Bradford & Bingley stages a comeback 8 Aug 2003 The UK mortgage bank has countered weakness in its estate agency business by upping highmargin buytolet and commercial property lending. But growth is lacklustre. Fortunately, B&B s loan book is not so risky as to deter a bid.
Watch industry sales running slow 8 Aug 2003 There may be signs of a pickup. But hopes that watch sales will recover back to their bull market peaks seem destined to be dashed. Swatch, Bulgari and Richemont s watches have not had an easy time of late.
Veterans of debt workouts in trouble again 7 Aug 2003 EuroDisney, Eurotunnel and Queen s Moat Houses are suffering because they were left with too much debt. Lending banks may try to patch over problems if they are worried about provisions. But vulture investors are starting to challenge them.
Heads roll at Merrill Lynch 7 Aug 2003 Why would a leaner, successful firm expel the managers who ran its costcutting drive and its burgeoning markets arm? Chief executive Stan O'Neal has demonstrated that stamping his authority on Merrill is his number one priority.
UBS faces conflict charge in US 7 Aug 2003 Dana is suing the bank for using sensitive information gained from an unspecified project to abet ArvinMeritor in a $4.4bn hostile bid. Combined with its links to HealthSouth, the Dana affair raises questions about the costs of the Swiss bank's fastpaced US expansion.
Barclays and ABN beat expectations 7 Aug 2003 While there are still pockets of concern, investors should take heart that both banks made good operating results across their businesses. The UK and Dutch banks have cut baddebt provisions and made upbeat noises about the future.
France bails out Alstom 6 Aug 2003 If EU state aid investigators are rigorous, they will demand big changes to the E2.8bn package. They should not be deceived by any circular logic used to justify the investment.
Private equity exits key to raising funds 6 Aug 2003 Many big European private equity firms are struggling to raise money. The one exception is Permira, which raised E3bn in just four months. Its success shows that investors are looking for a proven track record of strong exits before opening their wallets again.
Commerzbank predicts full-year profit 6 Aug 2003 Continued pressure on costs in the second quarter has given the German bank the confidence to predict a return to the black. But revenues, flattered by trading, look unpredictable. Commerzbank may have to renew the assault on overheads to meet its forecast.
NH Hoteles beats back bid 6 Aug 2003 The Spanish hotelier may claim victory at the failure of Hesperia's cheeky bid. But it's not quite a win for minority shareholders' rights. The bank shareholders who could have tipped the balance to Hesperia simply weren't offered juicy enough incentives to sell their stakes.
S&N limps out of Centerpulse race 6 Aug 2003 But where is S&N going to go from here? By bidding for Centerpulse, it implicitly admitted that it lacked critical mass. With competition from deeppocketed Zimmer, the UK orthopaedics group would have had to overpay to stand a chance of winning.
Unilever laments dead hand of fund management 6 Aug 2003 Democratic capitalism relies on the exercise of voting rights. Investors who don't bother voting are failing in their fiduciary obligation. If European institutions don't rectify this, they may see the imposition of costly rules similar to those recently mandated by the SEC.
Alstom locked in financing talks 5 Aug 2003 The French engineer s planned disposals and rights issue won t be enough to make it a good credit. The French state is lending a hand to the company. But the quid pro quo may be that banks forgive part of their loans.
AngloGold clinches $1.3bn Ashanti deal 5 Aug 2003 The terms of the deal look designed to win over the Ghanaian government, which holds a golden share in Ashanti. This may explain why AngloGold is paying a premium that is a huge multiple of forecast synergies. It's unlikely anyone will offer more.
EuroDisney heads for restructuring 5 Aug 2003 The theme park company is set to breach covenants and wants to talk to its creditors about refinancing. This is just a return to problems EuroDisney's 1994 restructuring fudged: its balance sheet needs to decisively shrink to fit reality.
Aegon sells financing arm to GE for $5.4bn 5 Aug 2003 Perhaps Aegon is worried that markets are heading down again. Selling the financing business will cut debt and cement its credit rating. And Aegon has even managed to make a profit despite selling to General Electric.
CSFB cuts back on option awards 5 Aug 2003 The investment bank is giving staff the chance to swap share options for stock, or stock and new options. Employees will choose options if they think the shares are a surefire winner. If only investors could discover what they decide.
Tobacco companies need more discipline 5 Aug 2003 Tobacco companies may think they need to go for broke. But that s not much comfort to their investors. The Marlboro man is paying a fat price for Serbia's tobacco monopoly. BAT and Altadis also both overpaid in recent privatisations.
Consob’s new boss gets chance to shine 4 Aug 2003 The Cirio bond scandal, where risky unrated bonds ended up with retail investors, highlights the need for a watchdog with teeth. Will Lamberto Cardia be up to the task?
BT urged to buy back mmO2 – report 4 Aug 2003 It is extremely hard to imagine the fixedline operator reversing the 2001 demerger of its mobile arm or shareholders welcoming it. But the tale does throw into relief the lingering question about mmO2's future as a standalone mobile business.
Saban returns to ProSieben 4 Aug 2003 The US media mogul has renewed his bid for the German broadcaster. The new offer is smarter and more solid than before but still rotten news for minority shareholders.
HSBC profits calm nerves over Household deal 4 Aug 2003 It has also upped the synergy targets for the deal. Increased exposure to the US looks like a benefit, not a hazard, for HSBC. The world s secondlargest bank has shown that its US acquisition earns a decent crust for the relatively higherrisk loans it provides.
Corus lives to fight another day 1 Aug 2003 After months of talks, the AngloDutch steel group has managed to get a new E1.2bn credit line from its banks. This is good news for Corus, but not for some senior bondholders who hoped to force it to buy them out.
Telewest wrestles with bondholder Huff 1 Aug 2003 Existing shareholders are to be crammed down more than planned in the cable company's debtforequity swap. This is a symbolic victory for bondholder William Huff, who also masterminded rival NTL's rejig. But he is not in the driving seat yet.
Ifil may be way to play Fiat recovery 1 Aug 2003 The carmaker's parent owns 30% of Fiat, but gets little credit for it. For investors who can handle the corporate governance risk, and the value of its assets, Ifil is one way to place a leveraged bet on Fiat.
Lloyds TSB adopts ad-hoc dividend policy 1 Aug 2003 The UK bank s new CEO has not thrown in the kitchen sink at his first results. He has held the dividend without committing to maintain it. Yet if he really believes Lloyds is a growth stock, he will have to come off the fence and cut the payout before long.