Technology

Berlin’s U-turn over Chinese bidders is worrying

24 Oct 2016

The government reversed its approval of the 670-mln-euro takeover of chip equipment-maker Aixtron. That looks like an attempt to protect Germany's tech industry, and backs up previous rhetoric. Shooting down the deal would hurt Aixtron, but the apparent wavering is more damaging.

Philips nears discharge after open-heart surgery

24 Oct 2016

The $27-billion Dutch healthcare technology company grew core sales 5 percent in the third quarter. Reductions in costly long-term debt will help earnings, but a full recovery hinges on Philips selling more of its weaker lighting business and a rise in European medical spending.

Telefonica can afford to bin its austerity drive

21 Oct 2016

After setbacks in selling both its O2 and infrastructure units, the Spanish telco won't hit self-imposed debt targets by next year.  To avoid a fire sale, the objective should be scrapped. Axing the dividend and a ratings downgrade would sting, but would also limit the fallout.

Private equity reconsiders whether three’s a crowd

21 Oct 2016

Cinven, Permira and Mid Europa have teamed up to buy Polish online auction site Allegro for $3.3 bln. Such consortia were popular in the LBO heyday but faded post-crisis. As deals grow bigger and buyout shops clamber to deploy capital, clubbing may get an unexpected second life.

Microsoft has yet to earn itself an Amazon pass

20 Oct 2016

The internet retailer's owners embrace cloud computing because it's expanding top and bottom lines. Microsoft's tough task is to convince investors that sacrificing profitability to build up the business is worthwhile. Growth like this quarter's makes that easier to pull off.

Indian online-travel M&A could use a roadmap

19 Oct 2016

Shares in U.S. listed MakeMyTrip jumped 50 pct on the back of a $1.5 bln merger with ibibo, a private rival backed by Naspers. That is despite the pair offering almost no details. It shows how desperate investors are to see a reduction in competition and a path to profitability.

Saudi Arabia’s tech bet is bold but necessary

14 Oct 2016

The kingdom's plan for a $100 bln tech fund with Japan's SoftBank is a risk worth taking. Saudi's biggest listed investments have created middling returns, and it needs to replace oil as its major engine. Prince Mohammed bin Salman seems to be applying some millennial thinking.

SoftBank and Saudi pump fresh air into tech bubble

14 Oct 2016

Masayoshi Son's group and Saudi Arabia are plotting a $100 bln tech fund. That incredible sum could finance some huge LBOs, or inflate startup valuations again just as other investors start to fatigue. Even if Son casts his net very wide, it will be hard to stay disciplined.

Viewsroom: Samsung’s fiery future

13 Oct 2016

Cancelling production of its self-combusting Note 7 smartphone puts the company's reputation as well as $17 bln or more at risk. Cities, businesses and investors are putting Trump and Clinton to shame on climate change. Plus: Brexit politics get shaken up by the pound's decline.

NetSuite shareholders have Oracle over a barrel

12 Oct 2016

Few have backed the software giant's $9.3 bln bid. Oracle, whose chairman Larry Ellison owns a 40 pct stake in NetSuite, says it's the final offer. But the company needs NetSuite's cloud skills and fast growth. That makes an Oracle price hike more likely than a squelched deal.

Ericsson’s poor strategy rings in fresh pain

12 Oct 2016

The Swedish telecom company's dividend is at risk after third-quarter operating income slumped more than 90 percent. Industry peers are also exposed to falling demand for mobile network kit. But Ericsson has cut costs too slowly and embarked on misguided diversification.

Huawei and Lenovo salivate at Samsung phone fail

12 Oct 2016

The South Korean group's decision to scrap the Note 7 smartphone is a golden opportunity for Chinese rivals like Huawei and Lenovo to capture share in developed markets, while expanding into the premium segment. Execution will be key, and Huawei looks better prepared.

Osram illuminates flaw in German takeover laws

11 Oct 2016

A potential Chinese bid for the lighting group is feeding concern about foreign tech takeovers. No national interest is at stake here and domestic ownership was no bar to job cuts. Other deals may be more ambiguous. Germany lacks a proper framework to address future challenges.

Samsung’s Note 7 was not worth saving

11 Oct 2016

The tech giant shed $19 bln in value on reports of problems with replacement phones. The new setback will hurt more than the original recall of faulty devices. Scrapping the Note 7 entirely, as Samsung has now done, looks like the best way to protect the brand.

Robots offer blueprint for Chinese M&A in Germany

11 Oct 2016

China's Sanan is circling Osram, the $7 bln lighting firm backed by Siemens. The recent takeover of Kuka, a German robotmaker, could be a precedent. That suggests Sanan needs to offer job guarantees and other concessions to keep Berlin onside, as well as a big premium in cash.

Climate-change hopes meet urban reality

10 Oct 2016

Last year's Paris accord just secured enough national signatories to put it into effect. The real battle, though, will be fought by cities, which account for 75 pct of emissions. Many have pledged to act. Success depends on overcoming bureaucracy, tight budgets and ignorance.

Viewsroom: Twitter’s takeover meltdown

7 Oct 2016

The social network's stalled user and revenue growth is sending shareholders of Salesforce and other potential bidders running for cover. Meanwhile, Yahoo's email scans for U.S. authorities have rattled buyer Verizon. Plus: Is John Stumpf's time as Wells Fargo CEO nearing an end?

Chips power Samsung and activist case for change

7 Oct 2016

The tech giant shrugged off the impact of its Note 7 fiasco in its quarterly results, thanks to growth in chips. Yet investors undervalue this and other exciting units based on a near 50 pct discount to the sum of its parts. It boosts Elliott's call for the Lee family to act.

Activist attack gives Samsung cover to restructure

6 Oct 2016

Activist fund Elliott is picking on the South Korean group again. This time it wants Samsung Electronics to split in two and pay a special dividend. Yet the proposal would also strengthen the ruling Lee family's control. Samsung may actually gain by cooperating with Elliott.

Elliott puts Asia Inc on notice

6 Oct 2016

The feisty U.S. hedge fund has done a lot to establish activism in Asia, with a number of big wins. Now it wants a radical restructuring at Samsung. The move cements Elliott's reputation for taking on powerful targets and is a strong incentive for Asia's tycoons to behave better.