German shareholder activism stirs 24 Jan 2003 Two top German fund managers have named a dozen companies at whose shareholder meetings they intend to kick up a fuss. So few? Public rows are a real last resort for these investors. German shareholders still prefer a softlysoftly approach.
Time to creep back into the FTSE 24 Jan 2003 2003 is the year of the sheep and after a record 9 day losing streak, the FTSE s bounce looks pretty sheepish. The FTSE might not be cheap. But for medium term investors, it offers fair value.
Who will buy a 3G licence? 23 Jan 2003 France is reportedly planning to allow mobile licence trading, as Spain has, and the UK is about to. But they do not need it. Germany and the Netherlands urgently do but stubborn regulators say no, to the advantage of dominant firms.
Safeway withdraws Morrison recommendation 23 Jan 2003 Safeway's board would have breached its fiduciary obligation to throw the auction wide open if it continued to back the agreement. This was inevitable: five other bidders came in and Safeway shares traded a third above the value of Morrison's offer.
The Nokia conundrum: cash versus growth 23 Jan 2003 Falling handset prices have killed Nokia s growth story. But the Finnish group is generating an awesome cash pile. Nokia will prop up its stock by spending cash on a share buyback. But shareholders might prefer a special dividend.
Safeway fee bonanza won’t save the City 23 Jan 2003 The bad news is that only a few of them despite burning the midnight oil will actually bring in the big money. The good news from the supermarket scrum is that at least 15 banks and brokers have something to do.
Novartis discloses stakebuilding in Roche 23 Jan 2003 The Swiss pharmaceuticals group has gone as far as it can without being forced to make a formal offer for its rival s voting shares. Roche s management no longer have any margin for error.
UK mobile price cuts are just populism 22 Jan 2003 And like most populist gestures, the regulator's mobile phone charge cuts won't even do much for the consumers they are supposed to please. Mobile operators now have an excuse to delay 3G, scrap handset subsidies, and compete less.
Banks’ cable punt raises accountability questions 22 Jan 2003 A syndicate led by JP Morgan, Morgan Stanley and RBS won't call in a huge loan to Cablecom, even though it clearly can't support the debt. Why not? Either they cannot bear to book the loss or they cannot face up to an amazingly bad bubbleera lending decision.
Spain’s Metrovacesa in E1.23bn bid 22 Jan 2003 The joint bid by two Italian property groups may provide a test case for Spanish corporate governance. The offer spoils Bami's hopes of controlling the group with just a 24% stake for which it paid a fortune.
Is Swisscom’s eye on Telekom Austria’s cash? 22 Jan 2003 The Austrian group is such a strong cash generator. Swisscom could boost its own cash flow yield by snapping it up. But there are precious few synergies. And there may be better ways for Swisscom to boost its yield. What about a buyback?
Kuoni is safe from a Tui takeover 22 Jan 2003 Tui is in no condition to make a major acquisition. The tour operator's debt burden alone should put the persistent rumours to rest. The entire travel sector is struggling, but consolidation doesn t seem likely to be the answer to its problems.
Hedge funds accused of collusion 22 Jan 2003 The latest swipe at hedge funds that they act in concert to drive down stock prices looks like a long shot. Collusion is a dirty word, but it is not always abusive.
Generali maps outs its future 22 Jan 2003 For the first time, the giant Italian insurer has revealed its strategic plan, with profit forecasts up to 2005. This is a welcome change from a firm better known for obscurantism. Too bad, then, that it has declined to reveal this year s earnings.
Merrill posts a profit, JP Morgan takes a loss 22 Jan 2003 Revenues and compensation costs are still coming down through the industry. Two of the few line items rising are legal fees and provisions to cover potential lawsuits.
Aviva’s sales inch ahead in tough markets 21 Jan 2003 Sales growth has slowed dramatically. But at least the UK s biggest insurer managed to grow last year. 2003 will be tougher. Aviva reckons it will be able to take market share in the downturn. But there s no evidence of that yet.
Rumours of a German bid for the LSE won’t die 21 Jan 2003 Perhaps because they aren t wholly implausible. Deutsche Boerse is worried that it is being outmanoeuvred by Euronext for LSE s hand. But a bid still looks implausible without LSE s agreement. And that would cost too much to obtain.
Debt capital markets evades the job cuts 21 Jan 2003 The business performed well relative to equities and mergers last year. However, in absolute terms it was less impressive. While DCM remains a longterm growth area in Europe, it does face cyclical headwinds. That leaves the smaller players exposed.
Boots changes tack 21 Jan 2003 But Boots has had to give up some of its historically fat margins to do so. The usually stodgy UK chemist surprised the market with a 7.5% boost in Q3 likeforlike sales.
Reckitt Benckiser nicked on Schick 21 Jan 2003 Whatever the case, investors can now expect even demand Reckitt to juice up its dividend or buy back stock. The AngloDutch consumer products group has shown either laudable restraint or an inability to win in recent auctions.
Credit Suisse clears decks for a return to profit 21 Jan 2003 A SFr3.4bn annual loss is nothing to be proud of, but it is partly due to what looks like kitchen sink provisioning. More importantly, the group is signalling that the underlying business may finally have stabilized.
Citigroup promises industry leading returns in 2003 21 Jan 2003 After a turbulent 2002, it is not surprising that Citigroup is hyping its prospects for all it s worth. But it will take more than one year of market leading performance to prove that Citi s structure is the right one.
IG Group founder puts it up for sale 21 Jan 2003 Stuart Wheeler says he's selling his 24% stake in the spreadbetting business to fund his retirement. But that's not all. Wheeler's move is a clear sign that the UK company has gone exgrowth.
It’s time to switch out of reinsurers 21 Jan 2003 The pricing boom is drawing to a close. It s only just beginning among direct insurers. What s more, their distribution networks are a natural barrier to entry. So the pricing boom should also last longer.
Fiat’s founding family faces cash call 21 Jan 2003 Whatever revival plan Fiat chooses, it s likely to involve fundraising. But how will the Agnellis participate? Ifi and Ifil are strapped for cash and the family isn t keen on selling assets. Without some sacrifice, though, new investors may balk.
Spanish put costs Vodafone E2bn 21 Jan 2003 Thanks to an awkward little bit of history, Vodafone is obliged to pay over the odds for control of its Spanish arm. Seller Acciona will have made 40% on a threeyear old mobile investment. Minorities in Vodafone's other operations will be green.
Who wants to be a non-exec? 20 Jan 2003 Nonexecs must be paid better. That's the implication of Higgs. Sadly he doesn't spell it out. The UKgovernment inspired Higgs report wants companies to have better nonexecs and thinks they should take their job more seriously.
Kingfisher still unloved 20 Jan 2003 The group has been hit by Dixons profit warning and fears over the UK housing sector. But although trading at the electricals arm will continue to be tough, the DIY business could prove to be resilient.
Vivendi rescheduled asset sales 20 Jan 2003 The conglomerate surprised markets with two big stake sales, of Echostar and Sithe, in December. It now admits they just balanced a failure to complete planned sales. Vivendi is in line with its debt targets: but things remain tight.
30-year euro corporate bond deals come to market 20 Jan 2003 No wonder. Investors need to pick up yield. Pension funds need morelongdated assets. The debut deals are all from weak credits. That suggests investors are desperate for leverage a sign of a frothy market.