Unilever’s spreads sale plan contains adequate fat 23 Mar 2017 After Kraft’s aborted bid, the Marmite maker needs a self-help plan. Selling its spreads business would be risky as weak growth prospects may mean a low price. But on modest assumptions a private equity buyer could get a decent return – and kick-start Unilever’s reinvention.
Next takes fashion tips from financial world 23 Mar 2017 The retailer has subjected itself to a stress test – previously the stuff of banks. The result: if a store’s sales fall 6 pct a year for a decade, its net profit margin will halve. Openness about problems is welcome. But this voluntary exam may gloss over some other risks.
Li Ka-shing sails through choppy global seas 23 Mar 2017 The Hong Kong tycoon’s CK Hutchison saw net profit rise 6 pct in the full year. That is impressive given stuttering growth at home and Brexit pains. Globally, the allure of conglomerates is fading. But the results vindicate the East-West strategy of Asia's "superman".
Sears endgame and Lampert’s may diverge 22 Mar 2017 The troubled U.S. retailer warned it could be headed for bankruptcy after a 12 pct decline in sales and more losses. The hedge-fund boss's long quest – and drip feed of credit – to turn Sears around looks destined to fail, but along the way he has hedged some of his bets.
Hadas: The stakeholder revolution has been delayed 22 Mar 2017 Robust takeover rebuttals by Unilever and Akzo Nobel suggest that explicitly ethical stakeholder capitalism can overturn the idol of short-term shareholder value. That mostly makes economic sense. But the pressure for quick financial results is increasing. Compromise, please.
Albertsons’ shopping drives away grocery bargains 21 Mar 2017 The supermarket chain owned by Cerberus may add $3 bln organic specialist Sprouts to its cart. Bulking up is a good way to ensure survival, and could facilitate an IPO. But Albertsons’ buying spree is becoming increasingly expensive, and competition threatens industry margins.
Corona Capital, March 18: Elizabeth Warren 18 Mar 2020 Breakingviews has launched a daily column covering pandemic-related insights that you might have missed. Throughout the day, we’ll bring you shorter-than-usual views with the same financial savvy on companies, economies and capital markets during this important unfolding story.
Jewel magnates’ Alinta buy is a gift to TPG 16 Mar 2017 The billionaire Cheng clan is snapping up Australia's Alinta Energy from the U.S. buyout firm and others. With a mooted $3 bln price, the surprise deal handily beats a likely IPO valuation. Hong Kong's richest families apparently can't get enough of stable Aussie businesses.
Neiman Marcus is tarnished goods for any buyer 14 Mar 2017 The struggling luxury retailer is mulling an auction after abandoning an IPO attempt. A bid from Saks Fifth Avenue’s owner would make strategic sense, but Neiman is worth less than its debt after years in private-equity hands. A sale could mean a big haircut for bondholders.
Adidas has the speed, now for the destination 8 Mar 2017 The sports brand shows how quickly fortunes in the consumer goods industry can turn. Better products and marketing are boosting sales. Profit is up too, but margins are still trailing Nike’s by a mile. Closing that gap will be the ultimate test for new boss Kasper Rorsted.
UK retailers get a spring reality check 7 Mar 2017 Rising food and fuel costs are forcing shoppers to spend less on clothing and other discretionaries. That is bad news for stores that are already having to cut prices to attract business. With their own costs going up, retailers are about to be squeezed on multiple fronts.
Luxury mall fight is small sign of what’s in store 3 Mar 2017 An aggressive investor wants to add new directors at $4.2 bln shopping-center operator Taubman. U.S. malls are in for a world of hurt as tenants collapse financially. Even upscale owners like Taubman need a push, but there are more vulnerable targets. And the fixes aren't easy.
Seoul-Beijing feud cues Lotte to end China misery 3 Mar 2017 The South Korean retailer is under attack from Beijing for letting Seoul use its land for a defence system. Chinese state media is vowing to make life hard for the group. It's hard already. Losses in China have sparked a founding family spat. This rift is a good excuse to exit.
Moms’ fashion chain returns going out of style 2 Mar 2017 J.Jill's IPO may quintuple its private-equity owner's investment. The company has stitched together a better set of financial threads than many rivals, but faces the same threats all retailers do. Buyers hoping to replicate TowerBrook's successful design are pushing the seams.
Growth fetish glues Henkel to value-destroying M&A 2 Mar 2017 The German consumer group is offering $1 bln for GCP Applied Technologies’ sealants and coatings unit Darex. At 16 times the target’s operating profit, Henkel will struggle to cover its cost of capital. The pricey bid is a side-effect of the group’s over-ambitious growth targets.
Complexity blunts AB InBev’s cost-cutting flair 2 Mar 2017 The mega-brewer expects savings from its SABMiller tie-up to reach $2.8 billion, 14 percent more than its initial estimate. Yet the upgrade is significantly smaller than it managed with previous deals. Taking on ever-bigger targets is testing its knack for squeezing expenses.
Market delivers crazy love letter to China’s FedEx 2 Mar 2017 A rally in the newly listed firm behind SF Express makes boss Wang Wei one of China's richest men. At roughly $40 bln, his company is now worth nearly as much as Deutsche Post. That looks like an overreaction, driven by hype over e-commerce and a shortage of tradeable shares.
Burberry self-help makes light work for activists 1 Mar 2017 Billionaire Albert Frere, who was among investors that drove change at Adidas, has built up a 3 percent stake in the trenchcoat-maker. With a turnaround plan and new boss in place, there’s less to do at Burberry. Still, Frere can help ensure the company sticks to its knitting.
Philip Green pays 363 mln pounds for a quiet life 28 Feb 2017 That’s what the British apparel billionaire has put into the pension pot of defunct retailer BHS. It ought to calm politicians who painted Green an enemy of the state. And, anyway, the return from reinvesting his jumbo dividends should cover it nearly twice over.
Target’s wobbly aim will take time to correct 28 Feb 2017 The U.S. retailer reported unexpected top-line weakness and forecast more pain, wiping $5 bln from its market value. Pressure from the likes of Wal-Mart is hurting. A 34 pct jump in online sales is encouraging, but Target will continue to struggle with changing shopping habits.