May 8, 2014 17:47 UTC

Yahoo’s Alibaba windfall tough to spend wisely

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By Richard Beales

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

More than ever in her nearly two-year tenure, Marissa Mayer needs to find the exclamation point in Yahoo’s business. After the company sells something like half of its 22.6 percent stake in Chinese e-commerce giant Alibaba, the Yahoo chief executive could have $12 billion on hand. Spending it wisely will be tough.

May 8, 2014 06:10 UTC

Pfizer unlikely to avoid China anti-trust therapy

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By Ethan Bilby

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

The chance to vet Pfizer’s $106 billion offer for rival drug-maker AstraZeneca looks too good to pass up for China’s competition watchdog. Pfizer should brace for some antitrust therapy, though getting Astra’s board on-side first may help.

May 7, 2014 13:53 UTC

Alstom chase is distraction from Siemens revamp

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By Olaf Storbeck

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

Joe Kaeser has hammered out a plausible new strategy for Siemens. The new chief executive’s focus on internal reforms could make the unwieldy engineering giant less complex and more efficient. But Kaeser is simultaneously mulling a bid for the power assets of French rival Alstom – a big-bang acquisition that could foil “Vision 2020.”

May 6, 2014 21:37 UTC

Tax steroids justify Bayer’s $14 bln Merck deal

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By Olaf Storbeck
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Bayer’s $14.2 billion acquisition of Merck’s consumer care business is less pricey than it looks. Non-prescription pharmaceuticals are among the most sought-after assets in global healthcare. Demand for “over the counter” drugs, driven by emerging markets, is growing at 4 percent to 5 percent a year. Revenue is unthreatened by patent cliffs and less vulnerable to regulatory interference. Strong OTC brands earn EBITDA margins of 30 percent and more.

May 2, 2014 14:53 UTC

Pfizer yet to land knockout blow on Astra

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By Neil Unmack 

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

Pfizer’s courtship of AstraZeneca looks like a hate-hate relationship. In January, UK pharmaceuticals group AstraZeneca viewed its U.S. larger rival’s proposal of 46.61 pounds a share as too low on cash, too risky, and too cheap to even talk about. Pfizer’s latest proposal, an attempt to get Astra to begin friendly talks, hasn’t moved the needle much.

May 1, 2014 17:27 UTC

Astra has small tactical advantage over Pfizer

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By Christopher Hughes and Neil Unmack
The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

Time often benefits bidders rather than targets – that’s why U.S.-based food group Kraft left Cadbury flailing for months after making a takeover approach for its UK competitor. But the dynamics of Pfizer’s interest in rival pharmaceuticals group AstraZeneca are unusual. Pfizer has good reason to seek a quick, agreed deal.

May 1, 2014 12:00 UTC

M&A-capex inversion wrongfoots stock-pickers

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By Swaha Pattanaik

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

Resurgent business investment was supposed to lift equity markets this year. But things are not turning out as expected. The bigger beneficiaries of spendthrift chief executives appear to be takeover targets rather than firms whose earnings reflect shifts in global capital expenditure. That calls for a different investment strategy.

COMMENT

May I suggest that you develop metrics for this interesting analysis and use them to create another stock screen option on this Reuters site.

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Apr 30, 2014 20:09 UTC

Exelon is overpaying, even with the sandbagging

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By Christopher Swann
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Just about any way investors crunch the numbers, Exelon looks to be overpaying for Pepco. The utility appears to be low-balling the projected cost savings from its purchase of Washington, D.C.-based Pepco for $6.8 billion. But modesty won’t fool regulators. They always demand a cut through lower electric bills. Yet even assuming Exelon is sandbagging, it will struggle to justify the premium it is offering.

Apr 30, 2014 18:05 UTC

Energizer split leaves biggest problem intact

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By Kevin Allison
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Energizer’s split into household and personal care companies should improve the $7 billion firm’s focus. It could also make one of the newly independent businesses an acquisition target. But the proposed transaction doesn’t address the batteries-to-tampons group’s bigger challenge: mustering more resources to take on industry gorilla Procter & Gamble.

Apr 29, 2014 06:46 UTC

Pfizer tax arbitrage will hasten more deals

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By Robert Cyran

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

Pfizer’s $99 billion tax arbitrage bid will encourage copycats. The biggest charm of the U.S. drug giant’s offer for AstraZeneca of the UK lies in switching to a lower-tax domicile. The latest and largest such deal to hit the headlines raises the odds Congress will tighten rules – but not yet.