NYT RSS Feed

Cox: No, wait, this is the real crisis anniversary

24 Aug 2017

Anyone who witnessed the subprime debacle has a single event they identify as its origin or apex, from HSBC's losses to Lehman's bust. Like all bubbly delusions, understanding the collective failure to act pre-emptively requires an appraisal of the full arc of what transpired.

Uber could help itself by giving drivers equity

23 Aug 2017

The ride-hailing firm is considering handing them stock. They aren't employees, so the SEC would have to agree. The plan could boost Uber's damaged brand and help keep drivers. Other gig-economy workers might gain, too. But existing irate investors could present a roadblock.

Jeep sale would leave Marchionne nowhere to hide

22 Aug 2017

The Fiat Chrysler CEO advocates using M&A to stop carmakers wasting precious capital. Selling the company's top brand to China's Great Wall - a long shot politically - might raise $23 bln. But it would leave an emaciated rump and set up Marchionne’s last lap to be a dismal one.

Sempra $9.5 bln Oncor fine print bears close read

21 Aug 2017

The $29 bln energy company has bested Warren Buffett’s bid for the bankrupt utility and given pushy hedge fund Elliott a sweeter deal. But the transaction looks rushed and leaves Sempra with undisclosed partners and limited control. Such terms may give shareholders a nasty shock.

Ackman needs sharper ideas guys on his ADP payroll

17 Aug 2017

Activists succeed by pursuing clear, deliverable goals, such as ditching non-core units or removing failing executives. Urging the employer-services firm to become an agile software company is nothing of the sort. Investors are giving the Pershing Square boss a deserved raspberry.

Elliott is grasping at straws in Oncor battle

17 Aug 2017

The hedge fund says it has enough debt in the bankrupt utility to block Warren Buffett’s $18 bln offer. Yet the move makes little sense in the absence of a firm alternative. The judge is likely to see through Elliott’s posturing, as is the Omaha sage, who refused to up his bid.

Like much else, Amazon can sell debt in a flash

16 Aug 2017

The e-commerce giant’s blowout $16 bln bond deal suggests further potential for it to pursue M&A. Yet in nearly tripling debt to buy brick-and-mortar Whole Foods, Jeff Bezos’ outfit is starting to look like a traditional retailer. The risk is that its stock will do the same.

Take the money and run is new Uber Benchmark

15 Aug 2017

The ride-hailing firm is beset by controversy, managerial turmoil and huge losses, despite its market dominance. Early investor Benchmark may be loath to give in to demands to sell its 13 pct stake. But it’d restore some stability and let the VC firm make some 200 times its money.

VF stitches up signature deal for the MAGA era

14 Aug 2017

The North Face owner is dropping $820 mln for Dickies, a maker of apparel for manufacturing and construction laborers. It gives VF a strong position in the workwear marketplace, which Donald Trump has promised to revitalize – or at least a hedge against fashion's fickleness.

Union throws wrench in self-driving works

11 Aug 2017

The Teamsters have convinced U.S. lawmakers to exempt trucks from a bill allowing more autonomous vehicles on the roads. Granted, 3.5 mln jobs are at stake. But as Tesla joins Daimler and others in the big-rig tech race, it’d be smarter to prepare haulers for a career shift.

Musk fine-tunes Tesla with junk-fueled turbo boost

7 Aug 2017

The electric-car maker’s CEO is using $1.5 bln of debt to fund ramping up production of the Model 3. Diluting its overvalued shares by just 3 pct would have done the trick at less risk. But the money is cheap. And bondholders don’t need stockholders’ faith in Musk to be paid back.

Sprint: Choose from the following M&A options

1 Aug 2017

For a merger with Charter, dial one. For T-Mobile US, dial two. For SoftBank buying the rest of the company, dial three. The $35 bln U.S. cell carrier’s stock jumped 11 pct after its CEO hinted at a coming deal. But Sprint is too expensive and indebted to ring up a big premium.

China’s trophy case could become discount rack

1 Aug 2017

Big dealmakers such as Anbang and Wanda might have to hold a yard sale. HNA is still keen on ousted White House adviser Anthony Scaramucci's firm SkyBridge, but it too may need to cut back. Bargain-hunters will benefit from any Chinese selling spree.

Discovery’s cable deal rests on rosy assumptions

31 Jul 2017

The producer of “Shark Week” is buying Food Network and HGTV owner Scripps for $14.6 bln. Cost savings won’t cover the premium, and getting distributors to pay up for more content will be a hard sell in a churning media market. The Scripps family is wise to take mostly cash.

FDA crackdown on cigarettes a rare win for science

28 Jul 2017

The U.S. watchdog wants to lower nicotine levels in a hit to Big Tobacco, whose shares plunged. The agency says long-term use kills half of smokers. It’s a departure from Team Trump’s rejection of facts in climate change. The FDA is the odd regulator defying corporate interests.

M&A shops become Wall Street’s new black boxes

27 Jul 2017

Lazard, Evercore and Moelis beat earnings estimates by wider margins than their bulge-bracket peers. Yet advice ought to be easier to track than trading. That suggests the problem lies with an under-resourced sell-side. Investors, though, appreciate the boutique business model.

SEC brings dodgy digital-currency sales to earth

26 Jul 2017

The U.S. watchdog says 2016’s biggest so-called initial coin offering was a securities issue that didn’t comply with the law. That will crimp a market that has boomed to $1.3 bln so far this year. A crackdown will test whether it’s worth the trouble of making ICOs legitimate.

Jimmy Choo buyout could blister the brand

25 Jul 2017

U.S. label Michael Kors is paying $1.2 billion for the luxury shoemaker. Three nimble steps are necessary to justify that price: supercharge sales, improve margins and find synergies. The buyer’s track record shows that is achievable, but at risk of taking Choo downmarket.

Buyout firms bet $3.7 bln on fintech’s dicier side

21 Jul 2017

Blackstone and CVC’s bid for Paysafe fits with an M&A rush for financial technology. The UK-based payment processor has a penchant for the racy world of online gambling. Those risks may be better handled in private ownership. In exchange, the buyers stand to make a decent return.

Central banks have no choice but to keep the faith

20 Jul 2017

ECB chief Mario Draghi and Bank of Japan boss Haruhiko Kuroda have spent trillions of euros and yen without generating much inflation. Nor is it clear when a pick-up in growth will feed through into prices. Yet they are obliged to insist their policies will work eventually.