Parmalat hit by balance sheet worries 11 Nov 2003 It turns out that E500m of the Italian food group s cash is invested in an obscure private equity fund in the Caymans. The group may not be in serious danger as a result, but investors should be increasingly wary of Parmalat's promises.
Amvescap does not look like Putnam 10 Nov 2003 The AngloAmerican fund manager has been linked to the probe into US mutual funds. Lawyers are even mulling a class action. Based on what's known, it s hard to see Amvescap suffering the exodus of funds that hit Putnam. That s lucky: it would be harder to handle.
Sky rebellion fizzles 10 Nov 2003 For a successful revolt, three conditions must be satisfied: governance must be bad, so must performance and investors must have power. In Sky's case, only one of the conditions was satisfied: poor governance.
BA still faces headwinds 10 Nov 2003 The UK carrier says revenue decline may have finally bottomed out, and sees signs of life in the US. The snag is that volumes haven't picked up yet. But investors appear to have already priced in a recovery in the stock.
Japan election points to more glacial change 10 Nov 2003 The results were not quite the reformist landslide some had predicted. Still, at least the prospects for reform have not worsened. That s just as well. The best of Japan s cyclical upswing may well be over, so the need for reform is greater than ever.
KPN resumes the dividend 10 Nov 2003 That takes some of the sting out of disappointing results in the fixedline business. The Dutch telecoms incumbent is offering a decent payout.
Serono plans shopping spree 10 Nov 2003 The Swiss biotechnology company is issuing a $440m convertible to fund its expansion plans outside Switzerland. With $2.2bn in cash, Serono can afford to buy struggling competitors or their products. But Serono has already missed the real bargains.
Is Sainsbury a bid target? 7 Nov 2003 It isn't hard to see why rumours keep cropping up. For one, Philip Green has ruled Safeway out. And he is taking a lot of money out of Bhs. But potential suitors would have to make pretty brave assumptions to offer a premium over the current share price.
Scor downgraded despite rights issue 7 Nov 2003 The reinsurer has been downgraded to one notch above junk, and its bankers have yet to agree to fully underwrite its rescue rights issue. Now they have an excuse to pull out. Such halfhearted underwriting is pretty pointless.
Ahold recovery play continues 7 Nov 2003 The E2.5bn rights issue stablises its finances, potentially allowing the shares to continue their recovery from the brink of disaster. But it is not foolproof. Doubts remain over the Dutch retailer's ability to turn around its US foodservice unit.
Brussels expected to get tough with Ryanair 7 Nov 2003 Although a pain, this wouldn t be disastrous for the nofrills airline. The EU will reportedly rule that Ryanair s subsidised airport deals are tantamount to illegal state aid.
Bayer to float chemical division 7 Nov 2003 After two decades, the German conglomerate has realised that separating chemicals and pharma is a sure recipe for value creation. Bayer could still bungle the reorganisation, but there s little question that separation will benefit the company.
Reed makes good first crack at NYSE 6 Nov 2003 John Reed s plans for greater disclosure and a truly independent board set the right framework for governing the exchange. Next step: find someone quickly to do the heavy lifting ending its regulatory functions and modernising its Jurassic trading platform.
Cisco revenue increase feeds telecom bulls’ hopes 6 Nov 2003 John Chambers, CEO of the US telecoms equipment maker, is now more optimistic But the stock s price is still absurd, even with a massive share buyback plan continuing.
Punch buys Pubmaster for £1.2bn 6 Nov 2003 The UK tenanted pubs group has nearly doubled the size of its estate with the acquisition of its privately owned rival. With synergies more than covering the premium it is paying, Punch looks like it can drink a toast to consolidation of the pubs industry.
Scor needs more 6 Nov 2003 The French reinsurer has launched a second rescue rights issue to cover the spiralling cost of claims in the US. But there is no guarantee that the E600m targeted proceeds will do the job. And Scor probably needs twice that to restore its credit rating.
Tobacco groups learn lesson 6 Nov 2003 It shouldn t be that surprising that Turkey s tobacco privatisation failed to nab Morocco and Italy s steep price tag. Two potential buyers Altadis and BAT have already overpaid once. And Philip Morris was hobbled by competition concerns.
Barclays accounts for itself 6 Nov 2003 The UK bank has at last provided its explanation for appointing its CEO as chairman, in defiance of the Higgs corporate governance code. Barclays may have fallen into line by giving its explanation. But it should not assume this draws a line under the issue.
Bank of England raises rates to 3.75% 6 Nov 2003 That s the second major central bank to raise rates in two days. The tightening cycle appears to have begun. It will be a long and drawn out cycle, though. Europe has stayed put. And the US and Japan will not raise rates in a hurry either.
BMG and Sony press play on joint venture 6 Nov 2003 The two music majors have finally agreed to join forces. And it looks like EMI and Time Warner aren't far behind. Both deals are likely to face regulatory hurdles but these shouldn t be insurmountable.
Sky’s not the limit for dynastic succession 5 Nov 2003 Investors in a handful of other companies may see the baton passed from father to child. British Land may be the obvious next test case in the UK, but there will certainly be others.
Morgan Stanley’s block trade boo-boo 5 Nov 2003 Everyone knew the pricing on its recent Enel E2bn deal was tight now it turns out to have been bought at a premium to the market. This must be the high water mark for block trades.
Ahold faces capital-raising barrier 5 Nov 2003 The Dutch supermarket operator is authorised to raise just E1.3bnE1.6bn of equity capital. But it apparently wants to raise more than E2bn. Ahold may not wait until its AGM to seek approval to raise this limit.
HealthSouth CEO indicted for $2.7bn fraud 5 Nov 2003 A Lamborghini, 22carat diamond rings, bulletproof BMWs, and even Martha Stewart all make an appearance in this alleged financial fraud. Despite the public s fixation on Wall Street excess and fraud, the real boomtime swindles took place in corporate boardrooms.
Mystery deepens over BNP’s cash surplus 5 Nov 2003 BNP is not stepping up plans to return cash to shareholders. Either a deal is in the offing or BNP just likes having a safety net. Decent quarterly results have rekindled fears that the French banking giant will blow its burgeoning cash surplus on a big acquisition.
Associated British Foods needs to put cash to work 5 Nov 2003 The UK foods group is sitting on over £1.2bn of cash while it waits for a suitable acquisition to come along. Considering its strong cash generation, ABF can afford to be a bit more generous to shareholders.
Murdochs 2; Sky shareholders 0 4 Nov 2003 Given the choice between antagonising one of the world s most powerful men or provoking the ire of UK investors, which would you choose? In choosing James Murdoch as the new CEO, the socalled independent directors have given their answer.
How bad is M&M for Sky shareholders? 4 Nov 2003 The fatherandson Murdoch combination is probably not as awful as it appears. They probably have limited ability and incentive to abuse outside shareholders. The snag is all this is qualified by the word "probably"
French government sells remaining Thomson stake 4 Nov 2003 The action is certainly well timed, with shares in the electronics company up 20% over the past week. This looks like a privatisation that has gone done well in the market unlike the Italian government's sale of Enel shares.
Russia says oil price is too high 4 Nov 2003 The world s second biggest oil exporter wants OPEC to boost output so that prices fall back to around $25 a barrel. But OPEC seems to disagree. This is all part of a complex market share game. It may also be a Russian sop to the west, postYukos.