Rapid grocery delivery splurge will end with purge 30 Apr 2021 The business of bringing alcohol and ice cream to punters within minutes has attracted $8 bln from investors like SoftBank this year. The stage is set for a frantic fight between startups, takeout apps and supermarkets. They will burn much cash in pursuit of uncertain returns.
Capital Calls: U.S. antitrust, Dyal-Owl Rock 21 Apr 2021 Concise views on global finance: Would-be U.S. trustbuster nominee Lina Khan suggests it’s not just tech companies to blame for Big Tech’s dominance; two U.S. investment firms’ planned merger and sale to a blank-check company has cleared a legal hurdle.
Impossible Foods may outdo Beyond Meat’s recipe 16 Apr 2021 Shoppers already have two big alt-meat brands to choose from, and soon investors may too. Impossible is a latecomer, but may be less exposed to the supplier risks and sales swings that have troubled its rival. If Beyond’s IPO was a whopper, Impossible’s could be supersized.
Capital Calls: Delta Air Lines, L’Oreal 15 Apr 2021 Concise views on global finance: The U.S. air carrier says it was cash-flow positive in March, signaling the beginning of the end of the pandemic; the French cosmetics group has too much cash, which could be useful for dealmaking.
Grab’s $40 bln debut comes with twin airbags 13 Apr 2021 The Southeast Asian taxi-to-fintech firm is going public at a sales multiple twice Uber’s. U.S. SPAC sponsor Altimeter is contributing to a $4 bln PIPE and signing a long lockup. It’s a smart way to underwrite an amped-up valuation and sets a template to speed others to market.
Deliveroo is unsavoury appetiser for UK IPO revamp 31 Mar 2021 The food delivery group’s shares dropped up to 30% on their stock market debut. Hefty losses, a punchy valuation and founder Will Shu’s super-voting stock proved a turnoff. The flop should prompt a rethink of the government’s rushed plans to lure more such companies to London.
Deliveroo’s IPO cash hunger leaves sour aftertaste 30 Mar 2021 The UK food delivery firm’s offering values it at 7.6 bln pounds, the bottom of the target price range. Despite its rapid growth and big ambitions, investors face post-pandemic uncertainty. Boss Will Shu’s order for 1 bln pounds of fresh cash suggests profitability is a way off.
Deliveroo’s main sustainability doubt is financial 25 Mar 2021 Some fund managers are shunning the food delivery group’s IPO over its treatment of workers. Unlike most ESG laggards, the $11 bln group is loss-making. Concern about labour rights and founder Will Shu’s super-voting stock are secondary to whether it can turn a consistent profit.
Capital Calls: Twitter time-wasting, News Corp 25 Mar 2021 Concise views on global finance in the Covid-19 era: Congressional hearings on Big Tech get ever less productive; meanwhile, the parent of the Wall Street Journal snaps up Investor’s Business Daily.
Capital Calls: Leon Black, Happiness index 22 Mar 2021 Concise views on global finance in the Covid-19 era: Apollo’s founder still has his imprint on the Museum of Modern Art and Dartmouth College; people are proving surprisingly resilient in the pandemic, a recent poll suggests.
Capital Calls: McKinsey, Celebrity SPACs 10 Mar 2021 Concise views on global finance in the Covid-19 era: McKinsey’s new boss isn’t new enough; the SEC tells investors to be careful of celebrities bearing SPACs.
Capital Calls: American Airlines, Crypto PayPal 8 Mar 2021 Concise views on global finance in the Covid-19 era: The U.S. carrier is issuing new debt and hocking some airline miles to pay back the U.S. Treasury loan that carried restrictions on pay and dividends; PayPal investors give a shrug over another dive into bitcoin-land.
Pandemic speeds AB InBev’s necessary revamp 25 Feb 2021 More drinking at home and higher raw materials costs will pressure the $100 bln brewer’s margins in 2021. After years of zero-based budgets, it needs looser purse strings to revive sales. But with $83 bln of debt, its valuation discount to less profitable rivals will persist.
Capital Calls: Tribune, Shopify 17 Feb 2021 Concise views on global finance in the Covid-19 era: Chicago Tribune sells to a hedge fund known for stripping out newsroom costs; Shopify’s strong year doesn’t shield it from competition.
Capital Calls: Deloitte castoff, Banks and Brexit 15 Feb 2021 Concise views on global finance in the Covid-19 era: The UK auditor chooses an unfortunate moment to offload its lucrative restructuring practice; The Bank of England pours cold water on the idea of a regulatory bonfire after Britain leaves the European Union.
Corona Capital: M&A boost, Purell 22 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: Goldman Sachs, JPMorgan and other banks collectively reaped billions in fees related to advice on transactions with the expectation the money will keep rolling in; hand sanitizer makers hope good habits linger.
Corona Capital: ESG investing, U.S. moves, P&G 20 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: ESG opens up investing opportunities; home values in U.S. resort towns rise faster than rural areas; and Procter & Gamble cleans up.
Corona Capital: Target, IPOs keep coming 13 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: Retailer Target gets an extra sales boost from its earlier e-commerce efforts, while buy-now-pay-later company Affirm continues one of 2020’s less-hated features – a smoking hot IPO market.
Corona Capital: Bond bonanza, Albertsons 12 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: U.S. companies' bond issuance in 2020 hits records across the board; and America’s No. 3 grocer continues to take advantage of the shopping habits created by Covid-19 lockdowns.
Corona Capital: Video rental stores, Conagra 7 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: A last surviving U.S. video rental chain shutters, Conagra’s boosted sales aren’t enough for investors.