Scrabble for Parmalat scraps set to start 17 Mar 2004 The dairy group wants to convert E14.8bn of debt into a thin sliver of equity. Its creditors will all be fighting for a bigger share. But how much each investor class can recover will also depend on how successfully Parmalat claws back some cash from its banks.
Gordon Brown kisses Prudence goodbye 17 Mar 2004 The UK finance minister needs tax receipts to surge as a percentage of a rapidly expanding economy if he is to hit his borrowing targets. Planning on two optimistic assumptions is anything but prudent. Britain won't suffer terribly if Brown is wrong. But his reputation will.
Sprint poised for return to M&A fray 16 Mar 2004 A moratorium on dealdoing at the US group expires Friday, freeing it up to consider options like a sale to Verizon. This could give Vodafone, which is a minority partner in Verizon's wireless operations, a way of salvaging its position in the US market.
BNPP pays $1.2bn for US bank 16 Mar 2004 The move helps counter recent fears that the French banking giant was planning to blow its cash pile on a gigantic deal in Europe. Small is beautiful too. BNPP is paying only a 15% premium for the bloated regional bank. The snag is that others may pay more.
Vivendi tries to cash in on valuable tax assets 16 Mar 2004 The group s first scheme turning its mobile unit into a limited partnership has been vetoed by Vodafone, its fellow shareholder. But Vivendi may have other clever schemes up its sleeve.
Siltronic’s E1bn IPO overpriced 16 Mar 2004 That s too bad, as it is both the largest German and European tech IPO in three years. Excessive valuations could end up slamming shut both markets again.
Autogrill investors should take a pit stop 16 Mar 2004 Hopes that the Benetton family might sell its 57% stake for a fat price have been boosting the roadside operator s shares. Similar partial buyouts in the past have made minority investors money. But this opportunity looks like a squeezed lemon.
Lehman knocks socks off 1Q 16 Mar 2004 If Lehman is any proxy, this is going to be one hell of a year for Wall Street. Nearly every engine of the firm pounded ahead. But the story is still driven by fixed income. Even a slight bump would require huge gains in the clientdriven businesses to offset it.
Mediobanca still embroiled in power nexus 16 Mar 2004 A year after the ouster of Maranghi, its former boss, the Milanese bank hasn t escaped from its past despite valiant attempts. Here s how the bank should be reformed in a way that would be beneficial to itself and the wider Italian economy.
Bond rally has gone too far 16 Mar 2004 Yields of 3.75% are not justified on fundamentals. Deflation is not round the corner. But don't expect a quick snap back. Technical factors may drive yields still lower before fundamentals reassert themselves.
Socialist win may put Spanish M&A on hold 15 Mar 2004 A change in government might bring about some boardroom reshuffles at Spain s top companies. The election results have also caught Spain s bosses off guard. That means they probably won t be rushing into deals any time soon.
UK regulator hires CSFB’s European boss 15 Mar 2004 Hector Sants is a good hire for the FSA. He has had to deal with the regulator on behalf of one of the more scandalprone investment banks. And if Sants wants a big job telling other people what to do, he is going to the right place at the right time.
STMicro finds two passports troublesome 15 Mar 2004 The FrancoItalian chipmaker keeps a careful balance between its parent nationalities. But cracks are appearing. Trying to keep both nationalities could result in the company being neither.
Femsa starts to brew up a storm 15 Mar 2004 The Mexican brewer has filed a suit against Interbrew following its quasitakeover of Brazil s AmBev. The suit won t derail Interbrew and AmBev s deal. But it raises questions about what the group will want to do with its own stake in Femsa.
Greenhill steals a march with IPO 14 Mar 2004 It's an M&A pure play. With animal spirits returning to boardrooms and its market share rising, the timing is excellent. But be wary. Even at a discount to Goldman, Greenhill will be expensive considering its assets a handful of partners who will become extremely rich.
Abramovich shops around Sibneft stake – report 12 Mar 2004 The Russian oligarch wants out, and there is no shortage of western firms salivating over the oil company s reserves. The snag is that Sibneft isn t his to sell, and it s not clear the Kremlin would warm to a deal.
Novartis could force sweeter Aventis bid 12 Mar 2004 Sanofi s mean offer for fellow drugs maker Aventis has left the door open for other bidders. Novartis's confirmed interest in Aventis should give Sanofi the push it needs to raise the cash portion of its bid.
Wall Street underwriting cartel feels pinch 12 Mar 2004 Aside from IPOs, fees for investment banks' highmargin products are declining. This week's GE stock sale illustrates the case. Will the pressure ease? Only if capacity is taken out. That means consolidation among investment banks is inevitable.
KPN launches E500m share buyback 11 Mar 2004 The Dutch telecoms group is addressing concerns that it would rather blow cash on deals than return it to shareholders. KPN is right to repurchase its undervalued shares. Ironically, boosting its flagging share price could get it back in to the merger game.
Advertising momentum starts to fizzle 11 Mar 2004 Results have dashed investor hopes that the recovery in advertising might pick up speed. Investors have been riding the ad cycle indiscriminately. They will now have to get choosy.
Techs stocks start to wobble 11 Mar 2004 Technology stocks have fallen since the start of the year and there s good reason to suspect a further drop. Valuations look absurd. Even worse, earnings momentum appears to be drying up.
Telecoms bosses turn on spending taps 11 Mar 2004 As the focus shifts from cash to growth, mergers and capital expenditure are back on the menu. That poses a risk to shareholders. They are cottoning on.
Morgan Stanley in private equity roundabout 11 Mar 2004 While the firm s asset management unit is spinning off its private equity business, the investment bank is simultaneously plotting a return. This may seem inconsistent. But the new model may make better sense. It has certainly worked well for Goldman, CSFB and others.
Madrid hit by its worst terrorist attack ever 11 Mar 2004 The bombs have killed at least 173 and wounded hundreds of others. But the hideous attack isn t just destabilising for Spain, especially since it s not entirely clear who is responsible.
InterContinental makes plans to spin off Britvic 11 Mar 2004 The UK hotel group doesn t need to be selling soft drinks. Spinning off the beverages group it inherited from Six Continents makes sense. InterContinental would also benefit from highlighting Britvic s valuation.
Credit Agricole plods on with Lyonnais merger 10 Mar 2004 Not only has the French bank not raised the bar on undemanding synergy targets but delivery dates have slipped. Does this really matter so much, though? The real purpose of the deal, to create a dominant market leader, remains intact.
Is Alstom manageable? 10 Mar 2004 New CEO Patrick Kron has worked wonders on rebuilding the order book. But he is still finding bombshells in the continuing business. These now threaten the French engineer s debt covenants. The recovery story is in the balance.
Investcorp acts irrationally in Welcome Break saga 9 Mar 2004 The private equity firm is fighting to retain something in a restructuring. That may not look so bizarre on the surface. But Investcorp's tactics are unfair. Moreover, by antagonising debt investors, it risks putting up its own cost of capital.
Psion’s rebel shareholders misguided 9 Mar 2004 Shareholders with nearly a 25% stake are opposed to the IT group's planned sale of its Symbian stake. But the price is fair, and there is significant risk in holding out for more.
How much is not having to buy Fiat Auto worth? 9 Mar 2004 Fiat still seems to believe that it can get a lot of money out of GM for killing its option to force the US group to buy its car unit. But while Fiat might be able to get some compensation, it shouldn't count on striking gold.