Nothing seems to satiate Thailand’s richest man Dhanin Chearavanont’s thirst for acquisitions. And this time his target is on his home turf. Just months after acquiring a 15.5% stake in Chinese insurance group Ping from HSBC Holdings for $9.4 billion, the 74-year-old billionaire has made a $6.6-billion bid to acquire Thai discount store player, Siam Makro, through his company CP All, which runs 7-Eleven convenience stores in the country. His move will allow CP All to create a stronger footing in Thailand’s $80-billion retail sector. But in doing so, Chearavanont is flirting with danger: his group has already raised $11 billion in loans so far this year and the new buyout will add another $6 billion to the pile.
Unlike his peers, Jeffrey Ubben’s presence does not send company managements into a tizzy. In fact, the founder and CEO of activist hedge fund, ValueAct Capital, is known to work with managements. That should calm some nerves at Microsoft since the fund has bought stake worth $2 billion (around 1%) in the world’s largest software company. Microsoft’s stock, which has been languishing for the past 10 years, surged 5% on the news. However, Ubben is not planning anything radical. While analysts have derided Microsoft’s inability to innovate under CEO Steve Ballmer, Ubben feels otherwise. “IT managers don’t want constant change,” he said at a recent investor meet. How long Ubben will be content with MS’ status quo remains to be seen.
Looks like consumer sentiment is finally taking its toll in the US. McDonald’s, the world’s largest restaurant chain, saw domestic same store sales fall for the first time in 10 years in Q1CY13. Despite introducing ‘dollar’ menus in its home market, rising competition and weak consumer demand are playing spoilsport. But what’s cause for worry is that things are worse abroad: comparable sales in Asia and Africa were down 3.3%.
Compassion is in fashion and Adidas is making the most of it — albeit for a cause. The official apparel supplier to the Boston Marathon has sold out tribute T-shirts it released after the tragic bombing. The shirts with the slogan “Boston stands as one”, are being sold for $26.20 (the distance of a marathon) and proceeds are being donated to One Fund Boston, a charity to support victims of the attack. Will the act of solidarity see the German brand finally score with American customers?
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