China’s latest logistics IPO is hard to unpack 27 Jun 2017 Alibaba-backed Best Inc could raise $1 bln in New York, a few months after a rival's disappointing debut. The loss-making group is faster-growing and more diverse. But the extra complexity could make this a hard sell for already-wary investors.
Qatar’s American Airlines ticket not just politics 22 Jun 2017 Buying a stake in the carrier has all the hallmarks of a politically motivated deal. Flexing its financial muscles in the United States sends a defiant message to its enemies circling in the Gulf. But American Airlines also offers commercial value on top of diplomatic leverage.
Nationalism may derail Bombardier deal logic 11 Apr 2017 Combining the Canadian firm’s rail unit with Siemens’ - and perhaps Alstom’s - would help them compete with a Chinese rival. Past merger talks have failed, though, and growing government involvement in Bombardier signals the difficulty in keeping these discussions on track.
Truckers bulk up against multiple roadblocks 10 Apr 2017 Knight’s $6 bln merger with larger, less efficient Swift creates a sizable player in an industry full of owner-operators. The new company will have more heft to deal with threats like automation. And the reduced power of Swift’s founder hints at a more professional operation.
Daimler’s European answer to Uber gains momentum 26 Jul 2016 The German carmaker is merging its ride-hailing app Mytaxi with UK-based rival Hailo. The all-share deal creates Europe’s strongest competitor to Uber while avoiding paying the sector’s frothy multiples. For now, Daimler’s digital first-mover advantage is paying off.
Singapore metro buyout not as stingy as it looks 21 Jul 2016 State investor Temasek is offering $870 mln for the remaining 46 pct of local rail operator SMRT. The 9 pct premium looks low for a deal that needs high levels of minority shareholder approval. Factor in the recent overhaul of SMRT's business, though, and it seems much better.
Uber receives ultimate disruptor stamp of approval 1 Jun 2016 The taxi-hailing app has snared a $3.5 bln investment from Saudi Arabia’s Public Investment Fund. It’s not just a hedge against the kingdom’s oil dependency. It also confirms Uber as one of the probable central players in the shift to electric, autonomous vehicles.
Toyota, VW jump on cartech desperation bandwagon 24 May 2016 The Japanese automaker’s deal with Uber and its German rival’s with Gett come after GM invested in Lyft and Fiat Chrysler hooked up with Google. Each can learn from the other, but the technologists see opportunity while the manufacturers have more to fear about their fate.
Uber’s deal with U.S. drivers looks cheap 10 May 2016 Treated as employees rather than contractors, the ride-hailing service might have had to pay them as much as $730 mln more, according to court papers. That makes a $100 mln two-state settlement look like peanuts – another reason why the judge on the case might reject it.
Pooling data is best weapon for Uber’s rivals 12 Apr 2016 Car-hailing services in the United States and Asia are linking apps. The financial benefits from allowing customers to roam overseas are likely to be small. But sharing data and tech insights could help the quartet fight back harder against Uber in their respective home markets.
Rail mega-deal pushed all the wrong buttons 11 Apr 2016 Canadian Pacific’s unsolicited $28 bln offer for rival Norfolk Southern managed to alienate nearly every ally it needed: U.S. regulators, the target’s board, customers, lawmakers and even the American military. The bidder has finally pulled the right lever – eject.
Uber parks itself in a tight legal spot 1 Apr 2016 The ride-hailing service valued at some $63 bln claims its drivers are independent workers not owed benefits. If that’s true, setting the rates they charge might be illegal price fixing, a judge has ruled. The law may need some disruption before Uber can steer clear of court.
Online boom carries windfall to Chinese couriers 23 Mar 2016 Alibaba-backed delivery company YTO has unveiled a $2.7 bln backdoor listing in Shanghai. China’s e-commerce boom means demand for logistics has soared. Though higher wage costs are squeezing margins, growth will continue. Besides, the valuation doesn’t look excessive.
Rail strike is one of a thousand cuts for Wall St 11 Mar 2016 New Jersey transit workers may walk out on Sunday, disrupting travel into New York City. Delays could cost financial firms $2 mln an hour in lost productivity. The unions haven’t had a contract since 2011. For once it’s not regulation, but banks can still blame officialdom.
Australian infrastructure party is getting crowded 18 Feb 2016 The $6 bln-plus bid battle for port and rail operator Asciano has become heated, drawing in backers from Canada, China and Qatar. No wonder: borrowing is cheap and demand for infrastructure investments outstrips supply. This bodes well for future Australian state sell-offs.
Rail mega-deal holds ticket to runaway M&A train 29 Dec 2015 Canadian Pacific’s $28 bln bid for Norfolk Southern involves an industrial buyer facing low growth and an aggressive investor. The offer is unsolicited, cross-border and legally messy. After a record year of mergers, this one transaction foretells much of what to expect in 2016.
Contortions make rail deal tough sell for Ackman 8 Dec 2015 A revised offer from Canadian Pacific for Norfolk Southern, together worth nearly $50 bln, included an interim trust, less cash and finger-in-the-air merger math. The activist contributed 23 pages of slides. NS was too quick to rebuff it. Investors, though, may just be confused.
Container shipping deal stacks up in multiple ways 7 Dec 2015 French giant CMA CGM is buying Singapore’s ailing Neptune Orient Lines for $2.4 billion plus debt. Offering majority owner Temasek and public shareholders close to book value – a 49 percent premium – looks generous. But the unlisted buyer can chart a course to value creation.
Rail deal’s logic loses steam under legal scrutiny 4 Dec 2015 Norfolk Southern rejected a $28 bln bid from Canadian Pacific, which could probably afford up to $33 bln. Regulatory approval is a bigger issue, though. The bar is high for railroad mergers, and this one likely falls short. It may be one deal that shouldn’t have left the station.
Global taxi app alliance will test faith in Uber 4 Dec 2015 Car-hailing firms in India, China, Southeast Asia and the United States will link their apps. It’s not clear how many people will use it or how revenue will be shared. The anti-Uber coalition’s main impact may be on the Silicon Valley darling’s ability to keep raising funds.