WH Smith in play 18 Apr 2004 Permira's swoop on the troubled UK retailer is highly opportunistic. But at a 45% premium, the directors must consider it seriously. Smith's now needs to see if it can rustle up other offers maybe even from its own chief executive Kate Swann .
Morgan Stanley lands Canary punch 16 Apr 2004 By abandoning the requirement for 75% acceptances in its bid for the skyscrapers, Morgan has neutralised rival Brascan's only advantage. The battle for Canary Wharf has been long drawn out. But it has been profitable. The stock has risen 63% over 10 months.
Russian oligarch clarifies Corus intentions 16 Apr 2004 Alisher Usmanov has ruled out commercial interest in the steelmaker. His demands for board representation now deserve a hearing. Usmanov must state openly what he can contribute to the company. Corus should then either accept him or rebuff his arguments.
Seat’s owners still bullish on the stock 16 Apr 2004 The private equity groups that bought 62% of the directories firm had to get rid of a 12% stake because of the covenants imposed by lenders. Although they are sitting on big paper profits, they chose to park the stake with Lehman instead of selling it outright.
Nokia shock could be buying opportunity 16 Apr 2004 The Finnish phone maker's troubles aren't limited to last quarter. They will continue this quarter. But if it can come up with some attractive phones, the stock will rebound.
Google’s e-mail won’t deliver much in profit 16 Apr 2004 The soon to be public internet company needs to move into new markets to fight off competitors. Hence, searchable email accounts. But the service doesn t look like a big winner. If privacy concerns don t hamper profitability, competition will.
Sage’s organic sales spice up profits for a change 15 Apr 2004 The UK company has reported strong results from existing software. Sage has historically relied on acquisitions for growth. If organic growth holds, its earnings will continue to impress.
Tronchetti and chums up stake in Telecom Italia 15 Apr 2004 The controlling shareholders are reinforcing their position ahead of a board meeting where directors face reelection. But last time they reinforced control was just before the TI/Olivetti merger. Is another deal in the works?
Citigroup breaks Q1 expectations 15 Apr 2004 It's ironic that the firm that acquired Salomon Brothers has benefited least from the proprietary trading business. While that puts it in a good position to weather rising rates, it still might contend with rising consumer loan delinquencies.
Credit research should also be regulated 15 Apr 2004 The conflicts of interest affecting research apply to bonds as well as shares. Credit analysts must either sacrifice their independence or work harder to show they are adding value.
Morgan Stanley muscles in on UK corporate broking 15 Apr 2004 By poaching a top team from Merrill, Morgan is signalling that the peculiar British practice of corporate broking is far from dead. But the interesting question is whether it can leverage what is essentially low margin relationships into juicy transactions.
Citigroup in corporate governance flap 14 Apr 2004 Plans by funds to withhold a vote for CEO Prince partly over a potential conflict with his wife is like using a sledgehammer to crack a nut. The risk with this protest, like others, is that it will dilute what little power a withheld vote offers to improve corporate governance.
Ericsson has cash stashed under its mattress 14 Apr 2004 The Swedish telecom equipment maker has E3.9bn in reserves. This appears to be far too much. Cutting provisions would boost the stock.
Pfizer promises free Viagra 14 Apr 2004 The drugs company is taking a leaf from the humble coffee shop and plans to give users one free pill for every six ordered. But the marketing falls short of brilliance. Here are some better suggestions.
Danone outpaces rivals 14 Apr 2004 The French foods group's year is off to a smooth start with a 10% increase in firstquarter sales well ahead of its European rivals. Unsurprisingly, Danone is perennially viewed as a target. But any suitor would need to think hard given management's reluctance to sell.
Financial markets complacent over Iraq 14 Apr 2004 The US has no exit strategy from the conflict. Meanwhile, worldwide terrorism has been stoked up, not snuffed out. The 30% bounce in US stock markets in the year since Baghdad was "liberated" blithely ignores the risks.
M&S starts to unravel 14 Apr 2004 After several quarters of stagnating market share, the UK retailer is now moving backwards fast. Even worse, it doesn t look like Marks & Spencer has much of an idea of how to reverse this.
Technology sales momentum slowing 14 Apr 2004 Intel, Philips and Nokia have all disappointed investors expectations for sales. But tech stocks are still pricing in earnings growth that can only come from an increasing top line.
Daimler prepares big Mitsubishi cash injection 13 Apr 2004 Its initial investment in the Japanese car group has been a disaster. Now to remedy the situation, it will reportedly sink in another $4bn. That is, at best, a big gamble. It is remarkable that Schrempp, the architect of this failed strategy, is still in situ.
Berlusconi vows to cut Italian taxes 13 Apr 2004 A E12bn tax cut should stimulate growth, but nowhere near enough for the measure to pay for itself. That means Italy is likely to be ever more reliant on oneoff measures if it isn t to breach the Maastricht 3% cap on national deficits.
Merrill turns in solid first quarter 13 Apr 2004 The firm managed to build revenues though half of these came from principal trading while holding costs steady. The challenge will be improving the investment bank's prospects. If it can do this, Merrill might just be the industry's best stock pick.
France struggles to make its mind up over Aventis 13 Apr 2004 First the industry minister appeared to change the government's position towards neutrality. Now the prime minister has slapped him down. Signs of a power struggle offer shareholders a ray of hope. But it is a slim one.
Buffett under pressure at Coca-Cola 10 Apr 2004 Influential shareholder advisers are recommending a vote against the legendary investor at Coke s April 21 meeting, calling him conflicted. Here is a perfect example of how shareholder activism can be downright nonsensical when applied in an orthodox manner.
Dollar flatters private equity returns 8 Apr 2004 The greenback's slide has given US funds like Providence and Blackstone a huge lift from their European investments. This is another reason why they may be keen to sell assets now the market is more open to exits.
Bidding for National Grid gas networks heats up 8 Apr 2004 Three private equity groups are teaming up to offer £4bn for four networks. It is in National Grid s interest to have one buyer for the lot, but the regulator may stick a spanner in the works.
Sterling bolstered by M&A flows 8 Apr 2004 The Bank of England s decisions on rates are not the only factor behind the pound's performance. Some $10bn of net pending inflows from M&A, including some lumpy deals, could also buttress the currency in coming months.
Air France isn’t Alitalia’s knight in shining armour 8 Apr 2004 Hopes that the Italian carrier will keep afloat thanks to its alliance with Air France look too optimistic. Without serious reform, Alitalia s chances for survival seem slim.
Welteke’s fall prompts German soul-searching 8 Apr 2004 The Bundesbank was a hugely respected German institution. So the disgrace of its president has enormous symbolic resonance. But on a practical level, it is hard to see what effect the scandal has.
Newmont merger talk may be fool’s gold 7 Apr 2004 Rumours of a Newmont bid for Canadian rival Barrick are persistent. And there is some logic to a deal. But Newmont should not let the frenzy of the gold market get in the way of good sense a Barrick takeover would be too expensive.
Sarkozy may go easy on privatisation 7 Apr 2004 But there are plenty of reasons for him to tread cautiously. France's new finance minister is pressing ahead with the conversion of the EDF and GDF into privatisable companies.