Transportation

Mexico drives a train through Trump border wall

29 Mar 2017

The $2 bln purchase of a Florida railway by miner Grupo Mexico is a timely reminder that the countries' relationship is not all one-way traffic. The outward-looking Mexico the deal exemplifies is better for U.S. business than the more hostile neighbor Trump's wall plan portends.

Investors too blasé about grim reaper’s scythe

23 Mar 2017

An activist bet the farm on 72-year-old Hunter Harrison turning around $43 bln railroad CSX in four years. Actuarial tables suggest a real danger he might not. CEOs are becoming grayer, meaning shareholders have become more willing to bear the risk of impromptu corporate changes.

Cox: Kalanick gives future Uber investors a lift

9 Mar 2017

The longer the impulsive founder remains at the wheel, the more apparent the flaws become at the $68 bln ride-hailing app. The jig is up on violating livery laws, as it may be on avoiding capex now that drivers understand depreciation. It's best all this happens before an IPO.

UK government wakes up to downside of gig economy

17 Feb 2017

Work created by the likes of Uber flatters Britain's unemployment rate. That was convenient to politicians after the financial crisis. The less palatable implications of a surging gig economy are now dawning on Westminster – a potential 3.5 billion pound gap in tax receipts.

Atkins $4 bln merger would be fragile construction

30 Jan 2017

A mooted tie-up between the UK engineering consultancy and unlisted U.S. peer CH2M has some logic, ahead of a likely rise in infrastructure spending. Yet WS Atkins shareholders will need some persuading. CH2M's lackluster performance would make its value a bone of contention.

Italy is a flytrap for activist investors

19 Jan 2017

The euro zone's third-biggest economy offers some ideal conditions for shareholder activism – and some great reasons to stay away. A fight between Elliott Management and railway-signal maker Ansaldo STS shows plenty of both.

Activist gets CSX train to run early

19 Jan 2017

Ex-Pershing Square partner Paul Hilal wants departing Canadian Pacific CEO Hunter Harrison to work his cost-cutting magic at the rival railroad firm. Grinding CSX's expenses down to a similar level could be worth more than $7 bln. Much of that value has already left the station.

Uber’s $70 bln value accrues mainly to customers

22 Dec 2016

Exiting cutthroat China should help, yet the ride-share giant may still lose $2.8 bln in EBITDA this year. Competition is tough even in U.S. cities like New York. Economics suggests Uber is valuable to its passengers. Turning a profit for investors, though, is a different story.

New Hertz CEO faces tough drive out of ditch

14 Dec 2016

Kathryn Marinello has a great résumé. The problem is that she's the $2 bln rental-car outfit's third boss in two years, and activist investor Carl Icahn looms in the back seat. Earnings just took a hit, leverage is high, and the sharing economy is undermining Hertz's model.

Politics hampers delivery of good postal bid

1 Dec 2016

Belgium's Bpost has made a final offer of 2.5 billion euros for Dutch rival PostNL. The deal is a play for the fast-growing parcel business. With the target's shares trading below the offer, Dutch government opposition may scupper delivery of a good deal for investors.

China’s “bicycle Ubers” worth taking for a spin

25 Oct 2016

MoBike and ofo are billed as sexy pedal-powered answers to the ride-hailing app. The startups, backed by local tech giants, are actually asset heavy and capital-intensive. They face unique risks, but pairing smart hardware with rental economics justifies some enthusiasm.

Aussie $7 bln port deal reveals seller’s market

19 Sep 2016

The latest privatisation Down Under sees a consortium leasing Melbourne's port for a punchy 25 times EBITDA. It underscores the huge global appetite for assets offering decades of reliable returns - and is a reminder that Australia can afford to be picky over new owners.

Deutsche Post 2020 goals face delivery challenge

3 Aug 2016

The German logistics group is playing catch up. Results surpassed analysts' expectations for the second quarter in a row. Yet CEO Frank Appel's ambitious medium-term operating profit targets are still a stretch after 2015 setbacks. He will have to run faster to deliver on time.