Capital Calls: JEDI’s demise, Toyota’s weird world 6 Jul 2021 Concise views on global finance: The cancelation of a $10 bln U.S. government cloud contract shows negotiating big projects is sometimes a matter of guesswork. Meanwhile, the auto firm that pioneered just-in-time manufacturing is cashing in on a chip stockpile and red-hot market.
Getlink’s Brexit blues may have happier M&A ending 25 Jun 2021 The $9 bln Channel Tunnel operator has been hit by travel curbs and reduced UK-France trade. Shares a fifth below pre-Covid peaks don’t reflect recovering traffic flows or duty-free sales. A decades-long concession increases the appeal to yield-hungry infrastructure funds.
Self-driving truck race suffers from major traffic 23 Jun 2021 Embark, which automates big rigs, is worth $5.2 bln in a SPAC deal with smart-money PIPE investors and Trump’s former transport boss on the board. Its strategy might please shippers and truck-makers. The valuation isn’t bad. But competitive and regulatory roadblocks lie ahead.
Didi IPO runs into flashing regulatory yield sign 17 Jun 2021 Beijing trustbusters are probing the ride-hailing giant as it readies a market debut. Its dominance at home depends less on the anticompetitive tactics used by tech peers. Abrupt crackdowns on Ant and other industries, however, mean investors have been warned of the risks.
Waymo proves moonshots work better in the dark 16 Jun 2021 Alphabet’s self-driving unit snagged $2.5 bln of new funding despite executive departures and slow progress on its driverless cars. Waymo dealt with its potholes in private. Speculative businesses going public through SPACs may not get the chance to learn from their mistakes.
Calculator: Didi’s valuation drive 16 Jun 2021 China’s Uber is hoping its IPO will raise $10 bln, which would give it a $100 bln price tag. Justifying that target on current form requires a rich valuation multiple on par with the one sported by Southeast Asian super-app Grab. Barring that, Didi will need to accelerate growth.
Didi embarks on ultimate IPO road-test 11 Jun 2021 The Beijing-based ride-hailing giant, last valued at $62 bln, unveiled plans to go public in New York. It’s growing quickly, but cruising into record-high markets, U.S. political pressure on Chinese issuers and tech crackdowns at home. The fare could be steep for new investors.
Truck-sharing IPO hurtles down risky road 1 Jun 2021 The $20 bln valuation China’s Manbang is targeting is an axle-stressing 465 times last year’s small adjusted profit. The SoftBank-backed firm operates in a fast-growing market, but faces stiff competition and heightened regulation. Justifying the IPO price will be a long haul.
Capital Calls: Uber union 26 May 2021 Concise views on global finance: UK union’s success in representing drivers may hit potholes in the United States.
FirstGroup rebels may rue waiting for the next bus 25 May 2021 Two shareholders of the UK transport operator may vote against a $4.6 bln sale of its U.S. businesses to EQT. While no knockout, the price looks fair given the lack of other certain offers. A delay could destabilise the company when it needs to focus on opportunities at home.
Capital Calls: Apollo, Microsoft 20 May 2021 Concise views on global finance: The second of the asset manager’s three founders moves on; the software firm is pulling the plug on Internet Explorer.
UK shunts Trainline into financial slow track 20 May 2021 The 1.5 billion pound rail ticket website’s shares fell 30% on concerns that a state-backed app will topple its dominance. They are likely to fall further as greater competition squeezes profitability. KKR’s decision to IPO the business two years ago looks all the more timely.
Capital Calls: JPMorgan, FirstGroup, Break fees 18 May 2021 Concise insights on global finance: Jamie Dimon is shuffling his deputies; the UK bus-to-rail group’s sale of its U.S. businesses to EQT has hit an investor revolt; deals involving AT&T and Canadian National Railway highlight the fees due for walking away.
Capital Calls: Train bidding war 14 May 2021 Concise views on global finance: Canadian National increases its bid for U.S.-based Kansas City Southern.
Hertz Robinhood squad is right for wrong reasons 13 May 2021 The rental-car firm’s shares retained value through a restructuring process, partly thanks to retail investors' enthusiasm. After a bankruptcy-exit auction, shareholders are set to collect cash, shares and such worth over $1 billion. Next time, disappointment is more likely.
Capital Calls: Amazon EU tax win, Scooter SPAC 21 Jan 2022 Concise views on global finance: Jeff Bezos’s e-commerce giant wins a victory over the European Union, but the battle has already moved on; Bird’s $2.3 billion price tag is relatively high but less pie-in-the-sky than some recent deals.
Uber’s path to profitability runs through rides 5 May 2021 Food-delivery sales helped plug holes left by a 65% decline in revenue for the rides division. Yet carting people has been profitable through the pandemic while delivering food has not. As the recovery takes hold, the app’s core business will put it in the black.
Customers can win, too, in big U.S. mergers 4 May 2021 It’s easy to doubt trustbusters’ ability to hold giant companies to account. But as railroads have shown, consolidation doesn’t mean that end users are gouged. Shareholders have won out, too, suggesting there is give-and-take. That’s the best regulators can hope for.
EQT pays an electrifying price for U.S. bus ride 23 Apr 2021 The Swedish buyout group is acquiring two of travel operator FirstGroup’s North American units for $4.6 bln. It’s a punchy valuation. To earn a decent return, EQT will have to boost growth by converting the iconic yellow school bus network into a fleet of clean electric vehicles.
Trains counterbid has reasons to go off the rails 20 Apr 2021 Canadian National’s $34 bln offer for railroad operator Kansas City Southern thumps rival Canadian Pacific’s bid. Both offers push financial and regulatory limits. In a sector chugging towards consolidation, the interloper has little to lose by trying to thwart its competitor.