Italian decree opens way for Enel stock sale 17 Feb 2003 By bundling proposals for liberalising the energy sector into a single decree, Italy has fasttracked Enel s regulatory regime. A secondary Enel offering can now go ahead though the transaction may not be a straightforward one.
Six Continents kicks off pubs and hotel split 17 Feb 2003 The demerged groups are now on the defensive. Management claims they can, and will, stand alone. But their arguments are not compelling, and the onus is on them to prove they can create value.
The return of the City ransom 17 Feb 2003 This time it's hedge fund managers, not internet bankers, who are naming their price. And this time, their paymasters are happy to let them go.
LVMH shifts focus to star brands 14 Feb 2003 Concentrating on the most profitable brands and cutting the dead wood is clearly a wise idea. But where is the group s future growth supposed to come from?
Orange heir refused job 14 Feb 2003 Graham Howe was the obvious candidate to take over at Orange, but he is understood to have pulled out of the contest. If Howe didn't think the job was worth taking, minority shareholders should worry about France Telecom's plans for its mobile subsidiary.
Lloyds TSB borrows to pay higher dividend 14 Feb 2003 Negative life fund returns, misselling charges and a pensions deficit are oneoffs, says outgoing CEO Peter Ellwood. But Lloyds has only put a sticking plaster over its wounds. No wonder it warns the dividend may not rise from here.
Invensys turnaround screeches to a halt 14 Feb 2003 The group that sold cash cows to keep businesses with growth potential has seen profits evaporate in weak markets. With the pension deficit precluding a breakup, management has to sit out the downturn. Shareholders don t.
Bulge bracket turns the screw on second tier 14 Feb 2003 The big investment banks aren t trying to cut capacity just prices. In doing so, they hope to drive the second tier banks out of the industry.
BSkyB’s profit doubles 14 Feb 2003 More subscribers, contributing higher revenues per head, have kept the satellite broadcaster's earnings growing like stink. But remember that Sky's towering share price assumes it can keep this up for the rest of the decade. Is it reality check time yet?
British Telecom will have to raise the dividend 13 Feb 2003 Costcutting will only boost earnings for so long. BT shares will soon look like a bond with a pension deficit. The deficit and the business risks are neverthelesss manageable. BT has no excuse not to pay out more cash to shareholders.
Unilever should offer more of the same 13 Feb 2003 The consumer products group has reached nearly all of its costcutting and margin expansion targets. It would be tempting for it to come up with a new growth story. But there s still a lot to shoot for from its current one.
London’s congestion charge claims victim 13 Feb 2003 Shares in Capita, which will run the scheme to charge motorists for driving in central London, are falling. Investors should get even, not mad. Here's a simple way to hedge themselves.
Is Reuters doomed to shrink? 13 Feb 2003 Investors are braced for grim results from the information provider. The stock is priced for an inexorable decline in the business. So it is cheap if you are bold enough to punt on market recovery, geared via banks' hiring policies and Tom Glocer's turnaround skills.
ABN Amro 2002 profits up by a hair 13 Feb 2003 The Dutch bank has turned in a respectable performance compared to its peers. Although revenues fell, costs fell by more. But the outlook is murky, and not just because of war. Credit risk is surely rising in the US and Holland, despite the bank s reassurances.
Barclays profits meet lowered expectations 13 Feb 2003 The UK bank's annual results have reassured investors worried about credit quality. Barclays is optimistic about the future. With a pension deficit of £1.3bn and revenue pressures mounting, it needs to be.
FSA tinkers with research business model 13 Feb 2003 The regulator has not broken the financial links between investment banking and research, nor forced banks to fund independent competitors. This may mean the squeeze on European research is less marked than in the US.
Merrill to invest $1.25bn in Mizuho – report 12 Feb 2003 Pure US investment banks have two problems: business is thin, and their skinny balance sheets make it harder to drumup more. Japanese banks can offer a way to solve both. They have huge balance sheets. M&A among their domestic clients is also booming.
UK banks must choose growth or profitability 12 Feb 2003 Investors are deserting the UK banking sector amid fears that returns will deteriorate. But if banks are to deliver growth, something will have to give.
Fiat mulls Toro sale to Agnellis 12 Feb 2003 There are a few options under consideration to do this. But all of them are rife with potential conflicts. Fiat nonexecs Jack Welch and Felix Rohatyn should keep Fiat s nose clean and push for a competitive auction.
Cadbury disappoints on US beverages 12 Feb 2003 Disruption in its North American bottling system is to blame. This may explain why the group isn't planning to exit DPSU Bottling anytime soon, even though Carlyle is agitating for an exit.
Shedding Freeserve makes sense for France Telecom 12 Feb 2003 The French telecoms incumbent vigorously denies rumours that it is thinking about a sale of Freeserve and Wanadoo Spain. In that case, it ought to start thinking about it.
S&P cuts Axa’s credit rating 12 Feb 2003 The reassessment should come as no surprise given the downgrades heaped on the insurer s peers last year. What is odd is that Axa, which is heavily exposed to equity markets, has held out for so long.
Autostrade shareholders in dilemma 12 Feb 2003 If the Benettons scheme to gear the company up succeeds, their shares may be worth more than the Benettons are offering. The snag is that if all Autostrade shareholders hang onto their shares, the Benetton scheme won t succeed and their shares will plummet.
Gucci delays YSL profit to 2005 12 Feb 2003 With sales at the core Gucci brand shrinking, the group now more than ever needs its smaller brands to pick up the growth baton. But this isn t all bad news. If YSL isn t delivering the goods, designer Tom Ford could be less inclined to leave Gucci.
Semiconductor business model unravels 12 Feb 2003 The cost of investing in leading edge production has escalated even as returns on investment have plummeted. The industry is fragmenting. Valuations of chip stocks based on previous downturns are losing their relevance.
BP in $6.75bn deal with Russia’s TNK 11 Feb 2003 BP has not forked out a stiff premium. But it is paying a lot of cash at the top of the market. And Russia is cheap with good reason. The UK oil firm helped close the door for foreign investment in Russia after the Sidanco fiasco five years ago. It hopes to reopen it.
Fannie and Freddie may pose a systemic threat 11 Feb 2003 When a regulator flags this, investors should sit up and notice. In a badcase scenario, the massive US home loan agencies could threaten bank liquidity and the dollar.
Philips quiet on outlook 11 Feb 2003 The Dutch IT conglomerate is managing its balance sheet expertly. But it is still coping with price pressure rather than anticipating a cyclical recovery.
Vivendi’s liquidity crisis isn’t really over 11 Feb 2003 That firesale is depressing its asset value. But investors who really believe Vivendi can pull through will find its shares pretty cheap. The conglomerate has to make E3bn of asset sales in the second quarter, and E2bn in the third, to meet its cash targets.
Wind flotation? He would say that 11 Feb 2003 Enel's chief executive Paolo Scaroni says he is readying an IPO of his telecoms joint venture with France Telecom for the coming summer. He will be as surprised as everybody else if it happens. But his script is set out in the shareholder pact between Enel and FT.