Thain rumbles as Greifeld stumbles 31 Jan 2007 Investors seem to like the Big Board boss s voracious appetite for deals. He s certainly more successful at them than his Nasdaq rival. While his Tokyo Stock Exchange alliance makes sense, Thain should resist the temptation to grab too much more. That risks overreach.
Corus’ Varin could be boss of the year 31 Jan 2007 The Frenchmen signed up as chief executive of the AngloDutch steelmaker in 2003, when the shares were at 60p. It was just sold for 608p. The booming steel cycle helped, but Varin deserves credit for good management, and for insisting that Corus needed a mate. The Frenchman signed up as chief executive of the AngloDutch steelmaker in 2003, when the shares were at 60p. It was just sold for 608p.
Tata falls victim to winner’s curse 31 Jan 2007 Access to Europe is a good justification. But if the Tata family is mainly trying to keep up with the Mittals, it s a high price to pay. The Indian steelmaker has stumped up £6.7bn to get Corus. It beat CSN by paying 34% more than its first bid in October.
SEC hands a gift to Wall Street and the Valley 31 Jan 2007 The regulator's surprisingly decided to allow employee stock options to be valued using market auctions. Financiers will reap fees by arranging the transactions. And the lower option values they generate will cut Silicon Valley s expenses.
Motorola is a made-to-order target for Icahn 31 Jan 2007 Activist investor Carl Icahn isn t breaking new ground with his run at Motorola. But his approach has paid off in the past. Icahn can stalk the company with the tactics he used successfully against Time Warner. And with Motorola, he s already in the black.
The world changes, but Fed policy remains the same 31 Jan 2007 Strong fourth quarter GDP, continued inflation and a speculative orgy suggested a rate increase was in order. But weakness in housing and business investment gave Bernanke grounds for doing nothing.
Time Warner in a quandary over AOL 31 Jan 2007 The media titan has already reaped the easy money from AOL's shift to a free addriven service through cost cuts and onetime asset sales. But profits from these moves have masked AOL s underlying problems, notably declining usage. That's a dangerous sign.
Will Kraft be predator or prey? 31 Jan 2007 The $57bn cookies and cheese conglomerate will soon be unshackled from Altria and in control of its dealmaking destiny. It has ample room on its balance sheet to go shopping but it could equally attract the affections of the buyout brigade.
Netflix still has the edge over Blockbuster 31 Jan 2007 The US video rental chain has muscled into the online DVD firm's space and looks to be turning around at last. But the twist does not seem to have damaged the steady, profitable growth of Netflix, whose shares are also more reasonable.
France’s shifting views on Anglo-Saxon model 31 Jan 2007 Nicolas Sarkozy celebrates the UK s entrepreneurship and energy as high profile consultant Alain Minc warns against puritanical model. Minc is out and Sarko is in. This might be a sign of a shift in the French s attitude towards changes brought about by globalisation.
Supercasino brings slice of Vegas to Manchester 30 Jan 2007 Global gaming groups corks will be popping after the UK granted its first "supercasino" licence. In Manchester, the chosen city, less so. The trouble is, noone knows what the impact of the new casino will be other than a big fat profit for the company that runs it.
Portugal Telecom investors should hold out for higher bid 30 Jan 2007 Its predator, Sonaecom, would gain a lot if it snaps up PT at the current offer. Equally, its shares could fall if it fails in the takeover. Meanwhile, PT s shares won t fall much if the bid fails. Not only is the offer measly; other predators might emerge.
Corus £5bn auction great for Corus shareholders 30 Jan 2007 The UKlisted steelmaker s fate will be decided in a nineround open auction. It s a rare and expensive way to end a takeover battle. Why so rare? Auctions too often come up with the wrong price either too high or too low. This time, count on too high.
Can CVC cut it in the US? 30 Jan 2007 CVC is the latest European buyout group to set up shop in the US. But this has more to do with industry trends than investment outlook. With private equity becoming increasingly concentrated around a few global players, European buyout shops need to be in the US to compete.
Clear Channel’s $26bn LBO looks like a steal 30 Jan 2007 The radio group s takeover seemed low when it was launched. The subsequent 15% rally in its billboard business makes it look downright mean. Back out Clear Channel Outdoor s value and the rump radio and TV business is rated at a 25% discount. A breakup makes more sense.
Newest private equity threat: antitrust scrutiny 30 Jan 2007 The Federal Trade Commission viewed the firm s overlapping interests in the energy sector as a threat. This may just be the start. The buyout industry boom has created behemoths with potential for market abuse. That s the read from last week s Carlyle crackdown.
Pertamina IPO may herald Indonesia’s revival 30 Jan 2007 The stateowned Indonesian oil company s plan to go public reflects the success of the government s cautiously promarket policies. If President Yudhoyono can reduce corruption and population growth, Indonesia may yet put another I in BRIC. The plan to float the Indonesian oil company reflects the success of the government s cautiously promarket policies.
Caremark winner may be a loser 30 Jan 2007 A bidding war has broken out between CVS and Express Scripts over the $25.5bn healthcare company. The market s expecting more Caremark trades above both offers. Yet any higher and both bidders flirt with capital destruction. The market is expecting more Caremark trades above both offers. But a higher bid would flirt with capital destruction.
Pru extricates itself from Egg 29 Jan 2007 It s easy to carp at the decision, but the UK insurer s boss, Mark Tucker, has done the right thing selling the internet bank to Citigroup. He has more important things on his plate such as the restructuring of the core UK insurance business.
It’s not easy for Tata to trump CSN’s bid 29 Jan 2007 The Indian steel group can justify raising on the basis of bullish synergies. But CSN should be able to wring more from the deal than Tata. The best argument for bidding up Corus is to stretch the Brazilians to the limit.
Sanofi-Bristol deal speculation looks credible 29 Jan 2007 Ever since the $52bn US pharmaceuticals group ousted its chief executive in September, it has been de facto on the block. Given their joint Plavix arrangement, Sanofi looks in pole position to pounce.
Market overreacts to Merrill’s First Republic deal. 29 Jan 2007 Stan O Neal may have overpaid to boost Merrill s share of rich investors wallets. But his investors have meted out too severe a punishment. It may be difficult for Merrill to create value from the deal. But wiping out more than $1bn looks like an overreaction.
Russia comes clean on resource nationalism 29 Jan 2007 A new law limiting foreign ownership of energy assets is more honest than the underhand tactics that Moscow used on Shell in Sakhalin. But as Gazprom's partial uturn on Shtokman shows, Russia can t go it alone. Its nationalism may come back to haunt it.
Obermann clears the decks at DT 29 Jan 2007 By issuing a profit warning early on, the German telecoms group's new broom is putting distance between himself and his predecessor. But it increases the pressure on him to deliver a solution in March, and prove that he genuinely stands for change.
Royal blunders reshuffle deck of French election 29 Jan 2007 The French socialist presidential contender's string of gaffes has led to a fall in the polls and questions about her ability to do the job. Her platform isn t yet known and she s at odds with her party. No wonder her electorate is beginning to look at other options.
Miners struggle to adjust to Beijing’s ways 29 Jan 2007 But there isn t much to be done. China is too important to irritate and the Western grasp on the moral high ground is shaky. Western industry leaders are complaining that Chinese competitors win African business by using lower standards. It s a real issue.
New recaps throw lenders a bone 29 Jan 2007 Several new loans designed to fund dividends to LBO shops have the option to pay interest in cash or in kind. They are extremely risky. So bankers are courting lenders with provisions that spur the borrowers to repay the loans quickly, most likely with proceeds from IPOs.
Nasdaq switches bid tactics as LSE investors hold firm 29 Jan 2007 Nasdaq is now warning it may not sell its 29% stake to another bidder, undermining previous threats it could sell and cause an overhang. Without the carrot of a higher offer, Nasdaq has to rely on the stick but its switch in tactics smacks of desperation.
Melville for short-sellers 29 Jan 2007 David Einhorn s relentless pursuit of Allied Capital was starting to look a bit like Captain Ahab s obsession with the great white whale. After five years, Einhorn has finally landed a harpoon. He may yet bring his leviathan down. But his campaign has been costly.
Surgut shows perils of Russian investment 26 Jan 2007 Investors have grown complacent about Russian risks, as the recent collapse in the oil company s share price shows. Even though Surgut s corporate governance failings were wellknown, investors had still bought the stock.