Big ad spenders object to Granada/Carlton merger 14 Apr 2003 Protests against the UK's governmentencouraged TV merger turn out to be led by the government's own adbuying agency. Happily, an independent regulator will sort the conflict of interest out although its rumoured scheme for doing so looks pretty wacky.
ABB paves way toward equity issue 14 Apr 2003 The mood music is suggesting a convertible bond. If ABB wants to get its share price up beforehand, it may have several opportunities.
European buy-outs down by 20% in 2002 14 Apr 2003 Falling stock prices and economic uncertainty have finally taken their toll. Companies are less keen on M&A of any sort and that reduces opportunities for private equity.
Citigroup lifts revenues 4% in the first quarter 14 Apr 2003 The world's largest financial services group has posted a strong rise in Q1 net income largely thanks to a helpful comparative in 2002. But the top line result is mixed and there are few signs that the much lauded consumer business is gathering real momentum.
Allianz reaps E4.4bn from rights issue 13 Apr 2003 The German insurer has distinguished itself by securing a step change in the underwriting price for its fundraising. But it is still investors, not the underwriting syndicate, who are taking the bigger risk.
Should Invensys break itself up? 11 Apr 2003 The best current assessment has to be no. But if trading deteriorates, the UK conglomerate s days are numbered.
Apple sniffs around Vivendi music 11 Apr 2003 Vivendi used to be the one with the wackiest ideas about convergence in the entertainment industry, not Steve Jobs. Apple has cash and Jobs may see some strange logic to marrying music with the iPod. But there s no need for Apple to own the music assets.
Hating the French is harder than you think 11 Apr 2003 Major French companies show that they are still winning big contracts in the US, despite the shadow of diplomatic rows over Iraq. And while grassroots Americans want to boycott French and German goods, the first victims may well be US employees of EU firms.
Banks take fees on both sides of M&A deals 11 Apr 2003 In auctions of companies to private equity bidders, some banks are both advising the seller and financing the buyer. This can help the seller when financing markets are difficult. But it creates a conflict.
BAe struggles to get workers to fill pensions hole 11 Apr 2003 Even if final agreement is reached, it will be harder for other deficitsaddled companies to pull off a similar solution. The UK defence company has split unions with a proposal that its workers share in shoring up its final salary pension scheme.
Scottish & Newcastle finally nabs a CEO 10 Apr 2003 It's taken long enough reflecting the difficult task Tony Froggatt faces squaring S&N's debt with its generous dividend payout. If he can't solve this problem, it is hard to see how S&N can participate in the ongoing consolidation of the industry.
Concorde to retire from service 10 Apr 2003 Poor economics have finally driven the inefficient supersonic aircraft from the skies. Yet another sign that the conspicuous consumption that marked the long bull market is going out of style.
Selfridges gets bid approach 10 Apr 2003 The British department store is a lot more glamorous than other department stores which have previously attracted bid interest. But there's still room to release value. Before news of the bid leaked, it was trading at an 18% discount to NAV.
LSE wants governance principles, not rules 10 Apr 2003 The exchange has half a point. An excessively prescriptive approach could lead to mindless boxticking. But the Higgs report doesn't talk about rules. And there may be better antidotes to excessive prescription than the exchange's proposal.
Hughes falls to Murdoch 10 Apr 2003 GM has spent the best part of two years trying to better News Corp's bid for its satellite broadcaster. Now it has admitted defeat. News Corp, for its part, has pulled off a smooth coup. Its balance sheet allows it to swallow Hughes up without straining.
Junk bond market in party mode 9 Apr 2003 High yield bonds have capitalised on the revulsion with equities and the dismal returns offered by mainstream credits. The best of the rally is over. But prices are sustainable. Investors will be judged on which bonds they avoid.
Brown promises more spending, higher deficits 9 Apr 2003 Revisions to past GDP numbers and bullish growth forecasts mean the UK's budget deficit doesn't look too daunting. But Gordon Brown's plans for even higher spending worsen the structural fiscal outlook. New tax hikes are a matter of when, not if.
Allianz’s rights issue should raise over E4bn 9 Apr 2003 The German insurer is to issue 7 shares for every 15 owned, implying an issue price of E30 if it is to raise the minimum E3.5bn it is after. But there are reasons to suppose that Allianz will be able to price the issue more aggressively, and raise much more.
LVMH Q1 sales down 5.2% 9 Apr 2003 The group has been hit by negative currency impacts. Wars and viruses certainly don't help either. But organic growth looks surprisingly healthy, all things considered.
Equity desks go from resizing to reshaping 8 Apr 2003 Investment banks response to the fall in equities revenues has been to focus on absolute costs. But before long they must start from scratch and ask whether equities staff in particular equity salespeople are doing the right job.
M&S clothing shrinks 8 Apr 2003 Likeforlike clothes sales at the UK retailer actually fell in Q4, even though it kept market share steady. Marks & Spencer should still squeeze out healthy profits. But its rivals may not be able to.
LSE picks relative unknown as chairman 8 Apr 2003 Chris GibsonSmith is a safe pair of hands and is wellequipped to be its frontman. It is not obvious, though, that his advent brings LSE any closer to resolving its chronic strategic question marks.
Fiat reaches E1.6bn deal for Avio 7 Apr 2003 Fiat's banks may be relieved its disposals did not degenerate into fire sales. But shareholders must still be wary. A quick sum of the parts shows the group's assets barely cover liabilities when factoring in an appropriate discount.
France Telecom rights issue heads for textbooks 7 Apr 2003 The underwriters were lucky that the stock market held up during the war on Iraq. But the transaction was planned with military precision and cleverly structured.
UK’s FSA proposes limited ban on soft commissions 7 Apr 2003 The Financial Services Authority has stopped short of forcing fullscale unbundling of broking commissions. It wants fund managers to repay clients commission paid for softed services. Recouping that through higher management fees will be tough.
Britain’s cyclical deficit is growing 7 Apr 2003 This week, UK finance minister Gordon Brown will defend a rising deficit by showing it complies with his "golden rule". But the rule is flawed. It is allowing a structural deficit worse than France's or Germany's to develop. Brown must spend less or tax more.
MIM agrees $2.96bn Xstrata offer 7 Apr 2003 The takeover builds the world's largest thermal coal producer, and diversifies Xstrata away from coal and its South African base. It will also earn over Xstrata's cost of capital, it says. Add a bigger, more geared free float, and no wonder shareholders are pleased.
Iraq triggers debate on odious debt 4 Apr 2003 Some say Iraq shouldn t have to repay debts it ran up under Saddam because his regime was illegitimate. This idea has a certain appeal, and would certainly reduce the cost of rebuilding Iraq. But it is very problematic.
European tech stocks shunned and despised 4 Apr 2003 Sentiment has swung from one extreme to another. Pessimism is overdone. And short sellers are training their sights elsewhere. So should contrarians dip a toe back into tech? Not while earnings forecasts still incorporate an unrealistic secondhalf recovery.
Agnellis face investor rebellion 4 Apr 2003 A big US investor in their Ifil holding is threatening legal action over a planned asset shuffle. But victory won t be easy. Still, a public brawl could be damaging for the Agnellis. And there are some good questions on the proposed deal.