EU set to endorse fiscal instability 22 Jun 2004 Recognising that the stability and growth pact is almost meaningless saves face. But while the eurozone probably doesn t need a pact now, it may regret not having one if big deficits cause splits among member states.
Pages Jaunes IPO price range looks punchy 22 Jun 2004 The banks floating the directories firm don't seem to have been put off by the risk of not being paid if it's sold below the price range. It looks as if they have some hard selling to do.
Trading still the key to Goldman Sachs 22 Jun 2004 True, the firm reported an impressive boost from the advisory side in its second quarter figures. But the difference alone in equity trading revenues in the quarter exceeded the revenues advisory brought in.
RSA life disposal caught in a bind 22 Jun 2004 RSA has already squeezed most of the juice out of its closed life fund. It is only attractive if you can consolidate it with other funds. The snag is that consolidation is stuck in treacle.
Pages Jaunes IPO contains fees twist 21 Jun 2004 The fee structure aims to stop banks suggesting overly ambitious IPO price ranges as a tactic to win the mandate. The structure may not be suitable for many IPOs. But it is telling that a former banker cooked it up.
The Boots bet on bonds may be premature 21 Jun 2004 Closed pension funds should shift to bonds eventually. But the dangers of inflation are easily underestimated. When inflation is high, more bonds mean more risk. And unexpected inflation is now a reasonable expectation.
Centrica seeks £1.5bn for AA breakdown unit 21 Jun 2004 The utility used to believe it could sell its gas customers loosely related products and services and diversified accordingly. Now this strategy is in full retreat.
EMI shouldn’t rush into deal with Warner 21 Jun 2004 There is still some logic to a merger between the two music majors. But the case for a tieup isn't as clearcut this time round Much of the cost cutting is done and both companies are loaded with debt. EMI would struggle to make the numbers work.
Wachovia in $14bn bank acquisition 21 Jun 2004 This deal shows the urge to merge is still strong in the US, and there is a lot of cost to be squeezed from inmarket consolidation. The snag is that the prices fetched by US banks, like Wachovia s target SouthTrust, are higher than can be justified by the cost synergies.
Corporate cash flow isn’t going into M&A 20 Jun 2004 Bankers had hoped the extra cash generated by European companies this year would be channelled into M&A. In fact, much of it is being directed towards share buybacks. That s no bad thing.
Deutsche Post boss eats words on Postbank 20 Jun 2004 By cutting the price range and the number of shares being sold in the Postbank IPO, Zumwinkel has bowed to reality. But he shouldn t have got here in the first place. It would have been better to spin Postbank off to existing shareholders or sell it.
Grey Goose lures Bacardi from nest 18 Jun 2004 The superpremium vodka brand may be furthest along with privatelyheld Bacardi in talks about a $2bn takeover. But others will now step in. Still, Bacardi may just have a special treat it can use to trap the goose.
Tesco unscathed by food fight 18 Jun 2004 Price cuts in the supermarket sector haven't stopped Tesco increasing Q1 likeforlike sales by almost 8%. In spite of lower prices, Sainsbury and Safeway are still too expensive and they'll find it hard to cut prices enough to compete.
Alstom warning raises mid-term risks 18 Jun 2004 The French engineer's current E1.8bnplus bailout may be in the bag although the underwriters won't be happy with the share price slide. But if Alstom can't stop clients cancelling orders, it will be staring at bankruptcy. Siemens might then have another chance to break it up.
Lazard IPO pitches bolster Wasserstein 18 Jun 2004 It s a wise move for Lazard s chief to entertain investment bankers ideas for a public offering of the M&A house. The pitch sheets give Bruce Wasserstein a fabulous incentive tool for his troops and a way to mute family scion DavidWeill s whining.
British Energy turns on low power recovery 17 Jun 2004 The nuclear generation group is near the end of its restructuring and no longer teetering on the edge of bankruptcy. But investors are ignoring reality the company won t generate much cash for a long, long time.
Putin, Khodorkovsky gang up to save Yukos 17 Jun 2004 Russia's president says he doesn't want the oil giant to go bust; and the oligarch agrees to underwrite some or its entire tax bill. If this is for real, it reduces the fallout from the Khodorkovsky affair. But it underlines Russia's reputation for unpredictability.
Green underwhelms on M&S again 17 Jun 2004 The retail billionaire's £8.4bn possible offer wasn't strong enough to force M&S to undress in front of a rival. It was right to reject it. After a second offer that doesn't make the grade, Green's assault is probably spent. But M&S mustn't be complacent. It has much work to do.
Shell inches in the right direction 17 Jun 2004 Revealing details of its corporate governance review, albeit after investor pressure, is a step forward for the oil and gas giant. But investors shouldn t get their hopes up. The chances of a muchneeded overhaul of its dual structure don t look good.
First mobile phone virus spells trouble 16 Jun 2004 Although the Cabir virus is no threat, it points the way to inevitable future epidemics. Mobile phone revenues dwarf online sales, making mobile networks and their users a much more tempting target for thieves.
Sarkozy plays smart politics with EDF 16 Jun 2004 France s finance minister is being populist by postponing EDF s privatisation, just as he was when he delayed Alstom's day of reckoning. But there s a difference: in EDF's case, Sarkozy's populism will probably lead to a better outcome for the market.
First mobile phone virus spells trouble 16 Jun 2004 Although the Cabir virus is no threat, it points the way to inevitable future epidemics. Mobile phone revenues dwarf online sales. That makes mobile networks and their users much more tempting targets for thieves.
MGM hammers nail in league table coffin 16 Jun 2004 The casino group brazenly named its five financing banks as advisers in its $7.3bn Mandalay takeover, even though they did almost nothing. Companies are using deal credit to hack back their cost of capital. It renders the league tables meaningless and makes the banks look naive.
UK pension deficits may become poison pills 16 Jun 2004 Pension liabilities could kill off the bid for WH Smith. And that's not a oneoff. Pensions may become more of a feature of bids in future. Fund trustees are becoming more vigorous, and their interests clash with bidders that want to gear companies up to maximise equity returns.
Bush and Kerry agree to ignore economic reality 16 Jun 2004 The US government deficit should be a big election issue, but neither candidate is speaking out. That s a change from 1992. Deficits do matter, especially when they are financed by foreigners. Inflation or recession are the likely cures.
Google auction won’t go smoothly 15 Jun 2004 The IPO could change the way companies raise money and that s good. But it may still disappoint a lot of investors unless the firm discloses more information.
Bank of England prefers jaw-jaw to war-war 15 Jun 2004 Its governor, Mervyn King, is trying to talk house prices down because he doesn't want to jack up interest rates, threatening the economy. It might just work. But assetprice bubbles are very hard to control , and the record is not encouraging.
Kremlin turns the screw on Yukos 15 Jun 2004 That s possible but doesn't seem rational. More likely, Moscow is just trying to squeeze all it can from Yukos. Moscow appears to be ruling out any compromise in their tax dispute, making some think it wants to drive the oil company into bankruptcy.
Italian companies face bond squeeze 15 Jun 2004 Companies that issued unrated bonds are in trouble, now that they can t refinance using the same securities. Bondholders, banks and investors are realising the consequences of their folly. That s a healthy dose of realism for corporate Italy.
Lehman deftly beats 2Q estimates 15 Jun 2004 The US securities firm posted an estimatebeating quarter despite falling fixedincome revenues, largely through cost discipline. That's great but Lehman showed no evidence that its clientdriven businesses are sufficiently robust to pick up slack from trading.