Electronics

Rebooted UK-French software merger rewards patience

5 Sep 2017

After two botched attempts in as many years, French industrial group Schneider and UK software maker Aveva are trying to hook up again. The $3.9 bln deal is as complex as it is financially alluring. With past glitches ironed out, the merger has a good chance of becoming reality.

Dixons double whammy is surprise that wasn’t

24 Aug 2017

The UK electronics retailer’s shares fell 30 percent after profit guidance was cut. The main culprits, EU roaming rules and a Brexit-linked consumer slowdown, were known risks. Analysts and the company underestimated their impact. Too much faith in forecasts breeds market jolts.

Foxconn’s U.S. move sends false reshoring signal

27 Jul 2017

The Taiwanese tech giant will build a $10 bln display plant in Wisconsin. That is a symbolic victory for the president and other Americans who want to lure factory jobs from China. But for commercial and political reasons, a mass reverse-migration remains unlikely.

Ceconomy plays to German retail stereotype

26 Jul 2017

As befits a country known for thrifty shoppers, the newly listed electronics retailer has bought cheaply into Fnac Darty. While Ceconomy could probably afford a big premium to take over its French rival, it will take just a 24 pct stake – enough to keep rival bidders at bay.

Samsung rides the semiconductor cycle to new peak

7 Jul 2017

The South Korean firm expects a record quarterly operating profit of $12 bln, thanks to soaring demand for memory chips. Rivals are boosting supply, and prices will probably fall. Still, Samsung's size and diversity will help it handle the sector's inevitable boom and bust.

Philips deal healthier for patients than investors

28 Jun 2017

The Dutch healthcare equipment maker is buying loss-making US rival Spectranetics for more than 6 times next year's revenue in a $2.2 bln deal. Ramping up expertise in treating cardiac disease makes strategic sense, but the high price adds unhealthy financial side-effects.

Samsung gambles on an heirless future

31 May 2017

The South Korean giant will keep a structure that lets Jay Y. Lee keep control with a small stake. But a new left-leaning government might make it harder for the de facto leader to rule this way. Samsung looks unprepared for a future without its scion.

Next iPhone is key to Apple’s future in China

4 May 2017

Sales in what was once Apple's biggest growth market have now fallen for five straight quarters. Stiff competition with local handset makers and a weaker yuan both hurt. While app-store sales are promising, a real turnaround hinges on the success of its next flagship smartphone.

Reinvention of Philips is on a healthy track

24 Apr 2017

The Dutch group’s transformation from a conglomerate into a focused maker of health kit is in its final stage. After carving out lighting, boss Frans van Houten is making headway in lifting poor margins. The surgery is needed to close the valuation gap with pure-play rivals.

Toshiba meter sale may ease chip selloff pressure

3 Mar 2017

The stricken Japanese group is mulling a sale of its power meter subsidiary for $2 bln. The proceeds are unlikely to shore up finances much. But disposing of a non-core, underperforming unit is sensible, and it may help Toshiba hold on to more of its prized chip unit.

Apple sows seeds for India iPhone awakening

10 Feb 2017

The company is nearing a deal to assemble phones in one of the world's fastest growing handset markets. That may lower retail prices and boost potential sales. But lifting Apple's 2 pct market share depends on opening stores and resolving thornier issues like selling used models.

Toshiba can salvage some value for shareholders

27 Jan 2017

The stricken Japanese group will sell a stake in its prized memory-chip business. Then it needs to take further steps to counter the fallout from a huge impending writedown. Today's $10 billion market cap seems a reasonable assessment of what will remain.

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.