Ben Kellerman
ReutersBreakingviews
New York, United States
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Past articles by Ben:
Weed wafts gently into investors’ portfolios – Breakingviews
Investors are warming to the devil’s lettuce. The action is mostly in Canada, which has over $25 bln of listed cannabis stocks, and rising volumes of M&A. But the U.S. is positioned to provide the metaphorical pickaxes, and big consumer brands will be watching for legal changes. → Read More
Conagra food deal could leave heartburn – Breakingviews
The $15 bln owner of Hebrew National and Reddi-wip could tie up with smaller rival Pinnacle after hedge fund Jana has come calling. Bulking up is one way to fight slow growth as consumers shift from processed fare. But justifying a deal requires cost cuts which may be a stretch. → Read More
High Times’ creative financing is far out – Breakingviews
The marijuana magazine is using a novel crowdfunding method to sell discounted shares before it goes public. Legalization efforts could generate buzz and draw crowds to the company’s events. But the publishing industry remains tough, and investors’ money could go up in smoke. → Read More
Cloudera darkens sky over exuberant tech IPOs – Breakingviews
The data-analytics firm lost some 40 pct of its market value after saying revenue will slow. Cloudera, which listed only a year ago, wasn’t expected to make a profit any time soon. But when companies are driven by rapid top-line growth, a little disappointment goes a long way. → Read More
Chipotle wraps succession up in rotten governance – Breakingviews
The embattled burrito chain’s founder Steve Ells is stepping down as CEO but becoming executive chairman. That puts too many bosses in the kitchen and may hamper the new chief’s ability to stir in much-needed new ingredients. It’s a maneuver other companies have come to regret. → Read More
Fast-food deal cures activist indigestion – Breakingviews
Buffalo Wild Wings is selling to private equity-owned Arby’s for $2.4 bln. It ends the chicken restaurant’s bruising 17-month fight with Marcato. The juicy 38 pct premium also salvages a decent return for the pushy investor whose stake looked like it was heading for slaughter. → Read More
Jana’s Outback bet beats a walk in the Olive Garden – Breakingviews
The activist has taken a 9 pct stake in the Aussie steakhouse’s owner. Cheap grocery prices and the rise of delivery apps have battered such restaurants. It took a wholesale revamp by investor Starboard to turn Olive Garden around. Jana, though, may be targeting easier pickings. → Read More
Da Vinci record vividly depicts scarcity value
Christie’s sold Leonardo’s “Salvator Mundi” for a record-smashing $450 mln. The old master is venerated by art aficionados and tech billionaires alike, and this was a unique chance to buy one of his paintings. Frothy markets probably helped buoy the price, too. → Read More
Buffalo Wild Wings could push for a spiced-up bid – Breakingviews
Private-equity firm Roark Capital made a $2.3 bln bid for the chicken restaurant, according to a report. That’d give activist Marcato only a modest return after a tough battle for board seats. Buffalo Wild Wings has lost some flavor, but it can still press for a little more. → Read More
Hudson’s Bay buildings are its real luxury goods – Breakingviews
The C$2.2 bln department-store owner is selling Lord & Taylor's New York building for $850 mln to WeWork. It may not satisfy activist Jonathan Litt, who's waging a proxy fight for bolder steps. But with retail in retreat, the firm is conceding it needs to monetize its property. → Read More
Beware Brazilian promises to relinquish control – Breakingviews
The cash-and-corruption-challenged government dangled the idea of reducing its 51 pct voting stake in Eletrobras, the electric utility. While that sent the shares soaring by half, investors need only recall Brasilia's past stewardship at Petrobras and Vale to slow their samba. → Read More
Hudson’s Bay may be more real estate than retail – Breakingviews
The C$2 bln Canadian company is under siege from a pushy investor. Jonathan Litt has ideas about repurposing the Saks Fifth Avenue flagship location and exiting Europe. Even if too bold, the bleak outlook for department stores suggests it's time for Hudson's Bay to refocus. → Read More
Chipotle’s yuck overwhelms financial yum – Breakingviews
The $10 bln burrito chain delivered healthy financial results that exceeded expectations. It won't be enough to restore confidence, however, after a new suspected norovirus outbreak and video surfaced of rodents at one location. More radical change at the top may be necessary. → Read More
Kroger woes augur deep discounts at U.S. grocers – Breakingviews
The supermarket chain is the latest victim of price-cutting, losing nearly $5 bln in value after shaving earnings guidance. Wal-Mart is stepping up efforts to undercut rivals while German discounters Aldi and Lidl are expanding stateside. Consumer gains mean shareholder pain. → Read More
Buffalo Wild Wings is recipe for CEO nervousness – Breakingviews
Marcato got three nominees elected and forced longtime boss Sally Smith to quit – the activist's original goal. That makes the other directors look oblivious to the omens before Friday's vote. Other leaders of companies under pressure can expect dwindling board loyalty. → Read More
Chipotle partly fulfills Bill Ackman’s order – Breakingviews
Recovering sales at the $14 bln burrito chain helped keep the pushy investor's big bet on a roll. A new payments data breach could make investors queasy again, though. Chipotle has a long way to go before it cooks up the kind of return Ackman's Pershing Square typically craves. → Read More