Americas

Three-edged blade sharpens case for carve-ups

4 Sep 2012

In a 48-hour span, shares in U.S. government contractor SAIC got a lift from a decision to split the company; DuPont unloaded a slow-growing unit for a good price; and a new study found value creation from divestitures. The fresh evidence should grab the attention of more boards.

Valeant deal shows how big M&A can add value

4 Sep 2012

Large acquisitions usually merit skepticism. Valeant’s $2.6 bln deal for Medicis looks an exception. The Canadian-U.S. drug maker is paying a $700 mln-plus premium for its rival, but cost cuts could be worth more than twice that. And the fit is good. No wonder both stocks surged.

Investors need steel to endure next market phase

4 Sep 2012

Global equities had a good summer. Many indexes are ahead 10 percent since early June. Optimism has also showed in shifting bond yields. The world still has serious problems, and near-term reversals are possible. But asset allocators should hold their nerve.

Apple may bury hatchet with Google – just not yet

31 Aug 2012

It’s no shock their chiefs are talking. The iPhone maker’s sweeping U.S. patent win over Samsung and its Google-run devices is a blow to the search giant too. But the rivals’ clashing business models make peace difficult. Apple may first try to push its legal edge a bit further.

U.S. political prattle gives markets just a morsel

31 Aug 2012

The Republican powwow boiled down to a pep rally for Mitt Romney, not an occasion to unveil platform specifics. Expect similar vagueness from the Democrats next week. Investors needn’t fret, though. Rhetoric will reign until debates force candidates to flesh out detailed plans.

Argentina’s new YPF out to prove it’s no PDVSA

31 Aug 2012

Repsol’s old stake in the energy company was snatched by the government. But now YPF is touting itself as a well run, commercial operation. It wants to borrow in international markets and needs partners like Exxon and Chevron. They have a chance to strike decent deals.

Put Dylan’s tangled bond in the credit watchtower

31 Aug 2012

Goldman Sachs is said to be working on a tiered bond secured on Bob Dylan royalties. Investors’ blood may run for the freewheelin’ early tracks. Modern times material may be attractive too. But the street rocking 1980s stuff could leave junior creditors blowing in the wind.

New rules help Citi get off easy in CDO payout

30 Aug 2012

The bank’s $590 mln settlement with shareholders seems big, but it’s modest next to sums extracted in past scandals. One reason is courts have recently made it tougher for investors to sue. That may shield some financial rogues, but it helps ensure only true victims get paid.

Does a Wall Street M&A addict ever retire?

30 Aug 2012

Eric Gleacher, a veteran of the landmark RJR and Revlon buyouts, may sell his eponymous advisory firm - again. The former Lehman and Morgan Stanley mergers boss has sold and bought it before. At 72, an exit could be his swansong. Or maybe Gleacher just lives for doing deals.

Captain Austerity lurks in shadows of GOP fiesta

30 Aug 2012

Nobody is uttering the A-word from the podium of the Republican convention in Tampa. But between the lines of speeches and in private conversations there’s little doubt that European-style belt-tightening will be required for Romney to fulfil his promise of fixing America’s finances.

GOP should be careful what it wishes for with Fed

29 Aug 2012

“Bye bye Bernanke” is one rallying cry at this week’s Republican convention. It’s a good sound-bite, but it comes over as an attack on the U.S. central bank’s cherished independence. A more constructive tactic would be to outline how the GOP thinks the Fed should be constrained.

Ex-FBI boss may land on GOP most-wanted list

29 Aug 2012

Louis Freeh, who has led high-profile probes at MF Global and Penn State, is merging his law firm with a bigger shop. It makes business sense and the timing looks opportune. Though it may be coincidence, Freeh would enhance the law-and-order chops of a Romney administration.

Quebec separatism not an economically foolish idea

29 Aug 2012

Coming elections could return to power the political party that lost independence referendums in 1980 and 1995. Though the impulses of Parti Quebecois may be cultural, an independent Quebec would boast abundant resources and a surplus of clean energy. It could potentially be rich.

Uniting fractured GOP on finances could be winner

28 Aug 2012

In a tight election, a divided Republican party won’t beat President Obama. His opponent, Mitt Romney, must bring together old-school conservatives, Austrian economists, Bible beaters and tea partiers by focusing on common ground: repairing Uncle Sam’s balance sheet.

Romney’s U.S. oil gusher would only be a trickle

28 Aug 2012

The Republican presidential nominee boasts he can boost domestic production by opening more federal land to exploration. But his claim that 62 pct of Uncle Sam’s crude is off-limits is misleading. Ecological havens aside, Big Oil already has the run of America.

Jury’s haste takes shine off Apple’s victory

28 Aug 2012

Panel members ignored instructions, miscalculated damages and generally seemed more eager to wrap up the case than get it right. That could help Samsung overturn the $1.1 bln verdict. Even if it doesn’t, though, the judgment reveals how legal complexity muddles the smartphone wars.

Central bankers should discuss string theory

28 Aug 2012

No, monetary strongmen shouldn’t turn to abstruse physics at their annual global confab in Jackson Hole this weekend. They should worry about the possible effect of repeated pushes on monetary strings. Huge wads of money can produce not much growth and too much inflation.

Peace with rebels would solidify Colombia’s gains

28 Aug 2012

President Santos may start talks with FARC guerillas. Thanks to improved security, Colombia has already seen what amounts to a peace dividend. Still, lower military costs would further improve its finances, and coaxing fighters out of the jungle could boost economic confidence.

New York bank merger may be too good to be true

27 Aug 2012

M&T is set to pay $3.7 bln for Hudson City, less than tangible book value and only a 9 pct premium. The deal expands M&T’s reach, solves Hudson City’s troubles and boosts capital and earnings. Savings cover the premium without big job losses, too. The big risk is a rival offer.

Outfoxed Bill Ackman tries to guard mall henhouse

27 Aug 2012

The hedge fund boss is upset at how Brookfield, a fellow owner of $19 bln GGP, raised its stake in the U.S. shopping center operator. But the tactics could have come out of Ackman’s own playbook. Even so, he’s on target in suggesting what GGP should do next.