Apr 4, 2014 05:43 UTC

China stock market opening is opposite of Big Bang

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By Peter Thal Larsen

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

China’s approach to opening up its stock market is the opposite of a Big Bang. Investors are once again getting excited about the prospect of mainland shareholders being allowed to buy Hong Kong stocks. But such hopes have proved premature before. As with any loosening of China’s capital controls, progress is bound to be gradual.

Apr 3, 2014 06:20 UTC

Alibaba shopping spree needs better explanation

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By Robyn Mak

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

Alibaba’s shopping spree needs better explanation. The Chinese e-commerce giant has spent $3.8 billion on acquisitions and investments since 2013. The land grab may excite prospective investors ahead of its long-awaited initial public offering (IPO). But Alibaba will eventually have to justify its purchases.

Apr 2, 2014 07:26 UTC

Noble China joint venture still faces market test

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By Una Galani

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

Noble Group’s joint venture with China still faces a test from market forces. The Singapore trader is selling 51 percent of its agricultural business to a consortium led by state-backed COFCO for around $1.5 billion. China’s desire to control its food supply should guarantee volumes for the joint venture. But it’s less clear that will translate into healthy margins.

The precise size of the COFCO’s investment depends on how the unit, which processes everything from grains to coffee, performs over the next nine months. The final price will be equivalent of 1.15 times its book value in 2014. The headline price implies a valuation of $2.94 billion for the business, which accounted for 16 percent of Noble’s revenue last year.

Apr 1, 2014 06:29 UTC

OCBC’s Chinese ambition comes with hefty price tag

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By Peter Thal Larsen

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

Oversea-Chinese Banking Corp is paying a hefty price to expand in the People’s Republic. The Singaporean group is realising a long-held ambition by splashing out almost $5 billion for Hong Kong’s Wing Hang bank. But the deal looks expensive at a time when growth on the mainland is slowing and the U.S. Federal Reserve’s tapering is threatening to push up deposit costs.

Mar 28, 2014 18:20 UTC

Boards’ defender-in-chief keeps fighting last war

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By Reynolds Holding

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

Corporate boards’ defender-in-chief keeps fighting the last war. Lawyer Marty Lipton proved again at the New Orleans M&A confab that he can give as good as he gets. But prior panelists’ emphasis on improving governance and shareholder value made his swipes at activists seem dated. The legal lion’s roars are sounding more stubborn than persuasive.

Mar 26, 2014 06:10 UTC

Zuckerberg grabs at alternate financial reality

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By Richard Beales

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

Mark Zuckerberg is liking a lot of deals. Right after spending $19 billion on WhatsApp, the Facebook founder is splashing out $2 billion – and possibly more – in cash and stock on a virtual reality newcomer, Oculus VR. It’s arguably a riskier punt than the messaging app. Both deals also suggest a buy, not build, approach.

Mar 24, 2014 04:42 UTC

Li Ka-shing de-risks with $6 bln Temasek sale

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By Una Galani

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

Li Ka-shing is de-risking. The Hong Kong tycoon has ditched plans to list his retail division AS Watson in favour of selling a 24.95 percent stake to Temasek for $5.7 billion. The deal crystallises a decent valuation for Li without the uncertainties of an initial public offering (IPO). For the Singaporean state fund, it’s a bold bet on consumer growth and private investments.

Mar 21, 2014 18:39 UTC

Bouygues’s latest SFR offer may still fall short

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By Quentin Webb

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

Bouygues’s latest pitch for SFR may still fall short. The French building, TV and telecoms group has made a new offer for Vivendi’s mobile unit, with 1.85 billion euros more cash and heavyweight backers. That puts extra pressure on preferred bidder Patrick Drahi, soon after he began three weeks of exclusive talks to buy France’s no. 2 wireless carrier. But Bouygues still poses greater antitrust risks. It may need to offer more equity in the combined vehicle – and a big break fee.

Mar 10, 2014 06:52 UTC

China internet duo join forces against common foe

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By Peter Thal Larsen and Robyn Mak 

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

Two of China’s internet companies are joining forces against their common foe: Alibaba. Tencent is injecting its also-ran e-commerce units and $215 million in cash into JD.com for a 15 percent pre-IPO stake in the online retailer. More importantly, the two will collaborate on mobile commerce. Both have the same objective: erode Alibaba’s dominant market share.

Feb 28, 2014 16:15 UTC

Blackstone bets Versace can go up a few sizes

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By Quentin Webb

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

Blackstone is betting Versace can go up a few sizes. The U.S. private equity firm has bought 20 percent of the Italian fashion house at a 1 billion-euro valuation. This is a wager that Versace’s lightweight business can grow to fit its extra-large brand.