EADS/Thales speculation looks overheated 9 Nov 2004 True, a merger of the FrancoGerman and French defence groups would be the crowning glory of France's "national champion" policy. But German opposition and industrial rationale militate against such a deal.
Are private equity incentives justified in PLCs? 9 Nov 2004 This question has been brought into stark relief by Melrose s proposed £650m bid for Novar. The answer is a qualified yes. But this particular approach doesn t tick all the boxes.
Stuart Rose tightens his grip on M&S 9 Nov 2004 The retailer's chief executive is halving the number of executive directors and taking direct control of many areas of its operations. This should help the core business respond more quickly something that's needed if the firsthalf figures are anything to go by.
TI/TIM merger may be moving closer 9 Nov 2004 That s one way of reading the tealeaves at the complex chain of companies through which Tronchetti controls the Italian telecoms empire. A TI/TIM merger would make financial sense. But minority investors in TIM would want to be satisfied they were getting a fair deal.
Microsoft pays yet more Danegeld out to rivals 9 Nov 2004 The software giant probably thinks buying off Novell for $536m is money well spent. It ends the US antitrust saga and weakens an EU case. But Microsoft should remember the old mantra: pay the Danegeld and you never get rid of the Dane.
ECB is more hawkish than Fed on rate rises 9 Nov 2004 The Americans may look reckless, holding back rate increases in the hope of triggering growth. But Europe's antiinflation rhetoric looks equally eccentric. In a flat economy, rate raises should be off the agenda.
Siemens expands empire further with VA Tech bid 8 Nov 2004 The German engineering group s E1.4bn offer for the Austrian engineering group looks cheap. But it makes little industrial sense. It increases the group's complexity and labour costs. And Siemens should be simplifying, not increasing its sprawling empire.
Unilever should merge its UK and Dutch arms 8 Nov 2004 The consumer group s doubleheaded structure isn t as dysfunctional as that other AngloDutch giant, Royal Dutch/Shell. But Unilever s system of having two executive chairmen is one reason why its performance is lacklustre.
Actelion’s drug failure leaves shares cheap 8 Nov 2004 Europe s secondlargest biotech has seen its shares crash 30% on the failure of a drug in trials. This is far too much of a selloff leaving this highgrowth stock priced as a value one.
BT buys Infonet for $575m 8 Nov 2004 The UK telecoms group is bulking up in network services after recent successes. This is a sign of confidence. The main worry is execution risk not least because BT's record in the US has been dire.
Molson sweetens Coors deal 8 Nov 2004 The controlling Molson family has slapped a fat special dividend on the table to encourage shareholders to vote for the Coors deal. The deal will probably bring them over the finish line. Still, it s not a satisfying conclusion for shareholders.
Munich Re drops E2bn profit forecast 8 Nov 2004 The world s largest reinsurer has decided that its key performance goal for 2004 is now just a stretch target. Yet its latest results aren t so bad that they necessitate this. New CEO Nikolaus von Bomhard seems to be covering himself.
News Corp adopts poison pill to fend off raiders 8 Nov 2004 Murdoch feels spooked. The move is specifically aimed at keeping Liberty Media s John Malone at bay. In addition, it is just the kind of measure that shareholders feared News Corp would put in place when it reincorporated in the US.
BNP Paribas launches pension hedge bonds 8 Nov 2004 Falling stock markets are not the funds' only worry. Longer lives are also a problem. The BNPP bond allows them to insure against longevity. Buy why a bond, and not an insurance policy? It has a lot to do with pension fund accounting.
Cazenove must modernise 7 Nov 2004 True, the UK broker also needs to keep its tradition of providing independent advice rather than stuffing products down clients' throats. Making the right changes is a tricky balancing act. Whether Caz does so deftly will determine the success of its venture with JP Morgan.
Pfizer’s Celebrex fears could sink Merck further 5 Nov 2004 The Canadian government is weighing reports that Pfizer s painkiller Celebrex has caused the death of 14 patients. If Celebrex does cause heart attacks, the estimated heart attacks caused by Merck s recalled pill Vioxx could rise far above 27,000.
China hints at revaluation 5 Nov 2004 The country is still a developing country, despite having billionaires and a big trade surplus. Revaluation would be a sign of maturity. A move seems close. The link to a tumbling dollar makes no sense. Even a baby step, say a 10% rise, would be a significant sign.
Ifil sells Rinascente food stake for E1.1bn 5 Nov 2004 This is good news for the holding company's shareholders in as much as Ifil has captured a good exit multiple. But there is no sign that the Agnellicontrolled group plans to hand back the proceeds. The risk they will be squandered still remains.
Bloomer should leave the Pru 5 Nov 2004 The UK insurer's CEO has lost the confidence of key investors. They have good reason. Bloomer has proved a bad strategist and has oversold his strategy and had to reverse it. A decisive break is needed.
Cazenove gets most top jobs in jv 5 Nov 2004 Two senior JP Morgan rainmakers don't do too well: Ian Hannam misses out on a star role; and Bernard Taylor isn't joining at all. But the structure looks workable and looks like it has avoided most, if not all, of the turf wars.
Malone doubles up at Murdoch’s News Corp 5 Nov 2004 Part of the reason for Murdoch s move to list News Corp in the US was to gain better access to capital markets. His wish has been granted. John Malone s Liberty Media has swooped, again, in a deal that could double his existing voting News Corp stake to 17%.
Altria considers breaking up 5 Nov 2004 This was always in the tea leaves, even if it was not publicly stated. It makes industrial sense and would unlock a fair bit of value. But it s only possible when litigation risk lifts, which would actually be the bigger catalyst for a rerating of the Philip Morris arms.
Cazenove doesn’t get up-front premium 5 Nov 2004 The investment bank s deal with JP Morgan produces a basevalue of nearly £800m, roughly its value before speculation started about a deal. That means there s no quick buck for employees. They will have to earn the premium by making the venture a success.
Havas produces its quasi-defence 4 Nov 2004 The besieged French ad group has produced decent Q3 results while stressing the value of its team spirit . That seems designed to keep the corporate raiders, Bollore and Frere, at bay. But the defences aren't impregnable.
Investors bet on E4bn Amadeus takeover 4 Nov 2004 Shares in the global travel bookings firm have surged by almost a third since it sent out information to potential private equity bidders. That suggests it is a done deal. It isn t. Apart from the risks particular to this deal, there are the usual generic ones, including price.
Geox IPO will sound out appetite for growth 4 Nov 2004 The Italian shoemaker has an attractive story to pitch. It has been growing sales of its "breathing" shoes rapidly. But the equity story is as yet untested. This could limit the premium that the shares will obtain.
Google tops $200 4 Nov 2004 Shares of the internet search group have rocketed 140% since the IPO. This has a lot to do with the fact that only 27m shares are trading. With lockups on 265m shares expiring within the next four months the nosebleed valuation may not last.
Better news from CSFB at last 4 Nov 2004 Credit Suisse s investment bank enjoyed a rebound in fixed income profits in Q3, taking the edge off bad results from its private bank. The impressive trading result may be dismissed as a oneoff. But M&A was okay too. CSFB s turnaround may be credible after all.
Deutsche Post grows sales and dividend 4 Nov 2004 On the surface, this looks a vindication of the mail group's strategy of growing internationally to offset German weakness. But on closer inspection, the figures raise concerns especially about Deutsche Post's expansion drive in the US.
MyTravel bondholders get unorthodox threat 4 Nov 2004 The group will try to transfer its assets, but not all of its liabilities, to a shell company if the bondholders don t write down debts. Both sides may be playing hardball. But this controversial tactic would certainly set a dangerous precedent.