Tencent is stuck in a losing battle with Beijing 28 Aug 2019 A year after a video-games crackdown hit the web giant, its $21 bln music-streaming arm may be under antitrust scrutiny. That makes Pony Ma's hopes of building an entertainment empire look fragile. It’s a reminder too that China's tolerance of its new economy champions is waning.
Vodafone races against time to salvage India deal 28 Aug 2019 Since the British mobile giant unveiled a merger of its local business with Idea in early 2017, 90% of the equity value has vanished. As it tries to deliver $10 bln of promised synergies, rivals including Jio are adding 4G users faster. Another cash call may be needed.
Altria may have missed chance for merger of equals 27 Aug 2019 The tobacco giant is talking to Philip Morris, the international arm it spun off in 2008, about reuniting – a combo worth more than $200 billion. Both see their future in e-cigarettes. But Altria’s market cap was closer to equal last year. The ideal moment may have passed.
Bernie Sanders grasps wrong half of media problem 27 Aug 2019 Everyone knows the news industry is in trouble. But the U.S. Democratic presidential candidate’s proposed solutions – blocking M&A and taxing Silicon Valley – won’t revive a fading sector. The best chance of survival lies with rich patrons like Jeff Bezos and nonprofit models.
Air China edges closer to Cathay Pacific’s cockpit 27 Aug 2019 Unrest in Hong Kong may prompt the local $5 bln airline to change course. Bookings have fallen, and Beijing’s ire over protesting employees forced out its CEO. The mounting pressure makes it a bit easier to see owner Swire selling out to its rival and big mainland shareholder.
Bristol-Myers passes $74 bln deal’s first big exam 26 Aug 2019 The drugmaker is stretching to buy rival Celgene. To smooth U.S. antitrust review, it put its target’s blockbuster psoriasis treatment on the market. Amgen has won that prize, for an unexpectedly rich $13 bln. That’s a boost for Bristol-Myers’ deal rationale – and its timing.
A VW-Tesla marriage looks heartbreakingly remote 22 Aug 2019 The German carmaker’s CEO Herbert Diess covets the $40 bln group’s tech, Manager Magazin reported. Tesla could use VW’s cash and manufacturing nous. But boss Elon Musk has shown no interest in cooperating with rivals. And Tesla’s crazy-high valuation makes a takeover unlikely.
John Malone’s Swiss sale still faces interference 22 Aug 2019 Sunrise wants to gee up support for its $6.3 bln purchase of Alpine assets held by the “cable cowboy”. Yet new, higher synergy estimates lack credibility without explanation, and big shareholder Freenet rightly panned the price. CEO Olaf Swantee still has a fight on his hands.
Transatlantic pet care deal will need grooming 20 Aug 2019 Elanco is paying $7.4 billion in cash and shares to buy Bayer’s animal-health division. The deal may make more sense for the seller than the buyer. The Eli Lilly spinoff will have to ramp up sales and deliver on ambitious cost-cutting plans to make a success of its acquisition.
Buyout barons play good guy in German lighting M&A 20 Aug 2019 Bain and Carlyle’s $4 billion Osram bid may be trumped by chipmaker AMS. Trade unions, which sit on the target’s board, are more worried by the latter than the former. While Chairman Peter Bauer may hear out the Austrian suitor, its heavy debt load will be hard to ignore.
Li Ka-shing raises fresh glass to diversification 19 Aug 2019 Hong Kong’s richest man is buying the Greene King pub chain for $5.6 bln including debt. Most of his empire’s sales are abroad already. But given the deal injects new capital into the UK, it’s still a boon for Brexit Britain and a minor thumbs-down for his troubled home turf.
Dell cleans house further with pivot on Pivotal 16 Aug 2019 Michael Dell’s dealings have left investors mistrustful and owning bits of three overlapping listed firms. Having one, the $58 bln VMware, buy another, Pivotal Software, simplifies things at a reasonable price. The lack of direct benefit for Dell himself may be a selling point.
Viacom-CBS is the Rip Van Winkle of TV 14 Aug 2019 The two firms split 13 years ago to extract value and boost growth. That plan failed, while peers got larger like Disney, or sold like Fox. A reunited Viacom and CBS can best shake off its slumber by amassing a portfolio of great shows to sell to more established video streamers.
CBS-Viacom merger is more whimper than Big Bang 13 Aug 2019 The broadcaster and the MTV owner, both controlled by the Redstone family, have finally inked a $30 bln reunion. Rogue CEOs, supine boards and dumb disputes gummed up the process. Hefty synergies won’t make up for perhaps more than $15 bln of value lost in three years of limbo.
BlackRock private-equity pivot grinds away in beta 12 Aug 2019 CEO Larry Fink aims to disrupt the giant money manager’s business before others do. Yet he has struggled to raise a new long-term fund, and its first deal, a $625 mln stake in Sports Illustrated-to-shoes owner Authentic Brands, is a tad dull. His ambitions demand a bigger splash.
AMS takes a leap of faith with Osram offer 12 Aug 2019 The Austrian company that supplies Apple has made a 4.3 bln euro offer for the German lighting firm including debt. Diversifying is good, as is a plan is to exploit the growth of driverless cars. But piling on debt to clinch the deal is a risk given ambitious synergy assumptions.
Newspaper deal stretches limits of revival 9 Aug 2019 A $1.4 bln sale of Gannett to a rival will create the largest U.S. chain. Yet a whopping $300 mln in cost savings, along with nearly $2 bln in debt, will take a toll on local news. At least investors will get a say if the merge-and-cut strategy is still useful.
Fickle nickel sends out false value signal 9 Aug 2019 The metal is at its priciest since 2018 having surged 50% this year, more than other key battery materials. The spike, though, rests on misplaced optimism on Chinese growth, and speculation that an Indonesian ban could curtail supply. Producers like Vale can hold off celebrating.
G4S carve-out lacks compelling valuation bump 9 Aug 2019 The British security firm is spinning off its cash-handling unit, a no-brainer given the shift to digital money. That allows more focus on its core business of guarding people and businesses. But a share price bump requires investors to place a high value on the latter.
Latest Broadcom deal combines two bad ideas in one 8 Aug 2019 With few rivals left to purchase, the acquisitive chipmaker is moving to the fresher fields of enterprise software. Spending $11 bln on a Symantec unit expands its potential market. But M&A machines often sputter, and buying barely related businesses raises the odds of failure.