TCI does good work as conflicted trains M&A broker 8 Sep 2021 Chris Hohn’s fund wants Canadian National to drop its bid for Kansas City Southern and leave the floor to Canadian Pacific. An investor who owns stakes in both bidders is not an impartial mediator. But Hohn is right to try to stop a tussle that will lead to the victor overpaying.
Just Eat Takeaway is looking like an M&A leftover 17 Aug 2021 The 15 bln euro delivery company made a smaller-than-expected loss in the first half. It’s still battling a tough U.S. market and needs to step up investment in Europe. A cheap valuation and restive shareholders would make it hard for CEO Jitse Groen to fend off an offer.
Aviva’s next challenge is to show it can grow 12 Aug 2021 CEO Amanda Blanc is returning 4 bln pounds to investors in the British insurer after flogging assets worth more than 7 bln pounds. The knottier problem is to extract more earnings – and dividends – from a smaller, simpler business. Reduced debt leaves some room for acquisitions.
Capital Calls: Bank mergers, GlaxoSmithKline 28 Jul 2021 Concise views on global finance: U.S. lender Citizens helps make the case for consolidation with its $3.5 billion acquisition of New Jersey-based Investors Bancorp. A pandemic drug bounty may help the UK pharma group’s CEO Emma Walmsley see off activist Elliott.
Capital Calls: Grill makers cook their IPOs rare 27 Jul 2021 Concise views on global finance: Weber and Traeger set conservative prices for their market debuts, leaving something on the table for new investors.
GSK’s messy split opens door to cleaner M&A cure 26 Jul 2021 The British drugmaker could sell its consumer unit after pressure from activist Elliott. The maker of Advil painkillers might be worth $70 bln to a bidder like Procter & Gamble. A sale would mean a faster exit and raise more cash than CEO Emma Walmsley’s spinoff plan.
Elliott aims for a more bite-sized Duke Energy 20 Jul 2021 The activist investor wants the large U.S. utility to split in three. That might help the parts to be better run, but they would also be easier to sell, and regulators might be more likely to let such deals through. A carve-up could be the cure for Duke’s underperformance.
Capital Calls: U.S. jobs, Fitness IPO 7 Jul 2021 Concise views on global finance: U.S. employment vacancies tip scales towards workers; Mark Wahlberg-backed F45’s IPO values it at twice what an attempted SPAC deal did last year, justifiably.
Elliott’s GSK shot tests sickly CEO’s immunity 1 Jul 2021 The activist fund wants the $98 bln drugmaker to conduct a formal search for a new boss before spinning off its consumer unit. That’s a challenge to Emma Walmsley, who plans to remain in charge. A long wait until the next shareholder vote buys time to strengthen her defences.
JD’s governance upgrade starts in Hong Kong 23 Jun 2021 The $112 bln e-tailer is adopting investor-friendly measures like holding annual meetings and allowing the board to convene without boss Richard Liu. JD now has a female director, too. The city’s listing rules are driving some changes, and more can be done. But it’s a start.
Capital Calls: GameStop is a SPAC now 22 Jun 2021 Concise views on global finance: The meme-stock video-game retailer has raised more cash, making it look like an overvalued cash shell.
Bolloré and Ackman will beat the Vivendi activists 15 Jun 2021 Agitators including Dan Loeb own stakes in the French tycoon’s conglomerate. A messy plan to list most of music label Universal, while selling 10% on the cheap to Bill Ackman’s SPAC, gives them plenty to aim at. But Vincent Bolloré’s near-30% control means he has the upper hand.
Capital Calls: Corporate America blowback 15 Jun 2021 Concise views on global finance: An investor lawsuit against Trump-era rules on shareholders' proposals is the latest sign of the tables turning.
Fashion moves to the centre of activist crosshairs 14 Jun 2021 Covid-19 has exacerbated the $2.5 trln industry’s ESG-unfriendly flogging of cheap clothes. Recycling is no more than a partial fix for the problem. Inditex and H&M are insulated by their big family holdings, but Boohoo, Adidas and ASOS look vulnerable to investor attacks.
Toshiba mess will be useful national embarrassment 10 Jun 2021 An independent probe found the $20 bln Japanese conglomerate sought to subvert shareholders in conjunction with the government. The findings intensify pressure for a sale, bolster the broad case for activist investors and should kick Japan’s governance changes into higher gear.
Aviva activist is part outrider, part salesperson 8 Jun 2021 Cevian Capital has taken a 5% stake in the 16 bln pound UK insurer. Unusually for an activist, it likes boss Amanda Blanc’s current strategy. But it gives her cover to move quickly, and also sets Aviva on a similar path to the lucrative exit Cevian managed at fellow insurer RSA.
Pharma CVRs are an unhealthy M&A habit 4 Jun 2021 A lawsuit claims Bristol Myers slow-walked a cancer drug approval to avoid a $6.4 bln top-up payment on its buyout of Celgene. Aggrieved investors may get something but should have known better. Contingent value rights are illiquid, dispute-prone and best given a wide berth.
GSK’s radical surgery is only a partial fix 3 Jun 2021 GlaxoSmithKline CEO Emma Walmsley is breaking up the $96 bln drugmaker. Spinning off the consumer unit may unlock value and give what’s left firepower for deals and drugs. Yet the split carries risks and will still leave the embattled pharma group facing a lengthy turnaround.
Viewsroom: Big Oil’s global blow 27 May 2021 A small activist fund upended Exxon Mobil’s board while Shell was dealt a setback in a Dutch courtroom. At the same time, Chevron shareholders backed a proposal to cut more emissions. The interests of both stakeholders and shareholders are rapidly aligning in fossil fuels.
Oil giants’ setbacks turn BP from tortoise to hare 27 May 2021 Investors were initially sceptical about the UK major cutting fossil fuels, preferring the fuzzier plans of its U.S. and European rivals. Shell’s legal defeat and an investor revolt at Exxon Mobil change the game. Clarity on cutting emissions will increasingly support valuations.