Sacyr makes bizarre BBVA investment 30 Nov 2004 Why would a smallish Spanish construction company buy a small stake in a bank 14 times its size, increasing its capital by a third to do so? Some scent a plan to oust BBVA's chairman. Given the bank's good performance, that looks a reckless move. Why would a smallish Spanish construction company buy a tiny stake in a bank 14 times its size, increasing its capital by a third to do so? Some scent a plan to oust BBVA's chairman. Given the bank's good performance, that looks a reckless move.
Compass struggles to restore trust 30 Nov 2004 Sales growth may be respectable and the shares may be cheap compared to rival Sodexho, but it will take time to win back lost confidence. The contract caterer has followed up its September warning with full year pretax profits at the bottom end of market expectations.
Bankers set for bumper bonuses 30 Nov 2004 Most Wall Street firms have done well this year. What s more, bankers have generally outperformed traders. So the spoils should be more equally distributed this year except at Goldman and Lehman, where traders have also done exceptionally well.
Carrefour would be a tall order for Tesco 30 Nov 2004 Tesco is rumoured to be mulling a tieup. But it's hard to see where it would find the synergies to justify a E38bn price tag for Carrefour. The risk is that the UK supermarket group would take its eye off the ball at home, just when it is doing so well.
Thomson rally may have further to run 30 Nov 2004 Dangeard, who has returned to revitalise the French media services group, has come up with punchy but credible growth and margins targets. If he can meet them, the shares look cheap.
UK power may be better bet than water 30 Nov 2004 Although the regulators seem to be allowing a higher return to water companies than power distributors, that s not the whole story. Water companies actually have higher hurdles to leap to hit their performance targets. So any generosity could turn out to be illusory.
Harmony finds Gold Fields an elusive target 30 Nov 2004 The South African miner only received 10.8% of Gold Fields' shares in its early settlement offer. And they can't be voted. Gold Fields might get away with its Iamgold transaction. But even if it doesn't, Harmony's offer looks likely to fall short.
Why TI might merge with TIM sooner rather than later 30 Nov 2004 One reason is that TI's shares have been outperforming TIM's. That may not last if regulation and competition start to bite. Another reason is that new accounting rules may force Pirelli, which controls TI, to write down its stake. A merger may soften the blow.
Rentokil’s margins keep on shrinking 30 Nov 2004 A quick turnaround for the troubled UK services conglomerate was never on the cards. But the announced disposal of its linens business and increased investment mean the company is on the right track.
KfW sells Deutsche Post stake without auction 30 Nov 2004 This meant the E1bn sale didn t leak and so wasn t divebombed by hedge funds. Avoiding an auction is particularly sensible if you have more stock to sell as the German state does.
German bosses’ pay 30% above European average 29 Nov 2004 This explodes the myth that German executives are paid less than their peers. It s also a further reason for all companies to disclose individual pay.
Dexia’s retreat gives shareholder power a boost 29 Nov 2004 The FrancoBelgian bank has capitulated to major shareholders and ended merger talks with Italy s SanPaolo. It's a good thing that continental investors are getting more activist, so long as they're driven by value creation, not petty nationalism.
Political meddling at Eni and Enel needs to stop 29 Nov 2004 The latest rumours have Enel s boss being parachuted into Eni, to replace the oil firm's CEO. Both men have their merits. But the real conclusion from this game of politicoindustrial musical chairs is that it should stop.
How Osmond missed out on £1bn 28 Nov 2004 The entrepreneur narrowly missed buying Six Continents for £5.4bn. The hotel and pubs group has since demerged, giving investors £8bn. If all had gone to plan, Osmond would would be well on his way to a paper profit of £1bn. He shouldn t have been so greedy.
Hostile M&A makes a comeback 28 Nov 2004 There has been a rash of hostile action: Xstrata/WMC; Harmony/Gold Fields; Melrose/Novar; EADS/Thales; Bollore/Havas. The reason? Predators want bargains but targets don t want to sell on the cheap. Investors, though, may have a different view from managers.
Are Fiat and GM heading for divorce? 26 Nov 2004 The group may not be about to switch its affections to Peugeot. But the threat may help it get a better deal in its negotiations with GM. This might be an interesting ploy. But only if Fiat really could find an alternative suitor. And that's not certain.
German workers face more pain 26 Nov 2004 Most of the pressures forcing German companies to reform aren t new. But a strong euro and soaring oil prices have made costcuts urgent. Unions and politicians are gradually accepting the need for painful restructurings. And that s likely to encourage further change.
Gold stocks aren’t sharing in gold boom 26 Nov 2004 Normally, unhedged gold stocks are a geared play on bullion. But not this year. There are three reasons why. The surging gold price may not be sustainable; mining firms costs are rising in dollar terms; and the industry is on an investment spree.
Rheinmetall to give all investors a vote 25 Nov 2004 Preference shareholders should welcome the German engineering group s plans to convert nonvoting shares into voting shares. But since a takeover now looks less likely, they have earned an equal right to be disappointed.
Philips sells E720m Vivendi stake 25 Nov 2004 The Dutch electronics group continues to sell off noncore assets. Philips is too big for its own good. Keeping capital tied up in other companies doesn t help. It should carry on the process of clearing out the attic.
Putin likes Ukrainian oligarchs, just not his own 25 Nov 2004 Russia's president has fought oligarchs at home, but his preferred candidate in Ukraine's elections has huge support from local oligarchs. The difference is explained by how privatisation spoils were shared in the two countries.
Lastminute.com disappoints again 25 Nov 2004 Shares in the onceiconic online travel group slumped 18% in early trading following a sharp rise in pretax losses. The company blames the cost of integrating recent acquisitions but doubts about the strategy remain.
MyTravel ruling removes bondholder nuisance value 25 Nov 2004 In approving the travel group's contested debt swap, the judge has preserved value and contributed to more efficient capital markets. The ruling sets a precedent for valuing UK subordinated debt. If there is no economic recovery value, there is no nuisance value either.
Tesco shares may have further to run 25 Nov 2004 The UK supermarket giant is putting daylight between itself and competitors like Wm Morrison, Asda and Sainsbury. Tesco's shares have already rallied. But if it carries on growing at anything like its current rates, they are not yet fully valued.
Companies find ways around expensing options 24 Nov 2004 New US and Europe accounting rules force companies to expense options. Needless to say, most would rather not. But various tricks offer ways around a hit on the P&L. And some seem downright spivvy.
Romiti company probed over false accounting 24 Nov 2004 This is the latest blow for the Romiti dynasty, which used to be the powerbroker at Fiat, Mediobanca and Corriere della Sera. The probe could frustrate construction company Impregilo's planned capital increase, and the E550m bond repayment due in 2005.
Elan’s object lesson in refinancing 24 Nov 2004 The Irish company skirted with bankruptcy just one year ago but now has a market capitalisation of $11bn. The key to Elan's recovery was its recapitalisation in 2002. Like all distressed financings, timing was everything.
Wall Street entertainment under fire 24 Nov 2004 Regulators are probing whether brokers offered lavish gifts and other diversions to mutual fund managers in violation of rules. Of course they did. But as in the case of spinning IPOs to CEOs, those who accepted the handouts committed the greater sin.
ICAP’s revenues slide 5% 24 Nov 2004 The interdealer broker s traditional business is suffering. The weak dollar hasn't helped either. While its more profitable electronic broking business is making headway, ICAP's return to growth remains uncertain.
Dollar will have to be propped up – eventually 24 Nov 2004 Coordinated intervention isn t on the cards yet. Not least because the US is enjoying the benefits of devaluation. But if the decline continues, it will be everybody s problem.