Jeffrey's Feed
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.

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
via Breakingviews

U.S. trucker offers Facebook owners ride to future

Photo

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

Photo

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.

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

Photo

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.

Apr 23, 2015
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Comcast’s boss should live to buy another day

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

Comcast boss Brian Roberts may soon bear a second big deal scar. U.S. regulators are sounding skeptical about his $45 billion plan to buy rival Time Warner Cable. Overconfidence foiled another Comcast mega-transaction a decade ago, but Roberts later tracked down another sizeable target. The pattern suggests that as the industry undergoes rapid transformation, he’ll be back with a bold bid before too long.