Jul 13, 2014 23:14 UTC

German soccer glory was predictable – with luck

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By Robert Cole

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

Brazil’s World Cup was first-rate entertainment thanks to its many surprising results. For its part Breakingviews, also somewhat surprisingly, predicted that Germany would win the competition as long ago as last Christmas.

Jul 13, 2014 23:08 UTC

If only Argentine economy matched soccer success

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By Christopher Swann

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

If only the Argentine economy’s success matched that of its soccer team. The nation’s strong World Cup showing, making it into the final against Germany, reflects astute management of its big fan base and valuable on-field talent. That contrasts with a 100-year record of wasting its human and natural resources. It’s not too late: Avoiding policy own-goals could one day make Argentina an economic champion.

Jul 11, 2014 12:36 UTC

Why investors were taken in by Gowex

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By Fiona Maharg-Bravo

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

It’s easy to be wise with hindsight. Take the collapsed Spanish free wifi provider Gowex. The company raised several large red flags that domestic regulators and investors should have noticed. It took a foreign investor, specialist short-seller Gotham City Research, to uncover Gowex chief executive’s fraud.

Jul 10, 2014 11:09 UTC

“Seller beware” when profiting from market calm

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By Swaha Pattanaik

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

Seller beware. That is an unusual warning, but it applies right now to the options market. Sellers of protection against large price moves have been pocketing gains. But many will suffer losses if markets become less calm.

Jul 9, 2014 17:55 UTC

PetSmart activists barking up the right tree

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By Kevin Allison

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

PetSmart’s activist shareholders are barking up the right tree. Jana Partners and Longview Asset Management, which together own about a one-fifth stake, have commanded the U.S. purveyor of dog food and toys to roll over and sell itself. While there are other options to enhance shareholder returns, a deal with Petco, the smaller rival controlled by TPG and Leonard Green, could be the pick of the litter.

Jul 8, 2014 19:05 UTC

Shire can get more from AbbVie

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By Neil Unmack and Robert Cyran

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

Shire can get more from AbbVie. The London-listed drugmaker is pondering a fresh, $51 billion unsolicited bid from its U.S. rival. AbbVie touts shareholder support and is offering a hefty premium, but Shire’s board can probably extract one more increase in return for their recommendation.

Jul 8, 2014 15:56 UTC

Supercharged IPO tax spoils need splitting

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By Robert Cyran

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

Initial public offerings that generate extra tax spoils are in the spotlight. KKR and Silver Lake are listing web hosting company GoDaddy, three years after buying it for $2.25 billion. The use of what’s called an “Up-C” structure means the company will float with big potential tax deductions on its books. In GoDaddy’s case, investors and sponsors will both benefit. But other IPOs with Up-Cs have seen more dubious arrangements.

Jul 7, 2014 14:36 UTC

Gowex collapse leaves egg on many faces

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By Fiona Maharg-Bravo

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

The collapse of Gowex has ramifications beyond Spain’s junior stock market for riskier companies. The Spanish wifi provider has said its chief executive admitted falsifying the accounts, days after investment firm Gotham City Research attacked the company. With Gowex held up as the poster child for Spanish entrepreneurialism, its impending failure will make life harder for other small firms.

Jul 7, 2014 07:01 UTC

Beijing Motor IPO lifts bonnet on China carmakers

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By Ethan Bilby 

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

Beijing Motor is offering investors a glimpse under the bonnet of the Chinese auto industry. The carmaker part-owned by Germany’s Daimler is planning a Hong Kong listing it hopes will help it cash in on China’s expanding demand for new vehicles. But its profitability depends entirely on joint ventures with foreign groups. It’s a reminder that China’s car market has two speeds.

Jul 4, 2014 06:28 UTC

Chinese internet stocks deserve their discount

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By Robyn Mak 

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

China’s internet stocks are red hot but investors would rather pay more for their U.S. counterparts. Shares of Chinese companies including gaming and social media giant Tencent and search engine Baidu trade at lower multiples than those of Facebook, Google and other American dotcoms when expected earnings growth is taken into account. The discount is deserved.