meek-investor

Mergers & Acquisitions are often the glamorous side of business. CEOs love  them - you go through the excitement of doing a deal, get on to the papers and TV, become famous etc etc. Most of the haggling on the deal is on the price - how much the buyer is willing to pay the seller. But how about a M&A transaction where the seller has to pay the buyer in order for the buyer to buy the business !! Fanciful ? Well, that's exactly what has happened with the sale of Fresh & Easy by Tesco to Ron Burkle . Tesco is an UK based grocery retail giant; it is the third largest retailer in the world. From the UK, where it is a household name, it has expanded in Europe and Asia. But in the US, the largest retail market in the world, Tesco was non existent. In 2006, it decided to foray in to the US with the branding  of Fresh & Easy - in small store grocery format, primarily in the Western states. It never took off and Tesco faced mounting losses despite opening some 200 stores...

This eminent and good friend has often remarked that I have turned into a socialist (even a communist) in my old age. He claims my writing in this blog is veering constantly to the left. Other readers of my blog ,might wonder, if this is left leaning then what will the true loony left be called. But I know I am going to get a mouthful from him for this post, which is admittedly leftwards tilting. On matters relating to labour and worker law, I have often argued that countries have brought excessive legislation defending the existing worker and making it expensive to employ any more.Who in his right mind will employ a worker in France, for example. All this misguided legislation only keeps out a large portion of the young out of the workforce. Companies need some flexibility to ramp their worforce up or down based on conditions of their business and marketplace. Minus this flexibility, no modern company is going to hire. But companies have gone to the other extreme and misused the flex...

Arise Sir Fred, the Queen of England said in 2004 after tapping the kneeling Fred Goodwin lightly on the shoulder with her sword. This archaic ceremony is the conferring of knighthood by the Queen of England. If you are a citizen of the UK or one of its dominions then you can call yourself  "Sir". Fred Goodwin was the CEO of the Royal Bank of Scotland in its boom years. An unknown, middling bank in Scotland (where's that for Gods sake), he took it to become one of the largest banks in the world. First the acquisition of Natwest, a big British bank much bigger than RBS. And then the mega takeover of ABN Amro, just as the financial crisis was unfolding. The bank was growing wildly through mega acquisitions and was cheered on by all and sundry - the shareholders, the market and even the government, including Gordon Brown, the then Prime Minister of the UK. Hence the knighthood. Sir Fred could do no wrong. Of course the party couldn't last. It came crashing down with the ...

If you are in the UK this coming autumn, you better brace yourself for a series of strikes. Public sector unions are calling for a series of sustained strikes. Throwback to the 80s perhaps ?? Maybe. My view is that these planned strikes are completely unjustified and the unions are living in cuckooland. The problem is pensions. Readers of this blog are young enough to completely switch off at the mere mention of this word. But this is one of the biggest problems in business today. The problem is that, years ago, stupid HR types, gave away a perk called "defined benefit" pensions. This meant that when you retired you were eligible for a pension which was a high percentage of your last drawn pay. To add insult, these would be inflation indexed and accrue to you till you die. That's all fine, but who's going to pay for all this. The even more stupid accounting types, blissfully ignored the ramifications of what they had promised and simply ignored this future promise. Wh...

The Labour party in the UK has announced a “Cadbury Law” as part of its election manifesto. This was motivated by the aftermath of the Kraft takeover of Cadbury. It has many good and some bad features and can potentially be a model for takeover law in many countries. The broad proposals are as follows - M&A transactions have to be approved by a two thirds majority and not just a simple majority. - People (read hedge funds) who buy shares in the target after a bid is announced would be barred from voting - A “national interest test” is being considered to prevent foreign takeovers in vital industries” – defence, utility, infrastructure being thought of as “vital” In the red corner in fervent defense of these proposals are the Labour party, obviously, the Confederation of British Industry and Unite – the powerful Trade Union. In the blue corner, opposed vehemently to this are the Conservative Party, obviously, and the Association of British Insurers. Silent, but presumably in this ca...

A crying shame, it is. This blog is not meant to be political in nature and is (usually) not prone to hyperbolic hand wringing. This post does both, unashamedly. I just could not believe that the Digital Economy Bill was “passed”, or rather rushed through the British House of Commons. Actually what took place was the ‘Third reading”, which is not the same thing as passing. But we won’t get into quaint British parliamentary traditions where worthies have to yell “Hear Hear” when they actually are meaning &^%$ @#$. They effectively passed that bill. See the photo in this article to see how vigorously attended this debate was. I am not a British national; I do not live in the UK and have no business commenting on British policy or laws. But I am a self confessed Anglophile. I hold great fondness for all that is good and great in Her Majesty’s kingdom. That paragon of virtue, fair play and freedom, passes such a thing as the Digital Economy Bill - that is difficult to stomach. 95% of...