Metals

Arconic’s boardroom peace comes just in time

23 Oct 2017

The car and aircraft-parts maker resolved its management struggle with activist Elliott Management by tapping GE’s Charles Blankenship as CEO. A fresh earnings miss means he’ll need to hit the ground running. Troubles in a key new engine program are slowing progress on margins.

Japan is developing a quality-control problem

10 Oct 2017

Kobe Steel admits it sold substandard metals to hundreds of clients. After Takata’s lethal airbags and testing scandals at various carmakers, this is yet another blemish on Japan’s reputation for product quality. Something is going badly wrong with corporate cultures.

German scrap metal IPO hinges on green alchemy

6 Oct 2017

Befesa, which turns waste steel dust into more expensive zinc, could be valued at up to 1.6 billion euros in a Frankfurt listing. Buyout groups offered less earlier this year. Hope that emerging economies will tighten up environmental rules may justify the rich price.

Agarwal’s Anglo wager is risky way to plot breakup

21 Sep 2017

The Indian billionaire is doubling down. Paying as much as 1.5 billion pounds to raise his stake in the UK-listed miner to 20 pct may be a way of trying to force a breakup. But unpredictable commodities prices and South Africa’s volatile politics could scupper any such plans.

Tata Steel JV pays ThyssenKrupp four dividends

20 Sep 2017

A historic joint venture with India's Tata will unshackle the German group from the fickle, capital-intensive steel industry. Lower pension liabilities, a share of synergies worth 3 bln euros and a more robust balance sheet are further benefits. Workers will fare better too.

Glencore’s debt purge creates enviable problems

10 Aug 2017

Surging commodity prices are helping Chief Executive Ivan Glasenberg to slash debt faster than planned and restore profitability. That gives the mining giant scope to hand more money back to investors or make bigger bets on growing demand for resource-hungry electric vehicles.

Rio Tinto’s new problem: What to do with its cash

2 Aug 2017

The miner more than doubled earnings in the first half and promised to return $3 bln to shareholders in buybacks and dividends. Higher prices and asset sales helped reduce debt to its lowest level since 2010. After years of deleveraging, spare cash is an unusual dilemma for Rio.

Exchange Podcast: James Ledbetter

20 Jun 2017

During the 2016 campaign, Donald Trump suggested the United States revisit the gold standard. So did his rivals Ted Cruz, Rand Paul and Ben Carson. Why are Americans so obsessed with the precious metal, both as a store of value and an investment? James Ledbetter swings by Times Square to discuss his new book, "One Nation Under Gold."

Arconic takes battle of letters to Elliott

24 Apr 2017

The parts maker offered to back two of the activist's four board picks but accused Elliott of twice reneging on agreed compromises. The exit of CEO Klaus Kleinfeld after his own intemperate screed has not relieved the tensions. Regular shareholders may by caught in the crossfire.

Arconic CEO’s foolishness saves its board, for now

17 Apr 2017

Klaus Kleinfeld's unauthorized contact with Elliott Management in the midst of a proxy battle gave directors an easy excuse to let the poor-performing boss go. The affair, though, underscores the hedge fund's argument that the board bears much of the burden for the firm's woes.

Anglo raid is a complex way to do simple thing

16 Mar 2017

Indian magnate Anil Agarwal appears to be building roughly a 12 percent stake in the mining group. In fact he is renting it, using an exchangeable bond to get access to the votes. The structure is clever, but suggests he is more interested in influence than direct financial gain.

Agarwal weakens Anglo’s breakup defences

16 Mar 2017

Indian billionaire Anil Agarwal’s raid on the UK-listed mining giant may be a prelude to asking for the company to break itself up. Splitting off South African assets might create value. Boss Mark Cutifani may still prefer another course, but the pressure on him is now rising.

Indian tycoon bets house on Africa in Anglo raid

16 Mar 2017

Anil Agarwal's personal 2 bln pound raid on Anglo American reveals a wish to build a global mining giant. There is little overlap with his London-listed Vedanta. But Agarwal has a keen interest in Southern Africa - and a 12 pct stake would give him prime position in any break-up.

Chinese copper firm goes off-script in Hollywood

15 Nov 2016

Loss-making Anhui Xinke is buying the studio behind "The Hurt Locker" for $350 mln. It is not the first Chinese acquirer of a U.S. film producer but it might be the most out of place. Betting on pictures for profits to cure the hurt in the bloated metals sector is pure fantasy.

Alcoa stumble puts carve-up mettle to test

11 Oct 2016

Just weeks ahead of splitting the company, the $12 bln aluminum maker cut revenue targets for the business supplying the auto and aerospace industries. While this tarnishes the short-term benefits of a separation, cleaving the smelting operation should in time provide some shine.

All that glitters in corporate finance isn’t gold

25 Aug 2016

Shareholders went nuts when jeweler Signet paid $1.4 bln for Zales in 2014, sending its shares way above the value of future earnings from the deal. Now it's unraveling, sparking a surprise injection of costly private equity, providing a useful reminder that most mergers fail.

Rio Tinto’s best is not yet good enough

3 Aug 2016

The Anglo-Australian miner has slashed debt but can't take its eye off the ball after posting its worst earnings in 12 years. No wonder Rio is trading at a discount to peers. New boss Jean-Sebastien Jacques is paying out dividends, but has his work cut out to win over investors.