President Tayyip Erdogan said on Tuesday he told U.S. President Donald Trump during talks in Washington last week that Turkey would not give up on the Russian S-400 missile defences it procured this year, despite protests from its NATO ally. Ankara and Washington have been at loggerheads over Turkey's purchase of the S-400s, which Washington says are not compatible with NATO defences and pose a threat to its F-35 stealth fighter jets.
(Bloomberg) -- A U.S. chipmaker’s attempt to acquire a peer with a valuable Chinese affiliate has spurred concern in Beijing, as tensions between the world’s two biggest economies threaten to disrupt the global tech supply chain.China’s antitrust regulator is closely monitoring Diodes Inc.’s proposed $428 million takeover of Taiwan’s Lite-On Semiconductor Corp., responding to complaints a deal will deliver the Taiwanese company’s Shanghai-based affiliate On-Bright Electronics Inc. into American hands, according to a person familiar with the matter. The State Administration for Market Regulation is heeding warnings from multiple industry organizations about the acquisition and could consider asking the Chinese assets to be excluded from the deal, said the person, asking not to be identified talking about sensitive matters.The unusual attention accorded On-Bright -- a Chinese maker of chipsets for power management that’s listed in Taipei and has a market value of NT$9.88 billion ($324 million) -- reflects growing scrutiny of American M&A efforts in China.Regulators may be responding to a string of rejections that have foiled Chinese efforts to acquire U.S. companies because of national security concerns, including Tsinghua Unigroup’s abortive effort to lead a buyout of Western Digital Corp. in 2016. It underscores Beijing’s concern about an overwhelming reliance on American-designed semiconductors, which has spurred a nationwide effort to develop homegrown chip technology.Read more: Top Chipmaker Tsinghua Says the U.S. Need Not Fear ChinaPlano, Texas-based Diodes announced in August its intention to acquire Lite-On Semiconductor, which holds roughly a third of the Chinese firm, filings show. The deal was expected to close in April 2020. A Lite-On Semiconductor representative said Diodes had submitted its application to Beijing for antitrust review in mid-September. Diodes didn’t reply to emails requesting comment. An On-Bright representative in Taipei said the company has not heard that it will need to be excluded from the deal.One of the red flags was raised by an influential industrial association that represents Chinese smartphone suppliers, an organization that had closely worked with regulators on multiple M&A cases, including Qualcomm’s failed $44 billion bid for NXP Semiconductors last year.“If the Chinese government’s antitrust or national security review system doesn’t stop the deal, a great semiconductor company that China spent much effort on will end up becoming an American company,” Wang Yanhui, the association’s secretary-general, wrote in an open letter last week.To contact Bloomberg News staff for this story: Gao Yuan in Beijing at [email protected];Steven Yang in Beijing at [email protected];Debby Wu in Taipei at [email protected] contact the editors responsible for this story: Peter Elstrom at [email protected], Edwin Chan, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
If you want to know who really controls Public Joint Stock Company Gazprom (MCX:GAZP), then you'll have to look at the...
(Bloomberg Opinion) -- Coty Inc. just turned into Koty Inc.The American beauty group controlled by Germany’s billionaire Reimann family has agreed to pay $600 million for a majority stake in the cosmetics brand founded by Kylie Jenner, the youngest member of the Kardashian-Jenner clan. The deal, in which Coty will acquire a 51% stake, values Jenner’s Kylie Cosmetics business at about $1.2 billion, not bad for the line of lip kits the reality TV star created when still a teenager.You can see why Coty is paying up for a piece of the “Konsumer” action. Jenner, with 270 million social media followers is at the vanguard of the celebrity-influencer beauty industry, where company founders engage their fans via Instagram and YouTube and turn them into customers.Jenner — alongside other new media stars such as pop singer Rihanna, who’s partnered with LVMH Moet Hennessy Louis Vuitton SE, and the makeup artist Huda Kattan — is reshaping the beauty industry. Traditional cosmetics houses need to find ways to keep up. The mass beauty market, in which Coty has brands such as CoverGirl and MaxFactor, has been hit hard by the celebrity competition.Coty’s deal values Kylie Cosmetics at 6.7 times the last 12 months’ revenue. That compares with the 3.6 times multiple paid by Sweden’s EQT Partners for Nestle Skin Health, a brand catering for a slightly older demographic. It seems contouring for millennials is twice as valuable as hiding crow’s feet.Jenner’s company sells only make-up and skincare products currently; Coty will license it fragrances and nail merchandise too. If the new parent can broaden Kylie’s appeal into everything from false eyelashes to gel nail varnish, and pump them through its global distribution network, then it has a chance of bolstering revenue and squeezing value from the deal price. The business is already growing quickly and has an Ebitda margin of more than 25%.The danger of buying a “name” brand is that fashion is fickle. Coty’s purchase assumes that Kylie will keep inspiring young women to highlight their cheek bones and plump their lips. Yet what if she falls from favor with her young followers, who move onto the next Instagram or TikTok sensation. Already we may be past peak Kardashian, with the family’s TV show now into its 17th series.Coty is eager to stress that this is a partnership, and that Jenner will remain heavily involved. But operating inside a behemoth is very different to being an entrepreneurial startup.Let’s not forget the fate of the celebrity fragrance boom that emerged in the 2000s. These products are waning in popularity as millennials demand more personalized and artisanal scents. Coty itself has been moving away from some traditional collaborations, for example stopping producing perfumes for Jennifer Lopez, Lady Gaga and Celine Dion — although it still has Katy Perry in its stable.Yet perfume tie-ups were for the analogue age; capturing a Kardashian is for the digital era. Investors will hope that doesn’t also mean an acceleration of the process of falling out of fashion.\--With assistance from Chris Hughes.To contact the author of this story: Andrea Felsted at [email protected] contact the editor responsible for this story: James Boxell at [email protected] column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Q3 2019 Halozyme Therapeutics Inc Earnings Call
A look at the shareholders of Hamborner REIT AG (ETR:HAB) can tell us which group is most powerful. Insiders often own...
Toyota Motor Corp <7203.T> on Tuesday said Japanese labor officials have found it responsible for the suicide of an employee, with the Mainichi Shimbun reporting that workplace bullying at the automaker had led to the employee's death. Toyota City's labor standards officials had been investigating the 2017 suicide of a Toyota Motor employee, a spokesman at the automaker confirmed to Reuters.
The big shareholder groups in Reliance Industries Limited (NSE:RELIANCE) have power over the company. Institutions...
Hong Kong's new police chief called for the support of all citizens to end social unrest that has disrupted the city for more than five months, while protesters remained trapped by his officers at a university for a third day on Tuesday. About 200 protesters were still inside the sealed-off Hong Kong Polytechnic University campus, raising fears of bloody clashes with no resolution in sight. China’s top legislature, commenting on a ruling that said a proposed ban on face masks worn by protesters was unlawful, said Hong Kong courts had no power to rule on the constitutionality of the city's legislation, according to state media outlet Xinhua.
(Bloomberg) -- Cisco Systems Inc. sued three former senior employees whom it accused of stealing thousands of files containing confidential information when they defected to a competitor.Shortly after resigning their jobs at Cisco this year, the three men joined an unidentified company that competes “in the IP telephony, headset, video, and collaboration space,” according to the complaint.Cisco claims that Wilson Chung, who was one of its principal engineers, downloaded more than 3,000 internal documents containing trade secrets, including information about the company’s contributions to 5G technology and its design specification for a video-conferencing prototype, before he left in February.Chung is accused of recruiting another Cisco engineer, James He, to join the competitor. At that point, He started photographing confidential Cisco documents with his iPhone and copying other company records and emails, according to the complaint filed Monday in federal court in San Jose, California.Cisco said that Jedd Williams, who was one of its sales executives, sought employment with the same competitor, telling one of its executives in an email that he could “hit the ground running” using “a play I drove VERY successfully at Cisco ... and a play that I’d like to repeat again.”In mid-October, on the same day he uploaded 12 Cisco sales forecasting spreadsheets, he announced he was leaving the company to work at his church and focus on personal issues, according to the complaint. “Mr. Williams joined the same competitor shortly thereafter.”LinkedIn profiles for men with the same names show that all three, after long stints at Cisco, now work at San Jose-based Poly, a developer of video, voice and content collaboration and communication technology.Poly declined to comment. Cisco didn’t respond to a request for comment.The case is Cisco Systems Inc. v. Chung, 19-cv-07562, U.S. District Court, Northern District of California (San Jose).(Updates with allegations in third paragraph.)To contact the reporter on this story: Robert Burnson in San Francisco at [email protected] contact the editors responsible for this story: David Glovin at [email protected], Peter Blumberg, Joe SchneiderFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.