Feb 12, 2014 19:03 UTC

Cross-border arbitrage is expansive Bimbo’s yeast

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

Cross-border arbitrage is the yeast for Grupo Bimbo’s aggressive expansion. In its latest deal north of the border, the acquisitive Mexican breadmaker is shelling out $1.8 billion to buy Canada Bread. Paying 20 times earnings to move into a mature market may seem questionable. But Bimbo’s earnings fetch an even higher multiple at home – and the deal should lower its weighted average cost of capital.

Feb 12, 2014 12:17 UTC

Markets may flare again without Fed and ECB hoses

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By Ian Campbell

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

After a January in which emerging-economy fires blew smoke into investors’ eyes, markets are calm again. Somewhat dovish noises from Janet Yellen, the new chair of the U.S. Federal Reserve, have, at first, reassured. But there are good reasons to worry.

Feb 11, 2014 15:24 UTC

Nestle selldown leaves L’Oreal more a family group

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By Pierre Briançon 

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

Nestle’s sale of an 8 percent stake in L’Oreal to the French cosmetics group marks a fundamental reset of the duo’s relations. The French get more freedom; the Swiss, cash and some assets. Nestle may describe its reduced holding as “strategic”, yet looks, long term, like a seller of more. But keeping a 23 percent investment gives it the option to reverse course if it wishes.

Feb 10, 2014 22:00 UTC

Time Warner Cable’s deal control looks more remote

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

Tom Rutledge seems like a man on a mission. The U.S. cable operator he runs, Charter Communications, is preparing a slate of replacement directors for larger rival Time Warner Cable, the target of his $60 billion hostile bid. He may also have roped in Comcast to alleviate financial worries about the plan to take over his former employer.

Feb 7, 2014 19:22 UTC

Coke and David Einhorn sing in perfect disharmony

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

Betraying its renowned jingle, Coca-Cola is singing in perfect disharmony with David Einhorn. To feel good dropping $1.3 billion for a minority stake in Green Mountain Coffee, the beverage giant must have answered some nagging questions posed by the hedge fund manager a few years ago. Investors seem to reckon Coke did its due diligence. Procter & Gamble and Hewlett-Packard have shown just how much it can matter.

Feb 6, 2014 17:03 UTC

Standalone Vodafone starts to look healthier

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

The standalone Vodafone is starting to look healthier. The mobile telecom operator will become dramatically smaller after it quits the United States and returns $84 billion to its shareholders. Elsewhere, its sales have been falling faster and faster. Now it looks like the worst is past and Vodafone hopes to ride a boom in mobile data. Yet for investors, the top question is what part the group will play in future M&A.

Feb 6, 2014 04:23 UTC

Twitter a victim of its own measure for success

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By Robert Cyran

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

Twitter may be a victim of its own measure for success. The social network is growing and mining lots of user dollars, but not enough to justify a whopping value of 30 times sales. The lofty figure rests on a rise in the company’s highly touted home brew of “timeline views.” That number’s falling, suggesting tweeters are losing interest.

Feb 5, 2014 21:58 UTC

HBO gives Netflix investors a grim sneak preview

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

Netflix investors just got a grim sneak preview courtesy of HBO. Time Warner disclosed financial details of the pay-TV network behind “Girls” for the first time. They suggest a need for heroic growth and profit assumptions by Netflix.

Feb 5, 2014 19:52 UTC

Lazard puts M&A feet firmly in big boys’ camp

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By Antony Currie

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

Lazard has put its feet firmly in the big boys’ camp. The advisory and asset management firm didn’t just make progress on financial targets that Chief Executive Ken Jacobs set two years ago. Its bankers also goosed revenue in the second half of the year. That makes Lazard look more like Goldman Sachs, Morgan Stanley and JPMorgan than smaller rivals Evercore and Greenhill.

Feb 5, 2014 19:13 UTC

Quitting tobacco, CVS has a Don Draper moment

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

 

CVS Caremark just had a Don Draper moment. Like the television protagonist from “Mad Men,” the second-largest U.S. drugstore chain has orchestrated a public relations splash by pulling tobacco products from the shelves at its 7,600 stores. The move will cost shareholders 17 cents a share, but the healthcare bona fides it can gain with customers against rivals like Walgreen may offset the hit.