Capital Calls: Peloton, Honest Co, Office Depot 5 May 2021 Concise views on global finance: Treadmill recall leaves investors in the workout app stranded; shares in Jessica Alba’s consumer packaged goods company opened more than 30% above their IPO price; the office-supply company paper-shuffles its way to a higher valuation.
Capital Calls: Endeavor’s Hollywood ending 29 Apr 2021 Concise views on global finance: The entertainment conglomerate’s IPO flipped the script on opening day.
Europe’s $36 bln chip runt is coming into its own 29 Apr 2021 Shares in Franco-Italian STMicro have lagged the soaring semiconductor sector. Now CEO Jean-Marc Chery is boosting sales targets thanks to a global shortage. And his rising market share in cars and digital everyday gizmos should help close the valuation gap with bigger rivals.
European chips champion is puzzle for M&A bankers 21 Apr 2021 The region’s leaders fret about their collective semiconductor shortcomings. An $85 bln union of Infineon and STMicroelectronics would bring heft, plus cost savings to mollify investors. The hard part is getting France and Italy to agree a structure that preserves their pride.
Everyone’s chipmaker deftly tries to please all 15 Apr 2021 A global shortage spotlights TSMC's near-monopoly in manufacturing advanced semiconductors. It's raising capex 66% as earnings soar and foreign governments lobby it to boost output. That’s a huge spending jump but the $560 bln giant has a strong track record of managing risk.
Intel’s big gamble contains contradictions 24 Mar 2021 The chip giant will spend $20 billion so that it can ramp up production of advanced chips for itself and others. This eats up cash flow and exposes a tension. Potential customers may also be rivals that don’t want the U.S. company’s new strategy to be a roaring success.
Capital Calls: Chubb/Hartford, Son of Kozmo 23 Mar 2021 Concise views on global finance in the Covid-19 era: Insurer Hartford rebuffs an offer from rival Chubb without breaking a sweat; snack-delivery outfit GoPuff raises capital at an $8.9 billion valuation, giving new life to an old Silicon Valley idea.
Capital Calls: Airline IPO, Turkey’s central bank 18 Mar 2021 Concise views on global finance in the Covid-19 era: U.S. regional air carrier Sun Country Airlines’ IPO pop is justified by positive cash flow; Turkey shows how emerging-market policymakers face trickier choices than their rich-world peers.
Three-way laser M&A loser will be winner 17 Mar 2021 Lumentum raised its offer for laser-maker Coherent to $6.9 bln, edging ahead of two rival bidders. All look to be overpaying – in Lumentum’s case by around $1 bln. Its shares have fallen as a result. Recovering some of that lost market value wouldn’t be a bad consolation prize.
Capital Calls: TV’s royal boost, Shared offices 9 Mar 2021 Concise views on global finance in the Covid-19 era: Oprah Winfrey’s interview with Prince Harry and his wife Meghan is a boon for ViacomCBS’s streaming ambitions; IWG’s revamp depends on a workplace revolution.
Chip shortages are here to stay, for some 2 Mar 2021 Pandemic-led demand swings and trade wars have left factories short of semiconductors. The chip industry’s too-successful capital discipline is also a factor. The $450 bln industry’s coming splurge on new capacity will benefit smartphone manufacturers more than automakers.
EU chip factory fantasy puts cart before horse 26 Feb 2021 Commissioner Thierry Breton wants an advanced semiconductor plant to cut reliance on Asia. The problem is that Europe’s chip designers and carmakers are ill-equipped to use such a cutting-edge site. Getting them on side, and investing more in research, is the place to start.
Intel fab spinoff might double its value 19 Feb 2021 The $250 bln chipmaker trades at a big discount to both peers that design processors and rivals that produce them. Splitting would help new CEO Pat Gelsinger close the gap. But Intel’s size and worldwide capacity constraints mean a complete separation will take years.
Capital Calls: Disney+, SPAC romance 12 Feb 2021 Concise views on global finance in the Covid-19 era: The entertainment giant’s streaming growth comes at a cost; blank-check companies are trashing all records in 2021.
Europe’s chip M&A invaders merit partial knockback 9 Feb 2021 Germany and Britain must decide whether to allow foreign takeovers of $6 bln Dialog Semiconductor, $5 bln Siltronic and $40 bln Arm. The risk lies in yielding control of scarce, technologically critical assets. In that respect, only the latter two deals are worth blocking.
Japan’s Renesas steers towards chip M&A pileup 8 Feb 2021 It's trying to buy UK-based Dialog for $6 bln less than two years after taking over similarly sized IDT. Booming demand for semiconductors used in cars makes it strategically appealing, but the implied return on investment looks unimpressive. The deal engine could be overheating.
China’s BYD builds sleek concept car factory 27 Jan 2021 The $100 bln electric-vehicle maker’s chip unit is in the spotlight with an upcoming IPO. BYD also produces batteries, giving it an edge over rivals grappling with supply-chain woes. Such vertical integration only looks feasible with generous government support, however.
Chip deal price bump shifts spotlight to Berlin 25 Jan 2021 Taiwan’s GlobalWafers raised its offer for Siltronic to $5.3 bln and cut the acceptance threshold to 50%. It’s probably enough to get the bid over the line. The next question is whether Germany will give up control of a semiconductor supplier. Investors may be too sanguine.
Europe’s chip darling may fall victim to its hype 20 Jan 2021 ASML’s market value has risen by two-thirds in the past year to $230 bln, helped by surging demand for its kit. Yet CEO Peter Wennink will struggle to meet investors’ heady growth hopes. A drawn-out trade war between China and America would make his job even harder.
Samsung boss verdict softens chaebol reform push 18 Jan 2021 Jay Y. Lee has been sentenced to 30 months in prison for bribery, less than what prosecutors requested. The lenient outcome fuels fears that protecting jobs takes priority over reining in South Korea’s powerful conglomerates. Regardless, governance upgrades might be delayed.