Fiat palace coup fails 31 May 2004 His resignation is bad news for Fiat s investors. While there may have been doubts about his turnaround plan, it did seem to be delivering. Giuseppe Morchio, the carmaker s CEO, tried to seize power following the death of chairman Umberto Agnelli. But he overplayed his hand.
Private equity merry-go-round not much fun 31 May 2004 BC Partners' sale of Germany's Grohe for $1.8bn offers a clean and timely exit. But it won t set records for return on investment. Texas Pacific Group and CSFB may have got a bargain. But their plans to expand Grohe internationally will take time and money.
Saudi attacks highlight security failings 31 May 2004 This weekend s terrorist atrocity raises fresh questions over Saudi Arabia s ability to protect expat workers. With four major attacks in a little more than a year, the possibility of an exodus is growing.
M&S appoints new chairman and new CEO 30 May 2004 The embattled UK retail giant needed credible candidates in both roles to mount an effective defence against Philip Green. With former Arcadia boss Stuart Rose as CEO and City bigwig Paul Myners as interim chairman, M&S should give Green a run for his money.
Could Glaxo leave the FTSE? 30 May 2004 The UK has seen a hollowing out of drugs companies over the past year. Will bigger companies follow? The question may have seemed ludicrous a year ago. But it pays for companies and shareholders to follow the money. And that's in the US.
How long do you need to turn round a company? 30 May 2004 The typical answer is three years. But you'll only get it if you have both a credible chairman and a credible chief executive. That's the message from a number of UK turnaround situations. M&S is a sitting duck because it has neither.
US hostile deal offers arb opportunity 28 May 2004 At first glance, Omnicare looks like it will struggle to clinch the $1.3bn takeover of rival Neighborcare. But look again, the omens and both firms' rising stock prices suggest there is a deal to be done and money to be made.
Deutsche Bank drops big hint on Postbank’s value 28 May 2004 The colead bank on the flotation of Postbank has suffered an embarrassing leak. An internal memo puts a lower valuation on Postbank than the vendor, Deutsche Post, expects. But the leak may make the client get real.
Yukos looks cheap 28 May 2004 The Russian oil company has been asked to pay a $3.4bn tax bill. And fears of bankruptcy have driven its shares down. Yukos' fate ultimately does depend on the Kremlin s will. But it's not likely to go over the edge.
Retailers’ bondholders risk a mugging by LBOs 28 May 2004 As Philip Green s bid for M&S shows, onetime investmentgrade bondholders risk being subordinated to new highyield debt structures. The problem is inadequate covenants. Bondholders should negotiate better ones. A bid as big as Green s may spur them into action.
Ryanair investors are in for a bumpy ride 28 May 2004 The Irish budget carrier says the latest airline price wars will be a bloodbath for twobit new entrants. But Ryanair will feel the pinch too, because of its giddy expansion and choice of destinations.
Green concocts ballsy financing for M&S bid 28 May 2004 The entrepreneur is apparently looking to load it up with £5bn£6bn of debt. If Green can really pull this off, he could end up effectively controlling a £10bn enterprise with only £1bn of his own cash.
Barclays runs to stand still 27 May 2004 The UK bank is piling on costs to drive organic growth. But its retail banking and credit card businesses are not taking market share. With debt markets weakening, Barclays Capital will struggle to compensate. The only crumb of comfort is continuing share buybacks.
DoCoMo bails out of UK’s 3 27 May 2004 The Japanese telecoms group is nursing a near 90% loss on its initial investment in the mobile operator. Meanwhile, Hutchison is now left to sweat it out on its own.
Boots announces £700m share buyback 27 May 2004 This big present to shareholders seems designed to reassure them that Boots is still gushing cash despite March's shock profit warning. It is also aimed at buying newish CEO Richard Baker time to deliver a turnaround of the lacklustre group. He'll certainly need it.
Vivendi delivers next step of turnaround 27 May 2004 If there had been any slippage, management wouldn't be able to put off demands for a breakup of the French media and telecoms conglomerate. But even with things moving in the right direction, it won't be long before Vivendi has to come up with a credible longterm strategy.
Sanofi doesn’t have full control of Aventis 27 May 2004 The new board includes several big cheeses from the Aventis camp who could limit the power of JeanFrancois Dehecq, Sanofi's boss. Fuzzy control reflects the fact that Sanofi paid a modest premium. If it spells power struggles, it could also lead to fuzzy integration.
Philip Green swoops on M&S 27 May 2004 But since Green will seemingly be paying M&S shareholders mainly with their own cash and new shares, it is not a slam dunk. The UK entrepreneur has timed a possible £8bn assault on the struggling retailer well. M&S s chairman has quit and its CEO is on the rocks.
Shelved exits up pressure on Doughty Hanson 27 May 2004 The private equity group has postponed its float of Germany s ATU. That will make it harder to return a big wad of cash to investors. Delays in achieving exits may hurt rates of return and can make future fund raising more difficult for the group.
Tiscali’s cash pile isn’t all cash 26 May 2004 The Italian ISP is already in a tight spot financially, and will probably need to raise capital and sell assets to fund growth. So it doesn t help that some of its cash is actually tax receivables, and another chunk is stuck in an escrow account.
Glaxo needs Chris Gent’s charm above all 26 May 2004 Gent brings two qualities to the chair of the UK pharmaceuticals group a silver tongue and a penchant for deals. But given Glaxo's lowly valuation, he'll need to talk up its prospects before he gets stuck into M&A.
When can an irredeemable share be redeemed? 26 May 2004 When it is cancelled. That s the astonishing piece of sophistry used by a tiny UK oil company to shortchange its preference shareholders. Hunting s move isn t obviously illegal. But owners of other supposedly irredeemable shares should doubleread the small print quick.
Microsoft settlements pave way for higher dividend 26 May 2004 A welter of existing and threatened lawsuits has weighed down the software giant. A dash to resolve legal disputes has removed a major threat to its $56bn cash pile. It is time to pay out.
Hands on Shanks 26 May 2004 After swooping at the last minute to break up Pennon's acquisition of Shanks, critics are saying Guy Hands has overpaid. But industrial synergies unusual in a private equity deal mean Hands' Terra Firma group may still make the deal add up.
Biotechs with backs to wall take IPO plunge 25 May 2004 With investors fleeing risk, a biotech float is the last thing one would expect. Yet companies are lining up. The reason? They have little choice as their cash piles burn away.
Deutsche Telekom ups its US bet 25 May 2004 The German group has splashed out $2.3bn on extra US network capacity. And the associated costs could be chunky. This investment must deliver a big increase in subscribers if it is to pay off.
Does Spitzer face his own conflict of interest? 25 May 2004 The NY attorney general who made his name by attacking conflicts on Wall Street seems to be treating former NYSE directors with kid gloves. That raises questions about whether he faces a potential conflict between his political ambitions and regulatory responsibilities.
M&S shies away from radical revamp 25 May 2004 The UK retailer has admitted that all of its engines are misfiring. But its plans to get them ticking over again appear inadequate.
Vodafone’s Sarin struggles to please 25 May 2004 The chief executive has announced a sensible share buyback and acquisition. But Vodafone's share price has sunk like a stone. That reflects doubts about where Sarin wants to take the group. He needs to work harder to get his message across.
Texas Pacific ploughs ahead with Findexa IPO 25 May 2004 The private equity group has been forced to slash the price and size of the Norwegian directories group offering to get investors on board. That means it won t exit now. But this isn t necessarily a disaster for Texas Pacific.