Germany Exercises Caution with Chinese Companies

October 25, 2016

Germany is exercising a tighter control over foreign investment in European companies. And it began by withdrawing clearance for China-based Grand Chip Investment GmbH’s takeover of Germany-based Aixtron for regulatory and political risk. Stay tuned to Sentifi to discover more insights and the crowd’s sentiment on the case.

sentifi top attentions october 25

TD Ameritrade: Acquisition of Scottrade will have a big impact in asset management industry

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The combined entity will have $944 billion in combined assets, the kind of scale necessary to satisfy investors’ demand for ever-lower fees on their investments. The entity also expects to have about $450 million in combined annual expense synergies and more than $300 million in additional longer-term opportunities.

Aixtron: Germany’s protectionist reaction to China’s appetite for overseas acquisitions is growing

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Germany’s Economy Minister Sigmar Gabriel has reopened a review of the takeover of the chipmaker Aixtron by the Chinese company Grand Chip Investment. Gabriel asked the EU to give national governments more powers to block or impose conditions on shareholdings of non-EU companies. Aixtron shares dropped 8.3 percent and traded 6.2 percent lower following the news.

Time Warner Inc. & AT&T: The mega-merger is failing to convince analysts

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The analysts in the crowd are weighing in on the deal, with many saying they found the deal a hard pill to swallow. Both companies said the merger will allow new products to come along faster, which will push competitors to innovate. This argument was dismissed by many analysts with a simple reason that a lot of the potential new products could come from licensing deals. A merger will create a new giant that many companies in the industry may not want to work with, which would in turn slow down industrywide collaborations.

Rockwell Collins: Investors and industry experts remain skeptical about the acquisition of B/E Aerospace

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The company’s shares dropped 6.9 percent as the prospects of a sales boost and new products stemmed from the acquisition have failed to excite investors. The reason is it’s not clear how some of the new products promised by the company will improve customers’ experience or reduce costs, which are important selling points to customers, and to investors.

T-Mobile: Adds almost 1 million customers in Q3

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The No. 3 U.S. wireless carrier continues to grab market share thanks to heavy discounting and promotions. The company now expects to add 3.7 to 3.9 million branded postpaid customers on a net basis this year, up from its previous forecast of 3.4 to 3.8 million. The company decided to increase the forecast for customer additions after seeing upside from AT&T-Time Warner deal. CEO John Legere believes the deal will make AT&T more unfocused, which presents to T-Mobile an opportunity to cease more businesses from its rival.

MetLife Inc.: Faces off with regulators over its too-big-to-fail status

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Three judges at Washington’s federal appeals court questioned the government’s analysis that designated MetLife as a too-big-to-fail financial company, while the Justice Department appealed a lower court’s decision to strip the company of that label. The court ruling could have broad implications on the handling of firms with the too-big-to-fail labels. Aside from MetLife, the regulators have named A.I.G., Prudential Financial and General Electric’s finance unit as systematically important financial institutions.

HNA Group: Buys a 25 percent stake in hotel chain Hilton Worldwide

The Chinese company aims to establish a long-term strategic investment in Hilton and its planned spin-offs. The transaction is valued at $6.5 billion. HNA will also be able to appoint two directors, one HNA member and one independent member, to Hilton’s Board of Directors. This deal will allow HNA to diversify away from its regional airline roots, while enhancing its ability to profit from big-spending outbound Chinese tourists.

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