Dec 5, 2014 19:19 UTC

Uber flips the bird at critics with convertible

Photo

By Robert Cyran

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

Uber is really flipping the bird at critics with its latest financial deal. The taxi app’s valuation soared to $40 billion in its latest funding round. But a plan to issue securities that convert to stock at a discount to its eventual IPO price shows how firmly Chief Executive Travis Kalanick remains in the driver’s seat. Uber can raise money at a potentially massive premium.

Dec 3, 2014 11:53 UTC

Sinking rouble puts debt squeeze on Russia Inc

Photo

By Pierre Briançon

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

Russia does not have an external debt problem. At around 37 percent of GDP – versus 1.5 to three times GDP, say, for developed European economies – it should be easily manageable. For Russian companies and banks, it’s a different story.

COMMENT

Once the economy starts contracting, and prices of food start rising- support for Mr. Putin will slowly fade.

Posted by USSB | Report as abusive
Dec 1, 2014 19:43 UTC

If Vodafone wants Liberty it has to get creative

Photo

By Quentin Webb

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

Deals beget deals, as the cliche has it, but still: BT eyes a $15 billion takeover in UK mobile and Vodafone’s measured reaction is to plot a bid for European’s largest cable group, Liberty Global, worth $90 billion? That’s a strategically ambitious way for Vodafone to counter a new threat to its domestic wireless business. The financial logic is harder to see.

Dec 1, 2014 15:05 UTC

E.ON’s “bad power” spinoff promises little upside

Photo

By Olaf Storbeck

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

E.ON is coming clean on dirty energy. In a historic move, Germany’s largest utility is exiting conventional generation and bundling unwanted risky assets into a new company to be spun off. The remaining E.ON will concentrate on distribution and green electricity. While both management teams will benefit from focus, this “bad power” spinoff will struggle to offer a tempting investment case.

Nov 28, 2014 12:08 UTC

Market too bearish on European oil services

Photo

By Fiona Maharg-Bravo

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

Oil service companies are in a bad place. The sharp drop in oil prices to $72 a barrel has coupled with slowing capital expenditure among oil majors. Petrofac, whose shares have fallen 30 percent in a week, has fared especially badly. Seadrill is another.

COMMENT

The next elephant in the SDRL/NADL boardroom you’re not being told about.
Would NADL/Seadrill’s Assets Be Subject To The Proposed Russian Foreign Assets Seizure Law?

http://fredriksenwatch.blogspot.fr/2014/ 11/would-nadlseadrills-assets-be-subject .html

Posted by Amanda111 | Report as abusive
Nov 27, 2014 14:22 UTC

SABMiller’s Coca-Cola push is Africa buy signal

Photo

By Robert Cole

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

If there was any doubt about SABMiller’s interest in soft drinks, the brewer’s tie-up with Coca-Cola in Africa should squash them for good. SAB, Coca-Cola and privately held Gutsche Family Investments have agreed to merge bottling assets in southern and eastern Africa into a soft-drinks group with $2.9 billion of annual sales. It is a deal that ticks all the boxes for SAB.

Nov 25, 2014 12:33 UTC

Private equity shows signs of pre-crisis brio

Photo

By Chris Hughes and Olaf Storbeck

The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

Private equity’s hunt of large European targets has landed a rare catch. The 3.75 billion euro ($4.7 billion) leveraged buyout of Switzerland’s SIG Combibloc has demonstrated that financial sponsors can still stretch to get a sizeable transaction agreed.

Nov 19, 2014 18:05 UTC

Uber is one startup that needs to grow up fast

Photo

By Robert Cyran

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

Uber is one startup that needs to grow up fast. The Silicon Valley taxi app’s disregard for rules has spurred it toward a $30 billion valuation. But executives who threaten to “dig up dirt” on critics, use unsavory tactics against rivals, and post statistics on customers’ one-night stands present an existential business risk and hurt its fledgling brand. Uber needs to rein in its laddish impulses.

Nov 19, 2014 15:10 UTC

Deutsche’s CoCo buyers are not totally irrational

Photo

By George Hay

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

There’s method in the madness of those investing in Deutsche Bank CoCos. The German lender confirmed on Nov. 19 that it had sold $1.5 billion of so-called contingent convertible debt with a 10-year maturity, following the May sale of 3.5 billion euros of six-year paper. Buying bank debt that is written down when the share price is tumbling sounds crazy, but it might not be right now.

Nov 18, 2014 14:57 UTC

AstraZeneca struggles to advance value defence

Photo

By Neil Unmack

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

AstraZeneca is struggling to advance its value defence. The UK pharma group fought Pfizer’s unsolicited $119 billion bid earlier this year by promising growth. It is now reiterating its punchy revenue targets. But Astra is only inching forward. The chances of seeing off another assault by its U.S. rival have been improved more by American curbs on tax-driven M&A than by self-help.