On Dow Jones Investment Banker Today: Tesco, SKS Microfinance

11th Jun 2010 23:36

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 MALL: Tesco's Clarke And 'New CEO Syndrome' LONDON--On the face of it, there's no good reason why Tesco PLC's (TSCO.LN) CEO-designate Philip Clarke should go against the theoretical grain and embark on M&A activity in his first year in office which begins next March. The incumbent, Terry Leahy, has enjoyed phenomenal success but remember that one of the first things Leahy did was to withdraw from France in 1997. If change is on the cards, Tesco's operations in Japan and the U.S. may soon find themselves in the line of fire. (Includes downloadable Excel spreadsheet comparing Tesco with its UK peers.) Contact the columnists: [email protected]; [email protected] THE MALL: Chinese Golf Redux: Visiting Mission Hills HONG KONG--A recent trip to mainland China by the columnist has reinforced suspicions about Chinese golf's economics that he presented in a column last month, when he made a bearish case for Chinese golf courses, particularly in the island of Hainan, and a potential opportunity if these assets were restructured similar to the Japanese experience. Contact the columnist: [email protected] THE SIGNAL: Telecom Taxes En Route For France? LONDON--Telecom stocks in general have hardly been the sector du jour, but the recent price action of France Telecom (FTE.FR) and Vivendi S.A. (VIV.FR) suggested that even though telcos were shunned in the big market run-up, not all was well with these two stocks in particular. After speaking to a Parisian analyst, the mystery was solved. Local portfolio managers have been selling out as they expect a new tax to be imposed on the sector, which will be in addition to the recent tax to pay for advertising-free public television. It must be emphasized at this point that there are no details, or indeed announced plans from the French government, so this is the local buy-side putting two and two together and perhaps getting five. Contact the columnist: [email protected] TIER ONE: SKS ? Rich Valuation For Serving The Poor NEW YORK--The upcoming flotation of SKS Microfinance Ltd. will be the first public listing of an Indian micro financier. On one hand it would provide a benchmark for dozens of other non-public small lenders, but on the other hand it puts the spotlight on the lofty valuations in the sector. SKS would be only the third microfinance firm worldwide to go public, after Banco Compartamos (COMPART.MX)of Mexico and Bank Rakyat Indonesia (BBRI.JK). India has 35 for-profit microfinance institutions and almost 200 not-for-profits, so a successful offering could lead a parade of Indian microfinance IPOs to come. (Includes supporting graphics.) Contact the columnist: [email protected] THE DRILL: Augusta Resources Hits The Mother Lode Of Financing NEW YORK--Faced with a weak economic recovery and volatile commodities prices, start-up copper miner Augusta Resource Corp. (AZC) has sought unconventional financing, first tapping metals trading houses and now taking advantage of export credit guarantees in three countries. The ingenuity it has shown offers lessons for other resource companies that don't want to dilute their shareholders too drastically during the development stage. Contact the columnist: [email protected] (END) Dow Jones Newswires June 11, 2010 18:36 ET (22:36 GMT)