European M&A activity may hold up in 2003 31 Dec 2002 While volumes and average deal sizes fell, the number of $1bn plus deals in Europe held steady. The US accounted for the real gloom. And there are a few potential hot spots, like LBOs and financial institutions, that may fuel a rebound in 2003.
Colaninno’s designs for Fiat gain currency 31 Dec 2002 The wily entrepreneur has laid low since selling Telecom Italia, but he s got big plans. He wants to drive Fiat to recovery. And with the Prime Minister s implicit blessing, his plans have jumped into the realm of possibility.
Executives strike back at governance activists 30 Dec 2002 Emap's chief executive has spoken for many of his peers in slating "superficial" institutional investors. He has a limited point. But blametrading for the bubble does not help governance. Shareholders and executives must reconcile interests that do in fact converge.
Banking conflicts saga turns to credit derivatives 27 Dec 2002 This market is ripe for the abuse of privileged information. And on that the banks have form. The size of the creditderivatives market is increasingly at odds with its unregulated, opaque nature.
Pressure grows on Big 4 accountants to break-up 27 Dec 2002 Their consultancy arms have already been largely hivedoff. Now the SEC may force them to separate certain tax services too. The industry hates the idea. Yet, as structured, it still faces huge potential conflicts of interest similar to investment banks.
Big government may crowd out private sector 24 Dec 2002 Investors worried about corporate investment should watch rising deficits closely. Slack demand for corporate bonds may compound the imperative for firms to deleverage.
US takes over UK by stealth 24 Dec 2002 Following appointments of new CEOs at Vodafone, Lloyds TSB and Cadbury, Yanks now head 30% of the UK s top 10 companies by market value. Isn t this odd? After all, 2002 will go down as the year of US corporate scandal. And previous recruits have not done fantastically.
Iraq takes its toll on the dollar 24 Dec 2002 Usually, the dollar is the first currency that investors flock to in troubled times. But not now. The prospect of a war in Iraq is just the latest reason why investors are selling the currency.
Tronchetti’s latest pre-nup could cost nearly E300m 24 Dec 2002 The Pirelli boss s deal to shore up control of Telecom Italia has involved giving his new partners a getout in the event of a divorce. Still, that s better than Pirelli pumping in more cash. It couldn t afford to: its net asset value is barely above E200m.
Strong banks worry about weak banks in 2003 24 Dec 2002 No listed European bank failed in 2002, although rising bad loans ravaged several balance sheets. But if the economy deteriorates, or there is a sharp shock, it s not impossible to imagine a bank needing to be rescued in 2003.
Barton Biggs mulls new hedge fund career 23 Dec 2002 The latest dollop of investment contrarianism from Morgan Stanley s longserving global strategist? Only two years ago, Biggs warned of a hedge fund bubble, and many funds have folded since then.
French regulator bans mandatory convertibles 23 Dec 2002 Mandatories may help companies raise money fast, but on balance they are bad news for shareholders. These complex securities are a naked attempt to get round French antidilution rules.
Lazard chain faces fresh challenge 22 Dec 2002 The timing is fortuitous given an apparent rift between Lazard and Credit Agricole over the Lyonnais battle. UBS will inform regulators it has more than 10% of Eurazeo, putting pressure on DavidWeill s cascade.
Orange signals the 3G story is over 20 Dec 2002 Orange's Swedish exit means Hutchison is the only 3G startup left in the EU. So much for E21bn of licence fees. And so much for greater competition. Having shrunk by 15% in a year, the market has a bit further to consolidate.
Wall Street finally reaches $1bn settlement 20 Dec 2002 With this, the research business model changes dramatically. The full burden of cost will fall firmly on equity departments. And this will likely herald a sweeping reduction in the size of research departments and the amount produced.
Fiat credit rating junked by Moody’s 20 Dec 2002 Fiat may meet debt reduction targets this year. But only through financial engineering. Moody's rightly decided that was insufficient. Fiat may be shocked, but it can't have expected better. Now its banks will likely step up asset sales.
Berlusconi muscles in on Telecom Italia 20 Dec 2002 The Italian PM and Gnutti, a convicted insider dealer, have taken advantage of Pirelli's weakness to get a slice of the action. Other shareholders will be concerned that the duo seem to have found a way of circumventing Italy's takeover rules.
Interbrew sacks CEO Powell 20 Dec 2002 Hiring a soft drinks veteran Cadbury's Brock is not as odd as it appears. His task will be to cultivate global brands from local brews. During Powell's tenure, Interbrew went on an acquisition binge that included botched deals and overpriced assets.
Eric Daniels to be new chief at Lloyds TSB 20 Dec 2002 He faces a host of challenges on taking the helm of the huge UK bank: how to grow it and whether to cut the dividend, for instance. Peter Ellwood may not have done an amazing job, but pepping up this behemoth s performance won t be easy.