Clariant plans SFr920m rights issue 24 Feb 2004 The Swiss chemicals company needs the money badly to pay for cost cuts. But investors should be cautious. Clariant's promises of efficiency gains have in the past proven illusory.
Italy in denial over Alitalia 23 Feb 2004 The Italian government is trying to get chief executive Francesco Mengozzi to tone down his radical restructuring plan ahead of elections. But without serious cost cuts, the government s aim to sell down its 62% stake for a halfdecent price looks doomed.
France Tel offers E3.9bn for Wanadoo minorities 23 Feb 2004 Bringing the internet business back into the fold makes strategic sense for the telecoms group. The 26% premium looks fair for the minorities. But the takeout price of 32 times last year's ebitda is less welcome for FT shareholders.
Standard Chartered deal talk has logic 23 Feb 2004 The death of the bank's major shareholder has raised the possibility of a strategic stake in the business coming up for sale. Standard Chartered may be expensive, but that needn't hinder a deal especially with a rival that shares its investors.
European banks frustrated in US 23 Feb 2004 Last week was a bruiser for European banks with US ambitions, raising questions about their acquisition strategies. US bank prices have rallied, wiping out the competitive advantages of the dollar s decline and growing piles of surplus capital.
Mony gets clever on Axa deal 23 Feb 2004 The US financial group has improved the chances of its Axa takeover by offering Axa convertible bondholders a sort of insurance policy. By extending the record date for its new EGM, Mony gives the Axa bondholders a chance to buy Mony stock and vote the deal through.
Forgetfulness features in US courtroom dramas 23 Feb 2004 It would be hard to find a selfhelp book for the aspiring executive that extols the benefits of absentmindedness. Yet, judging by trials involving Conrad Black, Martha Stewart and Tyco, it is a common trait among successful US businesspeople.
O2 in play 23 Feb 2004 KPN needs the UK mobile operator more than O2 needs its Dutch rival. It may be tricky to engineer an auction a la AT&T Wireless but O2 should still be able to extract a premium price.
Parmalat bondholders face stitch-up 23 Feb 2004 The Italian government only wants to give them one or two seats on the credit committee. The banks are set to get eight. Yet bondholders are owed over half of Parmalat's total debt. And some of the banks are under investigation for their support of the group.
UK links Eurotunnel rescue to Crossrail – report 20 Feb 2004 Help the crossChannel tunnel operator out and you could get valuable contracts for a big London rail project, seems to be the message. Nothing better illustrates Eurotunnel s dire plight.
Alstom recovery could be for real 20 Feb 2004 The French engineer appears to have turned around the business that nearly bankrupted it. The broader question is whether the leopard has changed its spots. Alstom's balance sheet cannot withstand another accident.
Sanofi should scrap double voting rights 20 Feb 2004 If Aventis is taken over by Sanofi, its shareholders will own 49% of share capital, but only 39% of the vote due to double voting. Eliminating the scheme would raise Sanofi s stock price, and make the bid more attractive.
Allianz shows its market savvy again 20 Feb 2004 Having timed its rights issue just right last year, the German insurer seems to have caught the tide with its E1.5bn debt issue too. But Allianz's job is not just to play the markets. Investors are still putting a lot of faith in its operational turnaround.
What is wrong with Chris Gent? 20 Feb 2004 The former Vodafone boss has reportedly been turned down as chairman of ITV and Sainsbury because he is too political and inexperienced. These grounds look bogus. Could the real reason be that troubled companies fear Gent would take them by the scruff of the neck?
L’Oreal hangs on to growth target by fingernails 20 Feb 2004 Strip out Sanofi s contribution, hedging gains and the reintegration of provisions, and the picture looks a lot less rosy. With L Oreal s core business trading at 30 times this year s earnings, the premium to rivals looks too steep.
Total leaves other European oil firms in the shade 19 Feb 2004 The French oil group is growing output, increasing its dividend, and delivering handsome returns. It latest plans to spin off its chemicals operation may provide more momentum. The stock s discount to BP looks increasingly undeserved.
Reed shares may have further to run 19 Feb 2004 Investors have been bidding up racy media stocks, but they might give boring old Reed another look. The AngloDutch publisher isn t expensive, and its prospects for 2005 look good.
Enron’s former CEO surrenders to FBI 19 Feb 2004 Investors and employees of the bust energy trader may find sweet revenge in Jeffrey Skilling's criminal indictment. But for the market as a whole, it's meaningless. The slow wheels of American justice were already overtaken by legislative fiat.
Ericsson finally honours votes promise 19 Feb 2004 The telecoms equipment group has struck a deal. The voting differential between A and B shares has narrowed. But A shareholders are allowed a special deal to buy votes on the cheap.
Parmalat explores revoking bank deals 19 Feb 2004 The banks may have to unwind the transactions if they are proven to prejudice other creditors. That could expose banks to debts from which they thought they had escaped. The fallout could ripple across structured finance.
Italian banks are worryingly close to clients 19 Feb 2004 Big loans to boards and investors are common practice. Think of Parmalat, where the boss was on the board of Capitalia, one of its lenders. Revealing the size and terms of each individual loan to directors and big shareholders would allow other investors to ask tough questions.
Carlsberg simplifies its structure 19 Feb 2004 The Danish brewer is gearing up to the gills to take full control of its core business. The deal should help the share price, not least because it makes Carlsberg less likely to destroy value on international deals.
RBS should hand back some cash 19 Feb 2004 The Scottish bank s latest results have beaten forecasts, but still suggest momentum is set to slow this year. Meanwhile, the group is awash with capital. With a big deal apparently elusive, RBS should give some more cash to shareholders.
Commerzbank hits the bottom 18 Feb 2004 The German bank restructured in 2003. But how strong will its rebound be this year? The worry is that its performance is too dependent on trading, oneoffs and cost cuts.
Cadbury chews away on Adams 18 Feb 2004 The confectionary group s earnings fell slightly on its integration of Adams. But so far the acquisition is on track to deliver synergies. Cadbury s next challenge is to prove it can deliver on its mammoth cost cutting plan.
Comcast should sweeten Disney bid with votes 18 Feb 2004 The cable group is offering secondclass paper. The founding Roberts family cannot be diluted, however many shares they issue. The snag is that if the Robertses abandon their magic shares, they may start to wince at the price of the deal.
Revolution underway in Dutch governance 18 Feb 2004 A new governance code is making Dutch companies more responsive to their shareholders. But only up to a point. The one thing missing is that companies aren't yet forced to dismantle their takeover defences.
Aventis should consider crown jewel defence 18 Feb 2004 If Aventis could secure a premium price for, say, its cardiovascular drugs, that would make Sanofi sweat. It would either have to increase its own hostile bid substantially or retreat with its tail between its legs.
Standard Life liquidates 25% of with-profits fund 18 Feb 2004 Europe's largest mutual insurer sold some £8bn of equities in the last few weeks, boosting its solvency ratios. Market conditions were ideal for such a move. Unfortunately for Standard Life, it cannot take all the credit for the timing of the decision.