FT : Allen & Overy and Shearman partners vote through merger

Allen & Overy and Shearman partners vote through merger
Tie-up between ‘magic circle’ law firm and US rival creates $3.5bn transatlantic law firm after 99% of votes cast in favour

Partners at “magic circle” law firm Allen & Overy and New York’s Shearman & Sterling have voted overwhelmingly in favour of a merger between the two groups, clearing the path for one of the industry’s biggest-ever tie-ups.

The merger, which creates a legal giant with roughly $3.5bn in combined revenues, will push ahead after more than 99 per cent of partners on both sides backed the plan, according to a statement from the firms on Friday. The deal creates an outfit with nearly 4,000 lawyers in total.

“This is a historic moment for both firms and our profession,” said Wim Dejonghe, senior partner at Allen & Overy, in a statement. “We are delighted that our partners have voted so resoundingly in favour of this merger, which is a transformational step for the legal industry.”

The deal, announced earlier this year, is the first between one of the UK’s so-called “magic circle” firms and a US rival in more than two decades, and creates one of the world’s biggest law firms by revenue. Allen & Overy will be hoping the merger can give it a leg up in America, where UK law firms have long struggled to gain traction in a market dominated by a group of top tier US law firms.

For New York’s Shearman, the deal brings an end to a tumultuous period that saw the firm lose a number of lawyers after merger talks with Hogan Lovells fell apart earlier this year. The firm, which is dwarfed in size by Allen & Overy, has also undergone a restructuring aimed at boosting its profitability.

The new firm will be known as A&O Shearman, with the tie-up set to close by May 2024. The firm hasn’t disclosed how management will be structured.

The deal came together in a matter of weeks after Shearman’s senior partner Adam Hakki called his Allen & Overy counterpart Dejonghe not long after the US firm’s proposed merger with Hogan Lovells collapsed in March. For Allen & Overy, it brought a fresh opportunity to boost its American ambitions after merger talks with California-headquartered O’Melveny & Myers failed four years ago.

Nothing has yet been communicated about how the profit structures of each firm will be merged, even privately, according to one senior Allen & Overy partner, who described the mood as “excited”. Equity partners at Shearman took home $2.48mn in average profits last year, compared with £1.82mn for partners at Allen & Overy. Both firms have said previously their pay structures would not be difficult to knit together.

Shearman, a well-known 150-year-old firm that once advised the cream of corporate America, is the far smaller entity, with $907mn in revenues in calendar year 2022 and about half of Allen & Overy’s more than 40 offices. Together they will have 48 offices and about 800 partners.

TechCrunch : Devialet’s Gemini II are the most luxurious wireless earbuds you ca

Devialet’s Gemini II are the most luxurious wireless earbuds you can get
Image Credits: Romain Dillet / TechCrunch

Devialet isn’t like any other tech company — its products are at the intersection of audio engineering and luxury. That’s why its new wireless earbuds with active noise cancellation don’t look like other earbuds.

This isn’t a mass market product. When I covered the product launch at the Paris Opera, the French company’s CEO Franck Lebouchard told me that it expects to sell “tens of thousands” of units per year.

Analysts estimate that Apple sells tens of millions of AirPods per year. Devialet hopes it can capture 0.x percent of market share by positioning itself as a high-end alternative to wireless earbuds from Apple, Samsung, Anker — and even Bose and Sony.
So what does a pair of high-end wireless earbuds look like?

I have been using the Devialet Gemini II for the past couple of weeks. Let’s be clear, this product is the most extravagant take on wireless earbuds — they cost $449 (€399, £349).

In short, yes, the Gemini II are both extremely good and extremely expensive.

This is the second generation of the company’s wireless earbuds. And the good news is that it’s a huge step forward compared to the original Gemini earbuds that were released in 2020.

Let’s start with the design. The pill-shaped earbuds are reminiscent of Devialet’s iconic egg-shaped Phantom speakers. On the side of the earbuds, you will find an unobtrusive D logo and an elegant plate with metallic coating above it.

Devialet knows you’re going to wear these earbuds. That’s why the company has three different colors — black, white or gold. The matte black version doesn’t stand out as much as the two other versions. It’s a good option for people looking for low-key earbuds.

The gold one is a more expensive version called the Opéra de Paris edition. They look just like the matte white ones, but with some 24-carat gold plating. There’s an Opéra de Paris logo on the case as well. This version costs $649 (€599, £549) — once again, this is a luxury play so pricing isn’t necessarily logical or rational.

Image Credits: Devialet

The Devialet Gemini II are in-ear earbuds with swappable silicone ear tips. They come with four ear tip sizes in the box — XS, S, M and L. After inserting the earbuds in your ears, you have to turn them slightly backward to “screw” them in place — it works a bit like Sony’s WF-1000XM5 earbuds.

It takes a few seconds to find a good seal and it gets easier after a few days. But, overall, the Gemini II have been quite comfortable to wear. Each earbud only weighs 6g and they have never fallen out of my ears. But ears come in all sizes and shapes so it’s hard to say whether they will work for everyone.

The carrying case is quite compact and works like a standard battery case for wireless earbuds, such as the cases of the Apple AirPods Pro, Bose QuietComfort earbuds and Sony WF-1000XM5. There’s a magnetic lid at the top of the case that you can open and close whenever you need to pick up or store your earbuds.

At the center of the pebble-shaped case, you will find a metallic coated central plate. It’s a single piece that surrounds the entire case. The two plastic parts above and below the central plate feature an elegant staircase design.

Devialet promises up to 22 hours of battery life with 5 hours of autonomy in the earbuds themselves. In my testing, battery life has never been an issue. You can charge the case with a USB-C cable or a Qi wireless charging pad.

Image Credits: Romain Dillet / TechCrunch

Fantastic sound quality
Wireless earbuds have become better with each generation. But I have never heard wireless earbuds that sound as good as Devialet’s Gemini II. They excel when it comes to sound quality and offer rich and detailed sound.

The most striking aspect of the Gemini II is its ability to offer an articulate rendering of messy tracks. They can handle several layers of bass lines, some high-pitched rattling and a singer at the center of the stage.

They perform extremely well at the low-end of the spectrum. It’s impressive that Devialet can get deep bass from small audio devices like those. In fact, they might sound a bit bassy with the default EQ settings but this can be fixed with the in-app six-band equalizer. At the same time, many tracks come to life with the Gemini II as they are extremely generous with vocals.

Devialet uses 10mm drivers with titanium coating. Like on the AirPods Pro, Devialet relies on inward-facing microphones to measure the sound inside your ear canals and adjust it to your ears.

The company uses Bluetooth 5.2 to connect to your devices with multipoint support. It means that you can connect your earbuds to both your smartphone and laptop at the same time. For instance, if you play music on your laptop and someone calls you, it stops the music on your laptop and you can pick up the phone using your earbuds. When it comes to audio codecs, the Gemini II support AptX, AAC and SBC.

Multipoint Bluetooth is such a nice feature when you have it. Sony’s earbuds have multipoint connection. Bose only offers this feature on its headphones. Apple relies on your Apple ID to make your AirPods hop from one device to another — but you’re limited to Apple devices.

As for active noise cancellation, the Gemini II are very good if you want to block out the background noises involved with mass transit. When you turn it on, chances are you won’t be able to hear the bus engine or the metro sounds.

In an office environment, the Gemini II aren’t as good as a pair of Bose headphones, such as the Bose QuietComfort 45. You will hear some muffled voices and keyboard sounds. But they perform pretty well compared to the Bose QuietComfort Earbuds II or the AirPods Pro.

You can use Devialet’s app to switch between two modes — cancellation or transparency. In transparency, you can hear your surrounding and you can follow conversations. It doesn’t feel like you don’t have anything in your ears, but it’s pretty good for a quick interaction in the office.

The logo on the side of each earbud is a touch surface that you can use for basic interactions without having to open the app. By default, you can put your finger on an earbud for a couple of seconds to switch between transparency and cancellation modes. You can also use this surface to pause music, switch to another track and adjust the volume.

Image Credits: Devialet

The Gemini II feature two microphones on each earbud. There’s an outward-facing microphone behind the grill on the side of the earbud, and a downward-facing microphone for your voice.

The company has improved wind detection with a proprietary algorithm to reduce wind noise. Similarly, Devialet uses a bone conduction sensor to understand when you’re talking and improve your voice quality during calls.

The result is… OK. Let’s be honest, it doesn’t really make sense to expect a great sound quality over Bluetooth with a microphone so far from your mouth. I think Apple has made some real progress on this front, but if you want to use earbuds in multiple video calls per day, you should think about buying a pair of headphones with a boom microphone.

And yet, listening to music with these tiny earbuds is a magical experience. After a while, you tend to forget that you have earbuds in your ears. And you just feel the music going through your head.

When Apple released the original AirPods, the company created a whole new category of wearable devices. It was unclear how much people were willing to pay for those tiny things. Over time, other brands and Apple itself have pushed the limits of wireless earbuds when it comes to features and price.

Of course, $450 for a pair of earbuds is ludicrous. But Devialet’s Gemini II earbuds sound great, look great and are a great fashion accessory.

Unlike the original Gemini earbuds, which were flawed in several ways, it’s much easier to recommend Devialet’s new earbuds. The Gemini II have reached feature parity with other wireless earbuds. The sound quality is just better.

Image Credits: Romain Dillet / TechCrunch

WWD : Vitale Barberis Canonico’s Heritage And New Talents Program Spotlights Eme

Vitale Barberis Canonico’s Heritage And New Talents Program Spotlights Emerging Designers
Vitale Barberis Canonico’s commitment to transparency and quality attracts young designers to its Heritage and New Talents program.

The market-leading success of Vitale Barberis Canonico is pinned to innovation, high-quality, Made-in-Italy fabric, and a remarkable 360-year heritage. But there is another dimension driving success for the family-owned mill. The famed fabric maker is working with emerging designers as part of its Heritage and New Talents program.

The program, which spotlights womenswear, was launched earlier this year with VitoVi, the brand of Maria Vittoria Lazzarini Merloni. That collaboration showcased the blazer as an iconic garment, but using fabrics normally used in men’s drapery, the mill said in a statement.

In its latest collaboration, Vitale Barberis Canonico is collaborating with CUANTICO, which was founded in 2021 “with the desire to create a wardrobe of iconic garments,” the company said, adding that the dress shirt “was immediately identified as a fundamental element in the dress code, aware of the fact that, when worn by a woman, it is a manifestation of elegance but also a potent weapon of seduction.”

The collaboration will be unveiled at Milan Fashion Week on Tuesday in the showroom at Via Solferino 23. “The itinerary will take the guests through the heritage of Vitale Barberis Canonico to the discovery of the 12 shirts which incarnate the CUANTICO philosophy,” the mill said. “A leitmotif which unites textile tradition with feminine contemporaneity.”

Regarding why the mill works with new talent, Francesco Barberis Canonico, creative director at Vitale Barberis Canonico, said the mill works with new and emerging designers “to give them access, and to keep us up to date,” he said. “CUANTICO is a new company that is doing dress shirts for women. So, it’s not exactly our core business and it’s not something that we normally do, but the collaboration gives us certain opportunities to explore different areas, such as womenswear, while also reaching a younger customer. It’s forcing us to step out of our normal boundaries, which is good thing.”

When asked about the collection, Barberis Canonico said the shirt “represents a milestone and the point of departure when taking care of one’s look. Increasing numbers of women are wearing iconic garments taken from the men’s formal classic wardrobe to exemplify their personality. The founders of CUANTICO have done a great job in terms of style, construction, and the selection of the fabrics, and we are happy to collaborate with them and to continue to support young talents in the fashion world.”

Barberis Canonico also noted that the timing of the collaboration is key. “Overall, this is a good time for us as more and more consumers shift away from fast fashion,” Barberis Canonico said. “They’re looking for high-quality apparel and finer materials. They want products that last. They’re also more careful with their money and are willing to spend more on quality rather than on low-quality fast fashion.”

Barberis Canonico also said there’s demand for greater transparency. Customers want to know how and where products are made. For Vitale Barberis Canonico, the mill’s transparency and traceability are globally recognized. The wool can even be traced to the farm.

For the CUANTICO collection, Vitale Barberis Canonico proposes three iconic fabrics. “The first is Seersucker, a summer fabric which is distinguished by its alternating flat yarns combined with others woven to create the undulated, crinkly surface,” the mill said, adding that it “proposes it in pure wool with natural stretch and crease-resistance.”

The second is Montecarlo, which is made from 21 Micron wool “to give it durability, crease-resistance, perfect drape, breathability and a dry handle,” Vitale Barberis Canonico said in a statement, also noting the hopsack weave “creates three-dimensionality and emphasizes the intensity of the colors.” The fabric can be lined or unlined for use in four seasons.

The third fabric is Perennial, which is designed for day suits. “It is created with wool, it has a comfortable weight ideal for any season and is presented in refined fancies and a wide range of colors,” the mill said.

The three CUANTICO founders, —Chiara, Consuelo, and Chiara— said the brand chose the shirt as an iconic garment “because it has always existed, in every culture, as an accompaniment to the history of humanity. For this reason, we believe it is a fundamental element of the dress code. The versatility and the research of the shapes, and the attention paid to the detail, make this style immediately recognizable, between tradition and contemporaneity.”

The founders said they welcomed the invitation to collaborate with Vitale Barberis Canonico “because they represent the textile excellence of Made in Italy and for us it is a privilege to be able to create a capsule with them. We visited their facilities and were impressed by the level of quality and care taken at every step of the production process. This is not only a wonderful collaboration, but also a challenge to bring to life a female collection using textiles created by a historical company which has always turned to the men’s world.”

>>> US Research Calls

Research Calls
  • Upgrades:
    • Afya (AFYA) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $20.50
    • Dollar General (DG) upgraded to Buy from Hold at Gordon Haskett; tgt $140
    • Hecla Mining (HL) upgraded to Buy from Neutral at ROTH MKM; tgt raised to $4.40
    • Kilroy Realty (KRC) upgraded to Buy from Hold at Jefferies; tgt raised to $35
    • Mister Car Wash (MCW) upgraded to Outperform from Neutral at Robert W. Baird; tgt $10
    • MorphoSys (MOR) upgraded to Overweight from Underweight at Morgan Stanley; tgt raised to $9.20
    • Oshkosh (OSK) upgraded to Buy from Neutral at Citigroup; tgt raised to $115
    • Petrobras (PBR) upgraded to Buy from Hold at HSBC Securities
    • SolarEdge Technologies (SEDG) upgraded to Outperform from Market Perform at Northland Capital; tgt $147
    • Varonis Systems (VRNS) upgraded to Overweight from Equal Weight at Barclays; tgt raised to $37
  • Downgrades:
    • Arcutis Biotherapeutics (ARQT) downgraded to Neutral from Buy at Goldman; tgt lowered to $6
    • Eversource Energy (ES) downgraded to Neutral from Buy at Guggenheim; tgt $60
    • Fortinet (FTNT) downgraded to Equal Weight from Overweight at Barclays; tgt lowered to $63
    • InMode (INMD) downgraded to Hold from Buy at Canaccord Genuity; tgt lowered to $22
    • JD.com (JD) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $33
    • JD.com (JD) downgraded to Neutral from Outperform at Macquarie; tgt lowered to $32
    • Netflix (NFLX) downgraded to Peer Perform from Outperform at Wolfe Research
    • TechnipFMC (FTI) downgraded to Hold from Buy at Jefferies; tgt raised to $22
    • Tractor Supply (TSCO) downgraded to Perform from Outperform at Oppenheimer; tgt lowered to $210
  • Others:
    • AbCellera Biologics (ABCL) assumed with an Overweight at Piper Sandler; tgt $20
    • American Tower (AMT) initiated with a Sector Outperform at Scotiabank; tgt $208
    • American Express (AXP) initiated with a Buy at HSBC Securities; tgt $181
    • Arch Capital (ACGL) initiated with a Buy at William O'Neil
    • Ardelyx (ARDX) placed on Positive Catalyst Watch at Citigroup
    • Block (SQ) initiated with a Hold at HSBC Securities; tgt $46
    • Campbell Soup (CPB) initiated with an Overweight at Stephens; tgt $50
    • Capital One (COF) initiated with a Reduce at HSBC Securities; tgt $84
    • Crown Castle (CCI) initiated with a Sector Perform at Scotiabank; tgt $110
    • Digital Realty Trust (DLR) initiated with a Buy at DBS Bank; tgt $149.15
    • Digital Realty Trust (DLR) initiated with a Sector Perform at Scotiabank; tgt $132
    • Discover Financial Services (DFS) initiated with a Buy at HSBC Securities; tgt $104
    • Equinix (EQIX) initiated with a Buy at DBS Bank; tgt $907.89
    • Equinix (EQIX) initiated with a Sector Outperform at Scotiabank; tgt $856
    • Groupon (GRPN) initiated with a Buy at ROTH MKM; tgt $30
    • Hershey Foods (HSY) initiated with an Overweight at Stephens; tgt $240
    • Lancaster Colony (LANC) initiated with an Overweight at Stephens; tgt $205
    • Mastercard (MA) initiated with a Hold at HSBC Securities; tgt $424
    • Medifast (MED) initiated with an Equal-Weight at Stephens; tgt $82
    • Meta Platforms (META) resumed with a Buy at William O'Neil
    • Mereo BioPharma (MREO) assumed with a Buy at BTIG Research; tgt $4
    • Ovid Therapeutics (OVID) initiated with an Outperform at Oppenheimer; tgt $8
    • PayPal (PYPL) initiated with a Buy at HSBC Securities; tgt $69
    • Post (POST) initiated with an Overweight at JP Morgan; tgt $100
    • Smith & Nephew (SNN) initiated with a Hold at Stifel
    • Synchrony Financial (SYF) initiated with a Hold at HSBC Securities; tgt $32
    • TreeHouse Foods (THS) initiated with an Equal-Weight at Stephens; tgt $48
    • Visa (V) initiated with a Hold at HSBC Securities; tgt $266
    • Veeva Systems (VEEV) initiated with a Buy at Jefferies; tgt $265
    • Xponential Fitness (XPOF) initiated with a Hold at Stifel; tgt $18

Barrons : China Is Now in the Aircraft Business. Boeing, Watch Out.

China Is Now in the Aircraft Business. Boeing, Watch Out.

Even as China struggles with daunting financial and demographic problems, it has been going from strength to strength technologically. The No. 2 economy dominates solar-energy and electric-vehicle supply chains. It struck back in electronics with the latest Huawei phone powered by domestic 7-nanometer semiconductors.

Now comes civil aviation’s turn, Beijing claims. The C919—state-owned Commercial Aircraft Corporation of China’s would-be midrange answer to Boeing’s 737 and Airbus’ A-320—lately bagged its first big order, for 100 planes, from China Eastern Airlines-1.38%.

“The C919 is expected to break the market duopoly of Boeing and Airbus,” the official China Daily crowed.

Not quite. The C919 is no match for the established workhorses of the sky. “From a design perspective, it can’t hold a candle to the 737 or A-320,” says Scott Kennedy, senior adviser in Chinese economics at the Center for Strategic and International Studies.

Even if it could, Comac, as the manufacturer is known, will need years if not decades more to gear up production. “Airbus or Boeing can produce 100 airplanes a month,” says Scott Hamilton, founder of aerospace consultant Leeham. “The C919 is lucky to produce two.”

The new aircraft also needs safety certifications outside China to fly internationally, its logical role with a 3,500-mile range. That won’t happen overnight either, says Shukor Yusof, founder of Malaysia-based consultant Endau Analytics.

“The plane has to clock hours and meet stringent tests,” he says. “They can’t overcome these hurdles in a short space of time.”

The C919’s emergence is still bad news for Boeing (ticker: BA). The U.S. giant reaped a quarter of its sales from China in better days, Hamilton says. Washington’s trade war has slowed that to a trickle.

Airbus (AIR.France) has practiced more effective diplomacy. CEO Guillaume Faury tagged along on French President Emmanuel Macron’s visit to Beijing in April and announced a new assembly line at the company’s Tianjin factory. That’s probably one reason Airbus’ stock has nearly regained prepandemic levels, while Boeing’s is down 40%.

The C919 may not hold a candle to the 737 in an open market. But China, which will probably order thousands of new planes this decade, is hardly an open market. The top three airlines are state-owned and will ultimately buy what the government tells them to. Beijing may also “arm-twist” regional tourist destinations like Indonesia or Thailand into early certification and orders for the C919, Shukor says.

That’s only half the politics involved. Some 70% of the C919’s components come from Western suppliers, including U.S. industrial icons such as General Electric (GE), which makes the engines jointly with France’s Safran (SAF.France); Honeywell International (HON), which provides wheels and brakes; and navigation from Rockwell Collins (COL).

The U.S. Defense Department included Comac on a potential sanctions list in the last days of the Trump administration. Successor Joe Biden has left the C919 supply chain intact. That’s a good call, CSIS’ Kennedy says, with little chance that well-known civilian technology could advance China’s military planes. “I haven’t heard anyone from the military say the C919 is a threat,” he says.

Washington’s dovish stance also keeps the door open for Chinese rapprochement with Boeing.

Building airplanes is the ultimate industrial long game, and China is determined to master it, eventually. “It took 40 years for Airbus to reach parity with Boeing,” Hamilton says. “China will be viable in another generation or two.”

Until then, it’s complicated.

>>> US Gapping up

Gapping up
In reaction to earnings/guidance
:
  • CMTL +15.1% (also to sell power systems product line for $40 mln), LC +3.8% (guides Q3 revs in-line; also announces 14% workforce reduction), WFC +2.1%, UNH +1.3%, NRIX +1.1%, JPM +0.6%
Other news:
  • DG +6.9% (brings back former CEO Todd Vasos to be new CEO; also issues guidance)
  • VTNR +4.5% (provides operational update for third quarter 2023)
  • AVNT +4.4% (increases dividend)
  • SHCR +4.2% (confirms takeover proposal from Claritas Capital for $1.35-1.80/sh)
  • STKL +2.1% (to sell frozen fruit assets to Nature's Touch for $141 mln; appoints Greg Gaba as new CFO; reports prelim Q3 guidance)
  • KR +1.3% (California AG preparing to block KR's deal to acquire ACI according to Bloomberg Law)
  • NWN +1.2% (increases dividend)
  • REYN +1.1% (names new CFO)
Analyst comments:
  • MOR +4.7% (upgraded to Overweight from Underweight at Morgan Stanley)
  • HL +3.3% (upgraded to Buy from Neutral at ROTH MKM)
  • VRNS +2.5% (upgraded to Overweight from Equal Weight at Barclays)
  • KRC +1.5% (upgraded to Buy from Hold at Jefferies)

>>> US Gapping down

Gapping down
In reaction to earnings/guidance
:
  • OM -41.1% (downside rev guidance), SGH -29%, BDC -14.1% (lowers Q3 guidance), IDT -3.2%, BLK -1.8%
Other news:
  • SAVA -24% (co-developer of its Alzheimer's drug cited for misconduct according to Science.org; issues statement regarding an internal CUNY report leaked to the press)
  • VIGL -5.6% (receives response letter from FDA re IND application for VG-3927)
  • SGHT -2.1% (announces presentation of Phase I SAHARA trial)
  • NUVL -1.7% (Reports Preliminary Phase 1 Clinical Data from ALKOVE-1 Trial that Support Best-In-Class Potential of NVL-655 for Patients with ALK-Positive NSCLC)
Analyst comments:
  • FTNT -3% (downgraded to Equal Weight from Overweight at Barclays)
  • NFLX -1.9% (downgraded to Peer Perform from Outperform at Wolfe Research)
  • ES -1% (downgraded to Neutral from Buy at Guggenheim)
  • TSCO -0.9% (downgraded to Perform from Outperform at Oppenheimer)

>>> US Early premarket gappers

Early premarket gappers
  • Gapping up:
    • CMTL +17.3%, DG +7.5%, AVNT +4.4%, SHCR +1.8%, KR +1.3%, NWN +1.2%, BLK +1.2%, REYN +1.1%, NRIX +1.1%, UNH +0.7%, HSAI +0.6%
  • Gapping down:
    • OM -39.7%, SAVA -28.8%, SGH -25.8%, BDC -14.1%, VIGL -5.6%, IDT -3.2%, CI -3%, RLAY -2.5%, SGHT -2.3%, EQT -2.1%, QCOM -0.8%, DAL -0.7%, ACI -0.7%, MSFT -0.5%