Jeffrey's Feed
May 30, 2014
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Henry Kravis cultivates private equity perennials

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By Jeffrey Goldfarb

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

Henry Kravis is sowing the seeds of private equity perennials. U.S. buyout shops like his are selling companies to each other at a breakneck pace. It’s easy to be skeptical about these so-called secondaries. But KKR’s $1.6 billion acquisition of landscaper Brickman Group may turn out to be an example of how such deals can flourish.

May 28, 2014
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Valeant’s sweetener comes off a little defensive

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

Valeant Pharmaceuticals International comes off oddly defensive in its latest advance on Allergan. A sweetened $49 billion bid for the Botox maker disappointed investors in both companies. The use of a messy financial instrument probably didn’t help, especially after the target pushed back hard on the deal math and compared its suitor to Tyco. Valeant has more work to do to reclaim the role of aggressor.

May 19, 2014
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AT&T puts shareholders on hold for DirecTV

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

AT&T is putting its shareholders on hold to buy DirecTV. Its $67 billion acquisition of the satellite TV operator announced on Sunday brings with it an unexpectedly robust $1.6 billion of cost savings. Even so, these don’t quite cover the cost of the premium. In any case, AT&T says it will use the money to roll out rural broadband service. Customers and regulators are getting the first call.

May 16, 2014
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Take hedge fund exuberance with grain of SALT

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

A wave of hedge fund exuberance should be taken with a grain of SALT. At SkyBridge Capital’s so-named Las Vegas confab this week, a near-unanimous confidence emerged amid moans about conference fatigue. Long-anticipated opportunities in M&A, bargains in Europe and collapsing correlations have finally arrived all at once, if some of the world’s richest investors are to be believed. The consensus itself may, however, give reason for pause.

May 14, 2014
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AT&T will struggle to justify $70 bln DirecTV bid

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

AT&T will struggle to justify buying DirecTV for an enterprise value of some $70 billion. Going headlong into the satellite television business requires some heroic assumptions to make the offer financially worthwhile. To cover its cost of capital, for example, AT&T probably would need to wring more than $2 billion of savings from its target. This deal gives off a whiff of desperation.

Apr 28, 2014
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Silicon Valley exceptionalism only travels so far

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By Jeffrey Goldfarb

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

Airbnb isn’t finding New York very hospitable. The room-sharing site squared off in court last week with Attorney General Eric Schneiderman over information he has subpoenaed about the many Airbnb customers his office suspects are breaking the Empire State’s laws. It’s a good example of what happens when tech entrepreneurs stray from their more accommodating Silicon Valley environs.

Apr 28, 2014
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Silicon Valley exceptionalism only travels so far

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By Jeffrey Goldfarb

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

Airbnb isn’t finding New York very hospitable. The room-sharing site squared off in court last week with Attorney General Eric Schneiderman over information he has subpoenaed about the many Airbnb customers his office suspects are breaking the Empire State’s laws. It’s a good example of what happens when tech entrepreneurs stray from their more accommodating Silicon Valley environs.

Apr 23, 2014
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Buffett loses his voice – and maybe some sway

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By Jeffrey Goldfarb

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

Warren Buffett lost his voice and maybe some sway along with it. The Omaha billionaire said on Wednesday he didn’t vote against Coca-Cola’s controversial equity pay plan, even though he disagreed with it. Buffett explained that he feared his opposition might be misinterpreted as a lack of support for Chief Executive Muhtar Kent. That’s an odd message to convey to his legions of investment acolytes. It doesn’t, however, mean Coke shouldn’t hear what its largest owner is saying.

Apr 23, 2014
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Buffett loses his voice – and maybe some sway

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By Jeffrey Goldfarb

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

Warren Buffett lost his voice and maybe some sway along with it. The Omaha billionaire said on Wednesday he didn’t vote against Coca-Cola’s controversial equity pay plan, even though he disagreed with it. Buffett explained that he feared his opposition might be misinterpreted as a lack of support for Chief Executive Muhtar Kent. That’s an odd message to convey to his legions of investment acolytes. It doesn’t, however, mean Coke shouldn’t hear what its largest owner is saying.

Apr 23, 2014
via Breakingviews

Buffett loses his voice – and maybe some sway

Photo

By Jeffrey Goldfarb

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

Warren Buffett lost his voice and maybe some sway along with it. The Omaha billionaire said on Wednesday he didn’t vote against Coca-Cola’s controversial equity pay plan, even though he disagreed with it. Buffett explained that he feared his opposition might be misinterpreted as a lack of support for Chief Executive Muhtar Kent. That’s an odd message to convey to his legions of investment acolytes. It doesn’t, however, mean Coke shouldn’t hear what its largest owner is saying.