Corporate Governance

Italy’s corporate power grab nears expiry date

18 Apr 2023

Premier Giorgia Meloni promised to rely on merit to pick new directors at state-backed firms like $54 bln Eni and $7 bln Leonardo. Instead, she’s stuffing boards with loyalists. Hedge fund efforts to push back at $64 bln green star Enel are a reminder the market also has a say.

Startup CEOs learn a lesson in counterparty risk

13 Mar 2023

The venture-backed firms that used Silicon Valley Bank tended to keep large, uninsured piles of cash there. That helped them access credit and other services but concentration was risky. The bank’s failure will bring change – with diversification in banks and in investments.

K-pop showdown amplifies shareholder voices

22 Feb 2023

A hostile takeover of South Korean music label SM by rival Hybe, which manages global boy-band sensation BTS, is heading to a ballot. The fierce saga exposes corporate governance woes that plague Asia, but also some unlikely progress. Whichever side prevails, investors win.

Adani’s financing safety-net rests on Indian banks

30 Jan 2023

Gautam Adani looks locked out of capital markets after a short-seller attack wiped $48 bln off the market value of his companies and caused bonds to tumble. Indian lenders have capacity to step in. What they do next will reveal the extent of state support for the tycoon.

Capital Calls: Data falsehoods

26 Jan 2023

Concise views on global finance: Better-than-expected U.S. GDP and durable goods data suggest the country might be spared from a recession. But exclude Boeing sales and corporate stockpiling, and the economic outlook is less rosy.

Short-seller attack raises Gautam Adani stakes

25 Jan 2023

Hindenburg reinforces how the $230 bln empire of the world’s third richest man is closely held, overvalued, and dismissed by Wall St. The upstart’s record of exposing U.S. fraud will make India sit up. But Adani is a giant target, and too many powerbrokers have a lot to lose.

Toshiba buyout heralds a big step back for Japan

20 Jan 2023

A deal for the $15 bln conglomerate is finally in sight. Foreign investors, who agitated for years, are likely to sell control back to local owners less inclined to shake up a national icon. Domestic policy shifts may also stifle local private equity before it can get rolling.

AGL’s new boss has a $14 bln target on his back

19 Jan 2023

That’s how much Damien Nicks needs to turn Australia’s top carbon emitter into a renewables giant. Unlike predecessors, he has a proactive board, improving earnings and a half-placated billionaire agitator. He’ll still get hauled over the coals if he can’t find funds quickly.

LVMH has smarter way to tackle succession dilemma

11 Jan 2023

Bernard Arnault picked his daughter Delphine to run the luxury giant’s Dior brand. If she proves her mettle, she may win the race among her siblings to eventually replace the 73-year-old tycoon. Naming one heir would help LVMH extend its success to the next generation.

City spinner’s $80 mln sale sets an M&A template

10 Jan 2023

Tulchan founder Andrew Grant, a communications consigliere to UK boards, is selling to private equity-backed U.S. group Teneo. It’s an admission that PR firms need a global presence to win the biggest clients. Rivals like Powerscourt and Headland could follow suit.

FTX affords a turning point in venture governance

17 Nov 2022

New CEO John Ray uncovered patchy balance sheets and signs of looting at the bust crypto exchange. What he calls “a complete failure of corporate controls” means users may not get repaid. Formidable backers like Temasek and Sequoia would be crazy to make the same mistakes again.

Big U.S. banks shoulder first-world problems

14 Oct 2022

While loans are getting shakier and deposits are ebbing, third-quarter earnings show JPMorgan, Wells Fargo and Citi ready to face a recession. What might once have been existential threats are now valuation issues. It’s a reminder that the big systemic risks now lurk elsewhere.

Porsche IPO leaves VW stock in Skoda territory

29 Sep 2022

The German carmaker listed its luxury unit at 75 bln euros, nearly matching its own market capitalisation. That makes the rest of VW look cheap. Unfortunately for shareholders, a complex spinoff and muddied governance mean that discount is there for a reason.

Porsche IPO has two investor roadblocks to clear

16 Sep 2022

Volkswagen is listing the sports-car maker. To get the best outcome, it will need to persuade potential buyers to value it more like Ferrari than an ordinary auto group, and shrug off its complex governance. A 70 to 80 bln euro price range would adequately reflect this balance.

Italy’s first female PM is red flag for workwomen

16 Sep 2022

Ultra-right politician Giorgia Meloni is likely to become the next premier. She opposes boardroom quotas that have lifted female representation from less than 7% to 41% in a decade. Scrapping them would be a setback for a country struggling with stubbornly low female employment.

Capital Calls: SoftBank

14 Sep 2022

Concise views on global finance: The $62 bln conglomerate may be considering a third instantiation of its Vision Fund.

Capital Calls: ECB rate hike

8 Sep 2022

Concise views on global finance: Europe’s central bank risks recession to combat inflation.

Capital Calls: Richemont’s activist spat

7 Sep 2022

Concise views on global finance: Shareholders at the Cartier owner rejected investor Bluebell’s attempt to install former Bulgari CEO Francesco Trapani on the board.

Capital Calls: Porsche’s bold IPO

6 Sep 2022

Concise views on global finance: German carmaker Volkswagen is pushing ahead with its plan to list the luxury brand, despite torrid markets.

Pension funds are going too long on U.S. politics

1 Sep 2022

A new Texas investment blacklist that includes BlackRock is more symbolic than a real threat. But the anti-ESG push by states is putting pressure on retirement outfits as they grapple with falling markets. Politicians’ short-term whims are a bad match for long-term funds.