Corporate Governance

Japanese hotelier’s M&A door may be prised open

11 Oct 2019

Unizo’s long list of spurned suitors includes Blackstone, a SoftBank-owned group, and more. Activist fund Elliott is right to question the company’s opaque handling of takeover interest. This little-known $1.4 bln company will be a test case for Japan’s new investor hospitality.

BHP and shareholders share green lobbying dilemma

11 Oct 2019

Aberdeen Standard and others want the world's largest miner to cut ties with business groups opposing Paris climate goals. BHP is reviewing its memberships, but argues change can be promoted within the industry too. It's a quandary familiar to fossil fuel investors.

Deutsche Bank’s new director isn’t worth the fuss

9 Oct 2019

It’s hard to find experienced board members with no conflicts of interest. But the German lender’s latest appointee Juerg Zeltner runs and owns a stake in wealth management rival KBL. That’s unusual even for incestuous European banks. Chairman Paul Achleitner should think again.

E-book: WeWork, disrupted

2 Oct 2019

The shared-office provider, once valued at a lofty $47 bln, has abandoned its IPO and ditched its loopy leader. Yet even a slowed-down WeWork will still burn cash. A new Breakingviews e-book recaps the company’s rise and fall, and explores the consequences.

All The We Company needs now is enlightenment

2 Oct 2019

And a ton of cash. The shared-office provider, once valued at a lofty $47 bln, has abandoned its IPO and ditched its loopy leader. Yet even a slowed-down WeWork will burn through its financial resources in a jiffy. A new Breakingviews e-book recaps the task facing its co-CEOs.

Viewsroom: WeWork overhaul won’t be enough

26 Sep 2019

Adam Neumann lost his CEO role and control of the shared-office provider after its valuation plummeted in preparation for a now-postponed IPO. But WeWork’s business model remains a problem. Plus: Thomas Cook’s collapse hits China’s Fosun. And: parsing financial climate pledges.

SoftBank risks chasing its losses with WeWork

26 Sep 2019

CEO Masayoshi Son may pour an extra $1 bln into the cash-burning shared-office firm. It’s tempting to imagine this means WeWork’s business just needs more cash and patience. The reality is that SoftBank has more to lose from walking away than a regular investor might.

WeWork’s Neumann moves from penthouse to basement

24 Sep 2019

The office-sharing firm’s boss will cede both his CEO role and control of the company, Reuters reported. That may be enough to secure capital from his backers, but not enough to justify an IPO. WeWork’s drama is now one that looks likely to be played out away from public view.

Ghosn’s power would get lost in translation

24 Sep 2019

The SEC claims the former Nissan boss hid half his salary to avoid public opprobrium, and was able to do so because of lax controls. It’s a stark contrast to the United States, where governance is strong but social pressure over pay is weak. Both systems fail in different ways.

WeWork founder’s strong hand gets rapidly weaker

23 Sep 2019

On paper, Adam Neumann controls the cash-burning office-share firm he co-founded. In reality, the company’s need for capital means investors like SoftBank call the shots, and might even oust him as CEO. Supervoting shares mean nothing absent a way to make money.

BHP’s pay plan forges dual path to sustainability

23 Sep 2019

The $122 bln miner wants to make more of its CEO's bonus dependent on emissions and other yet-to-be-provided climate goals. As importantly, it is trimming incentives and making bosses hold shares for longer. In an industry struggling to regain investor trust, both are important.

Beijing enables corporate debt dysfunction

20 Sep 2019

A provincial government funding vehicle has declined to redeem its perpetual bonds for the first time. State-backed companies embraced equity-like hybrid debt in part to hit their deleveraging targets. With $75 bln of it effectively coming due, the shortcut could prove costly.

JPMorgan shares too much space with WeWork

19 Sep 2019

Jamie Dimon’s outfit has helped line up $6 bln in credit for the office sublessor and lent millions to CEO Adam Neumann. Funds advised by the bank are also one of the firm’s largest investors. With WeWork’s IPO increasingly in doubt, the ties call into question JPM’s tech savvy.

Big Oil’s climate smokescreen is about to clear

13 Sep 2019

Exxon Mobil and others often cite a well-worn global warming scenario to imply their models are sustainable. A major study, by a body whose signatories represent $86 trln of assets, should make that harder. Especially as it will soon shine a spotlight on individual companies.

Gun makers may get their Trump bump, with a sting

12 Sep 2019

More stringent firearms regulations look closer than they have in decades as the U.S. president considers enhanced background checks. Companies like Walmart have given him cover. Long-term, it may not help the ironmongers, but their stocks always spike when legislation looms.

Viewsroom: Nissan’s car-crash CEO

11 Sep 2019

Hiroto Saikawa is stepping down amid controversy over his pay. It has implications for the company’s rocky Renault alliance, and by extension for the French carmaker’s recent attempt to merge with Fiat Chrysler. Plus, is activist Elliott Management going soft on AT&T?

Beijing’s new moves dance around capital controls

11 Sep 2019

Quotas on a pair of high-profile inbound investment schemes are being scrapped. It’s partly symbolic, given that a $300 bln cap was never hit. China wants more foreign funds, but not enough to put outbound flows at risk. Mounting debt problems will further entrench the system.

AT&T tilt can transform Elliott as well

9 Sep 2019

Paul Singer’s hedge fund beat Argentina and forced out Arconic’s ex-boss, earning a reputation for ruthlessness. AT&T, its bluest of blue-chip targets yet, is a new frontier. Getting the telecom giant to cooperate could make Elliott part of the high-finance establishment.

Elliott brandishes velvet-clad fist at AT&T

9 Sep 2019

The activist fund’s demands for the $270 bln U.S. telco are mild: Be leaner, stop doing deals, cut debt and improve governance. Missing, but worthy of discussion, is the idea of dethroning boss Randall Stephenson. The reticence may reflect that Elliott can’t fight this one alone.

CEO exit challenges Nissan’s new governance model

9 Sep 2019

Hiroto Saikawa is stepping down amid controversy over his pay. Partner Renault recently backed him in exchange for seats on a newly formed nominating committee. Finding someone who can lead a turnaround and navigate the strained alliance won’t be easy. At least it's a short list.