Americas

Slim pickings for Slim in $6.5 bln Telmex tender

2 Aug 2011

The Mexican mogul’s America Movil is buying out the remainder of the country’s shrinking fixed-line carrier at a premium valuation relative to its own. That looks like a bad exchange. Without a solid explanation, it’s easy to see why investors sliced $4 bln off Movil’s value.

Investors right to shake up S&P parent

2 Aug 2011

An Ontario pension fund and JANA Partners have bought 5 pct of McGraw-Hill and want strategic changes. The $13 bln textbook-to-credit rating group trades at a discount and is already considering its options, but restless investors may force action sooner rather than later.

Loss of bankruptcy card would weaken cities’ hand

2 Aug 2011

In high-stakes talks with unions and bondholders, the threat to file for protection in U.S. court gives local officials leverage. But states are blocking that option, fearing it spooks markets. For teetering local governments, the alternatives may be costly defaults or bailouts.

Kirin pays high price for being late to the party

2 Aug 2011

The Japanese beer group, which like its domestic rivals has belatedly woken up to global M&A, is paying $2.6 billion for 50.45 pct of Brazil’s Schincariol. The brewer, a distant number two, offers a so-so market position - certainly not one worth more than 100 times net income.

Sweeter PR not enough to revitalize M&A deal

1 Aug 2011

U.S. reinsurer Validus may hope that by switching flacks in the heat of battle it can persuade its shareholders to like the bid for $3.2 bln rival Transatlantic they have so far scorned. But messaging doesn’t win deals, numbers do. On that score, Validus isn’t far enough ahead.

Weak U.S. growth could swamp $1 trln deal on cuts

1 Aug 2011

The debt ceiling is set to rise. But Friday’s anemic GDP report casts doubt on the associated deficit reductions. On a simple analysis, if the official 3.25 pct economic growth assumption for 2011-16 falls short by 0.5 percentage point, the expected initial cuts disappear.

Bipartisan dislike of U.S. budget deal a good sign

1 Aug 2011

If a sign of compromise is a frown from both sides, then Congress is close to an equitable agreement. Members of both parties have major gripes about the debt deal cooked up by their leaders. Importantly for markets, the compact would maintain momentum for further fiscal fixes.

Pemex scandal highlights need for restructuring

1 Aug 2011

Long treated as a cash machine by the Mexican government, the national oil group also now appears to have been milked by criminal gangs to the tune of $600 mln just last year. Though imperfect, Latin rivals like Petrobras and Ecopetrol offer models Mexico should emulate.

Foreign borrowing undermines China’s tightening

1 Aug 2011

Better-than-expected factories data shows China hasn’t over-tightened. Beijing has curbed domestic loans, but Hong Kong banks are lending and offshore bond issuance also surged. The practice adds risk for foreign investors, and hinders China’s efforts to squash inflation.

How much is Comcast on the hook for with NBC?

16 Dec 2009

Brian Roberts, the cable group’s boss, said buying control of GE’s media business made him “strategically complete.” But if NBC Universal keeps growing, GE’s remaining stake could be worth some $20 bln in a few years. Thankfully, however, the deal could end up paying for itself.

Would California work better as four states?

21 May 2009

Bankers need to learn from bakers

27 Nov 2008

The baking business runs very smoothly. Bread is delivered in the desired quantities, technology advances (sliced bread was not the last word) and consumer tastes are satisfied. But add an “n” and the picture changes. As a business, banking is much less healthy.

Hapless policymakers: Bernanke is as much to blame as Greenspan

11 Mar 2008

Why isn’t every bank like Goldman?

18 Jan 2008

Ironically, it’s because they tried to copy Wall Street’s most successful firm. The banks most scarred by the subprime debacle - like Citi, Merrill and UBS - were infected by what could be called “Goldman envy”. Those that emerged unscathed were relatively immune to the disease.

Inefficient Market: Blackstone Letter

14 Jun 2007

Ponzi nation

8 Feb 2007

Inefficient market: The Perils of Tanzi finance

19 Feb 2004