Citigroup sucked into Parmalat black hole 24 Nov 2003 At the very least, the existence of Buconero raises questions that need answering. At worst it presents reputation risk for the giant bank. The US bank injected money into a unit of the opaque Italian food company through a subsidiary it called Buconero Italian for black hole.
Vultures hover over Hollinger’s Telegraph 24 Nov 2003 There is plenty of interest to snap up the UK s bestselling broadsheet if it goes on the block. The Express looks to be the frontrunner, but other trade buyers and private equity groups will probably put up a good fight.
China’s mooted forex sales – bad news for the dollar? 24 Nov 2003 China appears to be doing a Gordon Brown, who preannounced the Bank of England's gold sales, depressing the gold price to a 20year low. A senior Chinese official has suggested that the country might sell down some of its $400bn in reserves to bail out its stateowned banks.
Brokers blame exchanges for poor returns 21 Nov 2003 Investment banks are whining again about everincreasing stock exchange fees. They shouldn't blame the exchanges for the margin squeeze in the cash equities business. But the exchanges might be wise to share some pain.
France waves red cape at Brussels with Bull aid 21 Nov 2003 The perennially sick computer company has turned to mother France for state aid for the fourth time in a decade. Any aid clearly violates EU rules. With France completely disregarding Brussels, it is time for Monti to play toreador.
Time Warner sidelines EMI in music arm race 21 Nov 2003 Picking Edgar Bronfman as the preferred bidder for its music business has left egg on the face of the UK music group. EMI can't afford to up its offer. So its best hope is that Time Warner gets cold feet or Bronfman can't raise the cash.
Vedanta has all the makings of a hot IPO 21 Nov 2003 The Indian miner pushes many of the right buttons. It s a commodity play and it offers Chineselike growth, only without the communism. But whether investors should pay a premium for this is debatable. A luminarypacked board can t erase all corporate governance concerns.
Scor admits it is in peril 20 Nov 2003 The French reinsurer has said the downgrade of its credit rating to junk will seriously damage its business. With rating agency Fitch endorsing the market's concerns over Scor's solvency, the company might as well be frank.
German wholesalers scandal made in Berlin 20 Nov 2003 German police have raided drug wholesalers for evidence of collusion. It shouldn't be hard to prove. If anything is scandalous, it is the German government s behaviour. It unreasonably eliminated the companies' profit by decree.
National Grid ups dividend, cost cuts 20 Nov 2003 There were fears that bad publicity from recent blackouts would make it hard politically for the firm to up payouts. But the British grid operator appears unfazed. The dividend increase alone is worth about an extra 15p per share.
Lane Fox resigns as Lastminute breaks even 20 Nov 2003 It used to be said that the only thing managers of internet firms were good at was burning investors' cash. The travel website cofounder's decision will only strengthen this prejudice in the minds of some.
Hollinger should be broken up 20 Nov 2003 The group isn't just a strategic muddle with its hotchpotch collection of media interests. It's also undervalued. Restructuring Hollinger won't be easy. But the destination is clear.
Fund scam puts hedge funds in the dock too 20 Nov 2003 US mutual funds may have been wrong to give hedge funds trading privileges. But hedge funds should not have asked for them. Regulators will be asking why some firms in the hedge fund industry might need to use underhand tactics to make their returns.
Istanbul bombs bring terror closer to UK 20 Nov 2003 The destruction of the British Consulate and HSBC headquarters is not a cataclysm on the level of September 11. But the decision to attack a financial target as well as a political one will add to the sense of insecurity.
EMI not totally desperate for Warner deal 19 Nov 2003 The UK music group's results are OK given the admittedly dire state of the industry. But it will certainly struggle if it is pipped to the post in acquiring Warner Music by Bronfman.
Novartis juggernaut rolls on 19 Nov 2003 The Swiss pharmaceutical company unveiled positive results from four clinical trials in its annual R&D day. With an enormously fat pipeline and few drugs under generic threat, Novartis looks set for years of above average growth.
US capital inflows plunge 90% 19 Nov 2003 No wonder the dollar has fallen to a lifetime low against the euro. The US needs $50bn a month to cover its current account deficit but attracted only $4bn in September. This doesn't look sustainable.
Sainsbury family damns Sir Peter Davis with faint praise 19 Nov 2003 Any statement of support from the Sainsbury family for the supermarket's outgoing chief executive would be significant. But the content could have been a lot harder. Small wonder then that Davis is going to be chairman for only 15 months.
GE to float $10bn insurance unit 19 Nov 2003 On its own merits, the deal makes sense: the IPO market is buoyant for financial services, and Genworth's growth dilutes the parent's. But it also suggests the big challenge for GE is not just delivering growth, it's about slowly breaking up the conglomerate.
LSE should hand back its cash 19 Nov 2003 The London Stock Exchange is awash with cash. But nothing CEO Clara Furse wants to acquire is available. And the risk is that Furse will spend it on lots of little valuedestroying projects. Better to return it to shareholders.
Investors fret about Zurich recovery 19 Nov 2003 A year ago, Jim Schiro had a clear plan to turn round the insurer. Now he has gone all vague. It looks as if the easy part may be over.
WCM triggers Commerzbank bid talk 18 Nov 2003 There are probably plenty of sellers of Commerzbank, were someone to offer a premium. WCM is simply the most obvious one. What is less clear is why someone would want to pay a fat premium for the German bank now.
Prada finds Italian banks to replace Deutsche 18 Nov 2003 Prada has been a headache for Deutsche. But if it gets out, it will lose the chance to run the books on the group s IPO when it happens. The Italian luxury group has been embroiled in complex negotiations with Deutsche Bank since it breached the covenants on a E700m loan.
Bayer plans sale of programs to Glaxo – report 18 Nov 2003 The German conglomerate is rumoured to be in advanced talks to sell its asthma, urology and metabolic units to GlaxoSmithKline. The rumours are not new, but a recently announced plan to cut R&D spend by 30% means several programs must go. Glaxo is a natural buyer.
Suez should break itself up 18 Nov 2003 Or at least that is what chief executive Gerard Mestrallet should do next if he really wants to boost shareholder value. The only problem is that it s not clear that Mestrallet is prepared to assetstrip the company that he built.
San Paolo IMI prepares for insurance deal 18 Nov 2003 The Italian bank is on the verge of announcing a plan to pool its farflung insurance units into one new entity. It can cut costs and prime the business for M&A. Like clockwork it's readying a deal as the contracts of its three CEOs need renewing.
Vodafone still thinks it’s a growth company 18 Nov 2003 The UK mobile operator has plumped for a small dividend increase. And while it will buy back shares, it may not cancel them. Vodafone's results afford some confidence in its growth prospects but not a massive amount.
Easyjet recovers altitude 18 Nov 2003 The nofrills airline had a hard time in the first half of the year with the war in Iraq and swallowing its acquisition of Go. But the worst is now over. Easyjet bounced back in the second half and should have an easier time of it next year.
Conrad Black’s media empire disintegrates 17 Nov 2003 The cockroaches are really crawling out at Hollinger with revelations of $32m in improper payments as well as financial difficulties. Black is out. His papers may be sold. He'll have to repay the unauthorised sums. And his name will be, well, Black.
Sky pays Tony Ball £10m to do nothing 17 Nov 2003 The satellite broadcaster s former CEO can t be blamed for playing hard ball. Sky foolishly omitted a noncompete clause in his contract. And if Ball was really worth so much, shouldn t Sky have made a bigger effort to keep him rather than shoehorn in Murdoch Jr?