Oil prices set for another strong year 31 Dec 2003 Many thought that crude prices would collapse in 2003. Instead, they continued to rise. Many believe that oil prices will surely tumble in 2004. While that is possible, it is also unlikely.
Leveraged buyouts to keep M&A moving 31 Dec 2003 Without the LBO, it would have been a terrible year for M&A. 2004 will be much the same, with one big difference. Whereas buyout firms bought companies in 2003, this coming year they will have to start selling a few.
Lehman makes double-or-quits bet on Meridien hotels 30 Dec 2003 To salvage a £200m investment it made, the US bank is buying out all Meridien's other investors for a further £730m. That's a pretty big bet, so it had better know what it's doing.
Bond investors need to get defensive 30 Dec 2003 Bullish buyers drove bond prices up in 2003. The market now looks very expensive. And which ever way the global economy goes in 2004, they are exposed.
Farewell to the year of the drawn-out bid 29 Dec 2003 There weren't many deals around in 2003, but those that there were dragged on and on. Next year might be snappier. But don't hold your breath.
Armed guards set to patrol UK aircraft 29 Dec 2003 The UK government s decision may be a sensible security step, but it's hard to see how it will make people more comfortable about flying. The move makes a recovery in the longhaul market for the likes of British Airways even more elusive.
Parmalat stirs old fears about Italian banks 29 Dec 2003 The food group s collapse has reminded investors that some banks are still weak. Valuations which rocketed in 2003 look stretched. The best hope for 2004 is that the Parmalat shock will act as a powerful catalyst for industry consolidation.
Parmalat goes bust 24 Dec 2003 The affair leaves a sour taste at the end of a year that seemed to mark the beginning of the end of financial scandals that roiled markets. The Italian dairy group's filing for creditor protection on the eve of the Christmas holiday leaves six critical questions unsatisfied.
Mad cow will sicken many US investors 24 Dec 2003 The first case of mad cow disease in the US signals a massive blow to the country s beef and fast food industries. Looking at other countries' experiences, the pain will be long and drawn out.
Messier’s name is mud 24 Dec 2003 The SEC has banned JeanMarie Messier from being a director of a public US firm for ten years and forced him to give up millions of dollars. The speed and severity of the SEC decision contrasts with the slowness and lack of punch shown by many European regulators.
Market names a price for closed insurers 23 Dec 2003 Six months ago, investors didn't want to buy AMP's UK insurance interests at any price. Now they have snapped them up. True, it took a whopping discount to whet appetites. But investors no longer think closed insurers are too risky to touch.
NYSE unlikely to rise to Nasdaq bait 23 Dec 2003 Nasdaq will doubtless try to dress itself up as the solution to NYSE's problems. But in reality it is probably the other way round.
Italy reforms bankruptcy laws 23 Dec 2003 The decree looks set to accelerate the process and will keep Enrico Bondi at the helm of Parmalat. That should please creditors. But there may be a snag by removing the courts from the proceedings, future cases may see more, not less, political meddling.
Rhodia pays for breathing room 23 Dec 2003 The French chemicals company has come to an agreement to reschedule its onerous debt. But Rhodia will be forced to raise E300m in equity at a heavily diluted price.
Barclays loses race for Banco Atlantico 22 Dec 2003 The bar on Spanish bank valuations was raised by Barclays when it paid three times book value for Banco Zaragozano in May. Spain s latest bank auction could not quite match the Zaragozano benchmark. Barclays was not going to be accused of overpaying twice.
Merrill may have aided Parmalat on dubious deal 22 Dec 2003 This allowed the Italian dairy group to boost its profits by making a doubleorquits bet on its own solvency. At best, this is a highly dubious transaction for Merrill to have facilitated.
Vodafone shuns the call of Microsoft 22 Dec 2003 The CEO of the world s largest mobile carrier says Microsoft s phone software is not ready for prime time . Microsoft is losing steam in its efforts to dominate the sector. The entry of Linuxbased phones will certainly not help over the long run.
The French chemical group is close to violating loan terms that would force a E362m repayment on bonds issued in a private placing. 19 Dec 2003 The French chemical group is close to violating loan terms that could force a E375m repayment on bonds issued in a private placing. If the company cannot restructure the notes, a full repayment could start a downward spiral of covenant breaches on other debt.
Italy mulls financial super-regulator 19 Dec 2003 Done correctly, this would be welcome. But the government appears hasty, leaving an altogether different impression. If the government exploits the Parmalat crisis to settle a political score with the Bank of Italy, the new body will lack legitimacy.
Formula One resurrects plans for IPO 19 Dec 2003 No sooner has the motor racing company staved off collapse than its shareholders are sniffing around for an exit. But plenty more things need to happen before the company is in any shape to go public.
Berlusconi rides roughshod over blocked media bill 19 Dec 2003 He has shrugged off president Carlo Azeglio Ciampi's attempt to block a media bill that benefits Berlusconi's media empire the most. The bill would protect one of his TV stations and lift media ownership restrictions, giving his companies access to E1bn more in revenues.
Parmalat auditors can’t find E4bn cash 18 Dec 2003 Bank of America denied the authenticity of a document submitted by Parmalat to Grant Thornton certifying the existence of E4bn of liquidity. This is the worst blow yet to the credibility of Parmalat's accounts. Bondi should declare protection from creditors to sort things out now.
Nokia sets up second home in New York 18 Dec 2003 The Finnish phone maker s CFO's office and business software division are moving to the US. Nokia claims strategic reasons for the move. Perhaps the cold and dark Helskinki winter played a part.
Dixons, Kesa saved from warranties pain 18 Dec 2003 The UK government has curbed, but not banned, the highly profitable warranties business offered by the electrical retailers. This lifts a large fog of uncertainty that had descended on the sector. It may also release some longanticipated M&A.
Goldman executive tapped by NYSE 18 Dec 2003 John Thain's arrival is a boost for the NYSE. But his $300m of Goldman stock means he is not free of potential conflicts of interest. But if his arrival at the NYSE is clouded, his departure from Goldman is clearcut. Bond honcho Lloyd Blankfein has a clear run at the top.
Morgan Stanley chases Goldman in M&A 18 Dec 2003 The fourthquarter figures show that Goldman is best placed to benefit from an M&A revival in 2004. Snag is there's no visible sign yet of a strong recovery in the deal business.
European firms warn about falling dollar 18 Dec 2003 Aircraft manufacturer EADs has even said it might relocate a plant to the US if the dollar continues to fall. British firms have less to worry about. Indeed, dollar weakness combined with euro strength should be a sweet spot for many.
Race for BAE chairmanship hots up 18 Dec 2003 Former UK defence minister Michael Portillo has denied seeking the job. Now the spotlight is on Equitable Life chairman Vanni Treves. BAe is in sore need of boardroom change. Treves may not be a defence man, but he loves jobs that no one else will do.
Sky loses exclusivity on football rights 17 Dec 2003 Still, the pay tv broadcaster is hardly giving up much 8 matches out of 138. That s good news for Sky and the cashhungry football clubs. Next time, the EU Commission wants at least two broadcasters to win. But the Premier League may struggle to find others willing to pay.
Reichmann-Brascan spoil Canary Wharf bid 17 Dec 2003 The two shareholders of the property group have enough votes to block Morgan Stanley's 265p a share offer. They may make a higher bid, but there's no certainty they will do so. The risks have gone up for shareholders, but so have the rewards.