Corporate Governance

Capital Calls: AMC craziness, Pro lacrosse

2 Jun 2021

Concise views on global finance: The movie-theater chain raised $230 million from a hedge fund, which promptly sold the shares at a profit; New England Patriots owner Robert Kraft and Alibaba's Joe Tsai are betting on the latest U.S. effort to professionalize the preppy sport.

End the Olympics once and for all

2 Jun 2021

The Tokyo games are a Covid calamity. Beijing as 2022 host is turning into a bitter referendum over human rights. Pierre de Coubertin’s noble mission has been corrupted, distorting sports and urban economies. Sponsors and athletes have other options. Pass the torch elsewhere.

Capital Calls: BlackRock/Exxon, Media deals, SPACs

25 May 2021

Concise views on global finance: The giant asset manager will vote for three dissident nominees for Exxon Mobil’s board; boutique adviser LionTree has benefited from a rash of media deals; Lordstown Motors show why blank-check merger projections can’t be relied upon.

Lufax buyback boosts case for direct listings

25 May 2021

Just seven months after an IPO where raising capital was not the main goal, the $31 bln Chinese online lending service is repurchasing a slug of its stagnant shares. Such quick reversals hardly inspire confidence. It’s one more reason to consider new stock-issuance alternatives.

Capital Calls: “Friends” reunion, SPACs in D.C.

24 May 2021

Concise views on global finance: AT&T's HBO Max is streaming a delayed 25-year reunion of the popular sitcom cast just as the company ditches its media assets; busybody U.S. Congress is taking a hands-off approach to blank-check firms.

Capital Calls: Bitcoin, Procore

20 May 2021

Concise views on global finance: Getting paid in cryptocurrencies loses allure in U.S. President Joe Biden's tax plan; the $11 bln building software firm is a bargain compared to peers.

Capital Calls: Endeavor’s Hollywood ending

29 Apr 2021

Concise views on global finance: The entertainment conglomerate’s IPO flipped the script on opening day.

Guest view: A qualified opinion on UK audit reform

28 Apr 2021

Corporate collapses like Carillion and Thomas Cook highlight flaws in accounting for capital and dividends, argues Natasha Landell-Mills of Sarasin & Partners. Proposals to restore trust in accounts fall dangerously short. The government should focus on enforcing existing laws.

Darktrace’s cut-price IPO still looks risky

26 Apr 2021

The cyber firm’s $2.6 bln float values it at around 10 times 2020 revenue, well below listed CrowdStrike and Zscaler. But the loss-making business is vulnerable to rivals. Close links with investor Mike Lynch, who’s facing U.S. fraud charges, could also leave investors exposed.

Capital Calls: Betway, U.S. banks, Vaccine feud

26 Apr 2021

Concise views on global finance: Another online betting group goes public by merging with a special-purpose acquisition company; some financial firms are racing to capture nearly-free funding from American depositors; Europe faces a long and costly fight for AstraZeneca vaccines.

Beleaguered Aussie duo careen into dizzying spin

26 Apr 2021

Carving out businesses is meant to unearth buried value for shareholders. Wealth manager AMP and energy giant AGL, though, are doing so as a last resort of sorts after other strategies failed, and with CEO upheaval to boot. Starting from such a weak position does not bode well.

China puts $200bln twist on Groupon for the masses

26 Apr 2021

Giants like Meituan are putting a creative spin on group buying, designating part-time neighbourhood representatives to distribute deals to their communities. Shoppers get cheap groceries, online outfits cut costs and the reps make money. Alas, price wars risk ruining the model.

Toshiba CEO exit gives better governance a chance

14 Apr 2021

Nobuaki Kurumatani already was losing support from investors and staff. His ties to buyout bidder CVC may have cost him backing from directors too. The board can help make up for a series of missteps by running a robust sale process that secures a good deal for shareholders.

Beijing makes Ant’s credit less addictive

13 Apr 2021

The central bank is curbing the fintech giant's $260 bln consumer loans business. Surging household debt is raising alarm bells, so it looks prudent to make it harder to borrow for online purchases. But the overall effect will weaken Ant’s biggest appeal to its vast user base.

Jardine dissenters start packing Bermuda shorts

13 Apr 2021

Fewer than half of minority investors backed the $36 bln Hong Kong conglomerate’s offer to simplify its structure. The rare dual-holding setup means the deal will still go though. But it sets up a series of showdowns with hedge funds in the UK territory’s courts.

Archegos mess revisits Wall Street weak spots

29 Mar 2021

Bill Hwang’s family office may not have been overleveraged, but rhymes plenty with previous blowups. Some $15 bln easily could have distracted fee-hungry brokers from concentration risk, dangerous derivatives and a past trading ban. It’s exactly why banks need oodles of capital.  

Pinduoduo governance cleanup misses some spots

26 Mar 2021

The $156 bln e-commerce company’s departing founder Colin Huang has given up his supervoting stock. But it’s not clear he’s relinquishing other holds on power. Insiders can exert outsize influence on the board. And Pinduoduo still lacks a finance chief. There’s more work to do.

Westpac may find New Zealand hard to leave

25 Mar 2021

Demerging its business across the Tasman Sea would bolster cash and capital for the Aussie bank. The concentrated Kiwi market makes a deal tricky, however, and the unit – potentially worth $8 bln – needs regulatory fixes first. Boss Peter King would do better to keep it.

Capital Calls: Defence IPO, ViacomCBS and GameStop

24 Mar 2021

Concise views on global finance in the Covid-19 era: Italy’s Leonardo postpones the initial public offering of its U.S. unit; ViacomCBS and GameStop's rising stocks give them both a chance to raise fresh cash.

Reckitt Benckiser cleans up spilt milk in China

23 Mar 2021

The company will exit the increasingly competitive infant-formula market, selling its Chinese unit for over $2 bln, Reuters reports. That’s less than half the price it paid in 2017, Jefferies calculates. Boss Laxman Narasimhan would have suffered much worse had he soldiered on.