PPR’s disposal programme inches forward 24 Apr 2003 Pinault Printemps Redoute s sale of its building materials unit to Wolseley looks like more proof of its ability to clinch tough deals. But PPR is losing its magic touch when it comes to achieving skyhigh prices.
Suez raises E1.8bn from Fortis stake 24 Apr 2003 The indebted French group failed to secure a premium by shopping its 10% stake in the Belgian bank to a trade buyer. It has had to opt for a second best solution offloading a chunk via a mandatory convertible bond and selling the rest in the market.
Siemens makes the most of the downturn 24 Apr 2003 Siemens must be careful not to burn cash on daft acquisitions. But its planned deal with Alstom will probably stack up. The German conglomerate is capitalising on its broad spread of businesses and rock solid balance sheet.
Deutsche Bank spring cleans its balance sheet 24 Apr 2003 The German bank is using the windfall it got from trading revenues in the first quarter to writeoff dud investments. This is a sensible approach. But has it cleaned things out thoroughly?
What’s the best way to become the boss? 23 Apr 2003 Not that the new chairmen/CEOs wanted the job. But when no other suitable candidates emerged, the finger pointed at them. Sit on the committee trying to find the new boss. That, at any rate, is the experience at Orange and now Corus.
Corus appoints Philippe Varin as CEO 23 Apr 2003 Before he can achieve this, Varin will have to decide which assets Corus should sell. The main task for the exPechiney executive at the struggling AngloDutch steelmaker is to renegotiate bank loans.
Puma’s pounce unhindered 23 Apr 2003 The fastgrowing German sportsshoe maker still has a way to go to narrow the value gap with Nike. But that may actually be deserved while Puma's trendy success lacks Nike's pricing power and stability.
German banks strike securitisation pact 23 Apr 2003 Assetbacked issuance is set to soar in Germany when the state passes laws to help banks offload assets. Six Frankfurt banks are ganging together to keep the majority of that business for themselves.
Italenergia looking at E1.9bn final tab for Edison 23 Apr 2003 An attempt get the market to share some of the pain was largely unsuccesful. Outside investors only stumped up E180m. So Fiat, EdF and friends who have already put in E1.5bn must put in another E400m of equity.
No peace dividend for advertising stocks 22 Apr 2003 With the war over, investors have realised that Iraq was only a temporary excuse for adfunded companies. They still do not know when any recovery might arrive. So welcome back volatility.
US-led Iraq should not rush into oil deals 22 Apr 2003 Iraq should focus on restructuring its oil industry, not entering into hasty contracts with majors. It is in the interests of the oil companies to be patient. Future Iraqi governments may not honour raw deals.
Chubb profit warning hits recovery hopes 22 Apr 2003 The British security group had a terrible start to the year. It looks like it might take a while to dig itself out of its hole. Although the reported approach from UTC doesn't look terribly generous, Chubb's shareholders could be forgiven for wanting out.
Caltagirone’s bid for Metrovacesa fails 22 Apr 2003 The Italian financier had the right idea in bidding for the Spanish property group when its dominant shareholder was powerless to respond. But the strategy was poorly executed, and Metrovacesa's minority shareholders are left with only one consolation prize.
Yukos and Sibneft agree to merge 22 Apr 2003 The deal, creating a $35bn supermajor, protects key Russian oil assets against foreign takeover. Oil companies have spearheaded Russia s corporategovernance reforms. But this has left them vulnerable.
ABN Amro paying E690m for Brazilian rival 17 Apr 2003 Talk about Dutch courage. ABN is supposed to be licking its wounds and getting a grip on its emerging market risks, not increasing them. Buying Intesa s Banco Sudameris seems a cheapish way of taking market share. But much depends on ABN s ability to turn the business around.
Diller gets hissy with Vivendi 17 Apr 2003 As Vivendi tries to get cash out of its US assets, it is being haunted by the 2001 merger that set them up. Minority shareholder Barry Diller appears to be making a bold attempt to blight Vivendi's chances. But going public is a sign of weakness.
Buyouts of public companies bubble up 17 Apr 2003 Is the glut of assets that so excited private equity buyers in Europe a year ago drying up? That's one interpretation drawn from the renewed interest in takeovers of midcap public companies, particularly in the UK.
Nokia to spend E400m restructuring networks 17 Apr 2003 The size of the charge suggests the business is in severe trouble. This means group earnings are likely to fall this year despite a strong contribution from handsets.
Credit research struggles to find post-Spitzer model 17 Apr 2003 There is less secondary trading in bonds than equities, so it s harder to wean credit research off investment banking cash. UBS has come up with a solution: split research into two bits, with one reporting to investment banking.
Reuters says everything is under control 16 Apr 2003 The information provider forecasts further big revenue falls, with an 11% yearonyear drop expected for the second quarter. But that's in line with guidance, and Reuters still believes it can hit its margin target. Business is bad, but not out of hand.
Semiconductor makers feeling chipper 16 Apr 2003 This is in marked contrast to their customers. Might inventory accumulation based on the war on Iraq explain the disconnect?
Mediobanca boss faces first test of mettle 16 Apr 2003 The investment bank s mooted interest in Fiat convertible debt highlights the conflicts Gabriele Galateri must navigate. To make such a deal stack up, he d have to negotiate fiercely with the very board members who gave him his new job.
Merrill Lynch, JP Morgan beat expectations 16 Apr 2003 Volatile trading is propping up revenues. Customerled business is still in decline. This is making investment bank earnings harder to predict. The surprises may not always be pleasant.
HSBC lures top talent to investment bank 16 Apr 2003 John Studzinski s appointment as cohead signals a renewed push into this business area by the international banking group. Spitzer and the bear market have knocked the stuffing out of many investment banks. Perhaps HSBC hopes to profit from the disarray.
Boots pension trustees in a bind 16 Apr 2003 Trustees of the UK retailer's pension don't want to be seen as kowtowing to the company's directors by putting the fund back into shares. But they should put such considerations aside and weigh up investment strategy alongside their attitude to risk.
Invensys opts for partial break up 15 Apr 2003 Given the downturn in trading, big disposals are necessary to secure the UK engineer's finances. Invensys is trying to preserve value for its shareholders. But they are in for a choppy ride.
Six Continents’ gamble pays off 15 Apr 2003 Both the pubs and hotels groups have nabbed enviable market valuations. SixCon was right not to give in to its stingy bidders. Raiders hoping for an easy steal will be disappointed. But both groups will need more bid speculation to keep their valuations aloft.
GUS needs to find a solution for home shopping 15 Apr 2003 The dominant agency part of the business is in terminal decline. And managing a shrinking business is full of pitfalls. If GUS isn't in talks with rivals about spinning off the business as recent reports have suggested it might be it should be.
Safeway hit by bidding war 15 Apr 2003 However, the outlook for Safeway s profits is deteriorating. Any financial buyers sniffing around will be reassured the grocer s sales haven't completely plunged.
Agricole/Lyonnais: The missing condition 15 Apr 2003 Rulings on competition issues have messed up the carefully planned Credit Agricole takeover of Credit Lyonnais. How odd, then, that Agricole did not make the deal conditional on antitrust clearance.