Kevin's Feed
Sep 2, 2015
via Breakingviews

Why oil investors are so behind the curve

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

Oil investors are behind the curve. Many assume that the cost of pulling oil out of the ground is relatively static – or at least changes slowly. Reality is slipperier. Rethinking the way the “cost curve” works may help explain recent gyrations in oil and other commodity markets.

Sep 2, 2015
via Breakingviews

Why oil investors are so behind the curve

Photo

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

Oil investors are behind the curve. Many assume that the cost of pulling oil out of the ground is relatively static – or at least changes slowly. Reality is slipperier. Rethinking the way the “cost curve” works may help explain recent gyrations in oil and other commodity markets.

Jun 19, 2015
via Breakingviews

ConAgra’s smorgasbord is ready to carve

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

ConAgra Foods’ smorgasbord is ready to carve. The Hunt’s-to-Swiss Miss conglomerate’s $6.8 billion acquisition of Ralcorp in 2013 has left a bad taste for shareholders. Pushy investor Jana Partners is ready to shake up the board. ConAgra’s myriad brands probably fit better elsewhere. The question is how to slice it.

Jun 19, 2015
via Breakingviews

ConAgra’s smorgasbord is ready to carve

Photo

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

ConAgra Foods’ smorgasbord is ready to carve. The Hunt’s-to-Swiss Miss conglomerate’s $6.8 billion acquisition of Ralcorp in 2013 has left a bad taste for shareholders. Pushy investor Jana Partners is ready to shake up the board. ConAgra’s myriad brands probably fit better elsewhere. The question is how to slice it.

Jun 12, 2015
via Breakingviews

REIT gambit gives Sears $2.6 bln more to burn

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

Eddie Lampert is getting himself about $2.6 billion more to burn. Sears, the flailing U.S. retailer led by the hedge fund manager since 2013, wants shareholders to exercise rights to capitalize a real estate investment trust that will buy 235 stores. The danger is that Sears will waste the cash.

Jun 12, 2015
via Breakingviews

REIT gambit gives Sears $2.6 bln more to burn

Photo

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

Eddie Lampert is getting himself about $2.6 billion more to burn. Sears, the flailing U.S. retailer led by the hedge fund manager since 2013, wants shareholders to exercise rights to capitalize a real estate investment trust that will buy 235 stores. The danger is that Sears will waste the cash.

Jun 2, 2015

Breakingviews-Hedgies’ Safeway victory puts boards on notice

By Kevin Allison and Antony Currie

CHICAGO/NEW YORK (Reuters Breakingviews) – The victory three
hedge funds have scored in their battle over Albertsons’ $9.4
billion-plus acquisition of Safeway puts board members
everywhere on notice. Cerberus-owned Albertsons has agreed to
pay those investors 27 percent more than the amount all Safeway
shareholders have so far received from the deal since it closed
in January.

That in itself is a worry for board members everywhere. Such
appraisal rights lawsuits, as they are called, allow
shareholders to challenge the price paid for a takeover or
merger, as long as they don’t vote in favor of the deal. It’s
then up to a judge to decide whether more money is warranted.

May 13, 2015
via Breakingviews

Danaher breakup eases sting of pricey Pall deal

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

Danaher Chief Executive Tom Joyce’s breakup plan takes the sting out of his pricey bid for Pall. The $60 billion dentures-to-lasers concern is not cutting enough costs to justify the $13.8 billion it’s offering for the U.S. filter maker. But his surprise decision to voluntarily split Danaher in two dangles the prospect of better value for shareholders. The trick is to deliver.

May 13, 2015
via Breakingviews

Danaher breakup eases sting of pricey Pall deal

Photo

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

Danaher Chief Executive Tom Joyce’s breakup plan takes the sting out of his pricey bid for Pall. The $60 billion dentures-to-lasers concern is not cutting enough costs to justify the $13.8 billion it’s offering for the U.S. filter maker. But his surprise decision to voluntarily split Danaher in two dangles the prospect of better value for shareholders. The trick is to deliver.

May 13, 2015
via Breakingviews

Pure play gets new spin in filter maker M&A

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

Talk of a $13 billion takeover of Pall puts a new spin on pure play. The largest publicly traded air and water purification specialist is up for sale in an auction that could attract interest from the likes of U.S. healthcare conglomerate Danaher and instrument maker Thermo Fisher Scientific, according to the Wall Street Journal. The speculated price is punchy, and cost cuts might not cover the premium. But Pall’s scarcity value, profitability and burgeoning biotech customer base make it a tempting target.

    • About Kevin

      "Kevin Allison is global resources columnist at Reuters Breakingviews. Based in Chicago, he writes about oil, gas, mining, metals and the scramble for scarce resources. Prior to joining Breakingviews in December 2011, he worked at an investment bank. From 2003-2009 Kevin was a reporter at the Financial Times. He also wrote for the Lex column. Kevin holds degrees from Harvard University and the University of Missouri-Columbia. Follow Kevin on Twitter: @kevinallison"
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