Olimpia capital increase rumoured 1 Oct 2003 The highly geared vehicle controlling Telecom Italia could certainly use new equity. Its dividend income won't cover its interest payments. But Olimpia has no net asset value. There are no economic grounds for injecting equity. That means power politics may be in play.
Bondholders do worse than banks in defaults 1 Oct 2003 The discrepancy is wider in Europe than the US. But one cannot draw the conclusion that European banks are doing better than their US peers. Recovery rates on defaulted bank loans are higher in the US. This reflects European firms relying on bank debt more than bonds.
Alitalia wants to join Air France merger 1 Oct 2003 That looks a vain hope unless the Italian carrier solves its own problems first. Alitalia should focus on restructuring itself and not chase corporate deals.
CVC courts Debenhams retail vote 1 Oct 2003 Under the bid structure it is adopting a scheme of arrangement retail shareholders have disproportionate power to derail the deal. The bidder is promising to carry on giving Debenhams shareholders discounts in its shops even after they tender their shares.
Arbitrageurs circle Royal & Sun Alliance rights 1 Oct 2003 A fall in the insurer's share price has created an opportunity for the arbs. But it is a risky one.
British Energy agrees £1.4bn restructuring plan 1 Oct 2003 The nuclear generator is not about to go under, and Brussels is unlikely to nix the plan. Britain s lights will stay on. Everyone has had to take a haircut. But bondholders appear to have come out best.