NTL is set to keep burning cash 16 Jul 2003 New filings by the restructured cable company reveal that its rejigged balance sheet is still unsustainable. At the least, it needs to refinance $600m of unaffordable bonds. The case for a rights issue is compelling.
Pressure rises for EdF chief to quit 16 Jul 2003 Most of the empire building chief executives at other giant European utilities have already moved on. If EdF was quoted, Francois Roussely would have gone too. Indeed, his continued presence jeopardises EdF s planned IPO.
Greenspan sees US economy accelerating 16 Jul 2003 That is not in doubt this year. Huge tax and interest rate cuts ensure that growth is in the bag. More controversial is Greenspan s optimistic assertion that the US is embarking on a period of extended growth .
M&S’s bounce is weaker than hoped 16 Jul 2003 Nonfood sales growth at the UK retailer is still pretty sluggish especially considering the sunny weather. Tighter stock management points to healthy margins. But hopes of a continuing salesled recovery are fading.
Merrill Lynch turns in storming second quarter 15 Jul 2003 The investment bank benefited from the socalled Baghdad bounce in both debt and equities. It is still keeping a lid on costs. That may prove to be wise.
Yahoo bulks up in internet search 15 Jul 2003 By acquiring Overture, the internet portal is positioning itself to fight the coming battle for serious online revenue. Yahoo is paying a realistic price. The net's new realism looks like it is differentiating shares more but the highest are now very high.
European stability pact should go 15 Jul 2003 Chirac is calling for a "softening" of the pact. But governments just like companies should be free to borrow what they want. Not that a borrowing binge would be wise. The real solution to low growth isn't flexible borrowing but flexible markets.
Covered bonds cross the English channel 15 Jul 2003 HBOS is debuting the asset class in the UK in order to broaden its funding options. Covered bonds allow lenders to extend the maturity of their debts. The funding looks cheap but there is no free lunch.
Fiat CEO loaded with options 15 Jul 2003 Morchio s options grant is currently worth E25m. He could make much more if he turns Fiat around following the E1.8bn rights issue. But Morchio s interests and those of Fiat s shareholders are only aligned on the upside. If the turnaround fails, he still walks away rich.
BBC unveils a loss 15 Jul 2003 The UK's nationalised broadcaster has posted a £300m loss, hot on the heels of unveiling a £1bn pension deficit. These rotten numbers wouldn't have anything to do with the forthcoming review of the poll tax that funds the BBC's operations, would they?
Chaos surrounds Cordiant 14 Jul 2003 Something very funny is going on when investors buy big stakes in this insolvent company at a premium to WPP's takeitorleave it offer. It looks like blackmail is on the ordre du jour, even though the air is thick with denials. Underhand tactics do not deserve to succeed.
Swiss International casts around for rescuers 14 Jul 2003 Lufthansa could perhaps justify wading in if only to take out a competitor. But a deal would be messy, offering scraps for investors. There are unlikely to be many takers for the old Swissair. Switzerland Inc burned its fingers two years ago when it rescued the airline.
US bank earnings thunder on in weak economy 14 Jul 2003 Citigroup grew second quarter earnings by 12%. Bank of America s profits meanwhile hit a record high. Both are enjoying a sweet spot that investors should savour while it lasts. The picture in other sectors is more worrying.
Shake-up looms at UK Financial Services Authority 14 Jul 2003 The regulator has promoted John Tiner, one of its managing directors, to the newlycreated chief executive post. He wants to restructure the FSA. That could see financial firms getting better value for money from the regulator that they themselves fund.
It’s Zaoui vs. Zaoui on Pechiney 14 Jul 2003 Morgan Stanley's Michael Zaoui is advising Alcan on its hostile bid for Penchiney; Goldman's Yoel Zaoui is leading the defence. Both are masters of M&A. Like the Williams sisters in tennis or the Schumacher brothers in racing, the battle could prove epic. Morgan Stanley's Michael Zaoui is advising Alcan on its hostile bid for Pechiney; Goldman's Yoel Zaoui is leading the defence.
Reckitt flirts with condom-maker SSL 14 Jul 2003 For a company that makes condoms, there's not much about SSL that is sexy except its price. Even after Monday's bounce, Reckitt would only need to cut 20% of SSL's costs to make a decent return on the investment.
Pechiney pours scorn and poison on Alcan’s offer 11 Jul 2003 The French aluminium company can't deny the industrial logic behind Alcan's hostile bid. But it can deride the price. Chief executive JeanPierre Rodier says the phone is already ringing from other potential bidders. Unfortunately for Pechiney, some of its arguments for a richer valuation have already been kyboshed by one of its bankers.
Bank Austria, Yell deals boost IPO market 11 Jul 2003 But don t get too excited: both were special situations. For there to be more IPOs, the market needs to keep rising.
Enel hopes to benefit from EdF’s troubles 10 Jul 2003 EdF wants Italy to give it voting power over Edison in line with its stake. But it may have to give reciprocal access in France. Brussels wants the voting ban thrown out; Enel isn t holding all the cards.
France may try to force hedge funds to locate there 10 Jul 2003 That's the likely quid pro quo for freeing up the sale of hedge funds. The potential move may fall foul of European rules. But disgruntled managers should console themselves with the thought that there are worse cities than Paris to live in.
New Bank of England governor cuts rates 10 Jul 2003 Mervyn King's first session as head of Britain's Monetary Policy Committee has delivered a rate cut that some see as overdue. That the new governor can start his term of office with such a popular move is surely great good luck for him.
German banks refocus on corporate loans 10 Jul 2003 That might seem mad, given that lending to companies has long been a profitfree zone. But it isn't so dumb as banks are charging more for loans. The snag is that their borrowing costs are rising too so there is no quick win.
Private equity ups its exit from Yell 10 Jul 2003 The directories group's flotation has come off nicely, at a price comfortably above the midpoint of the indicative range. Healthy shareholder interest has allowed private equity to extract an extra £330m but the price is scarcely bold.
RJR, BAT mull US tobacco merger – report 9 Jul 2003 It is easy to see why the two groups would be tempted to talk. The situation in the US is pretty dire. But a big merger between RJR and BAT's US unit would be a risky proposition.
Latest rumour: HSBC to buy Bradford & Bingley 9 Jul 2003 Bid rumours are tenapenny in UK mortgage banking; but actual bids are rare. This one may be true or not but a shakeup is on the cards for mortgage banks.
Autostrade to miss refinancing opportunity 9 Jul 2003 The indebted motorway group needs to tap the market in the next year. And now would have been a very good time. But Autostrade can't move very fast. The hope is that the bond markets hold up.
Don’t demonise stock options 9 Jul 2003 Microsoft s move to nix options for its employees may spark a trend. It has, after all, been the poster child of the options boom. But just as it was wrong to see options as a panacea during the bubble, it is also a mistake to think they have no role today.
Vivendi should cover blushes on auction 9 Jul 2003 But to meet its declared debt target for this year, Vivendi only needs to cut borrowing by $5bn. The five remaining bidders for its US assets aren t all equally credible. So Vivendi may not secure the $14bn that VUE is worth.
Germany privatises DT with E5bn bond 8 Jul 2003 The state is tapping into the redhot convertible market to launch the biggest ever equitylinked bond. Almost ideal conditions allow it to set a 38% premium, pay a coupon of 0.75% and get shot of E5bn in a day.
Some pointers for Pechiney’s defence team 8 Jul 2003 Directors of the French aluminium firm should reach two conclusions after they meet late Tuesday to discuss Alcan s hostile bid. Both are good for investors. Pechiney can t remain independent for long. The board s job is to get the best price.