On Dow Jones Investment Banker Today: Genmab, Standard Chartered

6th Jul 2010 17:36

LONDON (Dow Jones Investment Banker)--The following columns have been published exclusively on Dow Jones Investment Banker in recent days. Many Dow Jones Investment Banker columns contain spreadsheets, video, PDFs and other supporting material. To arrange access to the best of Dow Jones news and opinion on companies, sectors and deals for investment bankers, please contact [email protected]. To see more, visit: http://www.dowjones.com/banker THE REMEDY: Genmab Has Bought Breathing Room, But What's The End Game? LONDON--Genmab AS (GEN.KO) is in the unusual position of being a small biotech company with a drug on the market; so its stock having fallen 70% in the past 12 months makes it a clear takeover target, right? Perhaps, but it's not that simple. The reality is that the Danish company finds itself between a rock and a hard place: It has few news triggers due in the coming months, and its most obvious acquirer, GlaxoSmithKline PLC (GSK.LN), isn't interested but retains a stake of just below 10% that could likely deter other bidders. While an outright acquisition will remain a longer-term goal, bankers seeking to do deals can, in the meantime, look to Genmab's drug pipeline, additional small licensing alliances or the sale of Genmab's antibody manufacturing facility in Minnesota. (Includes supporting graphic.) Contact the columnist: [email protected] THE SIGNAL: Google TV And Its Possible Implications LONDON--It took only a few years for Android to move from being a strange word in the land of tech to a commonplace on a billboard. In May, Google Inc. (GOOG) announced Google TV, built on a open platform like Android and Google Chrome, with hardware partners Sony Corp. (SNE), Logitech International SA (LOGN.VX) and Intel Corp. (INTC), together with Best Buy Co. (BBY), DISH Network Corp. (DISH) and Adobe Systems Inc. (ADBE), no doubt with the aim of repeating the trick on the TV screen. Now that the dust has settled and industry players have had some time to think through the implications, here's a distillation of some feedback on the subject. Contact the columnist: [email protected] TIER ONE: StanChart's Shanghai IPO: Japan Or India Redux? HONG KONG--Standard Chartered PLC (STAN.LN) is planning a listing in an Asian manufacturing titan, one which has rapidly become the economic nucleus of the world. It is a new Eldorado. StanChart's rationale? Marketing its brand there (the bank doesn't especially need the capital). China in 2010 or Japan in 1986? The answer is both. Contact the columnist: [email protected] THE SIGNAL: Dumb And Not So Dumb Pipes LONDON--If you want to lose friends and alienate people quickly, just use the phrase "dumb pipe" in front of a telco's management. In order to stop themselves being labeled as such, many telcos will continue to add mobile-oriented content in order to slow down the rate customers leave the network. While a company such as Hutchison Whampoa Ltd.'s (0013.HK) 3 UK, which has no cash flow, is ready to fight mainly on price and network, for many companies, adding new services to reduce churn is the name of the game. This is an effort to reduce opex costs in an era of little, or no, top-line growth. For fixed-line operators such as BT Group PLC (BT) and France Telecom (FTE.FR), the approach is to add content to the pipe. Contact the columnist: [email protected] THE GRID: Renewable Energy Needs U.S. Policy Extension NEW YORK--The Renewable Energy Finance Forum (REFF) opened its seventh annual meeting with this statement from Michael Morris, CEO of American Electric Power Co. (AEP): Americans like to go to heaven but they don't want the inconvenience of dying first. The comment sums up U.S. ambivalence toward alternative energy, which is judged to be an inconvenience sustained only by government subsidies. But if federal incentives are allowed to expire, the U.S. will fall behind the rest of the world in energy innovation, jobs and know-how. Contact the columnist: [email protected] THE MALL: BJ's Bid Faces Financing Constraints NEW YORK--The success of Leonard Green & Partners LP's bid for BJ's Wholesale Club Inc. (BJ) hinges on the private equity firm's ability to convince the retail club's management, but more importantly, on making the financing work. This will be tricky since a majority of BJ's stores are leased, which reduces BJ's debt servicing capacity, implying that any acquisition will require a sizable equity check from the private equity firm. (Includes downloadable Excel spreadsheet: Financing Key To Bid for BJ's.) Contact the columnist: [email protected] (END) Dow Jones Newswires July 06, 2010 12:36 ET (16:36 GMT)