Breakingviews

Australia too mealy-mouthed on protectionism

By John Foley

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

Australia is being mealy mouthed about protectionism. Treasurer Joe Hockey blocked the A$3.4 billion ($3.1 billion) takeover of agricultural trader GrainCorp by U.S. rival ADM on Nov. 29, on the grounds that Australia’s grain market is only just getting used to competition, five years after the national wheat monopoly was disbanded. For Australia’s foreign investment prospects, the decision itself is less bad than the ambiguity over why it was made.

Giant Interactive’s $2.9 bln buyout hard to resist

By Una Galani

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

Giant Interactive’s $2.9 billion buyout is hard to resist. Chairman Shi Yuzhu is leading a consortium with Baring Private Equity Asia to take the U.S-listed Chinese computer gaming group private. At almost 13 times this year’s earnings, the group’s offer to buy the 53 percent that it doesn’t already own is a chunky premium to peers. Besides, independent investors have few alternatives.

Turning suit deal inside out reveals silver lining

By Jeffrey Goldfarb
Thea author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Turning a suit deal inside out has revealed a silver lining. After fending off a hostile bid from Jos. A. Bank, Men’s Wearhouse is now proposing to buy its smaller rival for $1.2 billion. The estimated cost savings could cover nearly the entire purchase price and the combined company would be less indebted. Structured this way round, the transaction is financially more fashionable.

U.S. trustbusting would make a great monopoly

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

America’s two federal trustbusting agencies would make a great monopoly. The U.S. Justice Department is beating the pants off its rival, the Federal Trade Commission, with pushback on headline-grabbing deals. The FTC has meanwhile scored big points protecting consumers. Leaving antitrust to DoJ would reduce costs and make both agencies more effective.

Chrysler IPO delay edges Fiat into driver’s seat

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

Fiat may have slipped into the driver’s seat. An autoworkers fund that owns 41.5 percent of Chrysler has been pushing for an initial public offering of the company as part of talks with its Italian partner. Chrysler’s board has now decided to delay the stock sale until next year, suggesting Fiat’s negotiating position has improved.

Aussie dairy battle needs cheap debt to stack up

By Ethan Bilby

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

Australia’s dairy battle needs cheap debt to stack up. Three bids in as many days for Australia’s Warrnambool have lifted the price tag above A$500 million ($469 million). Local cost savings and projections of China’s thirst for foreign milk help justify the frenzy. But the investment case rests on low borrowing costs.

Snapchat bid triples Facebook’s desperation

By Robert Cyran

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

Facebook’s Snapchat bid shows triple the desperation. The social network shelled out $1 billion for no-revenue Instagram a little over a year ago. Now it’s said to be dangling as much as $3 billion to lure in a mobile app that sends self-destructing digital images. Facebook’s apparently escalating need to buy off marauders at its moat suggests its defenses may be scalable.

Four ways to tell China is serious about markets

By John Foley 

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

China’s new buzzword is “decisive”. That’s how the ruling party described the role it wants markets to play in the economy. It’s hard to see whether it’s more than just talk. But there are four visible ways to tell whether China means business.

Shire adds to premium valuation with toppy deal

By Neil Unmack

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

Markets must like Shire’s boldness. Shares of the UK pharmaceutical firm jumped almost 4 percent on the news it would acquire ViroPharma, even though it agreed to pay an eye-watering nine times this year’s sales for the biotech group.

PwC-Booz merger adds up to a major culture clash

By Kevin Allison

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

PricewaterhouseCoopers’ proposed takeover of strategy firm Booz & Co would be the most prominent example yet of a Big Four auditor bulking up on consulting. But restrictions enacted after the massive Enron scandal of 2001 mean advisory-services staffers could end up brawling with accountants over clients. While mid-sized Booz may feel pressure to compete with rivals like Boston Consulting Group and McKinsey, the proposed deal with PwC risks a huge culture clash.