Luxottica returns to the acquisition trail 19 Dec 2002 The impending loss of its Armani licenses accelerates the Italian group s need to expand its retail footprint by doing deals. It has E1.8bn to spend and no dearth of targets: Fielmann, GrandVision, OPSM and De Rigo. The latter two look tastiest.
Mediobanca and SAI draw sighs of relief 19 Dec 2002 The SAI/Fondiaria merger goes through and Mediobanca keeps control of Generali. Neither Consob nor the competition commission managed to draw blood.
Royal & Sun Alliance finds new chairman, CEO 19 Dec 2002 This was never going to be an easy task given the state of RSA, but the group has done as well as it could. But these appointments won't of themselves encourage investors to unlock their wallets.
Vodafone’s Gent hasn’t; Cadbury’s Sunderland has 19 Dec 2002 In general, it is best for retiring CEOs not to hang on as chairmen. They can crimp the style of their successors. Exceptions to the rule should be sparing and compensating checks and balances must be introduced.
Bulge bracket banks expert at managing decline 19 Dec 2002 After a 3rd year of shrinking revenues, Goldman Sachs and Morgan Stanley are still earning near 15% returns on equity. Expenses are being kept under control. This bodes well if we are finally at the bottom.
Retailers hit by Christmas shopping fears 18 Dec 2002 US retail giants have seen slower sales, and the UK s Game Group had a vicious warning. Next year s forecasts are starting to look optimistic.
HVB should sell Bank Austria 18 Dec 2002 The bank is considering spinning off its real estate arm to strengthen its capital ratios. But this won t work. Selling Bank Austia even at a low price would significantly bolster HVB s balance sheet.
Compass gets back to basics with Travelodge sale 18 Dec 2002 Compass is now a pure play on food service and has shed a capitalintensive business. That underlines its new, welcome focus on cash flow. Eps will be diluted by about 8%, even after a £300m share buyback. But the £712m sale price isn't bad for a slowgrowth business.
Vodafone’s Gent steps down 18 Dec 2002 The man who built Vodafone into the only real global mobile business is to retire next year, his successor Vodafone nonexec Arun Sarin. The group is trying to signal continuity. But replacing a dealmaker with a technocrat might bring a useful evolution in style.
GE in E2bn swoop for Instrumentarium 18 Dec 2002 How GE justifies that is not clear. The deal is a lesson in what happens when a small fry takes on a giant on its home turf. The price is a near 50% premium to the Finnish medical technology group's Tuesday close.
ABB nears $1.5bn bank facility 17 Dec 2002 The deal will provide the SwissSwedish engineer with sufficient liquidity to attempt its turnaround plan. ABB securities have rallied ahead of this deal and a likely asbestos settlement. After that, the going may get tougher.
Italian bank mergers back on the agenda 17 Dec 2002 Italian central bank governor Fazio seems keen for deals to happen but its only between the small guys. The merger of two mutual banks this weekend has turned the spotlight back on the fragmented banks sector.
Cadbury agrees $4.2bn Adams takeover 17 Dec 2002 At about 14 times ebitda, the price is generous, but not out of line with previous deals in the confectionery industry. If Cadbury can make good on promises of $185m of synergies by 2006, the deal will cover its cost of capital by then. But it's a tall order.
Make-or-break week for SAI/Fondiaria merger 17 Dec 2002 No less than three verdicts are expected on the disastrous Mediobancaorchestrated plot. This is bad timing for Mediobanca's boss, who already looks in for a tough ride at a Friday board meeting.
Sky routs the trustbusters 17 Dec 2002 Before investors get too enthusiastic, they should remember Sky's share price still discounts very racy future growth. A year ago, the broadcaster faced a string of threats. Now the UK trustbuster has abandoned its investigation, they have all gone away.