Restructuring

Toshiba’s fresh funds provide for hard reboot

20 Nov 2017

The ailing Japanese group is raising $5.3 bln, or nearly half its market value again, by selling new stock. That ensures it avoids delisting. Buyers must see value in Toshiba’s residual interest in memory chips, plus the potential for turnaround elsewhere.

GE’s shaman exorcises ghosts of false expectations

13 Nov 2017

It doesn't take much imagination at work to grasp John Flannery's approach to the $178 bln conglomerate. He has halved the dividend, cut earnings guidance and questioned GE's portfolio of industrial assets. Next up is a total restructuring of GE's bloated, under-engaged board.

StanChart has yet to reward shareholders’ patience

1 Nov 2017

Resurgence is proving more difficult than recovery for the emerging market lender. Chief Executive Bill Winters has returned it to profitability, but is struggling to boost income faster than costs. Still-low returns make restarting meaningful dividends a distant prospect.

Tencent’s hit spinoff reads like a prologue

1 Nov 2017

China Literature’s $1.1 bln IPO priced at the top of the range. That could encourage parent Tencent to list other units, which would both raise capital and lessen the regulatory scrutiny on some businesses. The most radical move would be floating crown jewel WeChat.

Tencent’s books are less gripping than its games

24 Oct 2017

Publishing unit China Literature wants to list in Hong Kong at a value of up to $6.4 bln. Sales and earnings are taking off. But e-books are less lucrative than online games, with a smaller market and a shorter track record. This does not merit a valuation to match its parent.

Noble’s bid for survival takes humbling turn

23 Oct 2017

The stricken commodities trader is offloading oil-liquids, one of the better bits of its shrinking business. A long list of terms, however, suggests buyer Vitol capitalized on the distress. Efforts to raise $1 bln more to pay off debt amid a big loss could face similar hurdles.

Greenhill takes painful path back to the old days

25 Sep 2017

The M&A boutique is piling on debt to buy back a third of its stock and may scrap the dividend. CEO Scott Bok and staff will own almost half the firm, making it more like a Wall Street partnership of yore. The move, however, is being made from a position of weakness not strength.

AIG deserves to be SIFI-free, with caveats

25 Sep 2017

Watchdogs delayed a decision on whether to remove the insurer’s status as a systemic risk. It seems justified, as AIG has halved in size since its $182 bln bailout and long ditched the unit behind its collapse. But regulators should use safeguards to avoid deregulating too far.

J.Crew bond revamp is roadmap for asset transfers

14 Jun 2017

The retailer is trying to restructure $567 mln of debt giving some bondholders access to valuable assets that will irk other lenders. To bridge the gap, they’re offering those lenders buyouts at par. It’s a clever way to mend several problems. Other wobbly retailers take notice.

Banks hold key to Noble Group’s future

7 Jun 2017

The ailing trader wants to extend a $2 bln credit line, under which it has borrowed $620 mln in cash. It has the ability to repay the cash if needed. But losing the whole facility would hurt. Noble has to play for time if it is to avoid the restructuring that investors fear.

Samsung’s choice of Plan A doesn’t quite add up

27 Apr 2017

The South Korean giant's board rejected a restructuring pushed by Elliott, the hedge fund. Possible legal changes do indeed threaten the transformation. But that does not justify ruling out any future overhaul. Investors deserve an answer on how it will fix its odd structure.

Chinese make bold coal bet on Rio Tinto leftovers

25 Jan 2017

Chinese-backed Yancoal will pay up to $2.6 bln for Rio's thermal coal unit. Getting this transformational deal past regulators and raising the necessary capital will take some doing. A full price tag looks brave, too, given a big run-up in prices and an uncertain sector outlook.

Playground weaklings give Li Ka-shing bloody nose

25 Nov 2015

Hong Kong shareholders rejected the tycoon’s $12.4 bln bid to merge his listed energy and infrastructure units. It’s another sign institutions in the Chinese territory are increasingly willing to exercise their limited powers. Companies can no longer take support for granted.

Elliott buys new stick to beat Samsung

7 Jul 2015

The activist fund has a new lever to oppose the South Korean group’s ruling Lee family over a $9 bln merger. Buying stakes in two more group firms probably ups Elliott’s total outlay on Samsung by more than a quarter. This makes the fight more complex – and perhaps uglier.

Asia’s M&A boom leaves old guard in charge

7 Jul 2015

Regional deals could be worth $1 trln this year. But the bonanza offers less than investors might hope. Backing from states and tycoons makes many companies bid-proof. That means fewer premium bids, less pressure on firms to shape up, and more stitch-ups of minority shareholders.

South Korean M&A quirks hold perils for investors

24 Jun 2015

A $9.2 bln merger led by Samsung’s holding company has cast a spotlight on the country’s peculiar stock market rules. The dealmaking shows the limits of measures designed to protect independent investors and how the wider system is stacked in favour of the chaebols.

Hardball Samsung move sets up chaebol reform test

11 Jun 2015

Samsung C&T has sold a 6 pct stake to a friendly party to neuter opponents of its $10 bln merger with the South Korean conglomerate’s holding company. Official reaction to the underhand maneouvre will show whether the country really wants to rein in its large corporations.

Samsung’s $8 bln restructuring offer looks cheeky

26 May 2015

The South Korean group’s ruling Lee family is offering shares in its Cheil Industries holding company for Samsung C&T at almost no premium. The deal looks central to the clan’s succession plan. With 4 pct of Samsung Electronics at stake, C&T investors can hold out for more.

Seat PG bond swap finally dials down debt

7 Mar 2012

Creditors are taking over another overstretched directories publisher. Seat Pagine Gialle’s 1.2 billion euro debt swap will leave private-equity and public shareholders almost nothing. Post-deal gearing looks manageable – provided the Italian firm can reinvent itself online.