Financial Times (May 12)
There’s little obvious business sense to Pfizer’s proposed takeover of AstraZeneca. Strategically, there’s not much to be gained aside from effecting a change of tax domicile. “Pfizer’s dealmaking history is moreover a deeply dispiriting one…. Despite having spent some $240bn on three big acquisitions since 2000, its market capitalisation is just $185bn today. Meanwhile the Dow Jones index is more than 40 per cent higher.” AstraZeneca’s directors must proceed warily. This is about more than the potential short-term profit to existing shareholders.
Tags: Acquisitions, AstraZeneca, Dealmaking, Directors, Dow Jones, Market-cap, Pfizer, Profit, Shareholders, Short term, Strategy, Takeover, Tax domicile
Financial Times (July 10)
“The coalition government’s plan to sell off Royal Mail is ambitious. Even Margaret Thatcher balked at such a course, fearing the political risks outweighed any commercial and financial gains…. Success is far from assured. Nonetheless, Royal Mail has brighter prospects in private hands. Britain will be well served if investors profit from creating a postal service that meets its needs.”
Tags: Government, Investors, Margaret Thatcher, Privatize, Profit, Prospects, Risks, Royal Mail, UK
LA Times (May 7, 2013)
“The deaths of more than 600 garment workers in Bangladesh’s Rana Plaza factory collapse April 24 is a tragedy that highlights widespread problems in the global apparel industry. But will it be the spark that finally leads to much-needed global reforms?” Not until we quit looking for smoking guns and, instead, look in the mirror. Only then, will we see “the real culprits: the global apparel industry and ourselves for being complicit in supporting or ignoring a system of trade and offshoring largely designed to bypass regulatory policy of every stripe, while putting maximum profit before people.”
Tags: Apparel industry, Bangladesh, Garment workers, Offshoring, People, Profit, Reforms
Reuters (April 25)
Profitability is expected to suffer at firms listed on the Tokyo Stock Exchange’s first section. According to Barclays Capital, average net profit “will fall 12 percent this financial year, with the slide led by export-related industries such as auto and electronics firms.” Markets may already have factored this into share prices. There may even be some upside. “Some investors are encouraged by the speed at which power generation capacity has recovered since the quake, and initial plans to force large users to cut back by a quarter may be eased.” In addition, there are hopes that later in the year supply chains will stabilize and consumption will benefit from rebuilding and relief efforts.Profitability is expected to suffer at firms listed on the Tokyo Stock Exchange’s first section. According to Barclays Capital, average net profit “will fall 12 percent this financial year, with the slide led by export-related industries such as auto and electronics firms.” Markets may already have factored this into share prices. There may even be some upside. “Some investors are encouraged by the speed at which power generation capacity has recovered since the quake, and initial plans to force large users to cut back by a quarter may be eased.” In addition, there are hopes that later in the year supply chains will stabilize and consumption will benefit from rebuilding and relief efforts.
Tags: Electricity, Forecast, Japan, Profit, Share prices, Supply chains, TSE
