Reuters (October 27)
AT&T’s $85 billion “offer for Time Warner lacks strategic rationale, has politicians of all stripes criticizing it and has destroyed shareholder value while denying owners a vote. All it lacks–so far–is an activist shareholder demanding it be scrapped.”
Institutional Investor (September 17)
“As the global recession and financial crisis recede in the rearview mirror, companies have been acting more proactively in using their balance sheets in ways that enhance shareholder value. But we think they can do more…. By mid-2013, U.S. companies were sitting on cash that was equivalent to about 11 percent of their total assets, a three-decade high and earning almost nothing.” Fortunately, there are signs of change. Companies “have become more receptive to using debt to buy back shares, increase dividends and make acquisitions.”
Tags: Acquisitions, Assets, Balance sheets, Buybacks, Cash, Debt, Dividends, Financial Crisis, Recession, Shareholder value, Shares, U.S.
Institutional Investor (October)
U.S. companies are playing it safe and wasting “growth opportunities in an innovation-hungry international marketplace.” They should be investing in new technologies and growth. The impact will be felt across the economy. “Risk aversion is squandering what could be the last great opportunity for a U.S. innovation revolution – an era that could build shareholder value and insulate us from future financial crises.”
Tags: Growth, Innovation, Risk aversion, Shareholder value