Jeffrey's Feed
Jun 4, 2015
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Beware a bluff from poker-playing Dish boss

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

A poker pro like Dish Network Chief Executive Charlie Ergen knows it’s possible to win without the best cards. His hand may be getting weaker, however, as the cable and telecommunications industries consolidate rapidly around him. Ergen would be making a bold bet by merging his $35 billion U.S. satellite operator with similarly-sized wireless provider T-Mobile US. Investors may want to guard against a bluff.

Jun 3, 2015
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Apollo strains to heed LBO mission control

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

Apollo is struggling to stick to its mission. The private equity shop led by Leon Black, Joshua Harris and Marc Rowan plans to buy OM Group, a maker of specialty chemicals and magnet and battery technology, for a headline valuation of 9.4 times EBITDA. Side deals will lower the multiple but adhering to Apollo’s avowed restraint is tough in such an exuberant market. The small buyout illustrates a bigger industry problem.

Jun 3, 2015
via Breakingviews

Apollo strains to heed LBO mission control

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

Apollo is struggling to stick to its mission. The private equity shop led by Leon Black, Joshua Harris and Marc Rowan plans to buy OM Group, a maker of specialty chemicals and magnet and battery technology, for a headline valuation of 9.4 times EBITDA. Side deals will lower the multiple but adhering to Apollo’s avowed restraint is tough in such an exuberant market. The small buyout illustrates a bigger industry problem.

May 26, 2015
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Time Warner Cable finds money covers Charter flaws

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

Time Warner Cable concluded that one out of four ain’t bad. Last year, the U.S. cable operator rejected a takeover bid from smaller rival Charter Communications, balking at the price and the amount of leverage, cash and stock on offer. Most of the terms haven’t changed much in the deal it just agreed to, but the valuation has gone up appreciably, to $56 billion. It’s a stark reminder about what really matters in mergers.

May 26, 2015
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Time Warner Cable finds money covers Charter flaws

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

Time Warner Cable concluded that one out of four ain’t bad. Last year, the U.S. cable operator rejected a takeover bid from smaller rival Charter Communications, balking at the price and the amount of leverage, cash and stock on offer. Most of the terms haven’t changed much in the deal it just agreed to, but the valuation has gone up appreciably, to $56 billion. It’s a stark reminder about what really matters in mergers.

May 7, 2015
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U.S. trucker offers Facebook owners ride to future

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

The future may be emanating from Silicon Valley but it’s an old-fashioned trucking company offering today’s investors a glimpse of what’s to come. Frustrated by co-founder and Chief Executive Jerry Moyes, Swift Transportation shareholders will be voting at Friday’s annual meeting whether to eliminate a dual-share structure that grants him control. Owners of Facebook and other similarly feudalistic frameworks one day may find themselves similarly frustrated.

May 7, 2015
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U.S. trucker offers Facebook owners ride to future

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

The future may be emanating from Silicon Valley but it’s an old-fashioned trucking company offering today’s investors a glimpse of what’s to come. Frustrated by co-founder and Chief Executive Jerry Moyes, Swift Transportation shareholders will be voting at Friday’s annual meeting whether to eliminate a dual-share structure that grants him control. Owners of Facebook and other similarly feudalistic frameworks one day may find themselves similarly frustrated.

May 4, 2015
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Buffett makes golden case for Teflon force field

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

Warren Buffett this weekend cemented his legacy: not simply as an investment god but as an 84-year-old human shield. At the annual shareholder meeting celebrating 50 years of Berkshire Hathaway under his watch, the Oracle of Omaha parried a barrage of queries and concerns over his holdings, partners and governance. Investors one day will miss Buffett’s stock-picking prowess but the force field he provides around the company may be his most undervalued quality.

May 4, 2015
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Buffett makes golden case for Teflon force field

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

Warren Buffett this weekend cemented his legacy: not simply as an investment god but as an 84-year-old human shield. At the annual shareholder meeting celebrating 50 years of Berkshire Hathaway under his watch, the Oracle of Omaha parried a barrage of queries and concerns over his holdings, partners and governance. Investors one day will miss Buffett’s stock-picking prowess but the force field he provides around the company may be his most undervalued quality.

Apr 29, 2015
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M&A predators stalk Michael Milken’s ball

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

Michael Milken’s latest ball was notable for its lack of predators. The financial elite prowling Beverly Hills at the behest of the former Drexel Burnham Lambert boss whinged about everything from a slowing Middle Kingdom to hacking threats to stock price valuations. Three former Treasury secretaries lamented a dysfunctional Washington. When it came to the subject of mergers and acquisitions, however, animal spirits ran unanimously wild.