Daimler may extend CEO’s contract – WSJ 8 Oct 2003 Jurgen Schrempp may be the right guy to lead Daimler well beyond 2005 but it's premature to make that assessment. At the moment his baby the takeover of Chrysler looks like a mistake. He needs to prove otherwise before the board extends his stay.
E.ON mulls return to the acquisition trail 8 Oct 2003 The German utility is reportedly in talks to buy Midlands Electricity, the UK business that Scottish & Southern almost bought. Yet E.ON will struggle to improve the structure of SSE s bid, which hurt Midlands bondholders. The only other option is to pay more.
EU shouldn’t restrict banks on retail share dealing 8 Oct 2003 The plan for greater transparency in prices, supported by most member states, might actually give retail investors a worse deal. The only beneficiaries from such protection would be stock exchanges. But a better name for that would be protectionism.
Reuters to sell non-core Tibco stake 8 Oct 2003 With this move, the media group both plugs on with its restructuring and shores up its fat dividend. Even better, Reuters has structured the deal to minimise the leakage of value.
Fiat nabs new car boss 8 Oct 2003 Herbert Demel's operating experience will help drive Fiat's plans to launch 20 new models over the next three years. But if September's sales are any indication the company may need a marketing whiz more than anything to save Fiat's damaged brand.
Inmarsat takeover nears finish 8 Oct 2003 The expiry of exclusive talks with Apax/Permira puts the future of the satellite group back into play. This may put Soros/Apollo back in the deal. They can win with a better offer not by unleashing their attack dogs in Washington.
Amersham receives mystery bid approach 8 Oct 2003 Broadlybased health groups such as Roche and Johnson & Johnson look the most likely acquirers for the £4.6bn UK medical group. Amersham could be attractive because it is market leader in two of its businesses, enjoys high barriers to entry and isn t that expensive.
Corporate bonds look vulnerable 7 Oct 2003 A stronger euro, a more volatile stock market and mixed news on the economy don't bode well for credit spreads. With valuations looking a little stretched, bond traders may be tempted before long to lock in their gains for the year.
M&S doesn’t inspire with confidence 7 Oct 2003 True, the UK retailer's sluggish clothing sales are no exception. The hot weather in September didn't do clothes shops any favours. But this is the third quarter in a row that M&S has failed to win market share. And its food business seems to have stalled a bit too.
Belgacom could be worth more than E10bn 7 Oct 2003 The E10.5bn market capitalisation implied by Belgacom's share buyback is not demanding on the basis of earnings and dividend yields. To maximise its valuation, the Belgian telecoms group must explain its restructuring potential and limit its acquisition ambitions.
Bayer re-jiggers and starts rummage sale 7 Oct 2003 Bayer is taking a small step in reorganising its divisions. The German conglomerate is also selling its plasma business. But Bayer needs to stop fiddling around the edges and address its problems.
ITV must not rest on its laurels 7 Oct 2003 But they must now deliver their promise to end a "dysfunctional" network. Otherwise, the new ITV will be prey. The UK TV groups, Carlton and Granada, are jumping for joy that their £4bn merger has emerged from the regulatory wringer almost unscathed.
RBS pays E890m for First Active 6 Oct 2003 The UK bank seems to have got a decent price for the mortgage bank although the deal is more about driving revenues than cutting costs. Peers in First Active's Irish heartland might theoretically be able to pay more but they would probably be blocked by antitrust authorities.
HVB Real Estate lowly valued at spin-off 6 Oct 2003 So why does Commerzbank still value its mortgage bank business at a fat premium to book? It is valued at 40% of book, while its biggest quoted rival is valued at 60% of book.
S&N sells pubs for £2.5bn to Spirit 6 Oct 2003 The sale exceeded expectations, creates a focused European brewer from a pubs conglomerate and underlines demand for UK pubs. But S&N already spent most of the proceeds. It will still be highly geared with a middling growth profile not too attractive for a bid.
Motorola to spin off chips division 6 Oct 2003 The spinoff should eradicate part of the US technology giant's conglomerate discount. But shareholders should not get carried away until they understand the funding requirement of the lossmaking chip business.
The M&A fee squeeze continues 6 Oct 2003 One reason the screw is turning is that there is still too much capacity about. Unless the market recovers, pay or capacity will have to shrink.
Danish utility Elsam bids $1.7bn for Nesa 6 Oct 2003 The municipally owned power generator appears to have outmanoeuvred an earlier offer by stateowned Danish oil firm Dong. But Elsam s offer could yet fall at a number of fences. Dong has been dinged, but it s not out yet. But Elsam s offer could yet fall at a number of fences. So while Dong has withdrawn its offer, it could yet come back.
Investors see hurdles to Air France/KLM merger 3 Oct 2003 Even though the deal has been artfully structured from a regulatory standpoint, plenty of things could go wrong. And because there isn't that much upside in the deal for Air France, any one of them could derail things.
Kookai parent on the block 3 Oct 2003 Vivarte, the E1.3bn French retail group, has been infected with some of the UK's retail M&A fever. Three potential buyers are circling it. Striking a deal may not be easy. But Vivarte's big shareholders, controlling nearly threequarters of the stock, are selling together.
Rhodia CEO forced out 3 Oct 2003 The company needs their backing if it is to put its finances on an even keel. About time too. JeanPierre Tirouflet had lost the confidence of investors.
Exxon in talks with Russia’s Yukos over $25bn deal – FT 3 Oct 2003 If the US oil major really does take a 40% stake in Yukos it will be coming in late to Russia but coming in very big. Given Exxon's track record of focusing on returns, any deal should give investors worried about BP's own Russian deal some comfort.
Belgacom readies for IPO 2 Oct 2003 The Belgian telecoms company may not be the sexiest investment. But care has been taken to make the issue digestible. The group is buying back shares from minorities to cut the number they sell at IPO. And the taxpayer is taking care of the pensions deficit.
Ahold refinancing looms large 2 Oct 2003 The Dutch supermarket operator's cash flow has held firm despite its accounting scandal. That makes a refinancing possible. But Ahold needs a growth story to boost the mix of equity it can raise versus debt. That will be a tougher nut to crack.
Germany is Europe’s restructuring foot-dragger 2 Oct 2003 That s the national stereotype. It also appears to be true as least on the basis of European investment banking deals, weighted by GDP. Italy and Spain, by contrast, are Europe s most avid reformers.
EU questions BSkyB’s football deal again 2 Oct 2003 Commissioner Mario Monti is right to be concerned. But he s had his chance to intervene, and should now back off.
BNL rides restructuring wave at Italian banks 2 Oct 2003 The share price of the midsized Italian bank has almost doubled this year, much like that of its fellow Roman bank, Capitalia. That is partly because operations are improving. But it is also partly because of stakebuilding by investors in both banks.
Europe goes gaga for the LBO 2 Oct 2003 In the first nine months of 2003, deals involving private equity made up 18% of all European M&A more than double the share in the US. There are many reasons for this LBO fetish, but the rise in crises and absence of bankruptcy protection may be a big one.
What kind of auction is best for Debenhams? 2 Oct 2003 Plain sealed bids can extract the highest prices. But they also produce erratic results. In theory, there's less wrong with "formula" sealed bids where the winner pays the second price plus a margin. But open auctions are best.
Europe’s mobile laggards form alliance 2 Oct 2003 The initiatives on roaming and handset procurement are fine as far as they go. But that s not far in the scheme of things. The alliance will only be significant if it is a precursor to consolidation. The key question is whether KPN joins.