CFO Moves: Edison International, Hormel Foods, Vanguard
Edison International, Hormel and Vanguard named new finance chiefs.
CFO Journal
M&A
Chinese Buyers Push Back Against Reverse Break Fees
Pressure from sellers is convincing eager Chinese buyers to pony up big reverse breakup fees in their acquisitions. This is a recent trend, and some buyers are pushing back, say bankers and lawyers who have advised on several recent Chinese deals.
CFO Moves
Best Buy CFO Departure and Outlook Disappoint Analysts
Sharon McCollam is leaving Best Buy after helping reverse the company's flagging prospects.
U.S. Takeover Targets Wrest Fees, Guarantees From Chinese Suitors
Many American companies are wary of Chinese acquirers, with some demanding that they put money in escrow accounts or provide letters of credit to guarantee deal financing or payment of breakup fees.
The Big Number
28%: Cash on corporate balance sheets as a percentage of debt
ConAgra CFO John Gehring to Retire
ConAgra Foods said Chief Financial Officer John Gehring is retiring after 14 years with the company, but will remain in the role until the food maker finds his replacement.
CFO Moves
Dupont’s Fanandakis Out As CFO Amid Dow Merger
Musical chairs stopped for competing executives in the pending Dow Chemical Co. and DuPont Inc. merger, and Nicholas Fanandakis has found himself without a seat.
Strategy
Consumer Interest In Food Content Prompts Supply Chain Shifts, CFOs Say
The growing demand for disclosure about chemicals, hormones and food formulation is changing how finance chiefs in the food industry direct investment in new technology, product development and sourcing of ingredients.
Management
Overtime Pay Rule to Have Limited Impact on Kroger, CFO Says
The recently announced federal overtime-pay threshold will have little effect on expenses at supermarket operator Kroger Co., according to finance chief Mike Schlotman.
Debt
Record Corporate Cash May Hide Debt Hazard
The focus on rising corporate cash balances masks a bigger problem: debt. While the total amount of cash and other investments on the books at nonfinancial companies rose 1% last year to $1.84 trillion, total debt grew roughly 15% to $6.6 trillion, according to new research from S&P Global Ratings.
Governance
European, North American Firms Split on ESG Criteria
European investors care most about environmental issues, while U.S. ones prefer to make sure governance is top notch.
Latest News
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HP Enterprise Plans Spinoff, Deal With Computer Sciences WSJ
Hewlett Packard Enterprise plans to spin off most of its technology services operations and merge them with those of Computer Sciences, in an $8.5 billion transaction that marks HP Enterprise’s latest adjustment to a shifting landscape that is roiling the market for corporate technology.
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Stocks Extend Rally, Buoyed by Oil WSJ
U.S. stocks marched higher, driven by gains in energy and financial shares. The move higher has come as oil prices approach $50 a barrel and investors appear more comfortable with the prospect of higher interest rates as early as this summer.
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Sweeping Rule Marks First Update to Chemical Safety in 40 Years WSJ
U.S. House approved sweeping new chemical safety rules designed to overhaul federal regulation covering thousands of chemicals in daily use, a rare bipartisan action in a year when Congress is torn by presidential politics.
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OPEC’s Ability to Ease an Oil Supply Shock is Fading WSJ
OPEC has neither the political consensus to cut output nor the technical capability to significantly raise production.
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Huawei Sues Samsung Alleging Patent Infringement WSJ
China’s Huawei has filed a lawsuit in the U.S. alleging that Samsung infringed a number of patents covering mobile devices and cellular-communications technology.
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Terror Attacks, Air Crashes Weaken Appetite for European Travel WSJ
A spate of terror attacks and airliner disasters across Europe and its periphery is starting to catch up with the region’s travel industry.
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Monsanto Rejects Bayer Merger Bid, Will Weigh Talks WSJ
Monsanto rejected Bayer’s $62 billion takeover offer, saying the biotech seed giant’s business merited a higher price, though Monsanto said it remains open to further talks on a deal.
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Google’s French Headquarters Raided by Tax Investigators WSJ
Dozens of tax investigators raided Google’s French headquarters, part of a continuing probe into alleged tax evasion by the Internet giant, prosecutors said.
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Rising Dollar Shakes Up Markets WSJ
A resurgent dollar is rattling investments in many commodities and emerging markets, marking a retreat from riskier assets following a sharp 2016 rebound.
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Beware the Boardroom Fineprint WSJ
Two recent boardroom battles offer the same lesson for corporate aggressors: The fine print matters.
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Toyota and Uber Reach Investment, Lease Partnership WSJ
Toyota said it had invested in Uber Technologies as part of a strategic alliance aimed at getting more drivers on the ride-hailing service.
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Chinese Investors Pour Money Into U.S. Property WSJ
Commercial property sales have slowed in the U.S. this year—but Chinese investors are continuing to plow money into the market. So far this year, Chinese companies have purchased or are buying 47 U.S. properties worth $9.3 billion.
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A Rare Look Inside China’s Central Bank Shows Slackening Resolve to Revamp Yuan WSJ
Minutes of closed-door meetings show how leaders lost interest in making the yuan’s value more market-based, ditching changes announced in August.
