Prime brokers become cash managers for hedge funds 14 Jun 2004 Cash is pouring into hedge funds so fast that the most popular managers are struggling to invest it. That has made cash management a new focus of competition among the prime brokers.
Euro voter apathy promises gridlock 14 Jun 2004 The European election results show a dislike for national governments and indifference to the European project. Politicians are likely to respond. The EU constitution and budgetary discipline could be sacrificed.
Alitalia risks doing a Swissair 14 Jun 2004 By leaving its rescue plan to the last minute, the Italian carrier risks bankruptcy in the same spectacular fashion as the Swiss airline. Its only hope is to get a bridge loan. But for that the banks will need some serious coaxing.
Has the FSA gone soft on soft commissions? 14 Jun 2004 Having scrapped its outright ban on softs in favour of a selective approach, the regulator has made its life more difficult. It now needs to define what s an acceptable soft and what is not. That s a cop out.
Analysts take on journalists at newsbreaking 14 Jun 2004 It used to be analysts made their careers picking stocks not breaking stories. Some are now trying to do both. In the postSpitzer era, this may be one way to justify their value to clients and bosses. But it raises some troubling questions.
M&S could be worth 450p a share 13 Jun 2004 That s what the embattled retailer could reach if it sold off noncore assets and turned around its core. M&S won t achieve that value today. But Philip Green, who is circling the group, will have to raise his game if he wants to buy it.
Pensions deficit threatens WH Smith bid 13 Jun 2004 In leveraged buyouts, the interests of pension fund trustees and financial sponsors could scarcely be further misaligned. There may still be scope for a negotiation. But deficits could emerge as possible dealbreakers in other retail LBOs.
Reagan’s simple economics leave a hazardous legacy 11 Jun 2004 The president discovered a way to tax less and spend more by borrowing from foreigners. It s still working, but for how long?
Cazenove may be Barcap chief’s reward 11 Jun 2004 It was always likely that Bob Diamond would be given a big sweetie to cheer him up after missing out on the top job at Barclays. That may be the price of keeping him. The snag is that few investment banking acquisitions make much financial sense.
Director share sales are a warning sign 11 Jun 2004 One top executive selling stock is bad enough. When two bosses cut and run, history shows the stock will usually underperform. William Hill's finance director and CEO sold shares after a big rally. The sales come just before new govenment rules on gaming.
Agnellis raise cash in a jiffy 11 Jun 2004 By selling stakes in Club Med and French property, the family harvested some E350m. But getting that to family members is complicated. The solution will likely be the longawaited reform of the Agnelli corporate cascade, starting with a buyback of Ifi's preference shares.
US antitrust probe threatens BAT/RJR deal 10 Jun 2004 That matters for BAT. Selling to RJR allowed it to distance itself from the US tobacco nightmare. Anything that threatens that may put pressure on the stock.
Zumwinkel should use head, not heart on Postbank IPO 10 Jun 2004 Deutsche Post s CEO is trying to sell the bank s shares to the market at too high a price largely as a point of pride. Of course, he could just cut the price. But a better option would be to scrap the IPO and spin off Postbank instead.
A huge write-down of Iraqi debt is inevitable 10 Jun 2004 The main question is what price the French and Russians, who are big creditors, will extract from the US in return for granting it. The US, which desperately wants to make Iraq an economic success, will probably have to cut them in on oil contracts and the like.
EU throws a spoke in Sony-BMG merger 10 Jun 2004 The Commission says the music merger will increase price collusion in an industry which already has too much of it. That s a serious objection, mainly because there is nothing Sony and BMG can do to remedy it. But it won t be easy to prove.
Higher UK rates may not do the trick 10 Jun 2004 The consumer boom will end eventually, but perhaps not in time for a soft landing. If the landing is hard, controls on lending may be needed to hold off the next boom.
Hedge funds differ with mainstream on analysts 9 Jun 2004 In the latest Extel survey, analysts judged to be soso by conventional funds in 18 sectors were rated top five by hedge fund managers. That reflects the economic realities of the broking business, which is bifurcating.
SBC to sell 32% of TDC in E1.8bn share placement 9 Jun 2004 Far from getting a premium for its controlling stake in the Danish telecoms group, the US operator is exiting at a discount. This does not bode at all well for European telecoms consolidation.
Telecinco IPO is priced to sell 9 Jun 2004 The Spanish broadcaster looks cheap when compared to its media peers; and cheaper still when its growth prospects are taken into account. Why the giveaway price? Its partly because the sellers want a smooth exit; and partly because it is controlled by Berlusconi's Mediaset.
Northumbrian results stick it to private equity 9 Jun 2004 The UK water company slipped through CVC s hands when a public group bought the company and immediately floated it. One year on, its shares have risen 35% and paid out 8% on the float price including the final dividend. Sometimes greed doesn t pay.
Philip Green needs to control himself 9 Jun 2004 Shooting his mouth off at every opportunity is stopping the UK retail entrepreneur from making progress with his putative bid for M&S. Green is considered to be a topnotch retailer. But if he is to run a public company, he will have to get a lot better at communicating.
Khodorkovsky, not Yukos, faces show trial 8 Jun 2004 The distinction is important: some investors fear the oil company will receive the same summary treatment as its majority owner. That s unlikely. President Putin s dispute with the oligarch was always political.
European bank CEOs can’t stop talking about deals 8 Jun 2004 Bigwigs at Deutsche Bank and Barclays are openly talking about the need for crossborder deals. They should listen to the chairman of Lloyds. He s given up on the idea and is reconsidering domestic deals, despite regulatory opposition.
Antitrust concerns stymie big software bids 8 Jun 2004 Microsoft has admitted that it entered and then dropped talks to buy German rival SAP. Along with Oracle, these mature software companies need to enter new markets. The snag is, regulators won t permit megamergers.
SEC may cave in to business – WSJ 8 Jun 2004 The watchdog is considering watering down proposals that would have finally given US investors some clout in selecting corporate directors. This would be a shame. The original proposals were not radical to begin with and the arguments against adopting them were pretty weak.
Romiti woes may benefit RCS 8 Jun 2004 The Italian industrial family may come under pressure to sell its 10% stake in the media group that owns Corriere della Sera. If they did, Maurizio Romiti would probably stop managing the poorperforming group. And RCS could get the overhaul it needs.
Green will struggle to rubbish Rose 7 Jun 2004 That's because the retail billionaire tried to hire the new M&S boss to help with his own bid for the retailer. Rose rejected the offer because he didn't feel Green would give him real power. If Green wants to control M&S, he may have to let go a bit.
Adecco insider hints at US delisting 7 Jun 2004 A soontobe board member at the Swiss staffing firm has lashed out at the costs of complying with US corporate governance laws. But a US listing is hard to exit. The real fallout from Sarbanes Oxley will be to discourage new foreign listings.
Blackstone well placed with $1bn New Skies buyout 7 Jun 2004 The private equity firm has avoided overpaying to get a ringside seat in the satellite industry ahead of expected consolidation. Blackstone is probably too late to lead a merger wave. But the New Skies buy gives it a juicy asset to exploit as the sector comes together.
Las Vegas lights up with $7.7bn deal 7 Jun 2004 Kerkorian s MGM Grand has launched the biggestever hostile for another casino group, Mandalay. Is MGM about to burn a whole lot of money? At the offer price, he might squeak by with massive cost cuts. But the price is rising. MGM will need some extra tricks to avoid a burnout.