Pfizer eliminates poison pill 31 Oct 2003 But Pfizer deserves only slight applause the decision is both correct and meaningless considering the company s mammoth size. The world s largest drugs company has removed an obstacle to a hostile takeover.
ABN predicts bumper 2003 result 31 Oct 2003 A decent Q3 has prompted the Dutch bank to up a profit forecast made in August. Earlier this year, it was avoiding forecasts altogether. But investors will want more than one impressive quarter to be sure that ABN can ride a slowdown in its booming US mortgage unit.
Alitalia unveils restructuring plan 31 Oct 2003 The plan to turn around the lossmaking Italian carrier is largely sensible. But the trick is to actually deliver. Fear of being left out of European consolidation might just be the stick it needs to get its act together.
Italy sells 7% of Enel to Morgan Stanley 30 Oct 2003 The E2bn placement is the latest in a string of recent capital market deals that have combined privatisation with a big block trade. Even so, the deal only nibbles away at the overhang that has dogged Enel s share price.
Alcatel and Ericsson keep on cutting 30 Oct 2003 Telecom equipment makers have cut to the bone, hoping for a recovery that may never come. A shrinking mobile infrastructure market means consolidation among players must take place.
BSkyB shareholders in denial 30 Oct 2003 Some investors still hope the selection process for a new CEO will be fair, despite increasing signs that Murdoch will shoehorn in his son. This isn t going to be a rerun of the ITV battle. In that case, investors held a block of over 35%. Here, Murdoch has the 35% stake.
Reuters CEO gives up 2-year contract 30 Oct 2003 Glocer says it s a goodwill gesture towards his shareholders. ITV s Charles Allen should do the same though he may find it hard to surrender a golden parachute just when he needs it.
Mediobanca independence further curtailed 30 Oct 2003 The Milanese investment bank s board now gets to approve any equity investment over E500m. After the last chief executive s loosecannon antics, shareholders aren t taking any risks.
Deutsche Bank’s trading revenues slump in 3Q 30 Oct 2003 The bank didn't take a big hit it says currency and other factors played a part in the decline. But the fall highlights how geared Deutsche is to trading. No wonder the bank is now focused on cranking up customer revenues.
Rising stars replace fallen angels 30 Oct 2003 Junkrated borrowers are regaining investmentgrade credit status, largely thanks to asset sales and equity issues. The pace may pick up if the stock market holds steady. The early risers have certainly demonstrated the benefits of stardom.
BofA joins the mega-league 30 Oct 2003 BofA s bid for FleetBoston is about having a strong enough balance sheet to build a global rival to Citibank and HSBC. European banks risk being left behind by the new supermajors. That may be the spur needed to strike crossborder deals.
Russia sequesters Yukos shares 30 Oct 2003 The intensity of the confrontation between the Kremlin and oligarch Mikhail Khodorkovsky has just gone up a notch. The worry is that all Russian property rights are affected. If anything is enough to halt Russia s structural bull run, this is it.
Elan plans convert and stock offering 30 Oct 2003 The troubled Irish pharmaceuticals company hopes to raise around $450m to avoid massive dilution. The cash may solve liquidity problems, but it leaves Elan a massively geared bet on one drug. The troubled Irish pharmaceuticals company hopes to raise around $630m to avoid massive dilution.
US foreign debt is spiralling 29 Oct 2003 If the current account deficit isn't corrected, foreign debt will hit 47% of GDP in five years. That is well past the level that has sparked currency crises in the past.
Abbey warns of weaker Q4 29 Oct 2003 The UK mortgage bank's revenues are still falling and costs are still rising. The turnaround strategy is nevertheless going to plan. But it is takeover speculation that is supporting the share price.
Goldman execs shun directorships 29 Oct 2003 The new policy of discouraging its officials from sitting on corporate boards is in keeping with the new standards of good governance. They're also pragmatic why should senior executives dole out free corporate finance advice to clients? Other firms should follow.
Barclays needs killer reason to flout Higgs code 29 Oct 2003 Barrett has been a competent CEO. But his performance has not been so good that Barclays needs him to stay on in the role of chairman. The UK bank has appointed its CEO as its next chairman, the first major breach of the new corporate governance guidelines.
HVB devises crafty plan to raise capital 29 Oct 2003 The capitalstrapped German bank is raising cash by getting someone to inject capital into a subsidiary. This neatly avoids a rights issue or asset sales. But as with most cunning plans, it may be too clever by half.
Danone gets the wobbles over Russia 29 Oct 2003 The French foods group may delay its planned E1bn takeover of Russia s WimmBillDann in the wake of Khodorkovsky s arrest. A pause for reflection may be no bad thing especially given the topwhack price Danone is paying.
Chip-market hangover will continue 29 Oct 2003 Taiwan Semiconductor and United Microelectronics, producers of nearly 20% of all chips, are edging closer to working at full capacity. Prices should be rising at this point, but Taiwanese expansion plans guarantee more semiconductor deflation for European chipmakers.
ABB bondholders enjoy early Christmas 28 Oct 2003 The engineering group's $5.2bn package of capital raising and disposals should put it on track eventually to recoup investment grade status. ABB shareholders haven't done so well. The $2.5bn rights issue involves massive dilution. But they also benefit from stronger finances.
Sony’s cuts may not be enough 28 Oct 2003 The headline figure of 20,000 job cuts may look huge. But Sony is being crushed by Korean and Japanese competitors. The electronics giant will find it difficult to more than quadruple operating margins as planned.
BP unfazed by Russian turmoil 28 Oct 2003 The oil firm has declared its confidence in the Russian government in the wake of the Khodorkovsky affair. As a major investor in Russia, maybe it has to say that. But foreign investors do seem to be keeping their nerve.
M&A boom returns to haunt shareholders 28 Oct 2003 The sound of bankers crowing on Monday's record deal day couldn't drown out the groans of shareholders. The return of the big, strategic deal like BofA/Fleet and Anthem/Wellpoint devoid of sufficient cost cuts is worrying.
BAT clinches smart US deal 28 Oct 2003 The $6.3bn merger of its US operations with RJR has multiple benefits. But the biggest prize may lie in convincing investors that US litigation is no longer a threat. That could spark a rerating of the stock.
WPP climbs further out of the bath 28 Oct 2003 WPP may be climbing out the bath in 2004, but Sir Martin Sorrell is already talking down prospects for 2005. The advertising chief executive may be right, but shareholders shouldn t take his comments too literally.
FSA gets tough on analyst research 28 Oct 2003 The UK regulator is putting the onus on investment banks' senior management to show that analysts' research is untainted. While the FSA is also dictating some core standards, the emphasis on accountability and transparency is preferable to a rulebook.
Russian capital flight is the big risk 28 Oct 2003 That is not reassuring for the rattled elite. If capital flight accelerates, Putin won't hit his target of doubling the size of the economy. Vladimir Putin has said he will not compromise over Khodorkovsky's arrest, but also won't expand the action to other oligarchs.
South African attack on UK financial services falters 27 Oct 2003 Old Mutual 's sale of its UK stockbrokers to Barclays is the latest retreat. First Rand is reportedly putting Ansbacher up for sale. And Investec's thirdtier broker buys haven't delivered the goods. It is hard to make an impact in a foreign market with itsybitsy deals.
Charles Allen hangs on at ITV – for a reason 27 Oct 2003 It is good corporate governance for the ITV s yettobeappointed chairman to decide whether to give him the chop. And in the meantime, there is a good argument for keeping Allen en poste.