Bankers play on fears to win business 30 Jun 2003 Investment banks could make millions by persuading companies to sell noncore crossshareholdings into the stock market rally. But most finance directors are raising debt, not paying it off. Bankers only hope appears to be scaring them into action.
Central bankers’ bank takes a poke at deflation 30 Jun 2003 The Bank for International Settlements appears less concerned about deflation than about the effects of policies used to fight it. Deflation on its own isn t necessarily a bad thing. But the problems that might arise from staving it off could be.
Debenhams gets second private equity approach 30 Jun 2003 Investors who feared the retailer s arrangements with Permira might shut others out will be relieved that CVC and TPG have teamed up to bid. An auction now looks on the cards.
Alstom reveals accounting improprieties 30 Jun 2003 Another nail descends into the coffin of the French engineering group. Alstom is completely dependent on the goodwill of bank lenders. This is no way to maintain their confidence.
Yell to make up its mind on flotation 30 Jun 2003 The directories group decides this week whether to launch a July IPO at a similar price to one its shareholders rejected a year ago. That might make them look worryingly overkeen. But this summer's rally promises the float a better chance of success.
Messier fights for E21m severance pay 30 Jun 2003 Vivendi is appealing against a tribunal that says it must give its former chief executive a ridiculous payoff. Of course Messier deserves nothing. But getting shot of him was excellent value at almost any price.
Nestle slips shareholders Dreyer’s goodies 30 Jun 2003 No wonder it is trying its best to give shareholders the impression the deal is sweeter than it first thought. Nestle has the OK from US regulators for its $2.8bn US icecream takeover, but hasn t convinced shareholders of the deal's merits.
RWE’s new boss stamps authority with restructuring 27 Jun 2003 Harry Roels is trying to wrestle the unwieldy German utility to the ground with his new restructuring plan. But what he can achieve modest cost cuts and a slightly simpler structure reveals his limits.
Cordiant parachutes set stage for WPP’s AGM 27 Jun 2003 Whopping payouts to bosses at Cordiant, WPP's new acquisition, are ironic, since WPP's own governance will be under fire at Monday's AGM. The chief executive's deal defies rules that are surely made to be broken. But boardroom power has as much to do with it as his talents.
P&G claims victory in Wella standoff 27 Jun 2003 The consumer products giant acquired enough of the German shampoomaker's shares to exercise the tax benefits of the deal. Curiously, the deciding factor for P&G was the sale by rival Henkel to tender its Wella shares. Why would it give P&G such satisfaction?
UK property bears feast on B&B’s woes 27 Jun 2003 Bradford & Bingley's warning about a slowdown in housing transactions is ringing alarm bells. B&B is less exposed to London and the south. Its remarks suggest the slowdown may be countrywide.
Italian banks start to unwind Generali stakes 26 Jun 2003 The joint assault on the Italian insurer looked like an extremely expensive power game earlier this year. But the market bounce has created the circumstances where they can exit or at least cut their stakes without suffering big losses.
Deutsche Bank unwinds Novartis exchangeable 26 Jun 2003 An accounting change has torpedoed the cunning derivatives arrangement. But Deutsche and Novartis prepared an elegant exit for this eventuality.
Junk bond rally may have run ahead of itself 26 Jun 2003 Spreads over riskfree government bonds look on the low side. After taking account of expected losses, bondholders are getting a premium of only 1.4%. The historical average is more like 2.5%.
Fiat turnaround falls short 26 Jun 2003 Chief executive Giuseppe Morchio has delivered the most credible plan yet to bring Europe's serial value destroyer back into profit. But he leaves too many questions unanswered to merit participating in the Italian industrial group's E1.8bn capital increase.
Lehman tipped to pay $3bn for US asset manager 26 Jun 2003 The purchase of Neuberger Berman would give the investment bank a prized high networth brand in asset management. The mooted price looks high nonetheless. And Lehman is mistaken if it thinks asset management is much less volatile than investment banking.
Nestle makes concessions on US ice cream deal 26 Jun 2003 In exchange for antitrust clearance on its $2.8bn takeover of Dreyer s, Nestle must sell off some of the toptier brands. The loss of these brands makes it hard to see how Nestle can justify the price it will pay.
Fed steps back from unconventional policy 26 Jun 2003 The US central bank cut rates by 25 basis points, but shied away from any mention of unorthodox monetary policies. The Fed has left itself room to make another cut before it needs to seriously consider such alternatives.
Dresdner’s bad bank faces dilemma 25 Jun 2003 Either Dresdner sells the dud loans rapidly. But then it will get firesale prices. Or the German bank can scrutinise the 7,000 individual credits. But that will take time, during which their value may also decline.
Dixons wrong-foots short-sellers 25 Jun 2003 The UK retailer's results were only slightly positive. But that was enough to sting those who have been betting on yet more bad news. Now that the dividend has been jacked up and the stock yields 6%, shortsellers must be running for cover.
French government wants to exit defence stakes 25 Jun 2003 The French state intends to sell out of Thales and EADS. This looks to be aimed at fostering the emergence of a European aerospace champion. It won't happen soon. But when it does, the government should avoid sweetheart deals and encourage an auction for control of Thales.
Harrah’s gambles on Vegas-on-Thames 25 Jun 2003 The US casino operator has put its cards in a £1bn joint venture with the UK s Gala Group to develop large regional casinos. The pressure is on for the government to relax gaming laws and Gala's listed rivals to find experienced partners of their own.
SEC plans shareholder vote on equity pay plans 25 Jun 2003 Add this proposal to planned changes in stock option accounting and shareholders will finally have the tools to curb excessive dilution. But don t expect an overnight revolt given the reluctance of US funds to take action.
Interbrew fails to disappoint 25 Jun 2003 The brewer avoided the sales hiccup that hit Heineken. But there are doubts that Interbrew may have sacrificed margins to support growth. Its traditional discount to Heineken has virtually vanished. That may not be justified even if Heineken itself isn't a buy.
Trading boom lifts Goldman 25 Jun 2003 Like its peers, the US investment bank enjoyed bumper profits in the second quarter thanks to trading securities for its own account. That is just as well. Because there's still little sign that the advisory business is about to pick up anytime soon.
Orange unveils surprise cash targets 24 Jun 2003 The mobile operator's new chief executive has announced little strategy, if a lot of tactics. He aims to build an E11bn cash pile that he has no plans for and knows he does not need. Majority shareholder France Telecom does, though.
GM swaps one debt for another 24 Jun 2003 The US carmarker has acknowledged that its pensionfund deficit is a liability. This transparency is welcome. GM may simply be postponing a pensions crisis. And why not, if investors will let it?
Yell keen to retry a float 24 Jun 2003 The directories business is reported to be planning another shot at the flotation it was obliged to withdraw a year ago. Extraneous pressures on its private equity shareholders are surely the main motive for having another go so soon.
ABB’s asbestos nightmare ends 24 Jun 2003 Court approval for the SwissSwedish engineer's asbestos settlement paves the way for a crucial asset disposal. ABB is now well placed to tap the capital markets.
Investors hold Belgian central bank to account 24 Jun 2003 An unseemly row over shareholder rights is raging between the bank, a quoted company, and its minority investors. It's not the pure pursuit of better corporate governance that has put a rocket under BnB's shares. It's the prospect of a pot of gold.