Security

Corona Capital: Bank of America, Halliburton, NBA

19 Jan 2021

Concise views on the pandemic’s corporate and financial fallout: Bank of America’s animalistic analogies; Halliburton sees a recovery that can’t come soon enough; The New York Knicks’ valuation has its top spot to lose.

France’s Carrefour defence targets wrong enemy

14 Jan 2021

Finance Minister Bruno Le Maire opposes a possible $20 bln takeover of the grocer by Canada’s Alimentation Couche-Tard. He’s right to worry about jobs and supply chains after Covid-19. But a new owner would still need French cashiers, while suppliers are better protected by law.

Corona Capital: Vaccine dibs

21 Dec 2020

Concise views on the pandemic’s corporate and financial fallout: Vaccine prioritization is about to get competitive.

Governments are new activist investor on the block

21 Dec 2020

The pandemic has freed states to roll back decades of reduced investment in business. Bailouts have bequeathed stakes in distressed companies, while security concerns are encouraging politicians to inject capital into startups. Good governance needs to be on the agenda in 2021.

Sensitive U.S. hack is one more problem for Biden

14 Dec 2020

Network software used by America’s armed forces and big companies was compromised for months, possibly by Russia. The maker, Texas-based SolarWinds, has egg on its face. For users in D.C. and elsewhere, it’s a reminder that cybersecurity can’t be ignored, even in a pandemic.

UK security M&A battle will get bloodier

9 Dec 2020

Allied Universal agreed to pay 3.8 bln pounds for prison operator G4S. Canadian rival GardaWorld now faces getting drawn into a lengthy bidding war. Yet the U.S. group’s 245 pence per share price offers a high 10% return. That means the target’s shareholders can hope for more.

GardaWorld opens door for G4S escape

2 Dec 2020

The Canadian security firm raised its bid for the UK group to 3.7 bln pounds, having argued much less was fair on Monday. The new price is hardly a knockout either. CEO Stephan Cretier’s erratic handling of the offer and a possible counterbid give investors reason to hold out.

Taiwan chip takeover tests German tech defences

30 Nov 2020

Silicon wafer maker GlobalWafers wants to buy Munich-based Siltronic for 3.8 bln euros. The deal will consolidate an oversupplied industry and shore up the German group at a decent price. But it ultimately runs counter to Berlin’s drive to keep research and manufacturing at home.

New UK takeover rules thicken the global M&A fog

11 Nov 2020

Prime Minister Boris Johnson is making it mandatory to seek approval for deals in some sectors, and expanding the government’s powers to cover intellectual property. The rules are no worse than in America or Europe. But they’re vague enough to give bankers and lawyers headaches.

Corona Capital: U.S. tests, UK loans, Man U groans

21 Oct 2020

Concise views on the pandemic’s corporate and financial fallout: Abbott Laboratories has a bumper third quarter; UK banks look at a workaround for their Covid-19 loan problem; and Manchester United reveals a predictably ropey set of annual results.

Drone maker DJI will become the next Huawei

16 Oct 2020

The Chinese producer of unmanned aircrafts is flying high on Washington’s blacklist as lawmakers worry about it collecting data. But it is the world’s largest drone-maker by far. Expanding a ban will hurt the future of U.S. businesses – like farmers and energy companies.

Bidders could bust G4S investors out of value jail

14 Oct 2020

Canada’s GardaWorld made a 3 bln pound hostile bid for the mishap-prone security group. U.S. rival Allied Universal is also interested. Either could pay over 4 bln pounds and earn a decent return, Breakingviews calculations show. Shareholders can hold out for a higher offer.

Palantir float marks peak investor apathy

23 Sep 2020

The cryptic data-analytics company is setting a guide valuation of $20 billion for its direct listing next week. Its novel governance means the three founders are in control indefinitely. Incoming shareholders should assume their views won’t count.

Corona Capital: Playboy, Mondelez

21 Sep 2020

Concise views on the pandemic’s corporate and financial fallout: The owner of perhaps the most famous adult magazine is hoping a SPAC can give it a new lease on life; Mondelez wants to expand its range of healthy snacks – but they’re not always the best money spinners.

Canada peer offers G4S cheeky get-out-of-jail card

14 Sep 2020

BC Partners-owned Garda World may offer 3 bln pounds for the UK prison operator and outsourcer. That’s below the target’s price before Covid-19 closed airports and hit live events. But given its likely slow recovery and patchy track record, shareholders may prefer a surer thing.

Corona Capital: Vaccine politics, Peloton

8 Sep 2020

Concise views on the pandemic’s corporate and financial fallout: Pharma firms like Merck and Pfizer are putting long-term profit first by promising to wait for full approvals for Covid-19 treatments; Peloton cycles towards more profit by cutting the price of its high-cost bikes.

Google gets physical-security amuse-bouche

4 Aug 2020

ADT is selling the Alphabet unit a 7% stake for $450 mln. The news sent the Apollo-controlled alarm-service outfit’s value up $4 bln or 60%. That’s a big response to an initial deal to fold Nest devices into its lineup. It may reflect new options for ADT’s corporate future.

Apple and peers could lose “when in China” shield

16 Jul 2020

The iPhone maker is one of many firms that tailors products to suit China’s demands, recently deleting an app used by Hong Kong protesters. Such decisions could soon be treated by U.S. authorities as foreign lobbying. That would curtail a delicate – and profitable – dance.

UK’s Huawei call is anti-Trump parting gift to EU

28 Jan 2020

Britain has granted the Chinese telecom-kit maker a limited role in 5G networks. The U.S. president, who had pushed for a ban, will be as miffed as mobile operators will be relieved. On the eve of Brexit, London has also shown Europe how to balance Washington and Beijing.

Hong Kong seeks new traffic cop for wonky market

15 Oct 2019

Ashley Alder made the best of a middling job as chief securities regulator. He made progress fighting shoddy IPOs, though failed to stop dual-voting share structures. His successor could tackle the SFC’s slow enforcement, but will still be stuck between powerful vested interests.