Qualcomm’s rebuff only fuels deal hype 13 Nov 2017 The chipmaker says Broadcom’s unsolicited $105 bln offer “dramatically” undervalues it. It’s part of the M&A ritual. Sure, Broadcom might struggle to lift its price much, and there are antitrust risks. But the pressure’s on Qualcomm to sort out its own issues.
China’s JD-Alibaba rivalry enters new phase 13 Nov 2017 A jump in third-quarter sales and a surprise net profit show the $57 bln JD.com is reining in costs while keeping up with its larger e-commerce rival. But Alibaba is muscling in on key JD.com domains like logistics and food. This will add volatility to already thin margins.
Britain brings the gloom to global defence party 13 Nov 2017 Shares in Ultra Electronics fell by almost a fifth after a profit warning due to UK project cancellations and delays. It is a rare sour spot in a sector that has rallied this year. With UK spending tight, mid-market defence groups might face foreign invasions of their own.
Viewsroom: Broadcom $130 bln bid signals market top 10 Nov 2017 The chipmaker’s hostile tilt at Qualcomm is a rare aggressive move in the sector. Qualcomm has its own issues, awaiting approval for its NXP deal and fighting Apple in court. It all suggests the tech sector is too frothy. Plus: Is Hong Kong losing its moxie as a financial center?
Lip-syncing M&A mostly in tune with the times 10 Nov 2017 The company behind richly valued news aggregator Toutiao is buying Musical.ly for at least $800 mln. Bytedance joins other Chinese tech titans in a quest to tap American consumers. Only the decision to sell is out of step. Hot startups typically aim for dominance on their own.
China Literature must summon army of Harry Potters 10 Nov 2017 Tencent’s online publishing arm has 6 mln writers peddling pulp. To justify a $12 bln valuation after a first-day pop, it has to find lots of J.K. Rowlings among their ranks, then conjure value by transmuting their tales into hit films and games. That reads like fantasy fiction.
Singles’ Day is shop window for Alibaba’s new toys 10 Nov 2017 Jack Ma's $480 bln behemoth is set for its annual shopping festival. That means lots of free PR and huge transaction volumes. Ma’s stunts will also show how supermarkets, augmented reality and mobile payments fit together. That will help sell his "new retail" idea to investors.
SoftBank turning deals into mind-bending sudoku 10 Nov 2017 Masayoshi Son’s sprawling group has ploughed $4 bln or so into a separate pot to wall off some taxi-app investments. It also may be angling to treble firepower in the Vision Fund and beyond to an incredible $300 bln. The complexity and potential conflicts are piling up.
Apple has deciding vote in Broadcom-Qualcomm deal 9 Nov 2017 A dispute over iPhone royalties left U.S. chipmaker Qualcomm vulnerable to rival Broadcom’s opportunistic $105 bln bid. Settling could preserve its independence. The question is whether Apple thinks a bigger Broadcom would be slavishly devoted, or even surlier.
ProSieben is the worst show on a lousy channel 9 Nov 2017 The German broadcaster cut its full-year sales target and abandoned a TV-advertising forecast, sending shares down 11 percent. Management churn and an inability to predict the rate of its own decline makes the group more vulnerable than similarly-challenged European peers.
Cox: Lisbon turns Tatooine for tech Rebel Alliance 9 Nov 2017 If the internet world can be likened to Star Wars, its dominant companies are the Death Star – and EU competition enforcer Margrethe Vestager is Princess Leia. But the insurgents descending on Portugal's capital are mostly finding ways to live with, not overthrow, the empire.
Peugeot swerves carmakers’ biggest dilemma 9 Nov 2017 PSA Group is targeting 1.7 billion euros of savings from its purchase of Opel without sackings or plant closures. Renault and Nissan show that’s plausible. Job cuts would make the deal more lucrative and will be hard to avoid across the industry with the rise of electric cars.
Cars are the last big headache for Tata 9 Nov 2017 Newish group Chairman Natarajan Chandrasekaran has moved swiftly, tying up loose ends in steel and telecoms and reducing cross-shareholdings. The money-losing Indian unit of the $21 bln Tata Motors may be the toughest challenge. Even here, there are signs of a turnaround.
Tencent and Snap send short message to Facebook 8 Nov 2017 The owner of China’s killer app WeChat now owns 12 pct of its struggling vanishing-photo peer. Even though the shares are non-voting, Snap has reason to embrace a powerful new friend. And Tencent will be slightly better positioned should Facebook get an entry visa from Beijing.
Hong Kong’s IPO market is turning Chinese 8 Nov 2017 China Literature smashed the chandeliers in its $1.1 billion Hong Kong debut, soaring more than 80 pct in early trade. As local punters swarm into mainland tech, the new-issue market is mimicking distortions common in China. For the exchange, it's a good problem to have.
China’s Sina fires up governance Wayback Machine 8 Nov 2017 Days after escaping a board insurgence effort, the web outfit issued new stock that hands control to its chairman. It retroactively aligns Weibo's parent with Silicon Valley structures just as momentum swings against them. It's a bad turn for China Inc that also cost $500 mln.
Broadcom grows its way to strategic dead end 7 Nov 2017 The acquisitive chip company has become so big that it needs to take larger and riskier bets to maintain its super-charged expansion. Its $130 bln unsolicited offer for Qualcomm qualifies on both counts. If successful, Broadcom will be short of targets that can move the needle.
Bill Ackman is losing his touch 7 Nov 2017 Fewer than one ADP shareholder in four backed the activist's bid for board seats at the payroll processor. That puts his Pershing Square hedge fund on a three-year losing streak after failed bets at Valeant and Herbalife – and makes it easy for other firms to ignore his demands.
Hong Kong tech fervour defies Western IPO wobbles 7 Nov 2017 Investors have snapped up shares in Razer, a maker of keyboards for gamers, and China Literature, an electronic publisher backed by Tencent. That contrasts with signs of IPO fatigue in New York and London. Limited supply, particularly in tech, has helped keep the market healthy.
Broadcom deal cements boutiques’ M&A takeover 6 Nov 2017 Moelis is heading up the chipmaker’s $105 bln Qualcomm bid. It’s not the largest transaction an independent adviser has led, but it’s striking for one so dependent on financing. With smaller firms now prominent in most big deals, the bulge bracket risks becoming just dumb money.