Archive

Reuters blog archive

from Breakingviews:

Tokyo Electron takeover is no template for Japan

By Una Galani
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

Foreign acquirers have long-struggled to make headway in Japan. That makes Applied Material’s recent takeover of Tokyo Electron an interesting case study. The U.S. tech firm wooed its smaller rival with an all-stock merger and the promise of shared governance. However, the model may not work so easily elsewhere.

Most of the governance sweeteners Applied Materials offered are easy to replicate. Though Tokyo Electron shareholders will own barely a third of the combined company, Applied Materials handed over the chairman’s role, agreed to move its chief executive to Tokyo, and promised equal representation on the board for both sides. The real clincher, though, was the all-stock offer. The structure allowed Tokyo Electron’s management to present the transaction as a merger of equals rather than a change of control.

Cross-border all-share deals are tricky because shareholders of the target company are often reluctant to hold shares in a foreign company. As a result, the shares flow back to the acquiring country, often depressing the price. Even though the combined Applied Materials/Tokyo Electron will be listed in the United States and Japan, it is unlikely to be eligible for inclusion in Japan’s main stock indices. As a result, funds that passively track those indices will be forced to sell.
However, Tokyo Electron has an advantage not shared by many Japanese companies: half its shares are already held by foreign investors, limiting any sell-off before the deal closes next year. The flow back could amount to around $2 billion, estimates one banker close to the deal, or 20 percent of the Japanese firm’s current market value. To help matters, the new company has pledged to spend $3 billion on a share buyback program.

from Breakingviews:

An Abenomics lesson on politics for Uncle Sam

By Rob Cox
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Two years ago, there was no gloomier place than Japan. The country was recovering from the horrific devastation of the Fukushima earthquake and tsunami. Fearful of radiation poisoning, Tokyoites were purchasing Geiger counters and eschewing vegetables. The government was a thicket of finger-pointing, evasion and paralysis.

from Photographers' Blog:

Adventures on the western frontier

Photo

North Dakota

By Shannon Stapleton

It had been a couple months since I traveled somewhere to cover an assignment and I have to admit I was really looking to get out of town.

So when I heard that the Reuters text operation was covering a story in Williston, North Dakota on the Bakken Oil boom I thought it would be the perfect opportunity to visit a place that I had never been before. That same day I picked up the month's edition of National Geographic and saw on the cover that one of my favorite photographers Eugene Richards had spent some time there this past summer. I was excited to embark on an adventure to the western frontier and see for myself this modern day gold rush.

from Ian Bremmer:

The top 10 grudges in the G-20

The G-20 is no happy family. Comprised of 19 countries and the European Union, once the urgency of the financial crisis waned, so too did the level of collaboration among members. Unlike the cozier G-7 -- filled with likeminded nations -- the G-20 is a better representation of the true global balance of power … and the tensions therein. So where are the deepest fault lines in the G-20? 

Below is a ranking* of the 10 worst bilateral relationships in the G20. Russia is in four of the worst, while China is in three (although Russia and China’s relationship is fine). Several countries are also in two of the worst relationships: the United States (with the two belligerents mentioned above), Japan, the UK and the EU. 

from The Edgy Optimist:

The U.S. can’t afford a Chinese economic collapse

Is China about to collapse? That question has been front and center in the past weeks as the country completes its leadership transition and after the exposure of its various real estate bubbles during a widely watched 60 Minutes exposé this past weekend.

Concerns about soaring property prices throughout China are hardly new, but they have been given added weight by the government itself. Recognizing that a rapid implosion of the property market would disrupt economic growth, the central government recently announced far-reaching measures designed to dent the rampant speculation. Higher down payments, limiting the purchases of investment properties, and a capital gains tax on real estate transactions designed to make flipping properties less lucrative were included.

from Photographers' Blog:

Of gain and loss (and the longest story I’ve ever done)

Photo

By Rick Wilking

In the summer of 2011, as a chapter in a broader two-year project on obesity in America, I started a photo story on an almost 300 pound teenager who was planning bariatric surgery as a last resort to lose weight.

When a photojournalist starts a project like this there is always a lot of doubt. How much time will it take? Over how long a period and with how many visits. Will the subjects (and their friends and families) get tired of having me around? Will they cooperate in giving me the access I need? Since it’s a medical story will the hospital and doctors involved cooperate too? And most importantly will the time investment from both my subjects and me produce quality images that convey a compelling story?

from Full Focus:

AIDS in Black America

Photo

Up to 44 percent of America's new HIV/AIDS infections are clustered in 12 major cities, including Chicago, Washington, New York and Los Angeles, CDC data show. Within these communities, HIV rates are highest among blacks, Hispanics, gay and bisexual men of all races. As researchers gather for the International AIDS Society's 2012 conference, photographer Mike Segar documents patients, their caretakers and peer educators from the African-American community.

from Photographers' Blog:

Obesity in America

Photo

By Rick Wilking

Almost 2 years ago I started work on a photo documentary simply titled “Obesity in America.”  It's a simple title but with complex subject matter.

Getting the access, the various permissions from individuals and institutions and working through the convoluted American HIPPA (Health Insurance Portability and Accountability Act) that protects patient privacy to extremes was quite a challenge. But trying to tell a story with this many layers and permutations was even tougher.

from Expert Zone:

Hillary Clinton’s farewell visit to Delhi: from prickly estrangement to empathetic divergence

Photo

(The views expressed in this column are the author's own and do not represent those of Reuters)

U.S. Secretary of State Hillary Clinton will rank as the most accomplished, poised and successful woman politician in American history. She has pierced many glass ceilings with tenacity and grace. She almost made it to the White House and future sociologists and historians will be able to more objectively assess the misogyny index that still lurks deep within American society and its relevance in the Obama-Clinton Democratic party tussle. The U.S. demonstrated in late 2008 that it had evolved to a point where it could accept a coloured President but not a woman.

from Photographers' Blog:

An American homeless family

Photo

By Lucy Nicholson

On her second day of camping near the coast north of Los Angeles, Benita Guzman lit a match, threw it on a pile of logs, and poured gasoline on top. As flames engulfed her hand and foot, her niece, Angelica Cervantes, rushed to throw sand over her. Benita thrust her burning hand into a pile of mud, and took a deep breath.

Camping’s not easy. It’s a whole lot rougher when you’re a pair of homeless single mothers trying to keep seven children fed, clothed, washed and in school.

  •