Bank Austria IPO shows beggars can’t be choosers 8 Jul 2003 HVB had plenty of reasons to price the offer generously its own future hinged on the sale. But that's not the full story. It also had a positive reason to leave something on the table.
Baugur v Waterstone: one of them has to win 8 Jul 2003 The Icelandic retailer and British entrepreneur are both better known for failing to buy businesses in recent years. At least by going headtohead for Hamleys, one of them gets to win.
Liberty Media changes course 8 Jul 2003 Its $8bn QVC takeover, and a $12bn bid for Vivendi US assets, signal Liberty's transformation from a fund manager to an operating company. There is still no good reason for investors to give money to John Malone. His recent record isn't good. Nor is his corporate governance.
Allianz needs another share sale 8 Jul 2003 But the German insurer would not get away with a second rights issue to combat lingering doubts over the solidity of its credit rating. Instead, it may have to offload some of its noncore investments. That could spell M&A activity among German midcaps.
Rothschilds keeps it in the family 8 Jul 2003 As leadership of the bank passes from one cousin to another, so the corporate structure is being rejigged to streamline family control. This should make little difference to a bank that is already operationally unified. But it reinforces its longtermist credentials.
The big hostile bid is back 8 Jul 2003 Oracle revived the hostile takeover in the US, now Alcan has brought it to European shores. And judging by the speculation surrounding MAN, ICI and United Utilities, there may be more to come.
France Telecom privatisation on the cards 7 Jul 2003 The French government is readying a law that would allow it to drop below a 50% stake in the national carrier. It could raise cash that way. But the alternative scenario is that the government accepts dilution as part of a sharebased offer to minorities in Orange.
Second-tier Italian banks are all the rage 7 Jul 2003 Scarcely a day seems to pass without an Italian businessman buying a stake in the likes of Capitalia, BNL and Monte dei Paschi. But shareholders who hope that this will lead to a freeforall bout of consolidation are likely to be disappointed.
Volkswagen eyes MAN trucks – report 7 Jul 2003 That might be good for MAN, Scania and Fiat shareholders. But it s hard to see what Volkswagen s investors gain besides more pain. A breakup of the unwieldy German conglomerate might unlock value and kickstart mergers in the trucks industry.
EdF’s international empire is falling apart 7 Jul 2003 The stateowned French utility s problems in Latin America and Italy are well known. Now its German subsidiary, EnBW, is in trouble too. The French government says it still expects to partly privatise EdF next year. In its current state, that looks unlikely.
Alcan launches E3.4bn hostile bid for Pechiney 7 Jul 2003 The Canadian group has revived a threeyear old merger plan. It wants to overtake Alcoa to become the world s biggest aluminium firm. Alcan now says it s not worried either by the disposals regulators will probably require, or by Pechiney s sniffy resistance.
France faces key test over hostile Pechiney bid 7 Jul 2003 This is not quite Vodafone bidding for Mannesmann. But a takeover for Pechiney might open the relatively closed French market. Ministers may be tempted to interfere with the process to protect a national champion. They should resist the temptation.
Caisse des Depots to pass Ixis on to savings banks 4 Jul 2003 France's quasipublic bank is to merge commercial operations with the savings banks, creating the thirdlargest French bank, say reports. Public policy, not business logic, lies behind the fiendishly complex deal. The task of running the new bank looks like a real challenge.
Russia notches up third boom: corporate debt 4 Jul 2003 First came the rally in government bonds, then the boomlet in Russian M&A. Now it s the turn of corporate bonds. This is partly a sign that corporate Russia is coming of age. But if the government is worried about a bubble, investors need be too.
Fixed income profits hit by bond rout 4 Jul 2003 Proprietary trading desks making leveraged bets on higher bond prices have surely had their fingers burned. But while the traders have lost some of their swagger, debt capital markets and origination bankers should continue to make hay.
Merrill cases could prove turning point 3 Jul 2003 Wall Street certainly needed a catharsis following the excesses of the bubble years. But investors need to stop viewing themselves as victims and banks as dens of thieves. Lots more regulation would be in nobody's interest.
UK retreats from media deregulation 3 Jul 2003 Anxious about letting Rupert Murdoch dominate TV, British legislators have put a brake on a planned relaxation of media ownership rules. Putting their worries about bias to one side, this is a nuisance for BSkyB's business. It covets terrestrial TV simply as a marketing tool.
Germany set to welcome hedge funds 3 Jul 2003 But landlords in London's Mayfair the industry's European epicentre need not worry. More hedge funds will probably be distributed in Germany; but they'll still, for the most part, be manufactured in London.
UK takes good first step on age discrimination 3 Jul 2003 This is an opportunity to be really radical. But more is needed than just abolishing compulsory retirement ages. Older employees should take a pay cut if they aren't so productive; and the withering of final salary schemes should be encouraged.
ACS gets the better of Dragados 3 Jul 2003 That coup d etat means Dragados shareholders will never know whether someone else would have paid them more. Not surprisingly, the share ratio in this longexpected construction merger favours ACS, which crept into control a year ago.
Agnellis give Ifi minorities poor deal 3 Jul 2003 One theory doing the rounds suggests this is the beginning of a squeezeout of Ifi to gain full control of Exor. The terms of a capital increase at the top of the Fiat chain look designed to give the family greater control.
The third Russian boom: corporate debt 2 Jul 2003 First came the rally in government bonds, then the boomlet in Russian M&A. Now it s the turn of corporate bonds. This is partly a sign that corporate Russia is comingofage. But if the government is worried about a bubble, investors should too.
Another Edison deal strains at the seams 2 Jul 2003 The Italian power group s Edipower subsidiary needs another E1bn of fresh money. Edison recently completed its own fraught recapitalisation. Now it has to cough up E400m, and take on some of Edipower s risks too.
More prime brokers, more choice – more risk? 2 Jul 2003 Established hedge funds are retaining more than one prime brokerage nowadays. And competition is bringing some benefits. But one of the easiest ways for new prime brokers to take market share is to offer cheaper leverage. That should set alarm bells ringing.
Government bonds whipsaw investors 2 Jul 2003 The Federal Reserve talked up bonds with its deflation warnings. Now it is struggling to let the market down gently. The outlook for bonds is balanced between cyclical recovery and structural headwinds. The Fed may regret crying wolf on deflation.
Gucci gets handbagged 2 Jul 2003 The fashion group had a terrible quarter as sales slumped and it slipped into an operating loss. Gucci blames Sars, the war and currencies, but still seems to have suffered more than its rivals.
France gears up to bail out Alstom 2 Jul 2003 It is hard to portray stateowned Areva's interest in the French engineer's disposal in any other light. The details of Areva's bid will be scrutinised by Brussels and investors alike.
BBC makes bond market debut 2 Jul 2003 And the UK broadcaster's inexperience is certainly showing. In a charmingly naive comment, the BBC's finance director has apparently warned the bond market looks toppy.
HeidelbergCement bond offers arbitrage punt 2 Jul 2003 The new junk issue yields more than the legacy bonds despite having a higher rating and structural seniority. This is bonkers and should reverse although market inefficiencies may slow the process. This should reverse although market inefficiencies may slow the process.
Bond ties up a Vivendi loose end 2 Jul 2003 Back in November, the conglomerate bought a big chunk of telecoms firm Cegetel. But all the cash flow benefit flowed to its banks. Now that Vivendi is refinancing the deal Cegetel's dividends will actually do it some good. It has neatly exploited the bond market boom.