Vodafone probably should not bid for AT&T Wireless 23 Jan 2004 The strategic rationale for switching a stake in Verizon Wireless for control of ATTW is finely balanced. But the auction is likely to get heated. And if it does, the UK mobile group will struggle to justify paying up.
No excuses for apathy towards activism 22 Jan 2004 Investors used to be able to say UK takeover rules stopped them working together to kick out bad bosses. But this excuse no longer applies. The Takeover Panel has discreetly amended the rules. And that may explain why activism seems to be on the rise.
Is Sanofi getting out while it can? 22 Jan 2004 Merger rumours continue to fly around the French pharmaceuticals group. The company could face generic competition on its bestselling drug this year. The effects would be disastrous.
KLM shaping up for Air France deal 22 Jan 2004 The Dutch carrier turned out a surprise thirdquarter profit by cutting costs and plans to break even this year. KLM may have surprised the market with its vigour, but it can probably be explained in the context of the merger.
Signs of froth emerge in semiconductors 22 Jan 2004 The most telling is the rush to sell stock. Four giant IPOs are expected in the next six months worth as much as $4.5bn.
Morgan Stanley, Nextra probed over bond 22 Jan 2004 Parmalat may have disguised from investors the real terms of the bond issued shortly before its demise. If so, that was wrong of Parmalat. How much did Morgan Stanley and Nextra know?
LVMH sales jump in Q4 22 Jan 2004 Its leather handbags are flying off the shelves. Elsewhere, demand for jewellery, watches and even executive jets is accelerating. The luxury industry may finally be turning its back on two years of misery.
JP Morgan, Merrill dazzle with 2003 comebacks 21 Jan 2004 Merrill's investment banking unit saw earnings rise 65% last year. JP Morgan's almost trebled. The story isn t just about costcutting and falling credit losses. Revenues are up too. But the recovery still looks pretty patchy.
Iliad launches IPO with a E720m price tag 21 Jan 2004 France s secondlargest internet service provider has toned down its punchy E1bn IPO valuation. That should make it an easier sell.
Tui to float Hapag-Lloyd shipping business 21 Jan 2004 Selling at the top of the shipping cycle is a smart move. The deal should free up the travel company's balance sheet for acquisitions. But consolidation may not be the panacea the German group's investors may be hoping for.
Carlsberg to buy Holsten for E1.1bn 20 Jan 2004 With the purchase of the German brewer, the Danish company finally joins the rest of the industry in overpaying for acquisitions. Even after selling half of Holsten's assets and driving cost and revenue synergies, Carlsberg will struggle to make a decent return.
Royal Dutch/Shell needs a revolution 20 Jan 2004 Chairman Phil Watts' mishandling of a reserves restatement is symptomatic of deeper problems at the oil giant. Chopping off the King s head will not be enough to change the firm. What is needed is a change of its archaic dualstructure too.
Air Liquide buys Messer Griesheim for E2.7bn 20 Jan 2004 The French industrial gases company is buying assets on the cheap. But will the deal close? The combination carries high risk of antitrust concerns.
US election just got interesting 20 Jan 2004 Surprising leads by two Democratic candidates in the Iowa caucus suggest President Bush may face a tougher reelection bid. The upset of Howard Dean suggests the electoral battleground is still very much on the economic front.
Citigroup lowers its sights 20 Jan 2004 Why the change? It may be that Citi fears US consolidation will make the banking market more competitive. The US investment bank used to promise "superior growth", now it just promises "consistent growth".
US bonds re-enter bubble territory 20 Jan 2004 Yields on US 10year bonds have recently dropped below 4% again, despite the improving economy. A massive carry trade is largely responsible. But watch out: carry trades have a habit of suddenly turning nasty.
Finmatica under investigation 20 Jan 2004 The Italian software group doesn't just have a balance sheet that looks a bit like Parmalat's did. Now prosecutors are investigating whether it misled the market about its finances too.
Cazenove edges towards exit 19 Jan 2004 The question is whether it will be through an initial public offering or a trade sale. Emotionally, Cazenove bigwigs would probably prefer an IPO. But a sale would rescue the firm from a strategic box.
The yen looks set to strengthen 19 Jan 2004 It s time for Japan to take more of the strain of the dollar s fall. So far, the euro has borne a disproportionate amount of the pain.
Sanofi considered hostile bid for Aventis – report 19 Jan 2004 An agreement between the two majority holders of Sanofi Total and L Oreal prevented the bid from going further. With the agreement set to expire in 2004, this looks like just the start of a drawnout battle.
Mail and Express still interested in Telegraph 19 Jan 2004 This is potentially good news for minority shareholders in the Hollinger empire which is being sold by Lord Black to the Barclay brothers. In a breakup, minority investors could get a 60% premium to market value. Snag is the Barclays didn t make a risky bid to let that happen.
Battle over Lord Black’s media empire not over 19 Jan 2004 The disgraced mogul has cut a sweetheart deal to sell his media interests to the UK s billionaire Barclay brothers for a fat premium. They have done a ballsy but risky deal. They don t have total control; and they are now codefendants in a legal action against Black. Black has done another deal that serves his own interests at the expense of minorities. But he won t be happy because of his legal troubles.
Invensys plans £500m rights issue – reports 19 Jan 2004 The issue would have to be horribly dilutive to succeed. But it is not obvious that the distressed UK engineer has any better financing options available.
US bank merger raises the bar for Europeans 16 Jan 2004 As the Americans get bigger, it is getting harder for Europeans to make meaningful inroads into the US. Indeed, the boot is on the other foot. With their growing scale advantage, US banks look likely to snap up Europeans.
Will Bank One fetch a rival bid? 16 Jan 2004 Judging by the market reaction, JP Morgan's shareholders are relieved it hasn't overpaid. But that may mean Bank One sold itself short. By some measures, it may have. But it's not likely Wells Fargo or Wachovia have the guts to make a counter offer.
Bank of Italy, government clash over Parmalat 16 Jan 2004 The finance minister has blamed Fazio for failing to spot the scandal something disputed by a person close to the central bank governor. Power politics is partly behind the row; and the government hardly has a shining track record for cracking down on fraud. But just because the motives of Fazio s critics may be suspect doesn t mean he has done a good job regulating Italian finance.
Adecco chief financial officer resigns 16 Jan 2004 The Swiss staffing agency says accounting irregularities are limited to its North American operations. But the resignation of the CFO at HQ could point to problems higher up the chain.
Pollution trading to wake up energy markets 16 Jan 2004 The introduction of carbon emissions trading this coming year will mark the biggest change in European energy markets in two decades. The idea is to cut carbon emissions, and so curb climate change. But this greenery comes at a cost: higher energy prices for all.
CEOs should not become chairman 16 Jan 2004 If anyone needed convincing, just look at recent UK problem companies Shell, BAE, Sainsbury and WH Smith. It is hard for the chairman to review a board's strategy if he or she was its original author.
BSkyB board could use a clean-up 15 Jan 2004 Rupert Murdoch promised shareholders he would improve corporate governance at the payTV broadcaster. Changing the board would be an obvious start. It needs fewer, more effective directors.