Royal & SunAlliance scraps rights issue, shrinks 7 Nov 2002 Even after this dramatic measure, it isn t clear whether RSA will have sufficient capital. Because investors wouldn t back it, RSA has been forced to shrink its business by 35%.
Boots runs to stand still 7 Nov 2002 Growth is proving elusive. Worse, Boots faces regulatory uncertainty on its drugs dispensing business. If everyone can sell prescription drugs, Boots will lose much of its competitive advantage.
Man Group makes hay while sun shines 7 Nov 2002 Early signs from its acquisitions are encouraging, although the convertible bond issue raises doubts. But how will the alternative investment group perform when conventional markets recover?
London Stock Exchange turns in buoyant H1 7 Nov 2002 But questions remain about the sustainability of its information services income as jobs are cut and financial terminals uprooted. This, combined with any decline in listing fees during the IPO drought, could put pressure on the LSE's valuation.
SEC needs poacher turned gamekeeper 7 Nov 2002 Pitt's successor needs a better feel for the markets. The SEC's first head, Joe Kennedy, was a successful speculator in the roaring `20s. The next chair should have a reputation for integrity and a profound understanding of the tricks that companies and investment banks play.
Autostrade needs independent advice 7 Nov 2002 The Benettons, who are bidding for the motorway group, already control the board. The tiny bind of independent directors must appoint a vigorously independent adviser. Naming Merrill wouldn't be smart.
Diageo has few alternatives to Burger King buyout 7 Nov 2002 Even though it s not a distressed seller, the spirits group will have to accept a haircut and plenty of strings attached to close the deal. What else can it do? The business isn t performing. An IPO is a nogo. And a demerger might value BK at about $1.5bn.
BT abandons growth target 7 Nov 2002 But profits, cash flow and the dividend are up strongly. BT has half come to terms with the fact that it's not a growth stock. Shareholders would do better if it went the whole hog.
BNP Paribas quietly tears up growth targets 6 Nov 2002 The bank is now clearly in defensive mode, which is probably the most sensible stance it can adopt. Investors can breathe a sigh of relief: it put off its May expansion plans before running up unnecessary costs.
Red Electrica whips out the cheque book 6 Nov 2002 The Spanish utility is spending on electric grids as though there is no tomorrow. But is it being too ambitious? The E1.5bn price tag is a punchy oneandahalf times Red Electrica s market capitalisation.
Roland Chlapowski parts company with Swiss Life 6 Nov 2002 First Royal & Sun, now Scor and Swiss Life have parted company with their chief executives. The market is finally imposing discipline on the industry's most egregious misallocators of capital. Zurich Financial Services and Royal & Sun Alliance lost their chief executives after overpriced acquisitions. But the reasons for Chlapowski s departure may be more worrying.
Puma races ahead of sportswear rivals 6 Nov 2002 Given its growth and fashionable brand, it may be time for Puma to break free of this discount. Thirdquarter sales surged 48% and EPS nearly doubled. Yet Puma still trades at a discount to rivals like AdidasSalomon, Reebok and Nike.
ScottishPower plays it coy over possible SSE merger 5 Nov 2002 A tieup with Scottish & Southern is such an obvious deal it should have happened by now. So why hasn t it? Regulatory issues are not the real problem. ScottishPower s low share price is. That, plus the two firms traditional hostility.
Play Motorway – an Italian game of high finance 5 Nov 2002 Imagine you are the Benettons trying to gain control of a vast empire with as little capital as possible. breakingviews has developed an interactive game that allows you to mimic their actions.
New Alstom boss has Herculean task 5 Nov 2002 Top of the new chief executive's priority list must be generating free cashflow at the French engineering group. That means stabilising operations in a vicious downturn and delivering on an aggressive disposals plan.
Will Logica/CMG merger benefit shareholders? 5 Nov 2002 This is a damn good deal for the CMG camp. But the Logica camp will only gain if expected cost savings recur year after year. This leverages the exposure of Logica's shareholders to the recovery in the IT services market.
M&S sees tougher times ahead 5 Nov 2002 The UK retailer has just enjoyed its last quarter of easy comparables. The recovery s strength will be tested in H2, in what M&S admits will be a less buoyant environment.