Technology

Capital Calls: CPPIB, Barclays, McPlant, DoorDash

26 February 2021

Concise views on global finance in the Covid-19 era: Canada Pension Plan Investment Board's CEO is booted for jab-line jumping; the UK bank wins a legal, if not ethical, victory over financier Amanda Staveley; Beyond Meat partners with McDonald’s and Yum; and DoorDash is too hot.

EU chip factory fantasy puts cart before horse

26 February 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.

Guest view: 2021 is tipping point to hit net zero

25 February 2021

Economic crises often see innovation budgets cut. With energy efficiency trends worsening governments must hold the line, urge IRENA’s Francesco La Camera and the IEA’s Fatih Birol. A big chunk of decarbonisation will come from technologies that are still at the prototype phase.

Klarna listing would be a mixed blessing

25 February 2021

The Swedish fintech’s next funding round could value it at $30 bln, and it’s mulling a direct listing. Allowing early investors to cash out carries obvious appeal. The downside is there would be a daily commentary on Klarna’s regulatory risks and shortcomings relative to rivals.

Capital Calls: Soho House, Aston Martin

25 February 2021

Concise views on global finance in the Covid-19 era: The private members’ club shrugs off lockdowns to plan a New York IPO; The loss-making luxury carmaker’s shareholders need to buckle up.

Tax gains not enough for $12 bln drug-trial deal

24 February 2021

Icon is buying clinical-trials outsourcing rival PRA Health for a mix of cash and stock. The deal brings cost savings, expansion, and even tax savings on the combined business thanks to the acquirer's Irish abode. But at 5%, the return on investment still isn’t attractive.

Vodafone mast carve-out sharpens growth challenge

24 February 2021

The 39 bln euro phone firm’s Vantage Towers unit may be worth 14 bln euros when it lists in March. Selling a stake helps CEO Nick Read cut debt but gives him less protection from disgruntled investors. Fortunately, Vodafone’s core service business is recovering just in time.

Carlos Slim’s KPN cash call includes buyout cover

24 February 2021

The Mexican mogul raised 2.1 bln euros from negative-yield bonds that can flip into a 16% stake in the Dutch telecom operator. If KPN treads water, Slim can keep his stock and repay less than he borrowed. If it’s snapped up by a predator, he still gets some of the upside.

Ant’s loss is small Chinese banks’ loss too

22 February 2021

Regulators will require online credit providers to fund 30% of loans made with commercial banks. That’s manageable for Jack Ma’s outfit, though it dims the $300 bln valuation it once enjoyed. But many small banks rely on fintech allies for growth. New rules constrain that too.

Big Tech’s foes try out “man bites dog” strategy

19 February 2021

Some U.S. lawmakers want to let small news outlets collude when dealing with Facebook and Google. The idea of empowering the weak as well as taming the strong has merit. But it won’t help little firms enough to save them, or do much to shift the balance of power.

Europe is now the main front in gig economy war

19 February 2021

Britain’s top court ruled that a group of Uber drivers are entitled to worker rights. Spain is also cracking down. It’s a stark contrast to America, where a California ballot win gave the sector hope. Tougher rules mean a longer path to profit – and higher prices for consumers.

Intel fab spinoff might double its value

19 February 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.

Review: Bill Gates engineers climate risk clarity

19 February 2021

In “How to Avoid a Climate Disaster” the Microsoft founder argues states should throw money at climate change research. Technology will indeed be critical in figuring out how to eliminate carbon emissions. But his book’s main quality is to define the challenge in a graspable way.

Capital Calls: Petrobras

19 February 2021

Concise views on global finance in the Covid-19 era: Brazil's president becomes Petrobras' activist.

Capital Calls: Walmart, Buffett/Chevron

18 February 2021

Concise views on global finance in the Covid-19 era: Walmart gets an unfair ding from investors over its latest earnings report; and the Sage of Omaha takes another bet on the profit still to be made from fossil fuels.

Facebook and Google flaunt dominance Down Under

18 February 2021

The social network blocked news in Australia in defiance of Canberra’s effort to make it pay publishers. The search titan’s deals with Rupert Murdoch’s empire and others may protect it from wider oversight. Government and media have only chipped off fragments of Big Tech’s clout.

Capital Calls: Tribune, Shopify

17 February 2021

Concise views on global finance in the Covid-19 era: Chicago Tribune sells to a hedge fund known for stripping out newsroom costs; Shopify’s strong year doesn’t shield it from competition.

Darktrace is ultimate test of IPO risk appetite

17 February 2021

The cyber group’s top investor, Autonomy founder Mike Lynch, is facing U.S. extradition on fraud charges. Its top ranks are packed with his former colleagues. UBS has dropped out of the $5 bln listing. Pushing ahead despite such red flags suggests investors may pinch their noses.

South Korea’s Coupang is less Amazon, more Walmart

16 February 2021

The e-commerce group might be worth over $50 bln in its New York IPO valued as the former, or about $10 bln as the latter. Coupang is loss-making in a small retail market. Success in new areas like food delivery could justify a premium but the growth outlook deserves caution.

Three-way laser war will incinerate value

12 February 2021

Coherent’s $6.4 bln takeover offer from II-VI is the laser maker’s third in a month. Original bidder Lumentum looks outgunned, since II-VI and MKS have more strategic fit and can theoretically afford to offer more. But Coherent is already overpriced, and passions are kicking in.