Consumer Electronics

Panasonic joins ranks of Japan’s buyout bullies

24 Jan 2017

The electronics group has offered to buy out the remaining 45.5 pct of subsidiary PanaHome for about $515 mln. The stingy deal ignores the target's big cash pile. For all that corporate Japan has reformed, minority investors remain vulnerable to bullying like this.

Optimism stands between Toshiba and meltdown

19 Jan 2017

Reports that the Japanese group may book a worse-than-expected $6 bln writedown sent its shares down 16 pct. That reaction looks mild: if true, Toshiba's book value would be negative. Investors are likely hoping for growth in its chips unit, and a lending hand from local banks.

Samsung leads Elliott outside its comfort zone

19 Jan 2017

A graft scandal and ongoing probe of heir Jay Y. Lee cast uncertainty over the U.S. fund's second big showdown in South Korea. Elliott wants to restructure Samsung Electronics, where it has a $1.2 bln stake. But the activist may now have limited power to influence the outcome.

Market indifference to Samsung swipe unhealthy

11 Jan 2017

Heir Jay Y. Lee is now a suspect in a corruption scandal involving South Korea's president. Yet shares in flagship unit Samsung Electronics comfortably beat an up market. Hardened investors are too used to local company bosses running into trouble – and deftly getting out of it.

Samsung hits a sweet spot in new technology cycle

6 Jan 2017

The world's biggest smartphone-maker expects fourth-quarter operating profit to top $7.7 bln, smashing expectations. As more devices move to new-generation memory chips and displays, Samsung's early investments in those areas are starting to pay off. That bodes well for 2017.

Russian retailer finds tolerable M&A escape hatch

14 Dec 2016

The majority owner of consumer electronics group M.video is selling out to billionaire Mikhail Gutseriev. Given the buyer has scope to drive synergies with similar assets, the 17 pct premium looks slim. Weak Russian growth and online competition make it more palatable.

Philips brightens private equity’s gloomy corner

12 Dec 2016

Apollo has bought the Dutch company's LED and car lighting business for $2 bln. That's 40 pct below a Chinese bid that American regulators blocked on security grounds. Buyout firms can't easily outbid cash-rich Eastern investors. At least they can sometimes pick up the crumbs.

Samsung sets cautious tone with activist fund

29 Nov 2016

The $224 bln giant says it will consider using a holding company structure, a measured but welcome response to Elliott Management's restructuring proposals. Plans to boost dividends and buy back more stock also show the group is serious about improving shareholder relations.

Osram illuminates flaw in German takeover laws

11 Oct 2016

A potential Chinese bid for the lighting group is feeding concern about foreign tech takeovers. No national interest is at stake here and domestic ownership was no bar to job cuts. Other deals may be more ambiguous. Germany lacks a proper framework to address future challenges.

Chips power Samsung and activist case for change

7 Oct 2016

The tech giant shrugged off the impact of its Note 7 fiasco in its quarterly results, thanks to growth in chips. Yet investors undervalue this and other exciting units based on a near 50 pct discount to the sum of its parts. It boosts Elliott's call for the Lee family to act.

Activist attack gives Samsung cover to restructure

6 Oct 2016

Activist fund Elliott is picking on the South Korean group again. This time it wants Samsung Electronics to split in two and pay a special dividend. Yet the proposal would also strengthen the ruling Lee family's control. Samsung may actually gain by cooperating with Elliott.

Elliott puts Asia Inc on notice

6 Oct 2016

The feisty U.S. hedge fund has done a lot to establish activism in Asia, with a number of big wins. Now it wants a radical restructuring at Samsung. The move cements Elliott's reputation for taking on powerful targets and is a strong incentive for Asia's tycoons to behave better.

Renesas programs model outbound Japan deal

13 Sep 2016

The world's No. 3 chipmaker has agreed to buy U.S. peer Intersil for $3.2 bln. Unusually for a Japanese buyer, Renesas has large, clear synergy targets. These are mostly based on higher sales but if achieved, would more than cover the deal's near-$1 bln premium.

Samsung’s next leader faces two big challenges

11 Aug 2016

Heir apparent Jay Y. Lee is up against public mistrust and political uncertainty as he reshapes South Korea's top conglomerate. Fundamental questions of future growth also loom over the empire founded by his grandfather. How Lee navigates the two issues will determine his legacy.