Sony Music braces for 15% sales fall 31 Mar 2003 There is an element of hyperbole in the music company's planning assumption, which it is using to justify job cuts. But it is no wonder the industry's merger flirtations aren't leading anywhere. Why bulk up in an industry in apparently terminal decline?
Deutsche Telekom: last of the unreformed telcos? 31 Mar 2003 Unlike its overleveraged rivals, the German group has not made big sacrifices to cut its debt fast. This tactic may seem to have paid off. But risks still loom over DT s debtreduction plans.
Investment banks wait on war to cut more 31 Mar 2003 Bankers are waiting to see what the situation is like after the war ends before deciding what to do. But it will take a big postwar recovery in the markets if there aren't to be more big cuts.
McCarthyism comes to London 31 Mar 2003 The new chairman of the City's Financial Services Authority looks as if he would like to make the regulator more consumercentred. Good. But first he has to find a chief executive, and impose himself on the FSA's existing top management.
Italy leads European 1Q M&A activity 31 Mar 2003 Only the US saw more mergers. But Italy's historic level is neither sustainable nor a bullish sign. The activity reflects crises at the country's biggest industrial groups: mainly Pirelli/Telecom and Fiat.
NTL is still on a tightrope 31 Mar 2003 The restructured cable firm has not published a cash flow statement. It says "media speculation" about its finances will hurt its business. Of course clients wouldn't want to do business with an inadequately capitalised company. Keeping the figures quiet won't help.
Finmeccanica may cut STM stake 28 Mar 2003 The Italian defence conglomerate will almost certainly take a third of FiatAvio alongside Carlyle. That E500m will need to come from somewhere. The likely source is a slice of STM.
Spanish shareholders see chance for better treatment 28 Mar 2003 In Spain, a shareholder with a 25% stake could normally expect to control the company disadvantaging other investors. But the current battle for Metrovacesca gives shareholders an opportunity to change this accepted wisdom.
ITV pay rows bode ill for merger 28 Mar 2003 Shareholders are upset about directors' pay at both Carlton and Granada. But their merger brings a chance to start afresh, so why bother? What matters is whether a merged boardroom will work better than the existing ITV partnership. The signs are not encouraging.
Bidders circle Spain’s Banco Zaragozano 28 Mar 2003 That may be so. But such denials may simply reflect a weakening hand its two biggest shareholders have been sentenced for fraud. The midsized bank continues to deny that it is on the brink of a tieup, with Barclays or ING or any one else.
Six Continents continues to reject offers 27 Mar 2003 Until the pubs and hotels units test the market next month, there is no reason why it should. The demerging UK company turned down a £2.8bn bid for its Mitchells & Butlers pubs group. SixCon is clearly in no hurry to sell.
After Saddam, the eurosceptics? 27 Mar 2003 A month ago, Britain's mediumterm likelihood of joining the euro was nil. Investors now wonder if a postwar Tony Blair will rediscover the nerve to push the UK into the single currency. He'll need more than nerve.
Banks leverage up on interest-rate derivatives 27 Mar 2003 With bond yields pointing to relatively stable rates, banks have few economic incentives to hedge their rate exposure. It s not clear what they are up to. But if they are pocketing premiums on the derivatives to boost sagging revenues, that would be risky.
HVB to sell Bank of Austria stake 27 Mar 2003 The capitalstrapped German bank is biting the bullet sort of with plans to float up to 25% of its Austrian subsidiary. Problem 1: HVB s regional strategy is now in a hole. Problem 2: the sale probably won t raise enough to meet HVB s needs.
It’s the war, stupid 27 Mar 2003 Those who say that the economy and markets are suffering because of postbubble overhang not the war have a point. But it's not the whole point. The breakdown of collaboration between the great western powers has real economic consequences.
Enel’s new strategic plan protects dividend 27 Mar 2003 To date, a 7% dividend yield has been one of the stock s main attractions. Enel can keep that up for a while but only by using capital gains. Beyond that, operating cashflow will have to take all the strain.
British Land boss beats tactical retreat 26 Mar 2003 John Ritblat's agreement to split his roles of chairman and CEO may look like a victory for the investors hounding him. But he actually increases the chances of securing a more important objective: handing over the reins to his son.
3i tumbles on warning of higher provisions 26 Mar 2003 The UK venture capital group is suffering because of higher business failures and falling valuations of its technology investments. That raises questions about why this particular private equity outfit should be quoted in the first place.
Internet firm in underwritten placement 26 Mar 2003 It almost sounds like the panto at an investment bank's Christmas party: travel dotcom raises money during war. But it's very real. Moreover, Lastminute.com's deal is entirely underwritten by a bluechip investment bank!
H&M shows Inditex up 26 Mar 2003 Like Inditex, the Swedish retailer's sales were up less than expected. But the good news is that H&M managed to boost margins.
Munich Re disappoints, Swiss Re reassures 26 Mar 2003 Munich Re has done little to quash speculation that it may need to have a rights issue. Swiss Re has ruled out a rights issue and cut its dividend. In fact, it's too soon to know whether either will be tapping shareholders.
Bertelsmann sweats for its debts 26 Mar 2003 Creditors have replaced minority shareholders as the media group's key audience, and are the real beneficiaries of its improved disclosure. If Bertelsmann is to meet it debt reduction target, its drive to boost profits has a long way to go yet.
Cable & Wireless solves tax liabilities for £380m 25 Mar 2003 The UK telecoms group can now afford to intensify its restructuring efforts. Moreover, it is likely to do so. The next step on the chairman's action plan is to find a new chief executive.
Goldman bids adieu to Thornton 25 Mar 2003 History repeats itself. During the last major downturn in 1994 Goldman suffered a similar drain of top talent. Then partners went limited. Today expartners like Thornton are walking away with the firm. This will have an impact.
ICI savaged by profit warning 25 Mar 2003 The beleaguered group says its firstquarter profit before tax will be almost a quarter below last year. The stock is now only a quarter of the level it stood before last year's £800m rights issue.
Allianz and Munich Re overhang fears overdone 25 Mar 2003 Plans by Allianz and Munich Re to reduce their huge stakes in each other will increase volatility in the near term. But larger free floats and greater transparency will be a plus in the long run.
Bush’s $55bn war tab estimate looks too low 25 Mar 2003 Add in the cost of keeping the peace and rebuilding Iraq and the total tab could be three times the size. Not all that will be paid by the US. But it doesn t have many allies to share the burden. And its own finances aren t strong.
War reveals Turkey’s financial fragility 25 Mar 2003 Only a month ago, Turkish markets were buoyed by the idea that the country was geopolitically too important to fail. Now there are even mutterings about the possibility of a default.
What is Generali worth? 24 Mar 2003 The squabbling over who should control Generali has helped pushed its shares higher as the rest of the insurance sector has tumbled. But participants in the recent sharebuying frenzy paid a hefty price.
Bankgesellschaft privatisation falters 24 Mar 2003 The Berlin local parliament is about to decide whether to sell its sick state bank to US investor Chris Flowers. It will probably say no. The Bankgesellschaft saga could have given German bank investors great hope. In the event, it will have the opposite effect.