Deutsche Bank draws flak on Invensys loan 9 Mar 2004 The German bank is struggling to pass the risk on to rivals. But they are exaggerating its plight for their own ends. How much risk Deutsche gets stuck with depends on two things: risk appetite in the markets and Invensys's progress on disposals.
Investment banks tear after revenues 9 Mar 2004 A year ago all eyes were fixed on costs. Now nobody on Wall Street talks of anything but boosting the top line. But not every firm is equally placed to go after growth, precipitating lots of changes in the top echelons of investment banks.
Lloyds TSB holds the payout 8 Mar 2004 The bank can afford to do so, having sold a foreign subsidiary and cut its risk weighted assets. But the debates about dividends and strategy aren't likely to go away.
Eurotunnel shareholders in denial 8 Mar 2004 A group of rebel shareholders want to give the crossChannel operator s management the chop at the annual meeting in April. The trouble is they don t have a credible game plan for fixing Eurotunnel.
Belgacom IPO looks attractive 8 Mar 2004 The Belgian telecoms group carries acquisition risk. But an IPO discount compensates for this. There is not much of an equity story here. But the shares are more like a bond, with a high yield and little room for capital depreciation.
Veolia comes down to earth 8 Mar 2004 The French utilities conglomerate s goals look easily achievable. This is welcome news considering its overreaching past. But Veolia s shareholders shouldn't get too excited. The 40% of shares owned by banks and Vivendi will continue to depress the shares.
Martha Stewart raises white collar bar 7 Mar 2004 The US home improvement icon's conviction Friday on 4 counts shocked many who found her crimes relatively petty compared to Enron et al. This fails to grasp the public s hunger to find culprits for corporate greed of any kind and bodes poorly for those next on the docket.
Gordon Brown is ideal for the IMF job 5 Mar 2004 He'd enjoy it too. He could bully as many Prime Ministers as he felt like, and talk about endogenous growth theory without being laughed at. But would Britain s Chancellor take the job if offered? Abroad, as at home, his burning ambition to become Prime Minister limits his options
Latin American M&A fires up 5 Mar 2004 Deals like InterbrewAmBev and Telefonica/BellSouth have made March the most active month for Latin America since before the bubble burst. Big deals may still be scarce, but there s a lot of cleanup work. Banks that cut Latin M&A teams after Argentina may need to start hiring.
Has Eircom priced its IPO to sell? 5 Mar 2004 The Irish telecoms group has poor growth prospects. And its privateequity owners are cashing in after cutting out fat. The 7% dividend yield is interesting. But investors need compensating for leverage risks. Factoring these in, Eircom ain t going cheap.
Aventis right to worry about value of Sanofi bid 4 Mar 2004 A study suggests that Sanofi's biggest drug doesn't work in combination with the world's best selling pill. Concerns about Plavix's patent have already rattled Aventis shareholders. This adds to the uncertainty.
Agnellis may get big return from minority buy-out 4 Mar 2004 Ifil, the family holding company, browbeat minority investors at Rinascente into accepting a lowball bid. Now the Agnellis may cash out of the retailer in a deal that could make them a really big return.
Deutsche Bank boosted by bid rumours 4 Mar 2004 Josef Ackermann likes transformational deals. The assumption is that this means he is ready to sell Deutsche to Citigroup for a big premium. But transformational doesn't necessarily mean one big deal. It could be several smaller deals and asset swaps.
Lloyds TSB appoints Helen Weir as finance director 4 Mar 2004 She steps into the shoes of Philip Hampton who left after falling out with chief executive Eric Daniels. Weir will need to allay any concerns that she got the job because she is more malleable.
Telefónica chases $6bn Latam mobile deal 4 Mar 2004 Buying BellSouth's mobile units would have industrial logic, as it would consolidate Telefónica's position in Latin America. The price tag doesn't look too high, perhaps because BellSouth needs to sell a ragbag of assets in a hurry.
Alitalia dices with danger 4 Mar 2004 With its reformminded chief executive gone, Alitalia s muchneeded restructuring is once again on the back burner. But without reform, its chances of survival look slim.
Accelerated option vesting is a bad idea 4 Mar 2004 Michael Green's £13m astonishing options bonanza should prompt a review of the merits of accelerated vesting when a company merges. With a new M&A bubble inflating, investors should stamp on the practice quickly or they will see a lot of value flying out of the door.
The worst is over for Suez 4 Mar 2004 Hefty restructuring charges in 2003 pushed the French utility into a E2.2bn loss. The acquisitiondriven expansion of yesteryear is over. The question is, what follows next? The group has laid out ambitious organic growth targets. They should be treated sceptically.
LVMH driven by LV brand 3 Mar 2004 The group s trusty engine even speeded up in the second half of the year, with dollar sales growth of more than 50% in Q4. A luxury rebound may finally be underway. But LVMH which is up more than 50% in the last year is already pricing a hefty one in.
What links Italian football to Parmalat and Cirio? 3 Mar 2004 For a start, they are all under investigation. What's more, two of the clubs that have been searched are none other than Parma and Lazio. The first is owned by Parmalat; the second used to be owned by Cirio before it went bust. The intriguing fact is that clubs swapped players with each other for extremely high prices. That may have flattered their accounts.
Sir Phil Watts quits as Shell chairman 3 Mar 2004 Watts got his comeuppance. Even if he wasn't responsible for the reserves debacle, he handled it abysmally. This opens the way for a revolution at Shell. As such, it is an incredible victory for shareholder activism.
Siemens should look at disposals 3 Mar 2004 Everybody knows the German conglomerate is on the prowl for acquisitions. But with over a dozen barelyrelated divisions, a better strategy might be to sell poorly performing divisions.
Good times roll at ITV 3 Mar 2004 Everything is going right for the newly merged broadcaster. The BBC looks weak, advertising is on the mend and cost cuts are on track. But much of the good news is priced into the shares.
Interbrew’s knee-jerk share fall looks wrong 3 Mar 2004 True, it is paying a fancy price for a controlling stake in AmBev. But it is getting a premium price back for Labatts. Factor in admittedly thin synergies and Interbrew is probably washing its face with its AmBev deal not destroying value.
Disney must drop its boss 3 Mar 2004 With 43% of its owners withholding support for chairman and chief executive Michael Eisner, the board cannot sit on its hands. But simply splitting Eisner s role would be a bandaid remedy. With Comcast hovering over the proceedings, it s time for Eisner to go.
Investment bankers play musical chairs 3 Mar 2004 Like clockwork, the game has begun. Bonuses are mostly paid off and guarantees expired, so bankers and traders are defecting to rivals. And unlike the recent lean years, which kept defections to a minimum, the prospects for the industry look rosy. Expect a lot of movement.
Virus upsurge threatens Microsoft 2 Mar 2004 Because it has ninetenths of the market, the software company is a prime target for every hacker and email evildoer. If the number of viruses continues to increase, Microsoft will ultimately suffer.
ECB unlikely to cut rates 2 Mar 2004 Bond markets have got excited lately at the prospect of a rate cut. Politicians have also been banging on the ECB s door. But the ECB is unlikely to move. Inflation has not been falling as fast as recent data suggests. Nor is the euro as strong as it might seem.
AmBev deal slams Brazilian minorities 2 Mar 2004 The investing banking trio that control the Brazilian brewer have cut themselves an astonishingly good deal. Most other shareholders not only get left in the cold; they have to pay a fat premium to Interbrew for its Labatts business.
Recruitment dramas contain familiar characters 1 Mar 2004 The headhunter linked to the Prosser affair is courting controversy again at Lloyds TSB. And one corporate broker is linked to both dramas. The buck for nominations may stop with companies, but surely their advisors should be retained for their market savvy?