New Cadbury CEO wrings out the costs 27 Oct 2003 Todd Stitzer is squeezing out £400m of costs and reinvesting a third of the savings in boosting growth. To some extent, this is catching up with rivals' best practice. If he succeeds, Cadbury could close the valuation gap with its competitors.
Reuters needs to stem revenue slide 27 Oct 2003 It is good news that the information group's costcutting is on track. It is even outstripping the decline in sales. But that can't go on forever. Reuters has got to stabilise revenues. The worry is that it can't predict when that will happen.
New US health care giant could squeeze pharma 27 Oct 2003 It will be a powerful counterweight to big pharma, potentially driving down drug prices which are higher in the US than elsewhere. Anthem's $15bn acquisition of WellPoint will create a behemoth controlling health spending for 9% of the US population.
BofA delivers knockout $47bn Fleet bid 27 Oct 2003 By paying a premium worth $12bn, the US giant hopes to keep Citigroup at bay. But it won't create much value. Still, compared to its rumination of a foreign bank takeover, BofA's purchase of Fleet makes some sense.
Fiat buys time by delaying GM put 27 Oct 2003 Postponing the right to sell GM the rest of Fiat Auto staves off the threat of a legal battle for at least another year. But it does not clarify the longterm ownership of the business, which most certainly belongs within a bigger group.
Khodorkovsky’s arrest rocks Russia 26 Oct 2003 By locking up the country s richest man, Putin has declared open war on the oligarchs. Robber baron capitalism was never attractive. But the risk is that the crackdown will lead back to a police state.
Drawn out deals come to a head 24 Oct 2003 Regulators and takeover rules have conspired to make this the year of the long, drawn out takeover saga. This week the dam broke for Debenhams, Beiersdorf, CarltonGranada. But Canary Wharf and Safeway are still rumbling along.
Corporate bond rally sputters 24 Oct 2003 Ford s troubles, an interest rate scare and a wobbly stock market have shone a spotlight on rich valuations in corporate bonds. The market now faces a test. Investors may be tempted to take profits but they will struggle to pick up yield elsewhere.
Concorde says goodbye 24 Oct 2003 The supersonic jet has caused a lot of headaches at BA and Air France. But when the market returns, highflying executives will be looking for a classy way to cross the Atlantic.
Google searching for billions of dollars in IPO 24 Oct 2003 Wall Street was roundly criticised for the way it allocated hot IPOs during the tech boom. It is another slap in the face that the hottest issue for ages is considering selling stock by public auction.
European airline stocks jump the gun 24 Oct 2003 The sector seems to have rebounded on hopes that rationalisation is finally underway. That may be an overoptimistic assessment of recent events.
Ford dices with credit downgrade 23 Oct 2003 A further cut in its rating would leave the US carmaker just one notch above junk status. The only practical way to avoid the chop is to embark on another restructuring.
Allianz sells E4.4bn Beiersdorf stake to Tchibo 23 Oct 2003 This allGerman stitchup suits Tchibo, Beiersdorf management, Allianz and other insiders. But outsiders are shortchanged. The company s decision to buy 7.4% of its own shares to help thwart a takeover by P&G is particularly reprehensible.
Debs’ critics have to eat their words 23 Oct 2003 In retrospect, letting the retailer s management work with Permira and risking £6m to lure CVC into the race look like good moves. After all, Debenhams has snared a premium of over 40% and Permira has limped out the loser.
Aviva disappoints in Q3 23 Oct 2003 UK life insurance stocks have ridden the equity market turnaround, but firm evidence of a recovery in sales is needed to sustain valuations. Now the last of the Big Three insurers to report Q3 results has shown that sales momentum is volatile. But at least there's some pickup.
CVC, TPG win war for Debenhams 23 Oct 2003 Rival bidder Permira dropped out of the race after CVC and TPG upped their offer to £1.7bn and secured a doubling of the break fee to £17m. Their move to take advantage of Permira's disarray has paid off.
Amvescap bonus payments tar Q3 results 23 Oct 2003 The AngloAmerican fund manager cut back on bonuses when markets were falling earlier this year. But staff have been compensated with "catchup" bonuses triggered by the market rally. Amvescap's reputation for excess looks justified.
Shell takes a big knock 23 Oct 2003 The oil firm s latest results came in under expectations, even allowing for exceptionals. Its return on capital slipped too. There is some consolation. Results like these should bash any idea of a major acquisition such as Anadarko firmly on the head.
Nestle shooting straight for growth target 23 Oct 2003 Unlike rival Unilever, the Swiss foods group is on track to hit its 56% annual growth target. But Nestle is relying on just a couple of key units for growth. Nestle would do well to inject some innovation into its brands.
STMicroelectronics starts investing for the upturn 23 Oct 2003 The FrenchItalian chipmaker is raising capital expenditure by a third to revamp production facilities. This looks bullish, but is it premature? Chip sales may be going up but margins aren't.
Astra blows by estimates on Nexium sales 23 Oct 2003 The AngloSwedish drugs company increased Q3 sales despite $2bn in lost sales to generics. But Nexium, the franchise drug, looks like a shaky base upon which to build earnings.
Egg refuses to throw in the towel in France 22 Oct 2003 The UK bank is looking for a partner to stump up extra investment in its lossmaking French business. But closure has probably just been deferred. In the meantime, Egg shareholders are footing the bill for management s show of defiance.
Glaxo readies itself for hard times 22 Oct 2003 The pharmaceutical company faces competition for its bestselling antidepressant Paxil. More worryingly, the company s newest blockbuster faces slowing growth.
Bank of England just a vote away from rate hike 22 Oct 2003 The UK always looked to be the first major economy to raise interest rates. The latest MPC minutes make that a certainty. That is bad news for British bonds especially given the UK government s plans to deluge the market with gilts this year.
Amazon makes a profit – and it isn’t Christmas 22 Oct 2003 This is the first time the internet retailer has made money outside the bumper fourth quarter. To its credit, Amazon is no longer just a bundle of promises. But its valuation still looks pretty stretched.
BAe’s partner search points to Boeing 22 Oct 2003 While many US defence contractors would like BAe s American arm, they are not wild about the rest notably its Saudi business. Only Boeing's experience in the Arab kingdom is sufficient to dispel the perception that the business would act as a poison pill.
JP Morgan Q3 leaves 2002 figures in the dust 22 Oct 2003 But the picture is still mixed when more demanding comparatives are used. Its strategy of beefing up feeearning businesses is still a workinprogress.
Schneider puts Monti back in the spotlight 21 Oct 2003 The French electrical components group is suing the European Commission for E1.5bn over the blocking of its merger with Legrand. The lawsuit won't be simple to win. But it keeps pressure on the Commission to reform its merger review procedures.
Quiet men turn up volume on UK companies 21 Oct 2003 Carlton, the media group, isn't alone in feeling the institutional lash. So are Barclays and BSkyB. Investors are signalling their intention to take ownership obligations more seriously.
E.ON bids £1.1bn for Britain’s Midlands 21 Oct 2003 The German utility has swooped. It has offered 96p to Midlands Electricity's bondholders, versus the 86p Scottish & Southern offered. E.ON squeezed some of the extra money out of Midlands shareholders. True to its spendthrift ways, it also offered a bit more.