France Telecom mulls financial restructuring 22 Nov 2002 Its liquidity needs are so pressing that capitalraising will wait. The question is how to get a shareholder loan past Brussels. One possible answer: a mandatory convertible rights issue.
Fine art market is outperforming S&P 500 22 Nov 2002 Prices for art are down at auction houses worldwide. But the art market still beats the S&P. Unlike other investments, it is also unlikely to be unseated by war with Iraq.
Dividends the worry at UK mortgage lenders 22 Nov 2002 Provisions will go up if the housing market slumps and this will squeeze profits. Many mortgage banks especially those with insurance arms pay out almost all of their distributable profits as dividends.
Credit derivatives contributed greatly to the reckless expansion of credit in the late 1990s, and now to unprecedented financial volatility. 21 Nov 2002
It is naive to assume that the problems now mounting at the fringe of ABS market won’t eventually show up in the core. 21 Nov 2002
Brambles plunges 30% on pallets profit warning 21 Nov 2002 Last year s unscrambling from GKN was supposed to shine a flattering light on Brambles s apllets business. It has revealed flaws instead. The group is even closer now to dropping out of the FTSE.
Vivendi rebuffs bid for entertainment assets 21 Nov 2002 Whether Vivendi likes it or not, bidders are snapping round on what s left of Messier s empire. This is because the group has failed to articulate a strategy that investors can believe in.
It is naive to assume that the problems now mounting at the fringe of ABS market won’t eventually show up in the core. 21 Nov 2002 The alleged fraud calls the disclosure and duediligence standards of the assetbacked securities market into question. It is naïve to assume that the problems now mounting at the fringe of ABS market won't eventually show up in the core.
Block trades are all the rage again 21 Nov 2002 Companies are under pressure to sell assets. Banks are desperate to pad out capital ratios. Accelerated share sales provide the means. With $5.7bn raised in Europe in six weeks, equity capital markets desks may not leave this year s bonus round empty handed.
Alan Greenspan seems satisfied with consumer spending, even though it is likely to be unsustainable, says Andrew Kashdan. 20 Nov 2002
Pizza Express deal goes flat 20 Nov 2002 Hugh Osmond's bid for the chain he helped found was just too cheeky to succeed. But Pizza Express is not in the clear it should ideally use this occasion to kick start a competitive auction.
Vivendi cranks up Cegetel vehicle 20 Nov 2002 Recent disclosures give the outlines of a plan by the conglomerate to buy BT's stake in Cegetel using a special purpose vehicle. Analyse the structure, and Vivendi's plan makes sense as a delaying tactic in the hope of selling at a better price later on.
Bank of England worried about house prices 20 Nov 2002 But investors in UK mortgage banks don t seem to be even though the last time house prices rose at a 30% clip was in 1989. A correction that is a fraction of the house price slump then could hit bank earnings hard.
Clear Channel is teasing the UK radio sector 20 Nov 2002 Now it is just waiting for the proposed relaxation of foreign ownership rules to become law. The US media conglomerate says it has its eyes on at least two major UK radio groups.
Who said GE’s the world’s top business school? 20 Nov 2002 Two of Jack Welch's most senior lieutenants Fiat's Paolo Fresco and Conseco's Gary Wendt are floundering. GE shareholders will be hoping Jeffrey Immelt, the new boss, doesn't make it a trio.
Eni pays $1.1bn for Fortum assets 20 Nov 2002 Strategically, the deal makes sense for Eni as Fortum's assets give Eni critical mass in the North Sea. But even after stripping out the net present value of tax loss carryforwards, Eni is paying a very rich price.