatization goals. But Covid-19 torpedoed plans to shrink the state’s role in the economy, and presidential chaos has undermined his efforts. His agenda is mostly dead, so he’ll probably jump ship.
Warren Buffett may have met his match: the Fed 4 May 2020 For the unflappable billionaire, moving Berkshire Hathaway’s annual meeting online and suffering a $50 bln loss from stock swings are minor bumps. His bet-on-America philosophy faces a bigger challenge. Easy money does no favors for an insurance company with $130 bln of cash.
Mukesh Ambani gives Saudis a run for their money 4 May 2020 A $7 bln rights issue backstopped by the Reliance Industries boss will help keep his promise to cut debt. Although smaller than a delayed deal with Aramco, the discounted stock sale is a record for India. The symbolic significance should instil more confidence amid the pandemic.
Tesla’s Elon Musk turns from prey to predator 30 Apr 2020 The electric-car maker’s boss lashed out at state-imposed “fascist” lockdowns. Truth is, Tesla’s having a good crisis. Its $160 bln valuation bests all but Toyota. Rather than kvetching, Musk could use this firepower to seize the moment and expand global manufacturing capacity.
How Goldman Sachs walked into a pay trap 29 Apr 2020 CEO David Solomon’s $27.5 million package for last year is deservedly in the crosshairs at this week’s shareholder meeting. Goldman’s problem is the method rather than the magnitude, which isn’t out of whack with rivals. Still, it might want to borrow some of their good habits.
Kim Jong Un unnerves the world equally in absentia 29 Apr 2020 The North Korean leader is rumoured to be sick, comatose or dead due to heart problems at around 36. Ill or healthy, Kim has identified no successor, and an internal power struggle would destabilise the region. Investors should pray for his health now, and reformist heirs next.
China’s tough Luckin line faces deaf U.S. ears 29 Apr 2020 Authorities raided the embattled coffee chain’s office, partly to limit collateral damage from the accounting scandal. Beijing also may be trying to placate impatient U.S. regulators. It will take far more, though, to satisfy hawks demanding China Inc delistings and divestments.
AT&T shows boring CEO transitions are needed 24 Apr 2020 The U.S. telecom firm is elevating John Stankey to replace long-time CEO Randall Stephenson. The transition has been in the works since Elliott came calling last year. But the pandemic has upended the world. Having a 30-year vet at the helm is now required C-suite experience.
Review: The legal battle for Hong Kong’s future 24 Apr 2020 In "City on Fire", lawyer Antony Dapiran offers a riveting account of the 2019 protests. While demonstrators took to the streets, Beijing and the local government used Hong Kong’s rule of law to silence opponents. Coming court battles will help determine the financial hub’s fate.
Tesla gets board street cred it sorely needs 23 Apr 2020 Hiro Mizuno, former investment chief at Japan’s $1.5 trln pension fund is joining the electric-car maker as a director. He and Tesla boss Elon Musk may bond over their views on short sellers. But it’s Mizuno’s ESG clout that will serve the governance-challenged manufacturer best.
Corona Capital: Merger bans, Moelis, Domino’s Pizza 23 Apr 2020 Concise views on the pandemic’s corporate and financial fallout: U.S. politicians plan a curb on opportunistic M&A, advisory boutique Moelis cuts its dividend, and Domino's delivers.
ValueAct nudges Nintendo to ditch the joystick 22 Apr 2020 The U.S. investor disclosed a $1 bln stake in the maker of Super Mario. Unlike the typical activist target, Nintendo is well run and outperforms rivals. But its focus on consoles looks short-sighted. As it did with Microsoft, ValueAct can push Nintendo in the right direction.