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Text size [+][-]  Thursday September 9 2010GLOBAL EDITION

Journalists

Una Galani  -  Columnist

una.galani@thomsonreuters.com
Telephone:  +44 (0)20 7542 0742

Una Galani is the TMT, mining and the Gulf correspondent for Breakingviews.com. She joined the London office as a News Editor in 2003. Before that she worked at Icondirect, where she was News Editor of a weekly bulletin for the international construction and development community, and freelanced for the foreign desk at The Independent. She has a BA in English Literature from St Catherine’s College, Oxford University.

Vodafone discount won't be erased by China exit

The telecoms giant's sale of a 3.2 pct stake in China Mobile for $6.6 bln is good housekeeping, and there's more tidying to do in its sprawling portfolio. But Vodafone's sum-of-the-parts discount will persist until it finds a way of unlocking value from Verizon Wireless.

Sinochem could struggle to frustrate Potash bid

Intervening in the battle for control of the Canadian fertiliser group would fit with the state-owned firm's aim to be a mainstay for China's agricultural safety. Financing won't be a barrier. But Sinochem will face other hurdles if it wants to block BHP Billiton's $39 bln bid.

BHP shows it doesn't need Potash Corp

Annual results from the Anglo-Australian miner aren't just a reminder of the financial firepower behind its $39 bln hostile bid for Canada's Potash Corp. They also prove BHP isn't broken and doesn't need a deal. BHP can afford to pay more. But it can also afford to walk away.

KNOC's $2.9 bln Dana bid is hostile in name only

The Korean oil group has run out of patience with the UK firm and launched a rare unsolicited bid by a state-owned firm. With almost 50 pct of shareholders supporting the 18-pound-a-share offer, KNOC should snatch its prize -- even if Dana pursues its own M&A ambitions.

BHP puts itself in focus with $39 bln Potash bid

The mining giant's measly all-cash offer for the world’s largest fertiliser group was firmly rebuffed. Though the commodity is hot, Potash Corp’s size makes a bidding war unlikely. Even so, BHP needs to prove a deal is a better use of its cash than returning it to shareholders.

BHP-Rio JV may need big remedies to get through

The mining industry is facing unprecedented scrutiny. That means BHP and Rio may find it harder to get their Aussie iron ore tie-up cleared than if they'd tried two years ago. Regulators could potentially demand the sale of assets worth $8 bln - but that needn't kill the deal.

Telcos stronger financially than strategically

Operators are showing improving trends with Telefonica, France Telecom and BT all beating expectations. The sector is showing welcome discipline, with an increasing number of telcos making three-year dividend commitments. But strategic uncertainties will continue to weigh.

BHP's Kloppers can afford Potash Corp failure

The miner's CEO has put his reputation on the line by launching one of the industry's biggest takeovers in a decade. His two previous M&A attempts haven't come to much. But aborted tie-ups are common in the sector. Kloppers could survive a failed deal more easily than overpaying.

Canada takeover laws make Potash easier to snare

The country's weak protections for minority shareholders and limits on poison pill defences make hostile bids easier than in the U.S. BHP will need to raise its offer to win Potash Corp. But, the miner's bigger challenge may be persuading its investors to support such a move.

Potash price crucial to how far BHP can stretch

The miner's $39 bln bid for Potash Corp is a bet on demand for the commodity. Every $50 increase in the long-term price per tonne adds about $20 to the firm's value per share. BHP's offer reflects the current market. But if prices rocket, so too will the value of its target.

BHP’s diversification case is far from compelling

The miner has the financial firepower to raise its $39 billion bid for Potash Corp. It may also make some improvements to the world’s largest fertiliser group. But the deal won’t substantially alter the shape of BHP’s business - just make it look more like a commodities index.

Investors squeezed in Vedanta's Cairn India deal

The miner and one of its listed subsidiaries are buying up to 61 percent of the Indian oil producer for as much as $9.6 billion. Vedanta has no oil experience and the move will test its credit rating. Meanwhile, minority shareholders on all sides are getting a raw deal.

BlackBerry ban looks like tactical move by Gulf

Research In Motion's smartphone is the first choice for the global banking community. The UAE restrictions on it are a big negative for business. Both sides have plenty to lose, and Apple's rival iPhone is gaining ground. UAE's move looks ballsy. But a compromise seems likely.

Slow recovery will test ArcelorMittal targets

An economic slowdown in China and slower-than-expected global steel restocking cycle will translate into a gloomy second half for the steelmaker and economic bellwether. ArcelorMittal's previous forecast of 10 pct growth in world steel demand in 2010 may now be a close call.