Law

Berlusconi and Bolloré vie for media booby prize

2 Sep 2019

The billionaires are fighting over Italy’s $4 bln Mediaset. Giant egos preclude the friends-turned-foes from joining forces to revive the broadcaster’s dwindling fortunes. While they feud, Amazon and Netflix are capturing the growth in European video consumption.

Uber labor bill risks straying from righteous road

29 Aug 2019

The ride-hailing giant’s home state of California wants gig-economy firms to give workers paid vacation and sick time, following similar cases in Europe. Yet some old-school industries may get carve-outs. That would be a pity. It’s a chance to rethink protections for all earners.

Simple math suggests huge opioid hit for pharma

27 Aug 2019

Investors boosted Johnson & Johnson’s stock after an Oklahoma judge ordered the drugmaker to pay $572 mln for its part in fomenting addiction to painkillers. Yet the state represents only about 1% of Americans and this is just one of a torrent of cases. Optimism looks misplaced.

Walmart adds solar burns to Tesla’s challenges

21 Aug 2019

The U.S. retailing giant is suing Elon Musk’s $40 bln electric-car maker for negligence after its solar panels allegedly sparked fires at stores, further denting Tesla’s quality-control image. Walmart’s move also puts Musk’s odd 2016 acquisition of SolarCity back in the spotlight.

Holding: Are white-collar prosecutors going soft?

19 Aug 2019

That’s the implication of declining U.S. demand for defense lawyers. It’s possible corporate America is finally behaving itself. More likely, though, the dearth of cases against banks and other companies means enforcers are both turning a blind eye and chasing different prey.

Goldman’s top brass become hostages in 1MDB fight

9 Aug 2019

Malaysia has filed criminal charges against current and former star bankers, including international boss Richard Gnodde. It’s a cunning way to ramp up pressure on the Wall Street firm for a mega settlement. Goldman could end up paying three times to end the sovereign scandal.

Muddy Waters’ latest broadside hits AIM as well

7 Aug 2019

Litigation finance firm Burford was the largest on the London exchange for growing firms in July. An attack on its complex accounting by the short seller has vaporized half its value. Less red tape and disclosure attract listings, but reduce trust – and investor returns.

Old Mutual row shows merit of the quiet CEO payoff

31 Jul 2019

The South African insurer’s shares lost 5% after sacked boss Peter Moyo convinced a court he should get his job back, at least temporarily. A public slanging match looks damaging for all concerned. There’s a reason why warring boards and bosses usually settle disputes quietly.

UBS’s high-court loss puts rivals in crosshairs

26 Jul 2019

Swiss judges are letting French authorities have details on thousands of the bank’s clients. How much it helps Paris secure a 4.5 bln euro fine in its current UBS fraud case is unclear. But it opens the door for overseas agencies to target the entire Swiss banking industry.

Santander’s Orcel offensive is double-edged sword

26 Jul 2019

The Spanish bank accused Andrea Orcel, the ex-UBS banker it backed out of appointing as CEO, of “dubious ethical and moral behaviour”. That calls into question Chairman Ana Botin’s original decision to hire him. This increasingly bitter battle will only produce losers.

Renault’s de-Ghosnification helps up to a point

25 Jul 2019

The French carmaker is parting ways with bankers and other consiglieri tied to former CEO, and recent Japanese jailhouse guest, Carlos Ghosn. It may help Chairman Jean-Dominique Senard put his stamp on the $17 bln group. But the government is still an obstacle to merger hopes.

Equifax shows how little it values consumers

22 Jul 2019

The credit-scoring firm gathers troves of sensitive financial information, making it systemically important. Yet it’s paying less than $3 in compensation for each of the nearly 150 mln Americans affected by its 2017 data breach. That provides little incentive to tighten security.

Reckitt’s new boss gets a $1.4 bln painkiller

11 Jul 2019

The Nurofen-maker paid three times more than it had put aside to settle allegations over its selling of opioid drugs. The payment preserves Reckitt’s access to the U.S. baby-food market. Incoming CEO Laxman Narasimhan can focus on bigger problems, like reviving its health unit.

Dealmakers will miss top judge’s snark and smarts

9 Jul 2019

Delaware Chief Justice Leo Strine is retiring after two decades of slamming conflicts, curbing lawsuits and mocking fools. His relative youth portends another act. Even if he leaves M&A’s biggest legal stage, there’s scope to refine notions of who companies are meant to serve.

Hong Kong chief’s humiliating retreat comes late

9 Jul 2019

Carrie Lam says her extradition bill is dead. The admission of failure is welcome but also overdue. She is bowing to get demonstrators off the streets; to regain the confidence of CEOs, investors and citizens, the city's leaders will have to show they are listening more closely.

Hong Kong protesters score Pyrrhic victory

2 Jul 2019

A furious faction broke into the city’s empty legislature and trashed it, deepening a crisis for Chief Executive Carrie Lam. The violence will weaken some of the movement’s support. It also may spook big business and give Beijing a pretext to dig in. There’s little to celebrate.

Empire State forces U.S. climate progress

21 Jun 2019

New York is mandating net-zero emissions by 2050. That means laggard companies will have to move faster towards renewable energy. More intense investor activism should follow, especially if like-minded states generating more than half America’s $20 trillion GDP join the push.

UK’s dirty-money defences tinker at the edges

29 May 2019

The sybaritic shopping habits of the subject of one of Britain’s new unexplained wealth orders make spicy reading. But the UK is not using all its tools to stop the acquisition of UK assets by illicit funds. The hefty economic contribution from the money is one reason why.

Popular Modi puts Indian resistance to the test

24 May 2019

Prime Minister Narendra Modi has been re-elected despite concerns he strong-arms the central bank, judiciary, and media. Voters seem unfussed about checks and balances - a global trend. But if he pushes them too hard, India’s democratic institutions will struggle to hold up.

Corporate clout on the line in Hong Kong fight

22 May 2019

From Washington to Wan Chai, executives are loudly protesting the city’s plan to allow extradition to mainland China. The business community often gets its way in the financial hub. Losing in this standoff would signify a turning point in Hong Kong for more reasons than one.