Analysis & Opinion
Bayer’s Monsanto bid flags conglomerate curse
The German group can only muster a $62 bln swoop on the U.S. seed maker because of its big healthcare arm. Without that, Bayer’s crop science unit would be prey not predator. The bidder’s management may see this as a perk of being diversified. For shareholders it’s the opposite.
Will there be war in the South China Sea?
If you’re looking for a place on the globe likely to spark a world war, you could do worse than the South China Sea. This week on War College, we’re looking at this global sore spot and asking just how heated is the situation likely to get.
Deutsche’s latest mess looks like a Protium moment
The German bank is probing a deal that enabled ex-trading boss Colin Fan and others to profit, with leverage provided by their own employer. The investigation is ongoing. But it looks to have similar flaws to Barclays’ Protium deal - with staff interests above shareholders’.
Oilmen fix smart $2.2 bln deal in Papua New Guinea
Oil Search’s offer to buy InterOil is canny and opportunistic. The buyer will only pay later for future gas discoveries. An agreement to sell a big chunk straight on to France’s Total also cuts the chance of a rival bid. It leaves InterOil investors with an unattractive choice.
BASF best leaving Monsanto seeds for the birds
Bayer’s bid for the U.S. seed maker puts its German rival on the spot. Monsanto and BASF work together on research and there are few other potential merger partners. Yet the maths of a $50 bln-plus counterbid would be a stretch. BASF has sat out other big deals; it can again.
Tencent can shield itself from ad slowdown
The Chinese gaming giant warned a slowing economy may clip its fast-growing advertising business. But soaring revenue from mobile games, which topped $1.3 bln in the first quarter, cushions the blow. Besides, unlike rivals Alibaba and Baidu, Tencent relies less on ad dollars.
China’s $5 bln robot bid does not compute
The 36 pct premium Midea may offer for German robot maker Kuka is frothy. There are no cost synergies, the suitor doesn’t seek control, and governance could be messy. Yet unless Kuka can find a white knight, minority shareholders have every reason to take the Chinese cash.
Chancellor: UK housing crisis isn’t supply problem
British home prices are higher than ever relative to incomes. But nosebleed values aren’t a sign of inadequate supply. It’s all about ultra-low interest rates and foreign capital flows. When Chinese capital flows reverse, the London property bubble will burst.
BOC Aviation’s Hong Kong flotation deserves to fly
The plane-leasing group is taxiing towards a $1.1 bln offering. Being under Bank of China’s wing means cheaper funding and better returns than standalone rivals. Yet the premium valuation is only justified if the state-backed parent remains willing and able to act as a backstop.MOST COMMENTED
Most discussed posts this week
commentsAnatole Kaletsky
commentsEdward Hadas
commentsIan Bremmer
commentsHugo Dixon
commentsFinancial Regulatory Forum
THE LATEST
- A suitable coach for the Indian cricket team
by Anupam Pratihary | Monday, 23 May 2016, 12:04 pm - Bayer’s Monsanto bid flags conglomerate curse
by Olaf Storbeck | Monday, 23 May 2016, 10:20 am - Yum’s China split doesn’t look too tasty right now
by Quentin Webb | Monday, 23 May 2016, 6:50 am - Early Spokeo fallout: Privacy defendants try to capitalize
by Alison Frankel | Friday, 20 May 2016, 7:16 pm - Viewsroom: Trump touts riches while banks blunt breakup talk
by Reynolds Holding | Friday, 20 May 2016, 7:10 pm - Dry river fails to dampen Kumbh Mela spirit in Ujjain
by Malini Menon | Friday, 20 May 2016, 4:35 pm - Worries abound about future recession Made in Japan
by Sumanta Dey | Friday, 20 May 2016, 12:37 pm - Deutsche’s latest mess looks like a Protium moment
by Dominic Elliott | Friday, 20 May 2016, 12:15 pm - Oilmen fix smart $2.2 bln deal in Papua New Guinea
by Una Galani | Friday, 20 May 2016, 7:31 am - 2nd Circuit’s repose opinion vindicates banks’ billion-dollar MBS settlements
by Alison Frankel | Thursday, 19 May 2016, 8:43 pm
-
Wednesday, 27 April 2016, 5:29 am
Prince, Bowie and Haggard: Icons? Legends? What’s the difference?
-
Tuesday, 26 April 2016, 4:01 am
The next Chernobyl may be intentional
-
Sunday, 24 April 2016, 4:37 pm
Women on the money – Britain’s Queen Elizabeth, America’s Harriet Tubman
-
Thursday, 21 April 2016, 8:16 pm
Also recall the executive formerly known as Prince
-
Thursday, 21 April 2016, 4:36 am
Islamic State has erased the line between foreign and domestic policy
-
-
Monday, 23 May 2016, 10:20 am
Bayer’s Monsanto bid flags conglomerate curse
-
Monday, 23 May 2016, 6:50 am
Yum’s China split doesn’t look too tasty right now
-
Friday, 20 May 2016, 7:10 pm
Viewsroom: Trump touts riches while banks blunt breakup talk
-
Friday, 20 May 2016, 12:15 pm
Deutsche’s latest mess looks like a Protium moment
-
Friday, 20 May 2016, 7:31 am
Oilmen fix smart $2.2 bln deal in Papua New Guinea
-
1
commentsRubio rants, and not just to those close to him