Eurotunnel rebels boot management 7 Apr 2004 To most observers, this means the crossChannel operator could be heading for a meltdown. Yet shares have rallied nearly 10%. One explanation is shareholders think a government rescue is on the cards. But that looks unlikely.
Capitalia launches E1.1bn bond into Generali stock 7 Apr 2004 This can be interpreted in two ways. One is that Capitalia has chosen a method of exit that could potentially create most value. The other is chief executive Matteo Arpe may not want to sell the shares at all.
CGE to raise £2bn to buy power stations – report 7 Apr 2004 The group has changed tack. It will now offer cash in addition to bonds for distressed UK power stations. This will increase its bids attractiveness, but success for CGE is still a long shot due to rising electricity prices.
Nokia caught in price trap 6 Apr 2004 If the group cannot stabilize falling prices per phone during a boom, it will be in a world of trouble come the next bust. The Finnish phone maker's revenues fell in the first quarter even as the volume of its handsets sold increased by 19%.
Mony proxy war exposes hedge fund conflict 6 Apr 2004 There was nothing wrong with the trade per se. But hedge funds cross a line when they solicit proxies. US Hedge fund Highfields tried to persuade Mony investors to vote down a bid by Axa omitting to mention it stood to gain if this happened.
News Corp plans to move house to the US 6 Apr 2004 The move would make a lot of sense. The media giant stopped being an Australian company long ago. It should provide a boost to the shares too, but the discount to News Corp s US peers won t disappear altogether.
Price rise may signal end of the chip cycle 6 Apr 2004 The prices of semiconductors have risen sharply over the months, as demand for electronic goods takes off. But chip company stocks already trade at peak multiples. And rising prices usually occur shortly before a bust.
Germany needs a boring IPO 5 Apr 2004 After two racy flops, Siltronic and XFab, another pulled float would be a problem. Dull old Postbank looks the safest bet to reopen the market.
Cable companies blaze a trail in European junk 5 Apr 2004 Kabel Deutschland s E4.1bn debt package is the latest in a slew of cable junk deals. Cable may not be as risky as before, but the strong demand for this type of paper is still worrying.
IPO boomlet lacks a ring of confidence in UK 5 Apr 2004 London's new issues are concentrated on the junior Aim market, with mining and biotechnology deals prevalent. Sellers appear in a hurry to exit from the investment darlings du jour and from risky businesses.
M&A headlines may deceive 5 Apr 2004 At first blush, the first quarter looked like a knockout, with deal values rising to their highest in four years. But not everybody may be profiting from the boom. Success rates are down for bankers. And merger arbs are getting whacked.
Aventis board proposes poison pill 4 Apr 2004 The pill would insure Aventis shareholders against the main risk in Sanofi s hostile bid. That's an interesting concept. But the pill would allow the board to turn down an improved offer from Sanofi. Shareholders have no reason to give it this freedom.
Tyco trial ends in chaos 4 Apr 2004 The bizarre end to the sixmonth attempt to jail Tyco s top two former executives won t stop prosecutors from trying again. But the defendants will surely try to prove that Tyco was not alone in getting caught up in the excesses of the bull market.
Gus should spin off Experian 2 Apr 2004 A breakup of the UK retail conglomerate could create value. By spinning off Experian, the credit checking business, and selling down its stake in Burberry, Gus could create 1520% extra value.
Private equity may make a mint on German cable 2 Apr 2004 Goldman, Providence and Apax bought last year when valuations were very low. Now they are raising E4bn to consolidate the sector. They are increasing their upside potential without putting in a cent more. In fact, they may take out a modest dividend.
Novartis best match for Aventis 2 Apr 2004 The Swiss drugs company could create more value in a merger than Sanofi as it could cut more costs. An offer of E66 per share would be 17% higher than Sanofi s bid and still leave value for the Swiss.
Where have all the mobile mergers gone? 2 Apr 2004 For a while it looked as though the auction of America's AT&T Wireless might trigger consolidation in European mobile. But it hasn t. One snag is that several potential acquirers have not quite restored their balance sheets. That means sellers can t generate price tension.
Interbrew may explore ending 600 years in Belgium 1 Apr 2004 As part of its deal with AmBev, the brewer may conceivably change its domicile in the hope of cutting its tax bills. But it s not likely that the group would achieve significant savings by moving domicile. No wonder this isn t at the top of its todo list.
Gucci misses forecasts as PPR starts buyout 1 Apr 2004 PPR has to write a hefty cheque just as it becomes clear that Gucci s recovery is soggier than expected. Gucci still has no chief executive, and the new design team looks uninspired. It isn t clear how PPR plans to kick the business into shape.
Donald Trump makes bad role model 1 Apr 2004 A hit US reality TV show has made the New York real estate developer one of the country's most admired businessmen. Yet judging by the health of his listed hotels and casino group, it would be tragic if Trump became a role model for US business.
Opec cuts quotas despite soaring oil prices 1 Apr 2004 That's not quite as odd as it sounds. But with prices above $30 per barrel, the oil cartel is likely to say one thing and do another.
How long can Ericsson’s bull run continue? 1 Apr 2004 The Swedish telecoms equipment group has defied those who thought its profitability would not exceed year2000 levels. But the shares are well up with events. They need revenue growth if they are to run up further.