Tronchetti tries to wriggle out of E1.5bn bill 31 Jan 2006 That s how much Pirelli s boss might have to spend to buy out his partners in Olimpia, through which he controls Telecom Italia. Such an amount would be a stretch. But Tronchetti might be able to reduce it by doing what he does best striking clever deals.
HMV investors should opt for bird in hand 31 Jan 2006 The troubled UK retailer has reportedly received an £800m bid from buyout firm Permira. That restored the shares to their 192p float price. But HMV still faces strategic problems. With the shares buoyed by bid speculation, investors have a golden opportunity to cut their losses.
Mellon’s new CEO shores up the strategy 31 Jan 2006 Robert Kelly s appointment as Mellon s new boss should silence critics demanding that the US bank split in two. He s a fan of Mellon s current business mix. Given the performance of the company and the share price, he s right.
Serono’s options dwindling 31 Jan 2006 The Swiss biotech has attracted no bidders at $15bn. This worsens the dilemma of Bertarelli, the boss and controlling shareholder. If he really wants out, the price must be cut. But doing so smacks of desperation and could put even a fair price out of reach.
C&W back in hole again 31 Jan 2006 The telecoms group's attempt to dig itself out by halfsplitting out its UK operations and parting company with its CEO looks sensible. But following the second profit warning in four months, the hole is pretty deep.
Merrill dolls up its US mutual funds 31 Jan 2006 Its assetmanagement arm is removing the Merrill name entirely. That should make its funds more palatable for third parties to sell. But CEO Stan O Neal has also been discussing hiving off the division. The name change could also be the precursor to a deal.
Private equity reaps rewards from activist hedge funds 30 Jan 2006 As the $3.9bn takeover of Fairmont Hotels shows, when confronted by activist investors, companies turn to private equity as a safe haven. Far from presenting a competitive threat, hedge fund activism is actually benefiting buyout firms.
Frere seeks to force Mohns to buy out Bertelsmann stake 30 Jan 2006 The Belgian financier has exercised an option to force the German media group into an IPO, despite the opposition of the controlling family. Frere is using the Mohns' dislike of the stock market to protect his 25% holding. They'll now be forced to buy his stake themselves.
NRG woos yield-hungry investors 30 Jan 2006 The US power group s $3.6bn highyield bond is the largest deal since RJR Nabisco in 1989. And NRG got good terms from investors. The deal taps investors desire for energy companies, and their need for yield. But it s one that few can emulate.
Icahn enlists Biondi in Time Warner assault 30 Jan 2006 Set aside the fact that Frank Biondi s brother runs Lazard, Carl Icahn s strategic advisor on Time Warner. Biondi is still a catch. He s worked for and been fired from the biggest companies in the industry. Biondi adds credibility to a crusade that risked floundering.
Mittal vulnerable to governance counterattack 30 Jan 2006 The steel giant is asking Arcelor shareholders to take $19bn of secondclass paper in exchange for their company. The fact that Mittal is a dynastic company that has yet to prove its global skills could become a big factor in this bitter battle.
Hostile M&A makes big entrance in 2006 30 Jan 2006 The number and size of unsolicited deals suddenly jumped. What is it about the environment that emboldens Mittal, Linde and others? Partly it's concerns the credit environment won t remain so easy, accommodating shareholders and oldfashioned CEO confidence.
Bally underscores US shareholder impotence 30 Jan 2006 Some 70% of the health club s voting shareholders demanded the executive s head. More voted to block his directors. Yet he s staying put. Just shows that even when investors rise up en masse against management in the US, restrictive bylaws often prevent them from having a say.
Morgan Stanley crafts decent $2.5bn aircraft exit 30 Jan 2006 CEO John Mack has extricated the investment bank from its troublesome aircraft leasing unit, squeezing a price $500m higher than expected. It was Mack who took the firm into in this business, in his former role as president. By exiting on these terms, he has salvaged some pride.
Arcelor bid may open way to French hostile M&A 30 Jan 2006 The French establishment has been effective at deterring foreign bids for national champions like Aventis or Danone. But Arcelor will find it hard to persuade the government to help it stave off Mittal s E19bn bid. The Gallic bluff may have been called.
Fastweb auction may not have much juice 30 Jan 2006 The cashburning E3.6bn Italian cable group doesn t seem to be attracting industry suitors. And although LBO houses are sniffing, Fastweb isn t an ideal candidate for leverage.
Gazprom’s mooted bid for Centrica looks premature 29 Jan 2006 Sure, there's some industrial logic in the Russian behemoth taking over the £10bn UK gas distributor. But the timing, in the midst of a AngloRussian spy row and Russia holding Ukraine to ransom on gas, looks politically appalling.
UK should put an end to City tax scam 29 Jan 2006 Some of the City s highest paid foreign professionals use a loophole in UK law to pay a fraction of the tax that British nationals must pay. That is grossly unfair. Abolishing the loophole could be combined with a switch to a lower flat rate tax for everybody.
HSBC mulls new role for Studzinski – report 27 Jan 2006 Three years after signing M&A supremo John Studzinski for a fat fee, the bank is reportedly shifting him upstairs. That would leave cohead Stuart Gulliver in charge of HSBC's investment bank. The unit may have been too small for two highprofile bosses.
Ineos cleverly exploits appetite for yield 27 Jan 2006 The UK chemicals group has succeeded in squeezing better terms for the financing package accompanying its E7.4bn purchase of BP s Innovene. Ineos has proved that, for the right deal, debt issuers can drive a hard bargain in this market.
Bernanke must earn his spurs as inflation-fighter 27 Jan 2006 The market expects just two more rate hikes, totaling 50 basis points, from the Federal Reserve. However, with the economy strong and credit conditions easy, Helicopter Ben may have to raise rates more than that.
Mack should clarify presidency 27 Jan 2006 Morgan Stanley s boss has made an unstable situation worse by leaving Zoe Cruz in the role of acting president. When he first arrived, this made sense as a way to lure back talent. But he has failed to do so. Seven months on, he risks sowing confusion.
Vodafone not well-placed to get good deal on Verizon 27 Jan 2006 Investors want a sale of its stake in Verizon Wireless. With only one buyer, Verizon Communications, Vodafone s bargaining position is weak. No wonder Verizon Communciations boss is slowly twisting the knife on what could be a $40bn deal.
Goldman pulls off Chinese coup 27 Jan 2006 It is paying $2.6bn for a stake in the country's biggest bank, ICBC, that may actually be worth more like $6.6bn. How has Goldman got this steal of a deal despite not obviously bringing much to the party? Probably because it's been close to ICBC.
DPW makes enormous £3.9bn offer for P&O 27 Jan 2006 The Dubai port company topped PSA s bid by 11%. And who says that s a lot? None other than Sultan Ahmed Bin Sulayem, DPW s chairman. But the Singaporean rival may make an even more uneconomic bid. It too has no outside shareholders to complain.
Apax’s $1.6bn Hilfiger LBO rife with conflict 27 Jan 2006 The basic problem is that the lower the takeover price, the more some Tommy executives stand to gain from the deal. These perverse incentives add to concerns among some shareholders that Tommy is selling too cheaply.
Chipotle IPO hints at return to exuberance 27 Jan 2006 The McDonald s fastfood Mexican restaurant chain s 100% gain is the best performance by a US company in the IPO market in five years. But it didn't do much for its parent, whose stock fell. This suggests the retail investor is back and barmy as ever.
Casino profits dive is a red flag for French retailers 27 Jan 2006 The supermarket group's shares have tumbled on falling likeforlike sales and margin pressure. France's retailers have for years charged high prices and enjoyed high margins. Now regulation and competition are reversing the trend.
Mittal makes bold hostile E19bn bid for Arcelor 27 Jan 2006 The world s largest steelmaker wants to take over the secondlargest for shares and E4.7bn of cash. The result would be a E40bn giant. The offer makes industrial and financial sense for both side, but it is likely to rouse political resistance.
GMAC sale gets rocky as deadline looms 26 Jan 2006 Buyers don t seem to be lining up to buy GM's $25bn financial services unit. One of the major hurdles seems to be reputational risk. The likes of GE, JP Morgan and others don t want to be stuck holding half of GMAC if GM goes under water. What are GM s options?