Tiffany-LVMH battle underscores can vs. should 9 Jun 2020 The U.S. jeweler’s rejigged debt covenants allow it to fend off a possible LVMH attempt to lower a $16 bln bid. Still, a 45% sales slump shows Tiffany needs to marry its larger French suitor. Closing a deal amicably and quickly is best. It doesn’t mean LVMH boss Arnault will.
Gilead solidifies pharma pandemic insurance premia 9 Jun 2020 The $100 bln company has an approved Covid-19 drug that the U.S. government is distributing. That helps replace maturing HIV and dwindling hep C meds, and made Gilead a takeover target. The ability to cure what ails the entire economy buffs the sector’s strong defensive nature.
Complacency is as much a disruptor as antitrust 8 Jun 2020 Big Tech critics credit the 1969 push to break up IBM for spurring the today’s software industry. But it was as much Big Blue’s shortsightedness that led to others’ power. As probes of newer tech companies ramp up, Microsoft, with similar challenges, tells a more promising story.
Rodent-catcher Rollins is a valuation mousetrap 8 Jun 2020 The family-owned pest-control empire may soon be up for sale, but at over 60 times earnings, it has never looked so expensive. Rollins has grown prodigiously by acquiring rivals in a fragmented market, but when serial buyers turn seller, would-be owners need to tread carefully.
AstraZeneca M&A puzzle sends shareholder warning 8 Jun 2020 The $140 bln drugmaker approached U.S. rival Gilead about a merger, Bloomberg reported. The combination lacks strategic logic and looks unlikely. CEO Pascal Soriot has done well for investors. The risk is AstraZeneca’s debt load, or his bigger ambitions, threaten that record.
Corona Capital: U.S. recession, Grubhub, Airlines 8 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: U.S. falls into a recession, Grubhub looks for leverage, airlines have optimistic investors.
Viewsroom: Not the same as it ever was 4 Jun 2020 After the Covid-19 pandemic has passed, will we still shake hands, ride elevators, go to sports matches and go on dates? Will taxes surge to pay for massive government budget deficits? Breakingviews editors chew over some highlights from their new e-book on what will change.
Make-up artist’s star power tested by $1 bln tag 4 Jun 2020 That’s how much Puig is close to paying for Charlotte Tilbury’s cosmetics company, Bloomberg reports. Famous friends and e-commerce helped the entrepreneur boost sales. To justify the price, the Spanish perfumer needs to lift margins after Covid-19, without smudging the brand.
Tiffany share drop offers LVMH a bargaining chip 3 Jun 2020 Fears that Bernard Arnault may pull his $16.2 bln bid amid U.S. unrest have hit the jeweler’s shares. The French billionaire may see an opportunity to renegotiate, but it’s not without risk. Buying Tiffany shares on the market would be a less aggressive way to meet a similar end.
Tech giants dare antitrust deal watchdogs 1 Jun 2020 Facebook, Microsoft and Apple have been on a buying spree of small companies. U.S. regulators are examining such deals but their work has been hindered by Covid-19. Big Tech can argue some firms would fail otherwise. But the effect on consumers is a mixed bag.
Zynga puts overvalued shares to risky use 1 Jun 2020 The $9 bln video-game company is buying the Turkish maker of Toon Blast and Toy Blast for $1.8 bln, its biggest deal ever. Zynga is partly financing it with stock puffed up by the pandemic. But the high price and its mixed acquisition record should give investors pause.
Kylie Jenner teaches Coty celeb value is cosmetic 1 Jun 2020 The perfume maker’s stock fell after Forbes suggested the TV star, who sold 51% of her makeup brand to Coty last year, had exaggerated her wealth. Coty had overpaid either way. But the drama exposes the folly of companies buying brands whose value they can’t really control.
West End foray breathes life into UK property M&A 1 Jun 2020 Capco, owner of much of London’s upmarket Covent Garden district, has bought a 26% stake in $2.4 bln Shaftesbury, which manages large swathes of the trendy Soho area. A merger could follow. The risky punt shows UK landlords are starting to think about life after the pandemic.
German carmakers step on Chinese electric pedal 29 May 2020 VW is taking big stakes in two Chinese EV firms, while Daimler may invest in battery-maker Farasis Energy’s $480 mln IPO. Demand remains tepid, oil is too cheap, and the targets look richly priced. But these deals lock in supply, and position both to compete with Tesla in China.
Amazon steers towards self-driving leverage 28 May 2020 Jeff Bezos’s $1.2 trln behemoth is one of the obvious big buyers of autonomous vehicles. Acquiring startup Zoox would give it an even bigger say in how the technology gets rolled out. That would also help deepen its customers’ dependence on Amazon’s fast and cheap shipping.
Corona Capital: Hockey, HBO, Minority businesses 27 May 2020 Concise views on the pandemic’s corporate and financial fallout: A plan to get pucks back on the ice offers a sporting template. Meanwhile, HBO’s streaming service may have missed its moment, and a survey shows minority-owned businesses have mixed feelings about life after Covid.
A Ford-VW tie-up would solve a ton of problems 22 May 2020 The two rivals’ souped-up electric and autonomous collaboration won’t solve their respective geographic weaknesses. A merger would. It’d also create value and give Ford’s underperforming boss a graceful exit. The biggest sticking point is the firms’ convoluted ownership.
Morgan Stanley gets closer to real Reliance prize 22 May 2020 Deals are flowing fast as Mukesh Ambani rejigs his empire. The U.S. bank has helped raise $10 bln for the tech unit from Facebook, KKR and others. It wasn’t on a bigger deal inked with Aramco but that’s less important, especially with the $70 bln Jio unit’s IPO on the horizon.
Uber-Grubhub’s big obstacle is delivery not price 18 May 2020 Some to-and-fro over value is normal in a potential merger. But for two money-losing companies with volatile stocks, financial tweaks are a second-order issue. The more critical question about combining their meal-delivery operations is whether antitrust watchdogs would block it.
Corona Capital: Travel companies, Oil 18 May 2020 Concise views on the pandemic’s corporate and financial fallout: Travel companies have sunnier days; oil traders have triumph of hope over experience.