Viewsroom: Helping Uber hail a new CEO 22 Jun 2017 Filling departed founder Travis Kalanick’s seat is no easy task, so we offer some suggestions. Elsewhere, Amazon CEO Jeff Bezos’ seemingly crazy $13.7 bln offer for struggling grocer Whole Foods has some logic. Anbang lands in hot water in China. And the lure of 100-year debt.
Neiman Marcus owners should beware a Sears trap 19 Jun 2017 The upscale chain acquired by Ares and a partner for $6 bln abandoned sale talks after a busted IPO. The buyout shop's boss is optimistic about a turnaround. For years, hedgie Eddie Lampert had similar confidence in his big retail bet. A high-end recovery may be equally tough.
Food IPO to deliver Rocket Internet relaunch 19 Jun 2017 Germany’s struggling tech investor is on the cusp of its first startup listing. The cash that it will pocket if fast-growing food logistics group Delivery Hero meets its aim of raising $1 billion will come in handy. The morale boost from a successful exit is even more important.
Amazon’s one-click deal keeps Wal-Mart at bay 19 Jun 2017 The $230 bln superstore chain's stock fell 5 pct on news of the e-commerce giant's $14 bln purchase of Whole Foods. The target's shares rose above Amazon's offer, implying another bid might emerge. But a defensive effort from Wal-Mart or a worried rival looks a financial stretch.
Amazon buys its way to the top of the food chain 16 Jun 2017 The e-commerce titan is going whole hog for U.S. groceries with the $13.7 bln acquisition of Whole Foods. Amazon's comfort with low margins and savvy in logistics make it a fearsome rival. The purchase price pales compared to the value the deal just chewed up across the industry.
Bezos may surpass Gates in dollars, but not impact 15 Jun 2017 The Amazon founder could easily become the richest person, overtaking Gates' $89 bln. Volatility and high expectations make his e-commerce fortune fragile, though. Whatever the wealth score, Bezos can't claim philanthropic parity. At least he has started crowd-sourcing ideas.
J.Crew bond revamp is roadmap for asset transfers 14 Jun 2017 The retailer is trying to restructure $567 mln of debt giving some bondholders access to valuable assets that will irk other lenders. To bridge the gap, they’re offering those lenders buyouts at par. It’s a clever way to mend several problems. Other wobbly retailers take notice.
Nordstrom could be well suited for a buyout 8 Jun 2017 The family behind the $8 bln U.S. clothing retailer is considering taking it private. It looks workable at leverage of around four times EBITDA with insiders rolling over their stakes. The growing list of shopkeepers struggling with debt should sound a note of caution, though.
Complex pay ties British companies in knots 7 Jun 2017 Tesco paid boss Dave Lewis a 142,000 pound allowance to move closer to work, while Burberry’s Christopher Bailey got a big share award at a delicate time. Both controversies are a distraction. If they kept pay simple, companies and investors could focus on more pressing issues.
Upscale U.S. mall owner’s win warrants a discount 6 Jun 2017 Chairman Robert Taubman survived a shareholder insurgence after his Taubman Centers agreed to force directors to face a vote every year. The late concession seemed to sway big funds – for now. Given industry woes and investor ire, the $3.5 bln company didn't buy itself much time.
LBO orphan J.Crew tries patch-up job with new CEO 6 Jun 2017 Owners TPG and Leonard Green have effectively written off the ailing retailer. Now long-serving boss Mickey Drexler is out. His replacement, James Brett, has to deal with falling sales, bickering creditors and vultures preparing for bankruptcy. Survival will be a tall order.
Earnings will be late dessert for Delivery Hero 6 Jun 2017 The Berlin-based food delivery startup is prepping a listing valuing it at around 4.5 bln euros. The loss-making group needs to double sales by 2019 to achieve the same valuation as rivals like Just Eat. Its fat war chest should help. But investors are in for a low-profit diet.
Spat exposes Alibaba’s dependence on shared data 5 Jun 2017 The e-commerce giant has resolved an information-sharing dispute with delivery partner SF Holding for now. But the squabble shows the risk uncooperative partners pose to Jack Ma's plan to use cloud technology and AI in shopping, logistics and finance. Expect more tiffs to come.
Art world upstart sprays tech fortune on canvas 2 Jun 2017 Japan's Yusaku Maezawa is building a collection of Basquiats and other masterpieces. The soaring value of his fashion portal vividly illustrates how investors are enchanted by the tech industry’s fast growth and fat margins. It also means he can afford to paint the town red.
Retailers’ upturn is a false bill of goods 25 May 2017 Sears laid out a rare profit, Abercrombie & Fitch sold more surfer-inspired apparel than expected and Best Buy got a jolt from electronics sales. While that's encouraging, Tiffany’s quarterly slump is a reminder the industry remains under pressure. The only certainty is more volatility.
China’s noodle master has to get nimbler 23 May 2017 A profit rebound at Hong Kong-listed Tingyi is less than meets the eye. Rising ingredient costs are squeezing the firm, which works with Starbucks and Pepsi, and it relies too much on instant noodles and soft drinks. As China’s tastes get healthier, Tingyi needs to adapt faster.
Wal-Mart’s online therapy may revive ailing retail 22 May 2017 Embracing e-commerce sparked a turnaround at the behemoth, while stocks plummeted at internet laggards Macy’s, J.C. Penney and others after poor sales. The industry’s online revenue is set to grow 70 pct by 2021. Stragglers risk ceding yet more business to Wal-Mart and Amazon.
Alibaba’s $6bln buyback disrupts financial reality 18 May 2017 Repurchasing shares will offset dilution from paying staff in equity, the Chinese e-commerce giant says. Only, buybacks don’t do that as they leave companies with less cash. Alibaba is replacing one pretence – that investors should ignore stock-based compensation – with another.
Amazon is prescription for pharmacy woes 17 May 2017 The internet retailer has set its sights on the $300 bln business of selling drugs to U.S. customers. Regulation and delivery concerns are barriers. Yet these, and the inefficiency of U.S. healthcare, also promise lucrative earnings for a company happy with razor-thin margins.
Eddie Lampert’s enemies list sounds presidential 15 May 2017 The CEO threatened to sue a Chinese tool vendor, and blamed it and the “irresponsible” media for Sears’ woes. It’s a page from the playbook of President Trump, who has talked of slapping tariffs on China and often taunts the press. Investors aren’t buying Lampert’s line, though.