Indian sale makes Bain Capital rare buyout hero

November 27, 2015

The U.S. firm has sold its remaining $116 mln stake in Hero MotoCorp four years after investing in the world’s largest motorbike maker. In rupee terms, Bain doubled its money in four years. As private equity pours into India, it’s a reminder that getting money out remains harder.

Volkswagen can take $80 bln hit before crumpling

October 15, 2015

The carmaker faces hefty penalties, legal fees and recall costs. But if its main business can be kept stable, VW can weather dieselgate without a capital increase or a breakup, Breakingviews analysis shows. Cash generation and strategic cuts give it room to absorb shocks.

Edward Hadas: VW, like BP, took the wrong chances

By Edward Hadas
October 14, 2015

Studies of the oil company’s disasters showed a willingness to cut corners on safety. The carmaker’s deceit has not yet been thoroughly dissected, but its approach to regulation may have been similarly careless. Companies have to choose what matters. Bad choices can prove costly.

Rob Cox: VW needs an eight-step recovery plan

October 13, 2015

That’s the minimum number of constituencies the $68 bln carmaker, snagged in a giant engineering deception, must now mollify to restore credibility. Customers, investors, suppliers, dealers, governments, unions, staff and ordinary people each will require a unique approach.

VW’s dodgy diesel gains: a measly 4.3 bln euros

September 30, 2015

That’s what the German carmaker appears to have saved by skimping on state-of-the-art emissions technology. Look only at the U.S. cars that got VW in trouble and it falls to 200 mln euros. Investors have so far lost 140 times that as the shares have plunged. Cheating doesn’t pay.

VW could use bank-style clawback of CEO pay

September 23, 2015

Martin Winterkorn’s resignation clears the way for sweeping changes at the sprawling carmaker after its costly emissions scandal. He was one of Germany’s best-paid bosses. Revamping compensation, and even trying to recoup some of the CEO’s cash, would send a strong message.

Delphi deal crudely hitches to connected-car hype

July 30, 2015

The auto supplier is paying $1.7 bln for a UK maker of “bundle management solutions.” HellermannTyton may be a solid company whose cable ties and such are integral components, but there’s a whiff of dot-com fever in the rhetoric. That’s not enough to justify the 45 pct premium.

New drivers could rev Formula One’s billions

June 25, 2015

Private equity backer CVC is ready to speed off after a decade of turbocharged returns, while 84-year-old patriarch Bernie Ecclestone may not be doing enough to tune high-tech motor racing’s commercial chassis. Qatari and U.S. owners might just restore full power.

Fiat boss fights for car M&A with hand behind back

May 27, 2015

Sergio Marchionne argues mergers would cut duplicative spending and boost shareholder returns. GM has already rebuffed him, probably because such deals are complex and hard to complete. But he also hurts his case by downplaying the benefits of lower costs and fewer employees.

Rob Cox: Pirelli flirts with joke version of hell

March 26, 2015

That’s where the chefs are British, the lovers Swiss and the mechanics French. Pirelli risks becoming the corporate equivalent: the management Italian (as in the joke), its owner a Chinese state enterprise, and other partners Russian. Minority investors won’t find it funny.