Bloomberg (January 19)
“Chinese stocks just capped another dismal week…. Grim milestones have kept piling up in recent days: Tokyo has overtaken Shanghai as Asia’s biggest equity market, while India’s valuation premium over China has hit a record. Locally, a meltdown in Chinese shares is wreaking havoc on the nation’s asset management industry, pushing mutual fund closures to a five-year high.”
Tags: Asset management, China, Closures, Dismal, Equity market, Grim, Havoc, India, Meltdown, Milestones, Mutual fund, Premium, Record, Shanghai, Shares, Stocks, Tokyo, Valuation
Chicago Tribune (December 12)
“Dynamic pricing models are popping up on express toll lanes. Proponents “say it encourages motorists to carpool, use mass transit or pick alternate routes. And if a commuter is willing to pay a premium to get to work faster, that’s their choice.” But some systems price “out people who can’t afford $40 to drive a 10-mile stretch of pavement. It creates what detractors call ‘Lexus lanes.’”
Wall Street Journal (September 14)
“For Monsanto owners, selling to Bayer provides a premium of 44%.” With relatively little overlap between the companies, antitrust issues should be less likely to threaten the merger. Moreover, “the deal seems to make strategic sense, as Bayer combines its pesticides franchise with a leader in seeds and biotechnology. Bayer is also known for health care, which will generate about half of the combined company’s sales. Crop sciences will contribute roughly the other half.”
Tags: Antitrust, Bayer, Biotechnology, Crop sciences, Health care, Merger, Monsanto, Overlap, Pesticides, Premium, Seeds
Reuters (September 13)
With cargo trapped and delayed, the Hanjin bankruptcy is creating giant supply chain ripple effects. “Consumers should start preparing to pay more for holiday cheer this year. Experts predict that Hanjin ships won’t emerge from receivership until after the holiday season.” Temporarily, at least, that’s good for other shipping companies. “Space is suddenly at a premium…Rates could spike 50 percent as soon as October.”
Tags: Bankruptcy, Cargo, Consumers, Hanjin, Premium, Rates, Shipping companies
The Economist (June 7)
“Japan’s premium motor brands are still far behind their German rivals. The giant carmakers that own them are missing out on pots of potential profit.”
Chicago Tribune (March 31)
Ride share services like Lyft, Uber X and Sidecar are changing the way people get around urban environments like Chicago. “Consumers like ride shares. They like being able to find a nearby car, check out the driver and agree to a fare, all on their smartphones. They like the option of paying a premium for faster service in peak hours or bad weather. They like choices.” In contrast, taxi owners are unhappy with the new competition and pushing for tighter regulation or outright bans on ride sharing. Some prudent regulation is inevitable and desirable, but lawmakers should side with consumers rather than protecting “the people who got into the taxi business by paying $300,000 or more for a city medallion.”
Tags: Bans, Chicago, Consumers, Lyft, Premium, Regulation, Ride share, Sidecar, Smartphones, Taxis, Uber X
Wall Street Journal (October 7)
“Billionaire Warren Buffett tossed lifelines to a handful of blue-chip companies during the financial crisis. Five years later the payoff on those deals is becoming clear: $10 billion and counting.” In terms of income before taxes, the investments to companies like Bank of America, Dow Chemical, General Electric, Goldman Sachs and Mars, have yielded Berkshire approximately 40%. Berkshire received an attractive premium, but provided the companies with critical capital and something even more valuable: “Mr. Buffett’s implicit endorsement of their long-term prospects. Shares of these companies generally went up after they revealed Berkshire’s involvement.”
Tags: Bank of America, Berkshire, Billionaire, Blue-chips, Capital, Dow Chemical, Endorsement, Financial Crisis, General electric, Goldman Sachs, Investments, Mars, Payoff, Premium, Shares, Warren Buffett
The Chicago Tribune (July 12)
Nearly 60 years ago, Hugh Hefner got his start in Chicago. The Tribune wishes “Hef” good luck in taking “what once was known as the Playboy empire” private. Hefner is offering $5.50 a share, a generous 40% premium given Playboy lost $51 million last year. The price, however, pales compared to its all time high of $32 in 1999.
Tags: Hugh Hefner, Playboy, Premium, Take private
