Thursday 8 October 2015

Top Tweets Today: 08/110/2015

Earlier in the week it was said that SAB Chairman Jan du Plessis was a hard man to please when it came to deals and it was expected that any offers that came through from its suitor AB Inbev, he would immediately reject.

That has happened a number of times over the last week with every new offer whetting the appetite of investors and media but remaining unimpressive to SAB board. A deal over $100 billion looks to be on the cards as AB Inbev has expressed its willingness to pay that much and more.

The despondency it's own board has experienced at the hands of SAB was so that CEO Carlos Brito has sent out a statement to SAB shareholders pleading with them to not allow management to stand in their way of a good deal. The tone of the statement does suggest that things could be heading hostile with things bound to get messy. But one wonders if such a move would work well for the world's largest brewer.

Firstly they would need to pass through a number of regulatory bodies and considering the size of SAB as a conglomerate that could take a while. Secondly it would paint AB Inbev as a profit hungry corporation out for world domination, something that won't settle down well for their reputation. The way things are panning out right now it would seem that SAB management could be playing a game of corporate politics.
Looks like today is all about boardroom brawls as Bill Gross former CEO of Pimco opening a lawsuit against the former company he founded in 1971 after he was fired in 2014. In legal papers filed today Gross opens the can of worms accusing management of being power hungry and greedy saying he was fired so there could be more bonus money to take home for other executives.

The media has been salivating at the opportunity to hear the inside story of what went down between Gross and another Pimco executive Mohamed El Erian after it was leaked to the media that there may have been a dispute between the two which led to El Erian to resign.

Gross is seeking damages of $200 million and said that if he won the case he would donate the proceeds to charity. Looks like there is going to be a showdown in the months to come.  
If you're a skeptic of the world around you then you'll really enjoy this piece I found by InvResDynamics suggesting that the world's financial system may not be as steady as everyone thinks it is. They've presented some interesting data between the Fed's reverse repurchase agreements that surged in September and pinned it to the Glencore price plunge.

I think the lesson here is the world financial system is way more interconnected than what the average person knows and any hiccup has the potential to upset the balance of things at a whim,
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