Oil supermajors lose ground to smaller rivals 23 Jul 2004 ConocoPhilips may become the latest middling oil company to do a big deal in Russia, while the likes of ExxonMobil are left out in the cold. That s partly because smaller players are becoming more aggressive. The advantages of scale are becoming less clear cut.
EU raids Euronext and brokers 23 Jul 2004 The question is whether Euronext cut illegal deals with some brokers to stop them switching to the LSE s new Dutch equities service. Customers may be angry at being raided. But they should be glad the EU is at last taking an interest in exchange fees.
Mannesmann sends mixed messages on governance 23 Jul 2004 The trial exposed many of the weaknesses of the existing German system. But the focus on executive pay may stifle change.
ABF’s cash hoarding pays off 22 Jul 2004 Here is a rare example of a company that used its stockpiled cash to make a better return for shareholders. The $1.35bn it s spending on a bevy of US food assets should yield good returns and makes strategic sense.
Ackermann still under pressure 22 Jul 2004 The Deutsche Bank boss may have been acquitted. But the judge's opinion gave ammunition to Ackermann's critics. The trial also revealed serious shortcoming in Germany's supervisory board system.
Ryanair overpunished for BAA row 22 Jul 2004 Even if Ryanair loses its case it is fighting against the airport operator, the cost will be small. What s more, there is an incentive for both sides to kiss and make up rather than slug it out.
Euro governments are stripping assets 22 Jul 2004 Germany and Italy call it privatisation, but selling Russian debt and real estate looks more like fiscal despair. The problem is political governments can t both get elected and keep their budgets balanced. The end game could be grim.
Molson and Coors tie the knot 22 Jul 2004 Will the deal succeed given rogue Molson cousin Ian s hopes to launch his own bid for Molson? It will unless Ian Molson has a brewer behind him capable of squeezing out synergies similar to the Coors deal.
Vivendi/Lagardere merger would have been bad idea 22 Jul 2004 So it's good that talks don't seem to have got very far. The only worry is that bad ideas sometime resurface particularly when they appeal to French politicians.
Thomson in major restructuring 22 Jul 2004 Making Frank Dangeard CEO is controversial. But it is a good idea. He has the credentials to turn the French group around. Dangeard s financing plan is broadly sensible. But there is one question mark over the nature of Silver Lake s investment in Thomson.
Ericsson’s profits have limits 21 Jul 2004 The snap back in wireless capital expenditure continues. Ericsson s customers are still catching up with underinvestment. And Ericsson s operating margins have gone through the roof due to cost cuts. But both have limits.
Yukos saga takes a nasty turn 21 Jul 2004 By putting the Russian oil company s main operating asset on the block, Moscow is digging itself deeper into a hole. The Kremlin might still minimise the damage if it goes for fair value. Otherwise, Russia will be hardpressed to attract investment.
Why can investment banks avoid UK tax? 21 Jul 2004 Because the government's real focus is on taxing their staff a bigger pot. And in that area, it really is tightening the noose.
Microsoft pledges to return $75bn over four years 21 Jul 2004 A good step forward, but the software giant should have returned far more to retain capital discipline. After the special dividend is extracted, the company s cash pile will be more than $24bn and growing.
Dreamworks kicks off animation IPO 21 Jul 2004 The studio is riding an ogresized box office success in Shrek 2, and has an attractive pipeline, which should give it a near record year. But best of all, it can take advantage of the excessive valuations accorded to its closest rival, Pixar, and reap untold bounty.
JP Morgan raises cost-cut estimates by 36% 21 Jul 2004 Savings from the Bank One deal will not only rise to $3bn from $2.2bn, they will come two years sooner than expected. That's a big bonus. But it's also embarrassing for Jamie Dimon, who is fight accusations and a lawsuit he undersold Bank One. It looks like he may have. But it's also embarrassing for Jamie Dimon, who is fighting accusations, and a lawsuit, he undersold Bank One. It looks like he may have.
Airbus too bullish about aviation recovery. 21 Jul 2004 The announcement of a big Middle Eastern order may appear to give credence to its argument that things are on the mend. But it doesn t change the fact that there is still too much capacity around. Airbus s plans to crank up production look foolhardy.
Italy faces gridlock 20 Jul 2004 Silvio Berlusconi s government is weak, with the parties in the coalition pulling in different directions. The government may well hobble along for some time. This could further delay necessary if politically unpopular reforms like pensions.
Hicks Muse stumbles over succession plan 20 Jul 2004 The London arm s move to independence deals a blow to the founders hopes to create a lasting franchise after they retire. Private equity firms want to become branded franchises like fund mangers or investment banks. But, as Hicks Muse shows, that s hard to do.
Converium’s credibility sinks as fast as its stock 20 Jul 2004 The Swiss reinsurer is upping its reserves again US casualty claims yet again. Rivals nailed this problem several years ago. Converium's management and shares are limping. The snag for investors is that it may be too small to be attractive to a bidder.
Long-only funds turn on broker gossip 20 Jul 2004 Marathon, for example, recently warned its clients that some brokers seem to leak their orders so hedge funds can frontrun the trades. The FSA already fines brokers for trading ahead of client orders. It should treat the same behaviour by hedge funds equally seriously.
Low volatility carries high risks 20 Jul 2004 Most markets have been peaceful for the past quarter. Better risk spreading and the end of the easy carry trade are largely responsible. Stable markets are good for economies and bad for traders. That sounds appealing. But watch out for surprises.
Edison minorities should watch out 20 Jul 2004 The chances of investors in the Italian power group being taken out at a juicy premium look slim. EdF wants to delay the put options that might trigger a mandatory offer. But even if the puts were exercised, it could fight a full buyout.
IPO tactics invite bullying by investors 20 Jul 2004 Sellers of IPOs are using socalled pilot fishing techniques to premarket offerings to investors. The idea is to avoid being sandbagged after going public. The snag is that it doesn t work.
DaimlerChrysler handles labour dispute skilfully 19 Jul 2004 By agreeing to take a pay cut, the automotive group s executives have defused the charge that they are fat cats. Daimler isn t threatening to shift jobs abroad so it can t be accused of being unpatriotic. This may be a model for other German companies.
Roche’s E2.4bn sale may signal OTC consolidation 19 Jul 2004 The Swiss drugs group has sold its over the counter business at a premium. Other drugs firms will follow at these prices. For Roche, exiting at a strong price puts it in a good position to bolster its pipeline.
Molson and Coors in merger talks 19 Jul 2004 There would be some synergies. But an outright sale, perhaps to Heineken, would offer better value for Molson s minorities. But value may not be what Chairman Eric Molson is after. A Coors deal may offer him the best chance to quash a family revolt.
Wall Street banks disagree on outlook 19 Jul 2004 Depending on which firm is talking, the pipeline is either full or virtually empty. Setbacks last week in capital markets, however, suggest things aren't so rosy.
Wall Street banks disagree on outlook 19 Jul 2004 Depending on which firm is talking, the pipeline is either full or virtually empty. Setbacks last week in equity capital markets, however, suggest things are less than rosy.
Motorola pushes Freescale out the door 19 Jul 2004 The float of the US company s chip division fetched a third less than had been hoped. But even this was far too much.