Morgan Stanley’s new CEO inherits rich pickings 2 Nov 2023 Ted Pick has the money and backing of predecessor James Gorman to make acquisitions that will help the $120 bln Wall Street firm service more of the global elite. While many potential targets look cheap, he can take his time. The most enticing prospects aren’t for sale yet.
Sanofi sickness calls for activist tonic 2 Nov 2023 The pharma group lost nearly $27 bln of market value as it announced more investment in drugs. To keep investors happy, CEO Paul Hudson can sell its consumer business, step up dealmaking and buy back shares. Its long-suffering shareholder L’Oréal has reason to back bold action.
Piyush Gupta: Asia’s most disrupted digital banker 2 Nov 2023 The CEO of Singapore’s DBS is often feted as the region’s top financier and a candidate to lead rivals. Yet following repeated tech fails, the regulator has banned the bank from activities including M&A. It puts dividends at risk and will attract the eye of watchdogs overseas.
Vodafone CEO’s iffy Spain deal is better than none 31 Oct 2023 Margherita Della Valle is selling her unit in the country for 5 bln euros to a tiny investment vehicle. Part of her payment comprises shares in the highly leveraged buyer, which is yet to raise equity of its own. But even if that effort fails, the deal still works for Vodafone.
Capital Calls: McDonald’s resilience 30 Oct 2023 Concise views on global finance: The Golden Arches’ global same-store sales rose 9% thanks to both selective menu-price increases and smaller meals in different markets. It demonstrates the company’s ability to keep pace with disparate economies’ stretched consumers.
Greenhill starts Mizuho with costly culture clash 27 Oct 2023 Scott Bok runs the M&A boutique, but also chairs the board of trustees at UPenn, where a fight over antisemitism has erupted. The Japanese bank is paying him generously to help its takeover plan thrive. A campus backlash led by Apollo’s boss threatens to exact a heavy price, too.
Morgan Stanley CEO shift pleases all, thrills none 26 Oct 2023 Ted Pick is an easy choice: steeped in markets, long-serving and unlikely to upset James Gorman’s strategic direction. Promotions for two CEO also-rans may keep the handover civil. It’s an utterly underwhelming transition which – given Wall Street’s record – is a good thing.
Music fund’s flat deal calls for major key change 25 Oct 2023 Shareholders are pushing Hipgnosis, run by industry veteran Merck Mercuriadis, to overhaul its board and cancel a $440 mln asset sale involving Blackstone. Poor governance and a discount value add weight to their case. A new management team could do better by selling the company.
Capital Calls: Starboard vs. Murdoch 16 Oct 2023 Concise views on global finance: The investment fund wants the publisher of the Wall Street Journal to spin off its real estate assets a year after another activist agitated for a similar move.
US grand strategy can prop up the global order 16 Oct 2023 The horror in Israel and Gaza is a new blow to a fragile world. But the United States can prevent the rules-based order from collapsing by continuing to steer a steady course with regards to Russia and China. The biggest risk would be the return of Donald Trump as president.
Capital Calls: BlackRock, Dollar General 13 Oct 2023 Concise views on global finance: Boss Larry Fink squares off with Uncle Sam; Dollar General bets on its ex-boss’s old magic.
Staley-Epstein probe goes too easy on Barclays 12 Oct 2023 A UK watchdog fined the bank’s old boss $2 mln for ‘misleading statements’ over his ties to the late sex offender. Barclays escapes blame despite naïvely taking Jes Staley’s account on faith. The troubling message is that boards needn’t challenge scandal-hit CEOs too hard.
Capital Calls: Birkenstock flop 11 Oct 2023 Concise views on global finance: The sandal maker took a tumble, as its shares opened more than 10% below the IPO price, leaving questions about its venue and valuation.
Disney has a weak hand in activist rematch 9 Oct 2023 The $152 bln media giant promised cost cuts to sate cage-rattler Nelson Peltz earlier this year. But that is slow-going and the stock has since fallen by a quarter while peers are up. Now the activist is back and wants a board seat. A weakened Disney’s best bet: invite him in.
Siemens is case study in China de-risking dilemma 4 Oct 2023 The $110 bln conglomerate trades well below the sum of its parts. The normal fix would be to offload low-margin areas like its legacy railway division. But Siemens has a patchy record on M&A, and its growth story largely depends on China – from which it is obliged to de-risk.
European listing exodus is just beginning 28 Sep 2023 Building materials firm CRH and packaging giant Smurfit Kappa are among a growing list of companies seeking to decamp from Europe to US exchanges. In this Viewsroom podcast, Breakingviews columnists discuss what is prompting groups to leave and why the rot is unlikely to ease.
Rupert Murdoch will redefine chair emeritus 21 Sep 2023 The 92-year-old media mogul is ceding his role co-running the Fox and News Corp boards, accepting the retirement honorific as his son Lachlan takes charge. By tiptoeing out, he at least cements succession. There can be no doubt, however, that his ongoing presence will be felt.
How Ukraine’s banks can survive another war 19 Sep 2023 The country’s former central bank Governor Valeria Gontareva explains on The Exchange podcast how the radical steps implemented in 2014 helped Ukrainian lenders withstand the Russian invasion and kept the financial system afloat, and why Ukraine needs to keep reforming.
Capital Calls: Planet Fitness 18 Sep 2023 Concise views on global finance: The gym chain’s share price hit a three-year low on news of its longtime boss’s exit. Rising interest rates have made it costlier to open new locations. Boosting prices could help, as it has at rival Life Time.
Prosus CEO exit leaves Tencent elephant in room 18 Sep 2023 Bob van Dijk has quit as boss of the $380 bln Chinese giant’s top investor. Interim CEO Ervin Tu can call for more asset sales to boost Prosus’ returns. But without a plan to move on from a status quo where Tencent makes up three-quarters of the portfolio, its valuation will lag.