Abbey focuses on retail core, cuts dividend 27 Nov 2002 The group s diversification strategy landed it in the mess it is in, so focusing on personal finance is probably wise. The dividend cut is painful but prudent. Abbey will have to shrink and write off lots of capital before growing again.
Why has the stock market rallied so fast? 27 Nov 2002 According to one conspiracy theory, fund managers have walked up the market in order to save their own bacon. For now, it is hard to find evidence to back up this assertion. But it is certainly a neat idea.
ITV bosses sketch a bright future 27 Nov 2002 Carlton's and Granada's businesses are both recovering as they square up to create a single company. They need to stay on course in the face of merger uncertainty. Hints of boardroom conflict are a bigger threat than regulatory interference.
Eni bids E2.5bn to take control of Italgas 26 Nov 2002 But Eni may not have changed its mind. Buyingin Italgas may be a prelude to selling off the bits of the firm it doesn t want. Huh? Until now, the Italian energy company s gas strategy had been to exit regulated businesses, such as Italgas.
ING raises E700m by switching hedging policy 26 Nov 2002 In a nifty manoeuvre, the Dutch insurer has switched to delta hedging its employee stock option exposure. This seems sensible. It also allows ING to refill its coffers by selling surplus treasury stock it held for its old hedge.
David Nash quits Cable & Wireless 26 Nov 2002 The departure of the chairman designate is a stay of execution for chief executive Graham Wallace. A delay in replacing Wallace may seem a pity, but it is better than a shambles.
Santander rebuilds its capital position 26 Nov 2002 The Spanish bank s Banesto share offering, and RBoS and Bital sales, have put its capital base back on track. But that doesn t mean SCH is completely out of the woods yet.
Vivendi says its cash crisis is over 26 Nov 2002 Investors should not take comfort from the conglomerate's reassurances. Its woes will only be over when it has a business plan. And with core operating income down 23%, it needs a vision quick.
BNP pays heaps for Credit Lyonnais stake 25 Nov 2002 The move has certainly stopped Credit Agricole from creeping towards control of Lyonnais. But the price looks hard to justify, even were BNP to buy the rest of Lyonnais and crunch out costs.
Fiat’s banks step up the pressure 25 Nov 2002 News that the carmaker may have to flog family jewels, such as insurance unit Toro, suggest things are getting worse. Indeed, Fiat may have to pour millions of euros more into the auto unit if it is going to have a business left to put to GM.
Italian bond market knocked by Cirio scandal 25 Nov 2002 Cirio's bankers exploited a loophole allowing unrated bonds without any prospectus to end up in the hands of retail investors. Now that the E1.1bn bond has defaulted, retail investors will at least temporarily lose their appetite for corporate bonds.
ABB shares surge on asbestos hopes 25 Nov 2002 It looks as though the SwissSwedish engineer has made good progress on capping its asbestos liability. But the shares more than discount this. They rest on the shaky foundations of bid speculation and ambitious restructuring.
Vivendi places E1.9bn Environnement stake 25 Nov 2002 The conglomerate has offered an inducement to persuade EdF and a range of mostly French financial institutions to buy in. Not only do they get to buy at a 10% discount. They also get a twoyear option to buy the rest of the stake for only a 6% premium.
UK’s public finances slip further into the red 25 Nov 2002 Chancellor Gordon Brown's fiscal rules allow less growth to mean more borrowing unlike the Eurozone s discredited stability pact. But Britain's economy isn't doing particularly badly. Brown's policy isn't being stresstested yet.
Given its premium multiple, Securitas does not have much room to move. Its shares could stall or fall in coming months. 22 Nov 2002