Sep 18, 2014 13:49 UTC

Bayer’s plastic float sows seeds for one more sale

Photo

By Quentin Webb

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

Bayer’s plastic float could sow the seeds for another sale. Investors added more than $5 billion to the German blue-chip’s $114 billion market capitalisation on Sept. 18, after it unveiled plans to float MaterialScience, its capital-intensive plastics and polymers business. Once again, investors are rewarding a company for adopting a sharper focus. A logical follow-up for Bayer Chief Executive Marijn Dekkers would be to quit agrochemicals and create a pure healthcare business.

Sep 16, 2014 14:02 UTC
Edward Hadas

Why buybacks should be banned

Photo

By Edward Hadas

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

“Charlie and I favor repurchases when… its stock is selling at a material discount to the company’s intrinsic business value.” It takes courage to contradict Warren Buffett on matters related to investing, but the Berkshire Hathaway boss is leading investors up the wrong path with share buybacks.

Sep 16, 2014 13:51 UTC

Alibaba’s small IPO hike leaves room for believers

Photo

By Peter Thal Larsen

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

Pricing initial public offerings is an inexact science. Predicting how investors will value a large, fast-growing Chinese e-commerce group involves even more guesswork. That makes Alibaba’s decision to lift the maximum price for its upcoming stock market debut by just $2 a share to $68 puzzling.

Sep 12, 2014 07:10 UTC

Best defence against short-sellers is to buy stock

Photo

By Peter Thal Larsen 

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

Short-sellers of Chinese companies are back, and shadier than ever. In the past few weeks, two anonymous groups have trained their critical sights on Tianhe Chemicals, a Hong Kong-listed group, and Nasdaq-listed 21Vianet. Executives have tried to dispel doubts about their financial statements while railing against mysterious critics. But they haven’t yet tried the most effective riposte to those betting on a lower stock price: buying more shares.

COMMENT

There were serious issues with Temasek. The government bailed them out. The short sellers were factually correct.

Posted by saliv8 | Report as abusive
Sep 10, 2014 20:00 UTC

Apple cooks up recipe to empty pockets and wallets

Photo

By Robert Cyran

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

Apple has cooked up a recipe for emptying pockets and wallets. In addition to unveiling two new smartphones, the tech giant has combined a fingerprint sensor and an overlooked app into an iPhone payment system that looks secure and easy to use. A new watch lacks obvious appeal but has potential to replace car keys and other pocket detritus. Higher profits may be the cherry on top.

Sep 10, 2014 13:55 UTC

Botin’s swashbuckling hid a conservative streak

Photo

By Peter Thal Larsen

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

Emilio Botin transformed Santander from regional Spanish lender into global giant. He was a merger mastermind who usually got the upper hand. With slicked-back hair and red tie, he flew in a private jet, conferring with presidents and prime ministers as easily as bankers and chief executives. Yet unlike many of his peers during European banking’s boom years, Botin also had a cautious streak. It is that, rather than his swashbuckling style, which allowed him to keep his grip on Santander until his death at the age of 79.

Sep 9, 2014 05:56 UTC

China smartphones set to pick off global giants

Photo

By Ethan Bilby

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

Not everyone is able to spend $500 on a smartphone. For those lacking funds or wanting better value for money, China’s handset makers increasingly appeal. Today, most of their sales are domestic. Yet low costs are helping them dial in new emerging market customers.’

Sep 8, 2014 18:34 UTC

RBS puts lipstick on Citizens for $14 bln IPO

Photo

By Antony Currie

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

Royal Bank of Scotland is applying a fair amount of lipstick to its U.S. unit ahead of a planned initial public offering. Citizens Financial is worth up to $14 billion, based on the price range of $23 to $25 a share set on Sept. 8. Like the leaders of its home nation, RBS is painting too pretty a picture of life after independence.

Sep 5, 2014 18:50 UTC

Anarchical Vice Media makes orthodoxy a virtue

Photo

By Jeffrey Goldfarb

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

Vice Media likes to seem anarchic, but it is making a virtue of some industry orthodoxies. The Brooklyn-based bad boy of news and entertainment is now valued at $2.5 billion. The sources of Vice’s money and the way it was raised, though, suggest old-school traits alongside the iconoclasm.

A gonzo style of journalism has enabled Vice to get younger people interested in global current events. The draws include stunts such as dispatching retired basketball misfit Dennis Rodman to North Korea as well as documentary-format reports on Ukraine and Syria. Vice’s fashion site includes headlines like “This stab-proof clothing aims to keep Medellin safe,” while its foodie endeavor explains how “Gaza’s Christians are brewing illegal wine in defiance of Hamas.”

Sep 4, 2014 18:26 UTC

LendingClub IPO mixes disruption with confusion

Photo

By Kevin Allison and Daniel Indiviglio

The authors are Breakingviews columnists. The views they express are their own. 

LendingClub is positioning itself as one of the biggest challengers to American banks. The company is growing quickly, has backing from the likes of Google and lists former Morgan Stanley boss John Mack and ex-Treasury Secretary Larry Summers among its directors. It’s also planning an initial public offering. But there are reasons to be cautious.