Transportation

Railroad suitor’s graceful exit depends on rival

1 Sep 2021

America’s train regulator has derailed Canadian National’s roughly $30 bln agreed deal for Kansas City Southern. To avoid further uphill effort and hefty fees, the suitor needs peer Canadian Pacific to persuade their mutual target to let it off the hook by jumping tracks again.

Capital Calls: Oatly, Sonos/Google

16 Aug 2021

Concise views on global finance: The Swedish oat milk producer’s decent results are only good in parts; Sonos gets a boost with a preliminary trade ruling that Google infringed its patents.

Canadian Pacific has edge in great U.S. train race

10 Aug 2021

The original bidder for Kansas City Southern has returned with a $27 bln offer to challenge rival Canadian National. While the price is lower and changing railroads mid-journey for a second time isn’t free, reduced regulatory risk makes it a better deal for KCS shareholders.

IPO U-turn is probably Didi’s most sensible route

29 Jul 2021

The beleaguered $40 bln Chinese ride-hailing group denied a report that it plans to go private a month after its U.S. debut. Changing course would be embarrassing and quite costly. But it may be the best way to get back in Beijing’s good graces amid a continuing crackdown.

Volkswagen makes timid bet on brave new car world

29 Jul 2021

A group led by the German carmaker will pay $3.4 bln for Europcar. The rental company’s city sites may help CEO Herbert Diess sell new services like subscriptions and self-driving taxis. But keeping the unit at arm’s length suggests caution at odds with the optimistic vision.

Capital Calls: Bank mergers, GlaxoSmithKline

28 Jul 2021

Concise views on global finance: U.S. lender Citizens helps make the case for consolidation with its $3.5 billion acquisition of New Jersey-based Investors Bancorp. A pandemic drug bounty may help the UK pharma group’s CEO Emma Walmsley see off activist Elliott.

Capital Calls: Grill makers cook their IPOs rare

27 Jul 2021

Concise views on global finance: Weber and Traeger set conservative prices for their market debuts, leaving something on the table for new investors.

Branson space caper may have airline economics

16 Jul 2021

The British tycoon has lined up punters paying $250,000 each for his sub-orbital joyride. To hit profit targets, though, his Virgin Galactic needs to hike prices as rivals lift off. If it can’t, the $8 bln firm’s financial trajectory may resemble loss-making Virgin Atlantic.

Wall Street ignores China meddling at own peril

6 Jul 2021

Didi’s shares fell by as much as 25% after app stores in the People’s Republic had to delete it, following Beijing’s crackdown last week. Investors may continue to be overly optimistic. But now the risk is that China and the United States try to one-up each other on restrictions.

Capital Calls: JEDI’s demise, Toyota’s weird world

6 Jul 2021

Concise views on global finance: The cancelation of a $10 bln U.S. government cloud contract shows negotiating big projects is sometimes a matter of guesswork. Meanwhile, the auto firm that pioneered just-in-time manufacturing is cashing in on a chip stockpile and red-hot market.

Getlink’s Brexit blues may have happier M&A ending

25 Jun 2021

The $9 bln Channel Tunnel operator has been hit by travel curbs and reduced UK-France trade. Shares a fifth below pre-Covid peaks don’t reflect recovering traffic flows or duty-free sales. A decades-long concession increases the appeal to yield-hungry infrastructure funds.

Self-driving truck race suffers from major traffic

23 Jun 2021

Embark, which automates big rigs, is worth $5.2 bln in a SPAC deal with smart-money PIPE investors and Trump’s former transport boss on the board. Its strategy might please shippers and truck-makers. The valuation isn’t bad. But competitive and regulatory roadblocks lie ahead.

Didi IPO runs into flashing regulatory yield sign

17 Jun 2021

Beijing trustbusters are probing the ride-hailing giant as it readies a market debut. Its dominance at home depends less on the anticompetitive tactics used by tech peers. Abrupt crackdowns on Ant and other industries, however, mean investors have been warned of the risks.

Waymo proves moonshots work better in the dark

16 Jun 2021

Alphabet’s self-driving unit snagged $2.5 bln of new funding despite executive departures and slow progress on its driverless cars. Waymo dealt with its potholes in private. Speculative businesses going public through SPACs may not get the chance to learn from their mistakes.

Calculator: Didi’s valuation drive

16 Jun 2021

China’s Uber is hoping its IPO will raise $10 bln, which would give it a $100 bln price tag. Justifying that target on current form requires a rich valuation multiple on par with the one sported by Southeast Asian super-app Grab. Barring that, Didi will need to accelerate growth.

Didi embarks on ultimate IPO road-test

11 Jun 2021

The Beijing-based ride-hailing giant, last valued at $62 bln, unveiled plans to go public in New York. It’s growing quickly, but cruising into record-high markets, U.S. political pressure on Chinese issuers and tech crackdowns at home. The fare could be steep for new investors.

Truck-sharing IPO hurtles down risky road

1 Jun 2021

The $20 bln valuation China’s Manbang is targeting is an axle-stressing 465 times last year’s small adjusted profit. The SoftBank-backed firm operates in a fast-growing market, but faces stiff competition and heightened regulation. Justifying the IPO price will be a long haul.

Capital Calls: Uber union

26 May 2021

Concise views on global finance: UK union’s success in representing drivers may hit potholes in the United States.

FirstGroup rebels may rue waiting for the next bus

25 May 2021

Two shareholders of the UK transport operator may vote against a $4.6 bln sale of its U.S. businesses to EQT. While no knockout, the price looks fair given the lack of other certain offers. A delay could destabilise the company when it needs to focus on opportunities at home.

Capital Calls: Apollo, Microsoft

20 May 2021

Concise views on global finance: The second of the asset manager’s three founders moves on; the software firm is pulling the plug on Internet Explorer.