Repair job not over at Emap 25 May 2004 The media group quit the US two years ago to focus on its profitable European core. Now there are problems there too. Turning this round may be slower and harder than selling out in America.
Tiscali still hasn’t grasped nettle 24 May 2004 The Italian internet provider has finally admitted it needs to raise equity to fund its investment in broadband. But its proposed solution a small rights issue and some asset sales looks insufficient to solve its problems.
EMI recorded music sales fall more slowly 24 May 2004 That's good news, as is its forecast that industry sales will recover in 2006. The snag is that it's all in the price. And there's precious little chance of a merger in the near future.
Cazenove teases its suitors 24 May 2004 The independent UK investment bank hasn t yet deemed any of its various takeover approaches worthy of formal talks. It says it still prefers a float. But in protesting so much, Cazenove seems to be inviting its suitors to make an offer it can t refuse.
Lufthansa raises E750m it shouldn’t need 24 May 2004 The German flag carrier says it needs the cash for new planes. But it should be able to pay for them out of internal resources. Either Lufthansa is being prudent, or it knows something investors don't. It will have to persuade them to cough up.
M&A departments back in fashion 21 May 2004 During the quiet years, firms like CSFB and Goldman got rid of M&A teams, sending bankers out to drum up business or firing them. Now M&A departments are being reconstituted. It would probably be better not to have disbanded them in the first place.
EU to become friendlier place for generic drugs 21 May 2004 The union is now home to several large generic drugs companies following enlargement eastward. This will give generics companies more political clout in Brussels to the detriment of big pharma.
Private equity look for quick exits 21 May 2004 The likes of CVC and, reportedly, Blackstone are pushing out big IPOs, regardless of choppy markets. That's partly because they bought assets on the cheap. But it's hard to shake fears that the smart money doesn't trust the recovery.
Hedge funds get the better of prime brokers 21 May 2004 Recent scare stories about prime brokers competing with each other to offer greater leverage at rock bottom prices are largely bogus. The reality is that hedge funds are getting prime brokers to offer the same leverage but with fewer strings attached.
BT stops shrinking at last 20 May 2004 The snag is that BT's strategy is coming good ahead of a regulatory review. That limits the gains for shareholders. Hats off to the the telecoms group. It eked out more incremental revenue from IT and broadband than it lost from its traditional business.
SABMiller powers ahead 20 May 2004 The AngloSouth African brewer saw earnings and volumes increase last year. It is also showing real evidence of a turnaround at Miller. SAB is still keen on acquiring Harbin in China. But the group has reassured investors that it won t overpay to win a bid battle.
Hedge fund wobbles take the shine off Man 20 May 2004 But Man is raking in new money. Shortterm glitches alone are unlikely to arrest the flows. Concern over the recent performance of hedge funds has overshadowed another bumper set of results from the asset manager.
Findexa’s IPO may be too clever by half 20 May 2004 The offering has been postponed because investors are uncomfortable with the aggressive tax structure. One way round this would be to cut the price. But that would defeat the object.
National Grid should return more cash 20 May 2004 The power distribution company increased its dividend by 15% and promises to increase payout by 7% until 2008. But it could easily do more especially if it sells its gas distribution networks. It should pay at least part of proceeds to investors.
Finmeccanica seeks to buy GKN out of helicopter JV 20 May 2004 This would make industrial sense. AugustaWestland is noncore for GKN, and Finmeccanica wants to focus on defence. The difficulty is likely to be price. GKN will want a fat premium while Finmeccanica can t justify paying much of one.
Football clubs need sugar daddies 19 May 2004 Chelsea found a friendly Russian billionaire; now Liverpool is cosying up to Thailand s Prime Minister. Such deals are inevitable so long as equity and credit markets remain closed to football clubs.
EDF over a barrel in Italy – again 19 May 2004 The French electricity giant wants to delay its commitment to buy Fiat and friends out of Edison at inflated prices. If it wants to get the Italians on side, it is likely going to have to pay over the odds.
Rentokil’s Mr 20% exits on sour note 19 May 2004 Sir Clive Thompson made a religion of hitting profit targets during his 21 years at the helm of the pest control group. So there is a certain rough justice that he has been forced out on a profit warning.
Opec’s quota rise won’t cool the oil price much 19 May 2004 With the oil prices hovering around $40, the oil cartel has little choice but to spring into action. The snag is that actual supply of oil can t go much above current levels.
Sainsbury’s new boss starts to bite bullet 19 May 2004 Justin King has already cut prices significantly. But will have to do a lot more to bring the supermarket group in line with its peers. The risk is that rivals won t stand still while Sainsbury tries to catch up. And if volumes don t pick up, the price cuts could be painful.
Vivendi boss should have disclosed bond trades 18 May 2004 Directors who buy securities issued by their own company face potential conflicts of interest. And the same holds for relatedparty deals. There is no evidence that Jean Rene Fourtou succumbed to these temptations. But had he told the market, no one would have raised an eyebrow.
Alstom deal blow to the EU, banks 18 May 2004 Nicolas Sarkozy has pulled off a huge political coup in keeping the engineer intact and French. But Mario Monti looks weakened. Meanwhile, banks have missed out on merger mandates and may have to swap debts for equity.
Investors cool on IPOs 18 May 2004 Who can blame them? Few have actually made any money out of flotations this year. And with most European markets down on the year, it won't get any easier.
Maiden profit underlines mmO2’s attractions 18 May 2004 But rising spending shows mobile is a capital intensive business where scale matters. That means shareholders will remain open to a bid. The business is moving in the right direction, and the O2 brand is also making inroads.
Swiss Life opts for huge discount in rights offer 18 May 2004 The company is pressing on with its share and convertible offer even though sentiment towards insurers has turned nasty. It's not so financially stressed that it couldn't have postponed the job. But management probably couldn't bear to be seen in retreat.
UK biotech gets lift from £1.5bn Celltech bid 18 May 2004 This is the first time shareholders in a major biotech company have got a cash exit. That is going to boost confidence, and should help to end the investment drought in the sector.
BA shows airline recovery is still a long shot 17 May 2004 It s a good thing British Airways overshot its cost savings target this year. Otherwise it would have made a loss. And unless BA takes an axe to costs again this year, earnings won t grow at all. So much for the cyclical recovery.
Rhodia crippled by rescue’s cost 17 May 2004 The French chemicals group has fought off insolvency with a successful rights and bond issue. But the treatment did not cure, and has given rise to a nasty set of side effects.
All hedge fund strategies on the slide at once 17 May 2004 This contradicts the industry hype which says the performance of different strategies isn't correlated. One explanation is the industry is struggling to adapt to a oneoff change in the macro environment. Either way, a shakeout is in store.
Junk bonds the latest victim of rising rates 17 May 2004 That prices are finally falling is hardly surprising. A correction was long overdue. The correction will affect opportunistic refinancings and private equity deals.