Breakingviews
Pfizer’s generics injection lifts mood for breakup
By Robert Cyran
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Pfizer has made more than its share of value-destroying acquisitions. The pharmaceutical giant’s $15 billion purchase of Hospira could reverse that history. The injectable-drug maker’s strength in non-branded medications should boost Pfizer’s own generics unit – and open the way for spinning it off.
Smucker deal may keep activists in Kibbles ‘n Bits
By Kevin Allison
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
J M Smucker’s $5.8 billion purchase of Big Heart Pet Brands may keep investor activists in Kibbles ’n Bits. The $11 billion owner of Folgers coffee, Jif peanut butter and eponymous fruit spreads should gain bargaining power with retailers by bundling human treats with dog food. But the odd combination may elicit a Pavlovian response from uppity shareholders.
CRH’s $7.4 bln buy reveals M&A tolerance
By Chris Hughes
The author is a Reuters Breakingivews columnist. The opinions expressed are his own.
Here is a deal with all the red flags of M&A – ambition, leverage and a jumbo share placing. Yet the market is spurring on CRH’s 6.5 billion euro ($7.4 billion) purchase of surplus assets from European cement rivals Lafarge and Holcim. The traditional criteria for judging such deals don’t apply.
U.S. $16 bln paper deal requires precise folding
By Kevin Allison
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Delivering on the promise of a $16 billion U.S. paper merger may require some precision folding. Stockholders in packaging giants Rock-Tenn and MeadWestvaco will share their combined company evenly, with a roughly balanced board. Investors are already inking in $300 million of promised annual savings, pushing up the stocks of both companies. But mergers that look equal can still provoke business and cultural upheaval.
RBC’s foray south a pricey bet that two’s a charm
By Daniel Indiviglio
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Royal Bank of Canada is placing a pricey bet that the second time’s a charm for a foray south of the border. The Canadian titan is forking over $5.4 billion for Beverly Hills-based City National little more than three years after it cut a painful retreat from U.S. retail banking. This time around, RBC boss David McKay, who took the reins last August, has targeted a growing franchise in a coveted part of the market. But he’s also paying through the nose for it.
Old M&A dogs try old tricks with new activist fund
By Richard Beales
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Can old dogs make money out of old tricks? That’s the question facing ex-JPMorgan M&A boss and finance chief Doug Braunstein and longtime deal lawyer Jim Woolery. The two have collected $250 million and a network of corporate chieftains to kick-start a fund that will invest in companies and persuade them to do deals that boost share value. The question is whether there’s room for permanently well-mannered activism in 2015.
Climate feels right for certain deals in Davos
By Jeffrey Goldfarb
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Torrid trade winds are blowing through Switzerland’s crisp mountain air. Global business leaders and bankers convene this week for the World Economic Forum fresh off a $3.5 trillion year of mergers, the biggest tally of the post-financial crisis era. While the momentum creates an ideal climate for corporate dealmaking, it’s less clear the atmosphere is conducive to strike the more important political accords for which Davos has become renowned.
Cheap oil lubricates Li Ka-shing’s corporate rejig
By Una Galani
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
Cheap oil could be vital to Li Ka-shing keeping control of his empire. Asia’s richest man is selling a 6 percent stake in Husky Energy to his holding company as part of a broader shake-up. The move is vital to maintaining Li’s grip on his telecom, retail and property businesses. The recent fall in the oil price makes it harder for shareholders to object.
Shire gambles AbbVie break fee on risky $5 bln deal
By Neil Unmack
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Shire is gambling its AbbVie break fee on risky M&A. The Dublin-based pharma group has agreed to buy U.S. peer NPS to expand in lucrative rare drugs. The 51 percent premium is covered almost entirely by compensation from the collapse of Shire’s sale to larger American rival AbbVie last year. That doesn’t much mitigate the risk of doing a deal ahead of a key regulatory ruling.
Dick’s buyout has financially sporting chance
By Kevin Allison
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Dick’s Sporting Goods may become the next private equity plaything. The $6 billion basketball-to-fishing vendor is mulling a leveraged buyout, according to a Reuters report on Wednesday. A relatively clean balance sheet means there’s an opportunity to make money. It would, however, require healthy growth assumptions for $6.1 billion Dick’s at a time when stiff online competition is challenging many retailers.
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Breakingviews: HSBC's long tailRichard Beales and Antony Currie look at the latest revelations about the bank's old tax-avoiding habits, and how they may incur fresh fallout.Video
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Breakingviews: Earning a wild rideAction camera maker GoPro and insurer Prudential both whacked shareholders with unexpected news during results on Thursday. Breakingviews columnists explain what happened.Video
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