Guy Hands makes £1bn approach for Pennon 17 May 2004 This isn't really about water, but who gets to consolidate the UK waste management industry. Hands wants to break up a potential deal between Pennon and a rival. This is a clever move, but it is too early to say if it will pay off.
Dresdner stops losing money 14 May 2004 But Allianz s illfated banking acquisition is a long way from making a decent return on equity. Going forward, it may be just as hard to jack up profits at the shrunken unit as it was to stop the losses.
Private equity fund IPOs on hold 14 May 2004 Only 1 of 12 potential IPOs, collectively aiming to raise $6bn, has been launched. And it's trading at a 15% discount to its launch price. These socalled business development companies have many problems. And with interest rates rising, their yield isn't compelling any more.
Bertelsmann moves to beef up UK’s Channel 5 14 May 2004 The German media group may not up its 65% stake right away. But it needs to invest more if it wants C5 to survive in a multichannel world. The snag is that there isn t much to buy, and whatever is around won t come cheap.
Atos Origin makes hash of Sema acquisition 14 May 2004 The French IT services transformed itself when it bought Sema. Trouble is, it turned into a turkey. The group now says goodwill from the acquisition is E1.4bn. The original purchase price was E1.3bn. The group now says goodwill from the acquisition is E1.4bn. The original announced price for Sema was E1.3bn.
Faked photo saga reflects badly on Trinity Mirror 14 May 2004 The stock has risen on hopes that the management could reverse the UK tabloid paper s longrunning decline. There s no turnaround and the Mirror is in disarray. The stock s premium to European rivals is unwarranted.
1+1 may equal 2 or less in Agricole/Lyonnais merger 14 May 2004 Investment banking is the bit of the deal that's supposed to deliver the integration benefits. Unfortunately, it's also the area that has been most marked by infighting.
Pinpricks of light for Italian banks 13 May 2004 The domestic economy is still pretty grim. But investors have woken up to the dangers this may pose to Italian banks. Meanwhile, Intesa has shown it can squeeze more juice out of its recovery, and Unicredito may have hit its trough.
Reckitt Benckiser rockets in Q1 13 May 2004 But despite its strong performance at an operating level, the stock has raced ahead so far that there isn't much upside left. There's still some discount compared to rivals like P&G. But unless it can use its balance sheet better, the gap won't narrow rapidly.
Ackermann damaged by Postbank affair 13 May 2004 The onoff deal has exposed divisions over strategy at the top of Deutsche Bank. It has also weakened Ackermann's authority, making it harder for him to keep the old guard at bay.
T-Mobile keeps up double-digit growth in Q1 13 May 2004 Foreign mobile operations generated more ebitda than the German mobile business for the first time. The mobile unit's growing free cash flow will help pay down group debt. It will also help offset decline in the fixed line operation.
Weak investment banking soils SocGen’s Q1 13 May 2004 Revenue growth in the investment bank was lacklustre. So much for SocGen s racy leverage to an equity recovery. And the current climate highlights the virtues of rival BNP Paribas more diverse business.
Infineon considers disposal of memory chips 13 May 2004 Even as the thirdlargest producer of memory chips, the group has not made consistent profits. Now is a good time to exit. Its remaining businesses are higher margin, more stable and require less capital. Separating them out should unlock value.
Repsol looks cheap 12 May 2004 Concerns about Argentina and uncertainty about the future of Gas Natural have weighed on the Spanish oil and gas company. But Repsol has come a long way since it blazed a trail in Argentina with YPF. Exploration and production look promising too.
Funds of hedge funds driven to using leverage 12 May 2004 Hedge funds are nowadays focused more on minimising volatility than maximising returns. That s bad news for funds of hedge funds. They need high returns to justify their own fees. One solution is to use leverage themselves.
Agnelli illness may herald Fiat changes 12 May 2004 There are two possible changes if Umberto Agnelli's illness leads the family to step back from the Italian conglomerate. Its banks are more likely to convert their bonds into shares. And the chain through which the family controls Fiat may be shortened.
Dirigisme alive in Germany too 12 May 2004 Berlin's meddling in Postbank is reminiscent of the French government's intervention in the Sanofi/Aventis bid. If the Germans emulate the French, it will be another black day for the market.
BSkyB hasn’t gone ex-growth 12 May 2004 True, Sky's customer growth slowed in the last quarter. But it still has a stranglehold on a market which has considerable scope for growth. A measured approach to grasping that opportunity means Sky can keep raising margins.
Cisco’s story doesn’t add up 12 May 2004 The networking giant claims the IT recovery is gaining momentum, resulting in record earnings, and plans to hire 1,000 more workers. But rising inventories tell another tale.
Investment banks lose $90bn of value 12 May 2004 Since hitting highs in March, investors have sliced that much from the market caps of the big seven US investment banks. At a time when corporate finance is improving, investors are taking negative views on prop trading, rising costs and, now, litigation risk.
LG Philips LCD to double IPO to $2bn 11 May 2004 This looks steep, opportunistic and possibly unlikely. The current boom in flat screens carries the seeds of its destruction. It looks like the group is trying to sell at the top.
Black saga gets blacker 11 May 2004 The allegations such as Black's wife using company funds to tip the BergdorfGoodman doorman aren't just engulfing the media mogul. There is also a big question: what on earth were the nonexecutive directors doing?
Veolia locks horns with Spanish heiress over FCC 11 May 2004 With a rival champing to buy the Spanish construction firm, Veolia should in theory be able to get big bucks for its 26% stake. But there is a snag the French utility doesn t control the shares directly. Esther Koplowitz does.
Berlin tries to broker Deutsche/Postbank deal 11 May 2004 But it is unlikely to revive the moribund German banking industry. Such a marriage would satisfy Gerhard Schroeder's desire for an eyecatching initiative before the summer break.
Citi in $2.6bn WorldCom settlement 10 May 2004 With that, and an increase in litigation reserves, Citi's bubbleera practices look set to cost shareholders about $9.3bn in total. This is an unfortunate finale to Sandy Weill's legacy. But fighting it in the courts would probably cost even more.
Another US bank fetches megabucks 10 May 2004 SunTrust's $7bn takeover of National Commerce has shown yet again the sort of skyhigh prices US banks are fetching. Even in a bestcase scenario SunTrust's return on investment looks pretty low.
KPN is caught in a vice 10 May 2004 The Dutch telecoms group s results demonstrate how badly it needs to do a deal with Britain s mmO2. But KPN s flagging share price means it can t resurrect its bid.
Bayer shouldn’t be satisfied with mediocre Q1 10 May 2004 The German conglomerate says it has had a good start in 2004 with flat sales, declining profits and increasing debt. What would a bad start look like?
Investors flee emerging markets 10 May 2004 This is different to the occasional wobbles seen over the last year. Asset prices aren't just being marked down. This time, money is actually being pulled out of risky assets.
Oil companies look undervalued 10 May 2004 Crude prices might be at 13year highs, but shares in oil companies are discounting a longterm price of just $21 per barrel. But that looks too low. The likes of Exxon Mobil and Repsol look cheap.