Breakingviews

 
Investors had an appetite for most any new issue until last week. Six of 10 offerings couldn’t fetch the desired price and six were yanked as fear again mingled with greed. A fresh crop of sellers, including Moelis and Weibo, may encounter a more rational market than expected.

Diageo throws money at Indian empire-building

The UK distiller is again trying to tighten its grip on India’s United Spirits. It’s offering $1.9 bln to nearly double its stake to 54.8 pct. A sky-high multiple of 38 times EBITDA gives this offer better odds than the last. And there’s industrial logic to offset the huge price.

WH Group’s quick pork flip serves up meaty return

The private Chinese pork producer hasn’t had much time to justify the fat premium it paid for Smithfield last year. Yet relisting the enlarged group in Hong Kong implies the value of the U.S. business has risen at least 21 percent. Others will be tempted to try a similar trick.

Citi looks perfectly priced - for more mediocrity

The mega-bank beat earnings and revenue estimates in the first quarter. Its bad bank is no longer much of a drag, and Citi tapped some of its substantial tax breaks. But with subpar asset returns and no chance of returning capital soon, trading above book value will be a stretch.

How China is stoking London’s housing bubble

Chinese buyers are a key new factor pushing up the UK capital’s property prices. As Beijing relaxes capital controls, the wall of money could intensify. UK politicians will need to decide whether to protect London’s global financial status, or the citizens who have to live there.

China's car joint ventures aren't built to last

A boom in mainland sales has mostly boosted foreign brands and their local joint venture partners. But the alliances look increasingly unstable. Foreign groups would like a bigger say, while Beijing wants more competitive local brands. The tension could lead to future break-ups.

Comcast's $45 bln deal warrants some utility logic

These days it isn’t a big stretch to liken pipes carrying internet access to those carrying water or electricity. When utilities merge, though, regulators want consumers to share the spoils. If approached that way, Comcast’s Time Warner Cable takeover might raise fewer hackles.