Vivendi is priced for normality 17 Jun 2003 The conglomerate's balance sheet repair and monster disposals programme are progressing well. And the market believes it. Vivendi's shares are pricing in little risk that the turnaround falters.
Citigroup not interested in shareholder activism 16 Jun 2003 That s a shame. Its fund management arm argues there s a freerider problem where other fund managers benefit from its efforts. But the only way to deal with the freerider problem is for the industry s leaders, like Citigroup, to take a lead.
Investment banks only want rocket scientists 16 Jun 2003 Job losses have peaked, but the downturn has raised the bar for new applicants. They need a PhD more than the traditional charm. This may just reflect a countercyclical demand for riskmanagement rocket scientists. But the quantitative revolution cannot be undone.
Cordiant in vulture’s clutches 16 Jun 2003 Bondholder Cerberus has vetoed a sale of the distressed media agency and teamed up with Publicis to dismember it. This pact looks bad for shareholders and other creditors. But can counterbidder WPP derail their plan without wrecking fragile Cordiant?
Enel to dip another toe into Spain 16 Jun 2003 The Italian utility is poised to buy a chunk of Union Fenosa s renewable energy business, plus a stake in a generator. This builds on Enel s first Spanish investments in a useful, if not major way. Long term, it could pave the way for a Fenosa takeover.
Competition squeezes private equity returns 16 Jun 2003 Too much private equity money is chasing a small number of deals, driving up prices. This is depressing returns. Investors in private equity are also tightening their fund selection criteria. This makes it harder for private equity firms to raise money.
Convicted insider dealer gets top bank job 16 Jun 2003 In most countries, this would be unthinkable even if the sentence is being appealed. But this is Italy. And Emilio Gnutti, returning to the vice chairmanship of MPS, is well connected even to Silvio Berlusconi, Italy's prime minister.
BNL resignation opens way for mergers 16 Jun 2003 The Italian bank has had onoff talks about a merger for years. Davide Croff s resignation could break the logjam. That s a common supposition, at any rate. Yet consolidation among second tier Italian banks may be as far away as ever.
Holiday firms may embark on mergers – report 15 Jun 2003 Times are certainly tough for European holiday operators. But further consolidation is not the answer. Both Thomas Cook and Kuoni have shot down rumours of a tieup. Indeed, all such stories should be taken with a dollop of salt.
Inditex clears Q1 hurdle 13 Jun 2003 Sales are holding up. But Inditex s margins are still coming under pressure. The Spanish retailer s firstquarter results reassured the market. Perhaps its troubles last year were just a blip.
Tronchetti may end up with only 10% of TI 13 Jun 2003 He'd been counting on a 15% stake as a result of spending E9bn on buying back Olivetti and TI shares, as part of the companies' merger. But only E11m of Olivetti shares have been tendered. And there's a chance that hardly any TI shares will be tendered.
Investors lap up Benfield IPO 13 Jun 2003 This is clearly encouraging for those seeking to take companies public. But it doesn't mean that the IPO market is open to allcomers.
Thomson lowers profit forecast 13 Jun 2003 The French consumer electronics manufacturer is belatedly restructuring its US television business. Thomson seems to have lost something with the exit of Thierry Breton. But is that style or substance?
Europe’s reformability on trial in Paris 13 Jun 2003 France faces a wouldbe general strike over pension reform. This political street theatre matters, and has more than local importance. Reform must win if outsiders are to believe Europe has an economic future. Even the contested pension changes are quite inadequate.
Vodafone keeps voice revenue growing 12 Jun 2003 The mobile industry's focus on raging data growth heightens suspicions that breadandbutter voice calls have gone flat. The threats to voice revenues are legion. But figures in Vodafone's latest annual report say they haven't stopped growing yet.
Deloitte found negligent over Barings collapse 11 Jun 2003 A British court has found the auditors of Barings' derivatives business negligent over the £830m rogue trader losses that bust the bank. This is not as bad as it looks for the accountants. The judge still lays the real blame with Barings management.
Vivendi increases distance from Diller 11 Jun 2003 The conglomerate has sold its last remaining warrants on shares in Barry Diller's USAinteractive back to him for $407m. This is a further orderly unwinding of the relationship between Vivendi and its partner in the US entertainment business.
Seat sale values directories at E5.7bn 11 Jun 2003 At 9 times estimated 2003 ebitda, private equity buyers have paid a full price for the Italian unit. Another element of Marco Tronchetti Provera s daring plan for Telecom Italia has fallen into place courtesy of rising markets.
Tesco dips a toe into Japan 10 Jun 2003 The UK retailer has bought a small chain of convenience stores, avoiding the temptation to follow biggerthinking rivals. Tesco isn t taking risks in the notoriously difficult Japanese market. But it can use its toehold to try out ideas.
Nokia warns on handset sales 10 Jun 2003 Revenue growth remains as elusive as ever at the Finnish mobile group. On nearly 20 times earnings, the stock would be vulnerable were it not for a big buyback.
Opec seeks to protect market share 10 Jun 2003 The oil cartel wants independent producers to join it in making any future output cuts, should the need arise. It may not need to. Oil firms' financial discipline has limited their scope to jack up output in the longer term.
Stock-market rally has dampened volatility 10 Jun 2003 There is room for volatility to fall further, absent any nasty surprises. But a bounce in volatility from its lows along with options selling suggests investors see a bit of complacency in the market.
Telewest bondholders pounce 10 Jun 2003 At the last minute, uppity creditors of cable group Telewest have demanded a rejig of its restructuring plan, and of its management. It looks like bondholder Bill Huff, who played the same game at rival NTL, is set to redraw the map of UK cable.
Chubb poised to throw in the towel 9 Jun 2003 The UK security group is inclined to accept UTC's lowball offer, expected to come in at around 75p a share. That s not terribly appealing. But then the board must think Chubb s prospects aren t either.
Eni investors beware 9 Jun 2003 This might create a national champion. But strongarming Eni would just mete out more abuse to Italy s minority investors. Hardly a day goes by without someone in the Italian government saying it would be a good idea to slam Enel s Terna into Eni s Snam.
Wannabes eye up Carlton and Granada 9 Jun 2003 The ITV companies, in midmerger, are reported to be the object of bids involving Apax, Haim Saban, David Elstein, and Neil Blackley. The plot is more soap opera than drama. Shareholders will be best served by getting the merger done before looking for offers.
Thales denies BAe merger plan 9 Jun 2003 That's hardly surprising. Merging the French and British defence groups couldn't have got anywhere because of political obstacles. Even so, the flirtation has provided a fillip to BAe shares ironically because it will probably be bought by Americans.
Professor devalues sterling 9 Jun 2003 An academic study done for the Treasury says the pound's equilibrium rate against the euro is lower than market expectations. This has the audacity of genius. Few finance ministers dare try to talk the currency down. Using a subcontractor to do so is unprecedented.
Brussels mulls poison pill compromise 9 Jun 2003 A plan to make companies disclose takeover protections, rather than banning them, may stop the EU takeover directive from collapsing. But although the scheme may have merit, it doesn't bring an efficient market for corporate control much closer.
Freddie Mac fires president 9 Jun 2003 The US mortgagefinance company has questioned David Glenn's conduct in cooperating with auditors. This may not have all the makings of a damaging scandal. But until it is resolved it could depress sentiment across credit markets.