Americas

Remington deal fight is all about guns’ taboo

1 Apr 2024

Political backlash made gunmakers the orphans of capital markets, leaving the 208-year-old ammo brand to be fought over by unusual suspects: a Czech firm drawing national security scrutiny and a former insider. Investors’ retreat ensured a scrappy end for the military supplier.

Odd Washington deal creates anti-M&A synergy

28 Mar 2024

Senators on opposite ends of the political spectrum are joining forces to stop stock swaps like Capital One’s $35 bln Discover deal from being tax-free. The proposal probably wouldn’t generate much revenue. It does, however, build on the movement against corporate concentration.

Central banks’ noise helps dollar – and Joe Biden

28 Mar 2024

In February, traders’ hopes of rate cuts by the Federal Reserve sent the currency lower. But it has risen 1.8% in March, partly due to policymakers’ mixed messages. Until the fog clears, the greenback will rule forex markets. That curbs US inflation and may benefit the president.

Shein’s fast fashion comes with fast-finance risks

28 Mar 2024

Influencers and US shoppers love the online retailer, but the one product that’s not yet for sale is the company’s shares. If all goes very right, a $200 bln valuation in a mooted IPO isn’t unthinkable. Yet Shein’s business model may shift as quickly as its cut-price clothing.

Eni’s green shoots are taking time to blossom

28 Mar 2024

Italy’s $53 bln energy major trades at a discount to rivals. An overhang from Rome’s potential stake sale and falling gas prices are drags. But CEO Claudio Descalzi’s plan to raise cash by spinning off energy transition-focused business units is also yet to fully shape up.

Europe’s IPO window opens slowly for buyout barons

28 Mar 2024

CVC floated beauty retailer Douglas, whose shares fell, while EQT received a warmer welcome for skincare group Galderma. In this Viewsroom podcast, Breakingviews columnists explain how to interpret the mixed message for private equity groups sitting on $3 trln of unsold assets.

Blackstone cures two ailments in one Moderna shot

27 Mar 2024

Higher costs of capital are pressuring CEOs into tough spending decisions, while buyout shops flush with cash want to deploy it. This dynamic makes a $750 mln deal to fund a biotech project a crafty solution. The hard end of the bargain: ceding value from promising flu research.

Credit card suit takes swipe at perks programs

27 Mar 2024

A $30 bln settlement in a decades-old lawsuit will compel payment networks Visa and Mastercard to let retailers charge customers more to use certain cards – and to tell them why. As shoppers take notice, they may cool on fancy rewards programs.

Packaging deal’s US interloper may end up as pulp

27 Mar 2024

New York-listed International Paper proposed merging with $7 bln DS Smith as an alternative to the target’s union with UK peer Mondi. But the intruder’s premium offer crumpled in value as its own share price fell. It now faces the tough choice of either retreating or overpaying.

LNG angst seeps from consumers to producers

27 Mar 2024

A few years ago, supplies of liquefied natural gas were scarce and prices sky-high. Extra capacity arriving this decade means there could soon be a price-sapping glut. Big suppliers like Qatar and Shell have long-term contracts that can ease the pain, but only up to a point.

McDonut is a happy meal without M&A mess

26 Mar 2024

Krispy Kreme will sell donuts at McDonald’s, sending shares in the pastry maker up 25%. That cuts costs to build stores, akin to synergies, while the $200 bln burger chain takes on little risk. In a world with high rates and harsh trustbusters, it’s a smart twist on dealmaking.

Hermès lawsuit attacks luxury’s FOMO premium

26 Mar 2024

A suit against the $274 bln fashion house claims it’s so hard to buy a Birkin, it’s illegal, alleging the handbag’s must-have aura lets the company force purchases of unwanted extras. If successful, it could crimp both Hermès’ top growth areas and ultra-luxe goods’ mystique.

Collapsed US bridge spans hard assets to high-tech

26 Mar 2024

The Baltimore tragedy compounds Suez and Panama Canal shipping woes. Fallout from Los Angeles port closures illustrates how wide-ranging costs can be. For investors swept up in AI fervor, it’s a reminder that the value of intangible IP depends heavily on tangible infrastructure.

Capital Calls: Shell and Russia

26 Mar 2024

Concise views on global finance: Russian state giant Gazprom will buy the British energy major’s 27.5% stake in a major Siberian liquefied gas field for the equivalent of $1 bln. Shell is however unlikely to be able to get hold of the cash any time soon.

Big banks’ shock absorbers are still far too slim

26 Mar 2024

Credit Suisse and a string of US regional banks failed last year. In this Exchange podcast, Stanford Professor Anat Admati argues that lenders’ equity buffers are punier than they seem – and that fixing the problem needn’t cause a credit crunch.

How to get the best new boss for Boeing? Ask GE

25 Mar 2024

Dave Calhoun failed to fix the 737 MAX maker’s problems; ensuring its next CEO does better requires financial incentives equal to the mammoth task. Engine manufacturer GE’s controversial $232 mln inducement for boss Larry Culp offers a blueprint, if Boeing avoids its missteps.

Nordstrom take-private would strike a hard bargain

25 Mar 2024

The department store chain’s founding family is again mulling a buyout, Reuters reported. Sagging shares and weak results make it a target. Wringing out high enough returns to make a deal worthwhile requires both holding a stern line on price and dramatically reigniting growth.

Donald Trump’s paper payout defies financial truth

22 Mar 2024

Shareholders of a blank-check vehicle agreed to buy his nascent social media firm, valuing it at about $5.6 bln. If all goes to plan, the Republican candidate could add 55% of that to his net worth. On any objective measure, though, his Truth Social platform is worth much less.

Energy firms can’t all be better than average

22 Mar 2024

The industry’s big event in Houston saw oil, gas and renewable firms believe in different realities, mixed with resentment of being overlooked and supposed government favoritism. But in a commodity industry, low cost eventually wins, and that is renewable fuel.

Unbundling Paramount is better for almost everyone

22 Mar 2024

Buyout shop Apollo is offering $11 bln for the media empire’s studios, home of “Mission: Impossible.” That’s a complication for Shari Redstone’s push to sell her controlling stake and salvage her family business. Other investors are better served by a breakup’s cash lifeline.