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Overdue Mylan deal is not the one investors wanted

Three months after rival Perrigo refused its $26 bln offer, the drugmaker has agreed to buy Sweden’s Meda AB. Though the $7.2 bln transaction makes strategic sense, the 92 pct premium is hard to justify. Mylan might have been better served by trying to sell, rather than buy.

SocGen triumphalism rings hollow

Boss Frederic Oudea hailed the “good” full-year result for the French bank’s main business lines as he hiked dividends to half of earnings. But new legal provisions put Societe Generale’s fourth-quarter return on equity at 4.7 pct. With costs up, his confidence seems misplaced.

Facebook India row shows limit of tech favouritism

Regulators blocked the social network’s plan to offer free limited internet to the poor. Ill-judged comments from Facebook director Marc Andreessen highlight the gulf between Silicon Valley and the wider world. Big tech groups can no longer expect a free pass for bold plans.

Twitter lacks love more than numbers in its flock

Users at the $10 bln social-media platform have topped out at about 320 mln. Getting 25 pct more dollars out of each in the fourth quarter than the third isn’t bad. CEO Jack Dorsey wants a better user experience, but he also needs to turn more of his pricey R&D into revenue.

Anheuser rolls Asahi on middling beer brands

Though the $2.9 bln price tag is a bit lower than expected, the Japanese brewer’s acquisition of Peroni, Grolsch and Meantime from Mega-Beer clocks in at some 25 times probable EBIT. It’s only justifiable under the demographic logic of the buyer’s shrinking home country.

Deutsche has enough capital but not enough clarity

The German lender’s solvency is strong enough to withstand the most likely clouds on the horizon. But Deutsche Bank’s 1.4 trln euro balance sheet is opaque and stuffed with derivatives. Boss John Cryan could deliver relief by opening up on its oil and other exposures.

German CDS imply bank doom loop is unbroken

Market turbulence has led investors to snap up safe German bonds, yet the cost of insuring against a Teutonic default is up. Blame a rout in Deutsche Bank shares. Until Europe’s banking union is complete, governments are the ultimate backstop if big lenders get into trouble.

Deutsche hybrids: from poster boy to problem child

The German lender has moved to reassure investors fretting about delayed coupons on its new AT1 securities, after CDS prices collapsed. Unlike hybrid forebears in 2008, AT1s should absorb losses. Yet instead of dampening volatility, the fear of a trigger is exacerbating it.

Chancellor: Heed the threats to globalization

As the woes of emerging markets increase, 1930s-style protectionism and exchange controls are back on the agenda. A warning from the Bank for International Settlements of an “epoch-defining seismic rupture” in the financial system may be more than just hyperbole.

Darkening German economy could be Merkel’s nemesis

Falling industrial production and weak exports suggest emerging markets may be chipping away at Germany’s economic miracle. Chancellor Angela Merkel has ridden out a refugee crisis. But if economic weakness is allowed to reach labour markets, her political fate could be sealed.

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