Nov 28, 2014 12:08 UTC

Market too bearish on European oil services

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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

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Nov 27, 2014 14:22 UTC

SABMiller’s Coca-Cola push is Africa buy signal

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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

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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

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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

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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

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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.

Nov 18, 2014 14:45 UTC

Valeant’s activist deal too clever by half

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By Richard Beales and Robert Cyran

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

Valeant has tried a seven-month M&A experiment that boss Michael Pearson – and other corporate chiefs – should think twice about repeating. The $45 billion drug company’s failed tilt at Allergan alongside Bill Ackman’s Pershing Square landed a $400 million windfall. But with Actavis snatching the quarry, Ackman and Allergan’s owners have made out best. Valeant lost time and risked legally questionable tactics.

Nov 17, 2014 19:04 UTC

Baker Hughes wins tactical $35 bln battle

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By Kevin Allison

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

The Baker Hughes chief executive must be feeling satisfied. Martin Craighead played hard-to-get and it helped his company squeeze a premium north of 50 percent out of Halliburton, which on Monday agreed to acquire its smaller U.S. oilfield services rival for about $35 billion in cash and stock. Halliburton’s $2 billion annual cost savings goal covers the premium, but only just – and the benefits may fall short of that target.

Nov 14, 2014 19:19 UTC

Halliburton can stump up $30 bln for Baker Hughes

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By Kevin Allison

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

Baker Hughes may be worth more than investors think. Shares of the No. 3 U.S. oilfield services firm jumped 15 percent on Thursday after news broke of deal talks with the $46 billion Halliburton. A back-of-the-envelope calculation suggests the industry No. 2 should be willing to pay nearly 40 percent more than Baker Hughes’ $22 billion undisturbed market valuation to seal a deal.

Nov 13, 2014 19:38 UTC

Buffett’s $4.7 bln Duracell deal a double positive

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By Robert Cyran and Kevin Allison

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

Warren Buffett’s $4.7 billion Duracell deal is more positive than negative. Berkshire Hathaway is paying for its latest acquisition by trading its stake in Procter & Gamble for the consumer stalwart’s battery unit. Swapping a reliable staple for a declining business looks odd. But the transaction is structured in a way that means both sides are getting a decent deal.