Aug 8, 2014 11:23 UTC

BlackRock is right: European IPOs need more work

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By Dominic Elliott

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

BlackRock is right: European initial public offerings need more work. The world’s largest asset manager recently emailed bookrunners asking why a third of new listings in Europe this year were trading down and how matters could be improved. The IPO market is much healthier than when BlackRock railed against UK listings in 2011. But there are still too many banks per deal and buyers are still rushed into decisions.

Aug 7, 2014 19:34 UTC

Private equity discord is best collusion defense

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By Jeffrey Goldfarb

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

Even when it might help them, private equity firms can’t seem to cooperate. Blackstone Group, KKR and TPG are now willing to pay a combined $325 million to resolve allegations that they colluded to limit prices on deals. Three other firms previously settled for less. Carlyle Group is still holding out. Legally speaking, there’s safety in numbers. Yet the buyout shops can’t even agree on how to resolve the case.

Aug 7, 2014 14:21 UTC

Ushering Eric Cantor to revolving door

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By Rob Cox

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

The following is a fictional letter that could be circulated in the corridors of K Street, the canyons of Wall Street and the hedgerows of the Hamptons this summer:

Aug 6, 2014 19:56 UTC

Walgreen encounters uncommon inversion boundary

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By Kevin Allison

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

Walgreen has encountered a limit to inversion logic. The drugstore chain will keep flying the American flag even after agreeing to buy the rest of Swiss-based Alliance Boots for about $15 billion. A backlash against corporate emigration may have affected Walgreen’s decision, but harder numbers probably mattered more.

Aug 6, 2014 13:32 UTC

Murdoch miscalculation points to Time Warner value

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By Jeffrey Goldfarb

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

Rupert Murdoch miscalculated. The sly old fox of global media abruptly yanked his $80 billion offer to buy rival Time Warner on Tuesday after failing to anticipate his quarry’s resolve and the price demands of investors. Twenty-First Century Fox shares rallied after the market had officially closed while Time Warner’s retreated toward their pre-bid level. That means refusenik boss Jeff Bewkes has something more to prove.

Aug 5, 2014 18:17 UTC

Gannett split puts digital on wrong side of divide

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By Jeffrey Goldfarb

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

Gannett is redefining the digital divide. The media conglomerate unveiled plans on Tuesday to spin off newspapers, including USA Today, to showcase the value of its broadcasting operations. At the same time, the company will take control of the parent of Cars.com, paying $1.8 billion for the 73 percent it doesn’t already own. Instead of using that online asset to buffer the weaker half, however, Gannett is forcing print to stand on its own.

Aug 5, 2014 11:30 UTC

BES bail-in leaves CDS traders struck out

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By Neil Unmack

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

Banco Espirito Santo’s bail-in has been a nice earner for some bond traders. Anyone who bet that Portuguese authorities would save senior creditors but burn bonds lower down has made a killing. But anyone who tried to follow suit with BES credit default swaps will be feeling much less cheery.

Aug 4, 2014 18:45 UTC

Vladimir Putin is the new bad weather

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By Richard Beales and Jeffrey Goldfarb

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

Vladimir Putin is not just bad news but also bad weather. Unrest in Ukraine has become the bogeyman to replace snow when a company’s profit hopes need to be managed downward. Just ask Volkswagen or McDonald’s. The World Cup goes the other way, helping Twitter and maybe Walt Disney. The message could be muddled in four years when Russia and soccer converge.

COMMENT

Putin is waiting for winter to come.In the whole game his hand is up.Release of oil from US is expensive due to transport cost and is not enough for whole EU and Ukraine.Putin can bear sanctions with support of Asian countries.I am not prorussian but the so far events indicate.

Posted by gentalman | Report as abusive
Jul 31, 2014 14:26 UTC

Shock loss at BES makes bail-in a real risk

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By George Hay

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

A solution to the Banco Espirito Santo debacle looks increasingly likely to involve creditors. The troubled Portuguese lender revealed a much bigger-than-expected 3.6 billion euro loss on July 30 and warned of possible past law-breaking. If the kitchen-sinking was intended to help fill BES’s capital deficit with private investment, it may not work.

Jul 28, 2014 06:48 UTC

China throws weight around on car parts costs

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By Ethan Bilby 

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

China’s competition watchdog has forced luxury carmakers into a U-turn. The whiff of a probe into vehicle parts was enough to get Audi and Jaguar Land Rover to reduce their prices, even though neither has been publicly deemed to be abusing its position. Experience shows in China it is better to admit guilt early than risk bigger fines, or lose access to a critical market.