RWE is better value than E.ON 12 May 2003 Yet RWE has hugely underperformed and now trades at a 20% discount. This does not make sense. Over the past three years, the two German utilities have made similar mistakes especially in M&A.
Selfridges wrings top dollar bid from Weston 12 May 2003 The board deserves credit for auctioning the UK department store, rather than getting bogged down with potentially phantom bidders. Selfridges may be a trophy asset, but shareholders have still got a pretty good result.
RSA still needs a rights issue 12 May 2003 Like its pension deficit, the successful float of the UK insurer s Australian unit was not the nightmare investors had earlier anticipated. But doubts over reserves and life solvency are stubborn. With the shares firming, the new CEO should have another go at a rights issue soon.
Telefonica Moviles performs 12 May 2003 The Spanish incumbent's mobile arm is holding share in the domestic market that accounts for most of its value, and growing margins too. It is living up to the expectations reflected in its share price. But they are high, and so is the price.
The grey pound is set to shine 9 May 2003 In macro terms, Europe s ageing population is bad news. But catering for the aged is a potentially boomy market. In this light, Zara's decision to expand into larger sizes which should appeal to older customers looks a pretty smart move.
Ahold inches closer to break-up 9 May 2003 On its restated earnings, the Dutch supermarket group s food distribution business is barely profitable. This cuts the value of the asset and raises doubts over Ahold s solvency. Lenders may force the sale of a core asset.
European airlines face bleak outlook 9 May 2003 Things look really ghastly: revenues are down thanks to Iraq and Sars and carriers are burning through mountains of cash again. But this may be what the industry needs to shake off valuedestroying practices.
Easyjet faces questions on business model 8 May 2003 The nofrills airline has gone for growth by competing headon with incumbent carriers. The problem is that it is starting to look suspiciously like a conventional carrier itself.
Barclays takes E1.1bn Spanish plunge 8 May 2003 Spain may be Europe s best banking market. But Barclays is paying a peak price for Banco Zaragozano over three times book. Although Barclays can easily afford this, the surplus capital splurged in Spain may jeopardise its share buyback programme.
ProSieben minorities at war with Saban 8 May 2003 Haim Saban wants to avoid buying out minorities in broadcaster ProSieben when he buys Kirch Media's assets. They are threatening to sue. In a Germany that needs foreign investors, the regulator should back the minority investors.
ECB monetary policy review is a fudge 8 May 2003 Any changes the European Central Bank have made are teeny and subject to freewheeling interpretation.
Regulator to mull impact of Safeway deal on suppliers 8 May 2003 Maybe the Commission is just covering its bases. But if Safeway is a special case, that would be bad news for its shareholders. The Competition Commission hasn't traditionally been too concerned with the plight of suppliers.
Rumour rocks Vivendi 8 May 2003 Shares in the conglomerate are down as the market assesses a report that a placement of shares worth 15% of the company is on the way. The report does not quite seem to stand up. But either way, it looks like someone means Vivendi no good.
SAP shares look vulnerable 7 May 2003 The German software group s revenues seem likely to fall, even if it is taking market share and cutting costs. SAP will struggle to justify a stockmarket rating of almost 30 times forward earnings.
Commerzbank returns to profit in Q1 7 May 2003 The German bank has made progress on cutting costs, and it is racking up fewer bad debts. But this is its seasonally strongest quarter. There s still plenty of scope for disappointment.
Bertelsmann slips into loss 7 May 2003 The media group's margin drive has gone into reverse, thanks to the dollar, music and consumer publishing. A weak operating performance makes Bertelsmann's debts more worrying. So the impending sale of its scientific publisher matters more, too.
The euro isn’t wildly overvalued – yet 7 May 2003 Yet at a fouryear high to the dollar it is getting close. That s bad for exporters, like Germany, but good for consumers. Markets overshoot, however. If the euro becomes as overvalued by as much as it was undervalued in 2001 it still has much further to rise.
Xstrata’s underwriting fees weren’t abusive 7 May 2003 An investor has got hot under the collar that the mining group paid its largest shareholder a fee to underwrite part of its £901m issue. The deal may have sailed close to the wind legally, but the shareholder provided a valuable service to Xstrata.
Failed Gas Natural bid leaves unfinished business 6 May 2003 Further attempts at consolidation in the Spanish utility sector look inevitable. To help the process, takeover rules need further improvement especially Spain s passivity rules.
ITV merger in jeopardy 6 May 2003 Investors have belatedly but emphatically woken up to the risk from competition regulation to the proposed Granada/Carlton merger. Something is wrong here. Either the market is needlessly worried, or the companies have given it wholly cavalier reassurances.
Green shouldn’t get totally clear run at Safeway 6 May 2003 He would. But that's not going to be in the best interest of Safeway shareholders. The retail guru reportedly wants the Takeover Panel to stop rivals under antitrust scrutiny making "conditional" bids before he commits.
Colaninno circles Vespa-maker 6 May 2003 The Italian financier wants to inject E100m for 51% of Piaggio's voting rights and convince banks to convert debt. Public shareholders would balk at his plans. But there are none. Here is Colaninno's chance for a comeback.
Telecom Italia looks undervalued 6 May 2003 The terms of TI's merger with Olivetti remain unfair. But on a proforma basis the merged group appears cheap. The merger brings big debts that ratchet up risk. But the risk looks manageable. And shareholders are compensated for it.
European tour operators see rays of hope 5 May 2003 MyTravel and First Choice Holidays have seen summer bookings start to pick up following the end of war in Iraq. The operators were smart top cut capacity before the hostilities broke out. But it s not all sunny skies ahead yet.
Bacardi could kick off drinks M&A 5 May 2003 An IPO by the rummaker's heirs may not happen for years, but any incremental step now could jumpstart the industry jockeying. Among Big Booze, Bacardi, Brown and Pernod are sheltered. But Allied Domecq is very eligible and on a lowlier multiple.
Rhodia plans E700m junk bond issue 5 May 2003 First Vivendi Universal launches a junk bond, now this. The market seems to be opening up to fallen angels. Vivendi made big strategic changes before it sold its bond. Rhodia hasn't. Its deal smacks of opportunism.
Buffett buckles down to new corporate governance rules 5 May 2003 This is boxticking gone mad. Buffett does not have an unblemished record. But his failings are not at Berskhire, but at Coke. To comply with NYSE rules, the Sage of Omaha will have to add new independent directors to Berkshire Hathaway.
Unilever disappoints 2 May 2003 The consumer giant's stock is down on slow firstquarter growth. Sales of food brands more than half the total stagnated. Investors are punishing Unilever for raising expectations with cheery guidance. But it's too soon to decide that the group is off course.
Ahold to nominate Anders Moberg as CEO 2 May 2003 Anders Moberg's agreement to take up the cudgel at the tainted Dutch retailer is a big vote of confidence. But the road to rebahilitation remain treacherous not least because Moberg may have to sell core assets in a tricky market.
Big Oil earnings hit the roof 2 May 2003 First quarter profits tripled at Exxon, more than doubled at BP, and rose 96% at Shell all thanks to high oil prices. There are peak earnings. So is it downhill from now on? Perhaps. But a fall in oil prices is not the biggest risk for the Three Sisters.