Regulation

Glencore Congo settlement is a calculated risk

15 June 2018

Paying royalties to Israeli businessman Dan Gertler in euros rather than dollars helps solve the commodities giant’s headache in the African country, while avoiding falling foul of American sanctions. The danger, though, is that the United States changes the goalposts.

Chinese P2P giant Lufax dodges valuation bullet

15 June 2018

A mooted private fundraising of more than $1 bln makes sense. With regulatory change coming to peer-to-peer lenders, floating now could upset Beijing, and might only be doable at a bargain price. Abundant venture capital offers a way to keep growing without a distracting IPO.

Xiaomi IPO escalates China’s battle of the bourses

15 June 2018

The handset-maker will now sell at least half of its mooted $10 bln offering in Shanghai. That is a blow to the other listing venue, Hong Kong, which changed its rules to woo more tech IPOs. The city will have to share a lot of this business with its two mainland rivals.

Chinese tutor’s short answer will be instructive

15 June 2018

Muddy Waters invoked Enron in its fraud accusations against $24 bln Tal Education. Complicated attacks can be hard for outsiders to parse, but corporate responses to bearish investors are often telling. China Internet Financial Services and AMD provide useful case studies.

Viewsroom: AT&T win is unlikely to muzzle watchdogs

14 June 2018

The telco firm prevailed against the DOJ and can now legally buy Time Warner for $85 bln. The green light doesn’t mean that regulators will roll over for other deals however. T-Mobile US and Sprint may still be in the crosshairs. Plus: An Australian bank cartel runs into trouble.

Hong Kong could teach China tech some manners

14 June 2018

Sina plans a secondary listing in the city, under new rules welcoming Chinese tech outfits traded overseas. In New York, the $7 bln web portal and its peers can issue super-voting stock on a whim and skip annual general meetings. The Fragrant Harbour will be less soft.

Comcast throws $65 bln of caution to the wind

13 June 2018

The cable firm is offering 19 pct more than Disney to buy bits of Rupert Murdoch’s Fox – potentially leaving it slathered in $170 bln of debt. Boss Brian Roberts is normally a careful dealmaker. Embarking on this expensive, hostile pursuit suggests a serious fear of missing out.

Holding: As AT&T case ends, trustbuster woes begin

13 June 2018

Donald Trump’s Justice Department lost its bid to stop the telco’s $85 bln Time Warner merger, battering DOJ’s Obama-era image as tough but savvy. Weak legal claims baffled experts and stalled other deals. The watchdog can expect fresh charges of putting politics over the law.

AT&T deal approval doesn’t mean anything goes

13 June 2018

The U.S. Justice Dept gambled when it sued to block the $85 bln Time Warner sale. Its failure means business as usual for vertical mergers, like Comcast’s likely bid for Fox. Big firms that directly compete will still face tough scrutiny – and prosecutors eager for a clear win.

New ZTE regime could climb out of big hole

13 June 2018

The Chinese telecoms company lost some $3 bln of market value after its reprieve from a U.S. death sentence. That suggests concerns about the clean management sweep. If, however, ZTE can find decent leadership and stay out of trouble – big ifs – a 5G rollout holds real promise.

China will tightly control even looser capital

13 June 2018

Money is moving more freely in and out of the country as fears that sparked a 2015 clampdown wane. Greater sums can be invested abroad while daily limits from Hong Kong to mainland markets quadrupled to $8 bln. Official signals suggest, however, that the easing will be tortuous.

CFIUS proves it is not a one-way bet after all

11 June 2018

The U.S. security panel cleared China Oceanwide’s $2.7 bln takeover of Genworth, after nearly two years of waiting and as Washington and Beijing feud over trade. The insurer’s shares carried a 30 pct discount, showing just how hard it is to price regulatory risk right now.

Italy’s new cabinet dials up protectionist signal

8 June 2018

Prime Minister Giuseppe Conte’s government declared a listed telco in which Libya has long been the top investor a strategic asset, hitting shares. Retelit says it can handle the state oversight. But it sends a warning to foreigners seeking to buy Italian infrastructure.

UK’s Aramco sop could lead to worst of both worlds

8 June 2018

The UK regulator is bending its own rules to entice the oil giant to London. The plan will weaken tough laws that safeguard competition and protect minority investors. Making legal exceptions for opaque companies is a slippery slope – and there’s no guarantee Britain will win.

Solar star GCL has fix for dark days in China

7 June 2018

The world’s top maker of polysilicon, a key ingredient in solar panels, is selling control of a core Chinese unit for nearly $2 bln. That’s a surprisingly good price. This will help GCL-Poly through a lean patch as the industry adapts to a sudden withdrawal of government grants.

Western banks in China can downplay equities

7 June 2018

JPMorgan, UBS and others could soon control Chinese securities houses. It is hardly worth taking on local brokers over underwriting new equity issues or in share dealing, except for private-banking clients. So firms will probably focus on areas such as bonds and M&A.

Investors think Qualcomm-NXP deal is back on

6 June 2018

The $44 bln chip acquisition-in-waiting may finally get approval from Beijing – if Chinese telecom-equipment group ZTE can turn a U.S. business ban into a less damaging fine. NXP’s stock is again trading within 10 pct of the offer price. It’s still a bet fraught with uncertainty.

China hands Facebook its worst political misstep

6 June 2018

The social network was already in trouble for Russian election meddling. But its undisclosed data-sharing with Chinese phone maker Huawei will inflame U.S. politicians from both parties. The dalliance makes punishing legislation, and tougher scrutiny from watchdogs, more likely.

Hadas: Financial freedom is not what Italy needs

6 June 2018

Leaving the euro would give the country two poisoned gifts: a sinking currency to reduce pressure for durable reforms and fiscal deficits generating inflation and waste. Extra government spending can help create jobs, but only under certain conditions. These don’t apply to Italy.

Expanded Heathrow’s value to rest of UK is hazy

6 June 2018

Europe’s busiest airport has tried to placate critics of a third runway by incentivising flights to smaller UK cities. But large airlines will struggle to make these stack up. Unless budget players can do so, the charge that Heathrow only works for London will be hard to refute.