Fiat avoids Toro fire sale 24 Mar 2003 Given Fiat s obvious need for cash, the sale is an achievement. CEO Morchio s guntothehead auctioneering style surely played a role. But fewer bidders and government meddling suggest he needs a lighter touch to save the sale of Fiat Avio.
Sterling: the mild-mannered currency 24 Mar 2003 The pound s recent performance, much like the UK government, has had to straddle that of the rising euro and weakening dollar. But it is economics, not politics, that make this description conform so well to the current crosschannel political chill.
Mario Monti on the defensive 24 Mar 2003 MyTravel's suit against the EU for damages over the blocking of its merger with First Choice steps up the pressure on Monti. Unfortunately MyTravel's motivations look purely financial.
France Telecom to sell rights at E14.50 24 Mar 2003 The discount to FT's theoretical exrights share price looks tight. The underwriters must be nervous. But France Telecom has got its money. What should the company be worth on a postrights basis?
France Telecom in information black-out zone 24 Mar 2003 When it comes to news management, France Telecom s E15bn rights issue may rival the war on Iraq. With 21 banks on the deal potentially sharing a E200m payout independent analysis of the transaction will be thin on the ground.
Oil victory discount ousts war premium 21 Mar 2003 The price of oil has fallen by a quarter over the past two weeks. But is that premature? Global inventories are low. So any whiff of supply disruptions such as torched Iraqi oil fields sends prices soaring again.
Will trade war follow the shooting war? 21 Mar 2003 European firms are getting antsy about the prospect that the freeze in EU/US diplomatic relations will spill over into new trade barriers. Such a row would be more damaging to the US, at least relatively. But the world's retreat from trade liberalisation is real, and worrying.
Inditex cracks 21 Mar 2003 The Spanish retailer tripped over in the fourth quarter. Ebitda was practically flat. Inditex has had a charmed run so far and been valued accordingly. Can this last?
Ferrari boss’s bonus outlandish 21 Mar 2003 It can t, unless it admits the money was the only way to retain his services after torpedoing his IPO plans. How can moneylosing Fiat justify paying Montezemolo a E18.2m bonus in a year when Ferrari s profits halved?
FTSE 100 rides out expiry of futures and options 21 Mar 2003 Even the UK's Financial Services Authority had warned investors to brace themselves for volatility today as futures and options expired. In the event, there was minimal volatility. This does not necessarily mean that lessons have been learnt from past turbulence.
Richemont hit by profit warning 20 Mar 2003 The Swiss group says operating profits will be up to 40% lower than last year. But a chunk of that is a restructuring charge. And investors may take some comfort from that.
Investors want FSA to probe Canary Wharf 20 Mar 2003 Angry shareholders want London's regulator to probe the way the property developer discloses agreements with its tenants. In doing so, they are asking the FSA to tick off its own landlord.
Aegon’s half-hearted governance revamp 20 Mar 2003 The insurer is the latest big Dutch group to cut the voting rights of its foundation. ABN Amro and ING are doing so too. These are steps in the right direction. Still, the moves aren't radical enough. Why not go for a clean break?
Wall Street firms saved by credit markets 20 Mar 2003 Without surging trading income, Goldman, Morgan Stanley and Lehman would have fared poorly in Q1. But these aren't a sustainable revenue source. So if 45% of Goldman's revenues come from trading, why does it command a premium?
Allianz to raise E5bn 20 Mar 2003 Here comes another deepdiscounted rights issue that gives investors little choice but to cough up. But with Dresdner Bank in the mire, and Allianz still heavily exposed to equities, it s hard to see positive reasons to back the cashcall.
Smith & Nephew offers £1.5bn for Centerpulse 20 Mar 2003 There is strategic logic to combining the orthopaedics groups. They need scale economies to fund research and development. The tiny premium offered may suggest the UK group has got a bargain. A returns analysis suggests otherwise.
Allianz dumps Bernd Fahrholz 19 Mar 2003 After Henning SchulteNoelle s resignation, it isn t surprising the group is ejecting the other man behind the illfated Dresdner purchase. His departure and replacement by Herbert Walter may lead to the further deemphasisation of the corporate and investment banking unit.
Four Safeway bidders to face longer antitrust probe 19 Mar 2003 The shock decision to refer Morrison to the Competition Commission as well as the big three potentially opens the way to financial buyers. Safeway shareholders may yet end up with a heated bidding contest; but they'll have to wait until Augst and even then it's not certain.
Mediobanca should be broken up 19 Mar 2003 That would stop it from getting into any more mischief. Its allies and its enemies could then get back to business. But sadly a radical overhaul isn't on the cards.
Bayer bolstered by Baycol ruling 19 Mar 2003 While still hard to quantify, liabilities relating to the drug look increasingly unlikely to swamp the value of Bayer s healthcare unit. Baycol may be delaying the restructuring of the German conglomerate. But with luck it will shock Bayer into action.
Interbrew neo-CEO has work cut out 19 Mar 2003 Disentangling the mistakes of his predecessors won't be easy, as fullyear results highlight. Especially when alluring assets like Italy's Peroni continue to beckon the Belgian brewer to overpay.
Bank of America shuts European equities operation 19 Mar 2003 The secondtier investment banks have long been expected to stage a retreat. Bank of America s capitulation will make it easier for others to follow suit.
FT’s big Wind break 19 Mar 2003 It looks as if Enel has persuaded France Telecom to sell its 26% stake in their telecoms joint venture for around E1.5bn. This makes sense for both sides. The price is generous but not mad, and FT's involvement in Wind has passed its sellby date.
M&A houses nab bulk of Wella/P&G work 18 Mar 2003 What gives? Drueker, Greenhill, Lazard and Rothschild snatched the lion's share of the biggest European consumer deal. The bulge bracket calls it an anomaly. The boutiques say it's a permanent shift. They are probably both wrong.
Marconi files restructuring with court 18 Mar 2003 Based on the group s new sales indications, it is possible to estimate an enterprise value for the restructured entity. This will merely determine creditors' recovery rates. Existing shareholders will be left with next to nothing.
News Corp issues $1.35bn Sky exchangeable 18 Mar 2003 On past form, that won't come at the expense of News Corp's influence over BSkyB. Rupert Murdoch continues to clean up his balance sheet, this time refinancing a convert issued in 1996.
Short-bias hedge funds underperform stocks 18 Mar 2003 That s one explanation for their poor performance lately. On the other hand, maybe they just shorted the wrong stocks. It's oversimplistic to say that hedge funds which take net short positions will always outperform a falling market.
The snap back rally: sharp, but short 18 Mar 2003 It s been an impressive bounce. Stock markets have rallied by some 15% over the past week, and some sectors almost twice that. The rally is unlikely to last. And if it does, don t expect cashstrapped firms to stand idly by. An avalanche of capitalraising awaits.
P&G bids E6.5bn for Wella 18 Mar 2003 At 13.3 times ebitda, the price is steep. Synergy forecasts barely cover the E1.8bn premium to prebid speculation values. And P&G may need to spend more to bring preference shareholders on board before the deal is won.
Why has Ackermann called for a bad bank again? 17 Mar 2003 It may be because Deutsche Bank s chief executive is genuinely worried that the sector might drift into crisis. The government has not done much to inspire confidence. While showing polite interest, it has largely stuck its head in the sand.