Vandevelde to quit as M&S chairman 9 May 2004 The struggling UK retailer now needs a new chairman who can judge whether Roger Holmes should stay as CEO. If Holmes is the right man, he should be backed to the hilt; if not, he should be sacked.
Unilever should have one boss – not two 7 May 2004 The AngloDutch food giant is reforming its doubleheaded structure. But only a bit. It should go the whole hog. It s not as if having two bosses has pepped up its performance. Quite the reverse.
UK’s FSA puts off hard action on equities reform 7 May 2004 But its proposal for more transparency has only a small chance of making the system more efficient. Regulation may only have been postponed. The regulator has suspended plans to have fund managers pay for services currently funded by their clients through trading commissions.
New Star needs to lift cloud over IPO 7 May 2004 John Duffield s fund management group sold shares in the startup to supposedly independent financial advisers. Investors being asked to put money into the New Star IPO should be told how much business came from the two IFAs.
Mail flies solo in Telegraph bid 7 May 2004 The UK paper group found it too hard to work with Cinven, the private equity group, in putting in a joint bid. Going solo gives it flexibility, but also exposes it to risks should it win the bid and get blocked by the competition authorities.
Greenhill shows it’s not only Google that’s hot 7 May 2004 A brisk trade is taking shape in IPOs by companies leveraged to a comeback in the investmentbanking business. Greenhill's IPO was a knockout success. Leaguetable ranker Dealogic did well, too. Now comes Morningstar.
Alitalia rescue still far away 7 May 2004 To save something from the ashes will require firm leadership, a willingness to cut costs and no political interference. None of those conditions are in place.
Postbank IPO may not hit owner’s expectations 6 May 2004 No wonder investors are speculating the business to a trade buyer. Deutsche Post is on record as saying the bank is worth E6bn. That looks a tall order to achieve for a minority IPO.
LSE’s Clara Furse says she’s open to deals 6 May 2004 In another piece of brinkmanship, the London Stock Exchange chief has hinted at some of the preconditions for doing a merger. It would probably have to be based in London around the existing technology. Her rivals may agree with that. But there are other obstacles.
Italian minorities dealt another blow 6 May 2004 This time, it is not a private investor that s putting the screws on minority shareholders. The culprit is Milan s local government. If public authorities set such bad examples, what hope is there for Italy to clean its act up?
UK stamp duty takings slide 6 May 2004 The Treasury s stubborn insistence on taxing the value of share trading transactions is out of date. Stamp duty rates in the UK are now the highest among the main economies of the OECD. Reform is needed.
Rocketing bankers’ pay stunts CSFB comeback 5 May 2004 Demand for investment bankers is so strong that the thumping threeyear guaranteed packages of yesteryear are again on offer for the best. The job market's revival appears to have taken CSFB by surprise. Revenues may be bouncing back, but costs are rising almost as fast.
RBOS buying Charter One for $10.5bn 5 May 2004 Who says the Scots are tight fisted? Royal Bank is paying 3.2 times book for a former thrift that just a decade ago nearly went bust. Even with mooted synergies, the deal looks a tad too juicy. Shareholders ought to hope Fred Goodwin is underpromising on cost cuts again.
Easyjet dives on profit warning 5 May 2004 First Ryanair, now Easyjet. The UK budget airline blames twobit competitors for dragging fares to unrealistic lows. But Easyjet is in a better position to weather the storm than its Irish rival.
Coke brings back an old timer 5 May 2004 By pulling its former executive E. Neville Isdell out of retirement, Coke has joined other companies in opting for a safe pair of hands. But as at McDonald's, Boeing and elsewhere, this hints at the timidity of directors. And it's not a riskfree strategy either.
SABMiller locks horns in China 5 May 2004 The brewer has launched a $553m hostile bid for Harbin Brewery, in which it already owns a 29% stake. With its offer of a 33% premium, SABMiller is making a serious first stab at winning control. But AnheuserBusch may up the stakes higher.
Oil prices might be headed for a mini-correction 5 May 2004 Financial investors have been piling into oil attracted by fundamentals and lack of attractive returns elsewhere. A rise in interest rates might cool them off. Even so, Opec will probably ensure it is a shallow correction.
Investors slam Royal Bank’s US deal 5 May 2004 They wiped nearly half the $10.5bn it is paying for Charter One off the shares on Wednesday. That s not surprising, given what RBS has bought.
RWE puts Heidelberger stake up for sale 5 May 2004 The utility is attempting to flog fully half the printing machinery maker's capital in as little as two days. But can the bookrunning banks achieve that without the share price tanking?
India catching China up 4 May 2004 For two decades investors have almost always been right to choose China over India. But with India s politicians in favour of growth and China struggling with imbalanced growth, there could be a role reversal.
UBS makes hay in the first quarter 4 May 2004 Market conditions were ideal but UBS also made the most of the situation. A calculated decision to take more risk has paid off. But trading wasn't the sole driver of the result. The US wealth management business has turned the corner too.
Lord Sainsbury may return to family firm – report 4 May 2004 Investors must hope the UK minister wouldn't take an active role if he decides to quit government. His track record isn't great. But the Sainsbury family would stop being absentee landlords. This could eventually pave the way for the retailer s sale.
Don of class-action suits breaks in two 4 May 2004 The split of Milberg Weiss into two is a small move among lawyers. But it may have larger consequences for companies and investors. From one big monster are born two, and the ensuing global competition for clients will surely increase the pressure on companies everywhere.
Frank Quattrone faces jail time 4 May 2004 It s hard to know for sure which he was guiltier of being a top investment banker during a speculative frenzy or obstructing justice. By dissecting the business of Wall Street, prosecutors gave jurors another chance after Martha Stewart to win one for the little guy.
TIM isn’t going ex-growth just yet 4 May 2004 Firstquarter results comfortably beat expectations and showed little impact from Hutchison's Italian 3G startup. But competition in Italy and South America is rising and TIM shares are fully priced compared with rivals.
New SanPaolo governance a missed opportunity 3 May 2004 The Turinbased bank has taken a step forward by getting rid of two of its three chief executives. But the bank remains politicised and unwieldy. Creating value either through a merger or on its own doesn't look much easier.
Permira turning screws on WH Smith 3 May 2004 The private equity house wants to stop other potential suitors for the retailer from coming in and making a competing offer. But there s little rationale for WH Smith s board to give in to its demands for a breakfee or an inducement fee.
European champion role mulled for Alstom 3 May 2004 A deal with Siemens is only one of several options to save the French engineer. But it has been flagged in case it is needed. Consummating the marriage would be fraught with difficulty. But the alternatives for saving Alstom look equally challenging.
Google’s valuation is mind-googling 2 May 2004 To justify $25bn, the internet search engine would have to grow as fast as Microsoft did when the same size. Google would also have to maintain monopolistic margins. Possible? Yes. Likely? No.
Europe can’t learn from Thatcher 2 May 2004 Twenty five years after the Iron Lady took power, Germany, France and Italy should be embracing Thatcherite reforms. The snag is that, although conditions are bad, they are not terrible enough to spawn local Thatchers.