National Grid sells gas networks for £5.9bn 31 Aug 2004 The power transmission firm will return £2bn to investors via a special dividend as well increasing its ordinary dividend. Not only has the Grid got a good price in the disposal; with such a large return of capital, reinvestment risk is fading.
Grid auction had interesting twist 31 Aug 2004 By keeping bidders guessing over the number of regional gas companies it was selling, the UK group maintained competitive tension. The result was an unexpectedly high £5.9bn haul.
Republican convention takes swipe at Europe 31 Aug 2004 If primetime rhetoric from the convention is any indication, healing the TransAtlantic rift over Iraq and terrorism is not on the agenda. This suggests another Bush term might further strain the alliance, which could be bad for trade and business.
Alitalia’s unions drive it towards bankruptcy 31 Aug 2004 This may not be as topsyturvy as it sounds. The unions calculate the Italian government still hasn t the stomach for largescale job cuts. But if Alitalia is to avoid going bust, the government needs to persuade the unions this won t be the case.
Auditors should be split from accounting firms. 31 Aug 2004 The big four accounting firms are now too big to fail. That means that they should be exempt from crippling lawsuits on auditor liability. But the regulatory protection should not come for free. Accountants need to make auditing a separate businesses.
Investors shun hedge-fund jamborees 30 Aug 2004 They have got bored of the big capital introduction parties thrown by prime brokers to help hedge funds raise money from them. So prime brokers are now beginning to offer a more sophisticated matchmaking service. The question is whether they will make any money.
US faces paradox of trust 30 Aug 2004 Its foreign policy is based on mistrust of foreigners. Its trade deficit requires blind confidence in foreign goodwill. The two sit together badly. The lack of political trust could easily cause an economic crisis.
Opec prefers to take the money and run 30 Aug 2004 But the Opec s stance has its logic. Expect prices to stay north of $30 in the medium term. The oil cartel s refusal to pump more oil into the market may seem irrational, considering predictions of soaring demand.
RBS in vicious circle after Charter One deal 29 Aug 2004 It will be a year before the UK bank can show it s delivering the promised revenue synergies from its latest US deal. In the meantime, the poor performance of RBS shares since the deal is likely to continue. RBS s next deal will have to wait.
Another foreigner enters US bank M&A game 27 Aug 2004 At first blush, Toronto Dominion s $3.8bn move on Banknorth doesn t look the worst of the recent crop. It might even make a 5% return. But that s just half the picture. Banknorth will continue gobbling up rivals. And TD will need to sweep up minority shareholders.
Sickies are part of the airline crisis 27 Aug 2004 Absenteeism is running at absurd levels at many European carriers. That s bad news in a service business. Alitalia s boss blames the ethics of his employees. But airlines need to sharpen up on people management.
Tui not yet off the hook 27 Aug 2004 The tourism and logistics group looks likely to scrape back into the Dax 30 index thanks to takeover speculation. But the threat of WestLB selling its 31% stake should encourage Tui management to do more, not less, to maximise value.
Republican alliance with Wall St weakens 27 Aug 2004 The party used to stand for private enterprise and small government. But those principles don t win elections in a welfare state. But tax cuts for the rich help keep financiers friendly. That helps bring in money. And money makes a big difference in US politics.
Euro government bond traders look for liquidity 26 Aug 2004 The MTS trading platform is losing out to more competitive markets . That s not surprising it s designed for governments, not traders Citigroup has given this trend a nudge by exploiting the MTS system. A more competitive market will probably emerge.
Vivendi gets tax windfall 26 Aug 2004 It also means Vivendi might be able to wring more from Vodafone were it ever to sell its SFR mobile unit. That is good news on two fronts. It allows the French telecoms and media group to save up to E3.8bn over several years.
Rentokil shareholders bow to reality 26 Aug 2004 The business services company has disappointed the market by ruling out a major breakup. But this was never likely to happen. Increasing investment and dividends is a better way to add value.
Germany’s best-known raider folds its tent 25 Aug 2004 WCM, once known for buying debtladen companies to turn them around, has become the victim of the disease it aimed to cure. Its failure is partly due to bad investments, like Commerzbank. But German corporate hostility to raiders is also to blame.
Italy tries to say goodbye to fiscal chaos 25 Aug 2004 Finance minister Siniscalco wants a balanced budget. He might get close. Italian reform is noisy and slow, but steady. Tax reform will not do much to reduce the huge debt burden. But Italy is looking a lot less profligate.
BA still has more fat to cut 25 Aug 2004 The latest airport chaos is down to poor management, not too much costcutting. In fact, more is needed. But BA can't afford to lose its reputation either. Cuts mustn t lead to poor quality service.
Foolish speculation driving oil prices 24 Aug 2004 Sure, 2004 demand has been slightly higher than expected and supply a little lower. But not enough to justify a 45% price rise. Speculators don t have to worry too much about reality. But the price is high enough for them to be getting nervous.
German cable consolidation caught in catch-22 24 Aug 2004 While consolidating the sector makes sense, nothing anyone comes up with seems to pass muster with the regulators. Until the authorities cut cable a bit of slack, the whole sector will remain in flux.
Think tech is oversold? Insiders don’t 24 Aug 2004 Several executives at big technology companies have been dumping stock this summer. It looks like the people in the know think the bear market in tech shares will continue.
Yukos hangover won’t be short-lived 24 Aug 2004 Russia has many plus points. But if Yukos is anything to go by, crisis management and an efficient legal system aren t among them. Even if the oil giant's difficulties are resolved soon, there is still likely to be lasting damage to investor confidence.
Vodafone sells put options over its own shares 23 Aug 2004 The trade is effectively a way for the mobile operator to buy back stock during a close period. This is a neat trick, but it risks forcing Vodafone to buy shares at an inflated price if its stock price falls.
HBOS and Santander trade blows in phoney war 23 Aug 2004 Both sides are engaged in PR offensives designed to damage the other s attempt to buy Abbey National. It s entertaining stuff. But neither side is packing a knockout punch.
Lazard reportedly picks Goldman for IPO 23 Aug 2004 Some people will see this as a ruse by Wasserstein, the arch dealmaker, to smoke out a bidder for the investment bank he runs. Maybe. But there aren't likely to be many takers. Lazard may just have to float. And it's questionable how good a value that will produce.
ARM’s $913m deal looks pricey 23 Aug 2004 The UK chip designer has agreed to buy the US firm Artisan for about half its own market capitalisation in a largely share deal. ARM is paying a 42% premium despite having precious few synergies. There is also a risk that such a big deal will stretch management thin.
WestLB puts Tui on the block 23 Aug 2004 But that doesn't mean the German bank is going to find a rush of takers for its 31% stake in the tourism group. Potential suitors may be interested in parts of Tui. But it will be hard for any group to justify paying a fat premium for the whole.
Barclays’ new CEO has some selling to do 22 Aug 2004 John Varley inherits a stable ship and a strategy largely of his own making as takes control of the UK bank. He also inherits a weak share price. If he wants to stay in the hotseat for long, he must sell his moreofthesame strategy much harder.
M&S follows Google down auction route 22 Aug 2004 The UK retailer is using an auction to buy £2.3bn of shares from investors not sell stock. But it will still involve fun and games. This will be an opportunity for arbs to make a profit. But they can t be too greedy or they will end up in the cold.