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.

Jul 3, 2014 17:11 UTC

Quickie stock sales toy with Volcker Rule spirit

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By Antony Currie 

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

Investment banks are using quickie stock sales to toy with the spirit of the Volcker Rule. Wall Street sold some $23 billion of equity block trades for public companies in the first half of the year, according to Thomson Reuters data. That’s almost as much as initial public offerings have raised. These deals are a handy tool for corporations. But at times investment banks blur the line between capital-raising and banned proprietary trading.

Jul 3, 2014 10:29 UTC

Cash calls misstate likely EU bank equity deficit

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By Dominic Elliott

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

European bank cash calls could be misstating the sector’s overall equity deficit. Sixteen lenders have raised over 18 billion euros in equity this year, with Portugal’s Millennium BCP the most recent. Until the European Central Bank divulges its comprehensive assessment results in October, it’s not certain which ones are doing so out of desperation, and which are just being cautious.

Jul 1, 2014 18:30 UTC

U.S. cooks up penalties with anti-foreign flavor

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By Reynolds Holding

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

Uncle Sam is cooking up penalties with an anti-foreign flavor. New research suggests that overseas firms like BNP Paribas do in fact pay bigger fines and plead guilty more often than U.S. companies. One reason may be that prosecutors target only the most serious cases abroad. But the differences feed suspicions that America is playing favorites.

COMMENT

Could you do us a favor and give a reference to the Univ. of Virginia law school study instead of keeping it hidden from view. People would like to read the study itself, instead of hearing your opinion about what it said. BNP was breaking the law, and was nailed. Your argument seems to be that the penalties are too high. But is your comparison correct? Yes, perhaps US banks have lower penalties, but have US banks been trading with Iran, Cuba and other probated nations? If not, then why should their penalties be as high as for banks that do?

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