Romiti’s Wind bid won’t fly 17 Dec 2004 The headline E12bn valuation may look attractive. But nearly half the consideration would be in illiquid paper. Being a minority investor in a cascade of Romiti holding companies isn't appealing to Enel, the current owner of the telecoms group.
Forgeard wins battle to co-head EADS 17 Dec 2004 The appointment of the Airbus boss should allow the FrancoGerman group to focus on business after weeks of wrangling in the French camp. But FrancoGerman disagreements over the group s strategy are likely to continue.
Pfizer suffers $24bn hit 17 Dec 2004 The US drugs group's stock has been slammed after its blockbuster painkiller, Celebrex, was linked to heart attacks. This is a bigger blow for the sector than Vioxx. Add a heavy fall in AstraZeneca and it makes one of the worst days ever for big pharma.
Parmalat moves closer to debt-for-equity swap 17 Dec 2004 The inclusion of almost all the claims against the group in the creditors' list will accelerate the restructuring. Parmalat's bond prices continue their steady ascent. That suggests payday is coming from all the lawsuits it is spraying around.
EDF challenges Italy over Edison 17 Dec 2004 The French utility threatened to walk away from its investment in the Italian utility unless Italy drops a law capping EDF voting rights. But it would take some creative financing for the group to walk away from its obligation to buy out minority shareholders. Selling would be difficult. But the threat could indirectly give the group leverage in Rome.
ABN Amro steps up restructuring plans 16 Dec 2004 The Dutch bank is "streamlining" investment banking unit and outsourcing more. The result? Cost savings rise from E500m to E770m by 2007. ABN stresses these changes are all about maximising efficiency. But the reality is that it is struggling with weak growth.
Symantec and Veritas in $14bn software merger 16 Dec 2004 Merging the computer security and storage software companies looks odd considering their breakneck growth. Considering Bill Gates said security won t be a big issue in three years, perhaps Symantec is getting out while it can.
Goldman clinches record year for profits 16 Dec 2004 Proprietary trading is still the firm s primary engine, but the mix of businesses looks better every quarter. If the pickup in mergers is sustained, and equity markets remain stable in the coming year, that can only improve further.
CSM targets E850m from confectionery sale to CVC 16 Dec 2004 The Dutch conglomerate under siege from hedge funds may not have achieved top whack for this longawaited disposal. But at least it is talking about using the proceeds for a share buyback. That s evidence that shareholder activism is having an effect.
Foreign investors pile into German property 16 Dec 2004 The big residential portfolios companies and municipalities are selling generate stable cash flows and can be geared aggressively. The odd thing is that German investors have stood aside so far. It's not clear why but it's allowing foreigners to make hay.
Johnson & Johnson shells out $24bn for Guidant 16 Dec 2004 The price suggests that the US healthcare giant is destroying a slight amount of capital in exchange for growth. One wild card: combining the two groups technologies could yield synergies. But any resulting products aren't likely until 2008.
Has Kidde sold itself too cheap? 16 Dec 2004 Three months ago, the fire protection group said 160p a share "materially undervalued" the business. Now it has succumbed for 167p a share. There s little doubt the US conglomerate has got Kidde on the cheap, but the question is whether it has left the door open for someone else.
Usmanov cashes in on Corus stake 15 Dec 2004 The Russian tycoon has pocketed more than £200m by hedging twothirds of his stake in the AngloDutch steelmaker. Corus may be relieved to see a troublesome shareholder go. But Usmanov s exit may signal the group s shares are at the top of the market.
Sprint sees huge synergies in $36bn Nextel bid 15 Dec 2004 The US telecoms merger should yield substantial savings. But the companies' $12bn estimate looks rather punchy. If Sprint fails to convince investors of its synergy story, it may yet face a counterbid from Verizon.
Parmalat to launch lawsuits against Italian banks 15 Dec 2004 Bondi, the bust dairy group s administrator, is reportedly trying to recover as much as E3bn. This may deflect some criticism that Bondi has been kinder to domestic banks than foreign ones, but it won t completely dispel it.
Citigroup learns about diseconomies of scale 15 Dec 2004 The world's biggest bank made E15m on its government bond market raid in August but it is still paying for the coup in hostile headlines. Maintaining corporate reputations can require sacrificing potential profits. The bigger the company, the greater the sacrifice.
Lehman turns in brilliant year 15 Dec 2004 The firm s Q4 results were the icing on the cake. Revenues rose faster than costs, profits beat estimates and its costtoincome ratio fell. But the worry is still that Lehman is far too dependent on trading. Though falling, it still accounted for 44% of quarterly revenue.
Euronext not out of the running for LSE 15 Dec 2004 Deutsche Boerse may be the favourite because it's big and cash rich. But Euronext has the firepower to assemble a bid for the LSE. What Deutsche Boerse has going for it is its speed. But the LSE's interest is in getting an auction going.
Blackberry-maker squashed in court appeal 15 Dec 2004 Research In Motion, which makes the ubiquitous mobile phones, has lost a court case relating to a key patent. At best it will be forced to start paying royalties. At worst it could be barred from further US sales. Its stellar rating could be history.
Is Electrabel the cheapest European utility? 14 Dec 2004 The conventional wisdom is that the Belgian utility is too expensive for parent company Suez to consider buying out minority shareholders. But make a few sensible adjustments, and Electrabel looks dead cheap.
HBOS to return £750m 14 Dec 2004 The buyback is a nice Christmas bonus given a slowing UK banking market. Yet it comes only three years after HBOS tapped investors for £1bn. HBOS s readiness to return cash shows it knows how to please investors nervous about surprise share issues from elsewhere in the sector.
Pearson move puts spotlight on FT 14 Dec 2004 The sale of the publisher s stake in Spanish newspaper group Recoletos for E743m puts the spotlight on the underperforming Financial Times. Pearson boss Marjorie Scardino once insisted the paper would only be sold "over her dead body". Pressure may mount for her to reconsider.
Christmas deal rush spurs hope of M&A revival 14 Dec 2004 A sudden spate of big US deals including Symantec/Veritas and Johnson/Guidant suggests that CEOs are focusing on dealmaking again. Even before the rush, 2004 was shaping up to be a pretty good year. Now it's ending on a buoyant note.
Vodafone could benefit if Verizon bids for Sprint 14 Dec 2004 Why would Vodafone want to fund a minority investment in US mobile if it goes on the acquisition trail? Because a deal could create big synergies, require a small capital contribution and win Vodafone sweeteners to boot.
US needs more than low dollar to shrink trade deficit 14 Dec 2004 The deficit keeps overshooting estimates. The big problem is US manufacturing, which can't easily take up opportunities from a weak dollar. 5.5% of GDP may seem a lot. But the deficit is 40% of manufacturing production. To close it will require reindustrialisation.
Stelios deftly cashes out of shipping 13 Dec 2004 By assiduously courting the arbs he first blocked a lowball bid. And by helping to shop the firm, he brought in a knockout one. The $1.3bn sale of Stelmar was not an easy deal for the EasyEverything entrepreneur, but his efforts have paid off.
Quick LBO exits raise red flags 13 Dec 2004 Are boards negotiating hard enough before selling businesses to private equity? Two recent Blackstone home runs suggest otherwise. The deals suggest investors should demand more from boards and be wary of executives who profit from selling out.
Honeywell trumps shell with £1.2bn Novar bid 13 Dec 2004 Melrose came up with a clever offer designed to turn round an ailing miniconglomerate without taking it private. The snag was that this highlighted the value of Novar's crown jewel its controls business. And that smoked out a cash rich trade buyer.
Bank of England hopes for the best 13 Dec 2004 Its Financial Stability Review takes a balanced tone. Conditions are benign now, but the future holds dangers. Not very strong stuff. But there are good reasons to be afraid. Credit is exploding, hedge funds are expanding rapidly and institutions are desperate for yield.
LSE rebuffs £1.4bn Deutsche Boerse bid 13 Dec 2004 But the UK exchange is entering talks to secure a higher offer. It must be banking on rival Euronext rising to the bait. The Germans have offered a tempting price. But they may have to pay more to avoid being permanently relegated to second place in Europe.