SandRidge CEO sets bar even lower for oil patch
By Christopher Swann
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Tom Ward, chief executive of troubled oil and gas explorer SandRidge Energy, has set the bar even lower for the oil patch. He is not the first energy boss to live large at shareholders’ expense. But his extravagance at the nearly $3 billion U.S. company would make even TV villain J.R. Ewing blush. Angry owners are right to want him out.
HK exchange plays it safe with equity finance
By Peter Thal Larsen
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Hong Kong’s stock exchange is playing it safe. The bourse’s $1 billion share placing will allow it to repay more than half the debt it took on to buy the London Metals Exchange earlier this year. Ultra-low yields might make bonds look tempting. But a recent share rebound, and HKEx’s hefty dividend payout, justifies its cautious approach.
Weibo has reason to “open sesame” to Alibaba
By Wei Gu
The authors are Reuters Breakingviews columnists. The opinions expressed are their own.
Weibo has reason to “open sesame” to Alibaba. A possible purchase of a 15-20 percent stake in China’s Twitter by the country’s largest e-commerce group, Alibaba, as reported by China Business News, makes strategic sense. It could pave the way for owner Sina to spin Weibo off, and create revenue synergies for both.
Diageo’s India splash won’t get Kingfisher flying
By Andy Mukherjee
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Diageo’s $2.1 billion acquisition of United Spirits has helped India’s largest liquor company and its chairman Vijay Mallya. But hopes that Kingfisher Airlines will fly again simply because the grounded carrier’s flamboyant founder has raised some cash look overoptimistic.
Rosneft buy may leave Russian oil industry wanting
By Kevin Allison
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Rosneft will become the world’s biggest listed crude producer following its $55 billion swoop on Russia’s third-biggest oil company. Igor Sechin’s new behemoth also expects to generate $3 billion to $5 billion of cost synergies from scooping up its smaller rival. If Rosneft can apply TNK-BP’s oilfield know-how to improve production at its own fields, the cost and revenue benefits of the Russian oil shake-up could indeed climb high.
Is everything sacred in Canada?
By Robert Cyran
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Is everything sacred in Canada? At first it was a hole in the ground. Then it was the stock exchange and a DIY chain. This week, regulators blocked two more big deals, including a $5.2 billion bid for Progress Energy by Petronas of Malaysia. Taken as a whole, these actions signal the market for corporate control in Canada – especially when it comes to foreign buyers – is effectively closed.
A wise decision. And so will be killing China’s takeover of Nexen.
“Canadians First” is smart politics and smart economic policy.
If foreigners want to buy Canadian resources they’re more than welcome to shop at the store. But, they can’t own it.
And, Canada doesn’t need economic advice from English-American opinion writers.
Both England and the U.S. are in terminal decline because they confused the best interests of Wall Street and The City with the best interests of the general economy.
Physician heal thyself…
Failed China Gas bid leaves business unfinished
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Wei Gu
Sinopec’s failed bid for China Gas leaves business unfinished. The Chinese oil producer had to drop its $2.2 billion offer after failing to secure regulatory approval to buy the gas company. As a state-owned bidder, the political sensitivities were too great, and the price probably too low. Yet China’s fragmented gas industry still needs to consolidate.
BAE needs a new chairman
By Chris Hughes
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
BAE Systems needs a new chairman. Dick Olver’s management of the attempt to merge the UK defence group with EADS was poor. He has also presided over a sustained period of share-price underperformance. After eight years on the board, he should make room for fresh talent.
Softbank-Sprint tie-up gets bad signal from market
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
By John Foley
Softbank chief executive Masayoshi Son has received a strong signal from investors. They wiped $6.2 billion in value off the Japanese telecoms operator’s market value on Oct. 12 after it confirmed it was in talks with U.S. rival Sprint Nextel. That’s three times more than U.S. investors added to Sprint’s worth the previous day. No wonder: a takeover would be a financial stretch for Softbank, and could preclude other deals closer to home.
Even one-sided Chinese investment has its benefits
By Christopher Swann
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Canada wants equal rights for its companies to pile into China. The country’s opposition leader says his compatriots would be “chumps” if they allowed state-owned CNOOC to buy Canadian oil group Nexen without China granting equal access to its natural resources. Demands for reciprocity seem only fair. But workers and investors in rich countries gain even if the money flows only one way. It’s the Middle Kingdom that misses out by being less welcoming.
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Breakingviews: Yahoo's Tumblr takeoverMay 20 - Antony Currie and Breakingviews columnists discuss how Marissa Mayer's biggest deal as CEO cements how she has gotten the company looking forward rather than backward.Video
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Reuters Breakingviews: FirstGroup hits debt brick wallMay 20 - The rail and bus operator is raising £615 million to stave off a ratings downgrade. Debt may be cheap, but too much of it is holding FirstGroup back, says Breakingviews.Video
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