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Corporate Governance

Viewsroom: European bank M&A, De-Dutching Shell

18 Nov 2021

Big lenders in the euro zone are doing deals, but not the kind investment bankers dream about. BNP Paribas is in U.S. retreat, BBVA bulks up in Turkey and KBC goes Bulgarian. Liam Proud explains. George Hay explains why the Anglo-Dutch oil major is dropping the Dutch bit.

Activision may become vulnerable to a takeover

17 Nov 2021

A new scandal about sexual assault allegations is hurting the $50 billion gaming company’s already-battered share price. As the problems pile up, the chances are growing that an activist will pop up to agitate for a sale. A deal might make sense for Netflix.

Shell’s Dutch exit comes with legal side benefits

15 Nov 2021

Shifting its tax residency to the UK, along with its head office and CEO, simplifies the $170 bln oil major’s structure. It also makes it easier to reorganise for the energy transition. The implied snub to the Dutch court which ordered Shell to cut emissions is an added bonus.

Toshiba split edges it slowly down the right path

12 Nov 2021

The $19 bln conglomerate plans to break into three, days after fellow former titan GE did the same. For Japan Inc, it’s revolutionary. More focused units should attract better managers and valuations. But the two-year timetable seems designed to discourage more vocal investors.

Bigger China property risk would be Xi blinking

11 Nov 2021

Worries about real estate contagion are growing, including at the U.S. Fed. Direct foreign exposure to the sector is limited, but it could drag down trade and investment portfolios. If Beijing relaxes its hard line, however, there’s a danger it will aggravate global inflation.

McAfee buyout puts risky spin on cybersecurity

8 Nov 2021

Advent and Permira’s $14 bln buyout of the U.S. software firm could double their money if McAfee keeps motoring as expected and valuations stay elevated a few more years. While former owner TPG has left some juice to suck out, a hefty $9 bln of debt provides an extra-thick straw.

Richemont activism is more coaxing, less conflict

8 Nov 2021

Funds including Dan Loeb’s Third Point may push the Cartier owner to close a 20%-plus valuation discount to luxury peers. With half of the voting rights, Chairman Johann Rupert is in firm control. Unlocking value will depend on convincing him to make sensible strategic changes.

E-brokers are big reach for Beijing’s long arm

4 Nov 2021

A Chinese central banker chided trading apps that cater to rich investors with money abroad. That suggests new restrictions are in the works. Barring an awkward crackdown on banks that help move capital overseas or a complete ban, however, $9 bln Futu and its peers can thrive.

Penguin’s big book deal gets a regulatory ice bath

2 Nov 2021

The claim that a $2.2 bln merger of Penguin Random House and Simon & Schuster will squeeze author pay and put fewer books on shelves is a twist on the usual antitrust plot. Deal watchdogs typically focus on prices instead. It looks like the prologue to a bigger anti-merger opus.

Rogers board fight puts public shareholders last

27 Oct 2021

A squabble over who is running Canada’s largest wireless carrier is the latest intrigue in an industry defined by dynastic politicking. While it makes for good drama, Canada’s family-controlled telecom giants have helped create a market that is among the world’s most expensive.

Crown deserves the Jamie Dimon approach to failure

26 Oct 2021

The Australian casino operator can keep its local licence despite investigators labelling its breaches “illegal”. It smacks of too big to fail. Penalising investors, selling assets and burying the name, as JPMorgan’s boss suggested for bad banks, would be a better outcome.

London’s IPO revamp gets its cautionary tale

18 Oct 2021

THG’s founder is giving up his golden share in the stricken online retailer, just as regulators prepare to make it easier for executives to keep control after listing. It’s a timely reminder of the benefits of “one-share-one-vote” governance. It’s not too late to turn back.

Capital Calls: U.S. inflation, French cloud outage

13 Oct 2021

Concise views on global finance: U.S. consumer prices rose 5.4% in September as the White House weighs the Federal Reserve chief’s re-nomination; OVHCloud’s network went down the day before the cloud-computing group is due to price a 3.6 bln euro Paris listing.

Star steeled for its own Crown duel with watchdogs

13 Oct 2021

The market knocked 25% off the Aussie casino operator’s market value after a media exposé suggested it may yet face a corporate governance crisis akin to James Packer’s. But Star is better prepared, and a pandemic proved it can weather a crisis. Investors could roll the dice.

Richard Li’s family baggage weighs on insurer IPO

11 Oct 2021

The Hong Kong tycoon is putting a limit on how long he can keep the supervoting stock he’ll get in the $2 bln float of Asia-focused FWD. But it can be extended while his nearest and dearest can for a time inherit the rights. That erodes the value of such sunset clauses.

Tesla’s move to Texas further mars ESG credentials

8 Oct 2021

Elon Musk is relocating the electric-vehicle champion’s home base after a Covid-19 spat with California. It will put it in a state building a weak record on green energy and women’s rights. A company already hit by bad governance is giving investors more reasons to think twice.

BlackRock brings shareholder democracy to the few

7 Oct 2021

Clients with a combined $2 trillion of index-fund investments will get more say on how votes at underlying companies are cast. It’s only for large institutions, and many will stick with the status quo. Bigger change would come if CEO Larry Fink offered the same to all investors.

Capital Calls: Biodiversity, Email, Gene IPO

30 Sep 2021

Concise views on global finance: Taskforce on Climate-Related Financial Disclosures gets a nature-based counterpart; Sweden’s Sinch clinches its fourth communication-software deal in seven months; a 40% bounce on Oxford Nanopore's market debut puts some life into London.

Alphawave crash exposes fragility of UK tech hype

30 Sep 2021

The chip designer’s market value halved after a media report raised fears about related party transactions. Its punchy $4 bln IPO in May was a high point of London’s push to attract startups. Even then, a reliance on a handful of customers left a worryingly thin margin for error.