Alcatel folds on handsets 17 May 2005 The French telecom equipment firm has sold its stake in its mobile phone venture with China s TCL just nine months after formation. Selling at an 85% loss may sting, but staying in would have resulted in far higher losses.
Man Utd’s PIKs have a twist 17 May 2005 The payinkind financing Glazer used to buy the football club isn't the usual kind. He has juiced it up with security and a high yield. The PIK market turned some time ago. Glazer's PIKs are a posttopofthemarket phenomenon.
Hedge funds unwind carry trades 17 May 2005 The dollar is up and commodities and resource stocks are down as funds unwind profitable trades to offset losses in credit. This position squaring has not caused significant turmoil in the financial system. But it still looks vulnerable.
Yell’s $1.6bn deal pushes centre of gravity to US 17 May 2005 The UKbased directories business will generate more than half its revenues in the US after purchasing TransWestern. With UK expansion blocked, it has little alternative if it wants to grow by acquisition. The good news is this deal stacks up financially.
M&S chairman squabble ends in fudge 17 May 2005 Myners gets another year at the top before Lord Burns steps in. This papers over the boardroom cracks that emerged over the chairmanship. But it isn t clear that the board has picked the best man for the job. This doesn t seem to have the makings of a great solution.
Unipol threatens smooth path of BBVA’s BNL bid 17 May 2005 The Spanish have hitherto avoided ABN Amro s Italian problems. But the insurer has shaken things up by asking to raise its stake. Unipol says it s only trying to protect a commercial agreement and it can t afford BNL. But if it could cause problems for BBVA.
ECB held back by fear of politicians 16 May 2005 It's not clear whether rates should rise but there's a feeling that the bank never moves them because it fears a political backlash. Sure, the ECB is supposed to be free from outside influence. But just look what politicians did to the Stability and Growth Pact.
Don’t treat football as a cultural exception 16 May 2005 UK ministers want to interfere in future football takeovers because they feel that clubs, like Man Utd, are a special cultural asset. But the idea that takeover rules should be changed just because a deal is unpopular is dangerous and wrong.
Morgan Stanley loses Perelman case 16 May 2005 This is like weaponsgrade plutonium in the hands of chief executive Phil Purcell s growing army of detractors. It lost because of incompetence in coughing up emails related to the case, highlighting a systemic management problem.
Investors should block Fresenius transformation 16 May 2005 The dialysis group plans to simplify its capital structure but also adopt a legal form that vests more control with the family company. Ordinary shareholders have little to gain from this change. And it may result in FMC trading at a discount.
Myners joins attacks on investor amateurism 13 May 2005 The investment guru has endorsed a recent call by Cadbury's chairman for better disclosure from pension fund trustees. It would be great if trustees were more professional. But it will take changes in personnel and in incentives to achieve this.
Old Mutual mulls £3.5bn bid for Skandia 13 May 2005 This marks a change of strategy for the South African financial services group, which hoped to build its UK business by buying closed funds. But it was unable to compete with highly leveraged bid vehicles such as Resolution. A bid for the troubled life assurer may be its best bet.
Constellation makes indicative offer for Allied 13 May 2005 The statement merely confirms what was widely suspected: that the Constellation consortium is still a long way from making a firm offer. That s hardly surprising. A fourway breakup bid is hard enough. Add in tax and pension issues and the challenge is immense.
Sanofi-aventis deserves a premium, not discount 13 May 2005 Despite a 30% rise in the group s valuation since the merger, the market is still too sceptical on the French pharma group s prospects. The group deserves a premium due to its management and full pipeline. But the market is irrationally focussed on patent fears.
EDF strikes deal with AEM to remain in Edison 13 May 2005 In order to resolve its squabble with the Italian government, the French group has to share control with a local utility. When the two partners buy out Edison s minority shareholders, too, EDF will have to bear a disproportionate part of the cost.
Wm Morrison warns on margins 13 May 2005 The good news is that this seems to be a cost problem, rather than sales. But this is Morrison's third warning since it bought Safeway. And it is hard to see why it got caught on the hop again.
ThyssenKrupp points to slower steel growth 13 May 2005 Growth at the German conglomerate s steel division disappointed and margins at its elevator and auto divisions have fallen sharply. While other European steelmakers are still surging ahead, the cycle may be reaching its peak.
Italian government chucks Eni boss 13 May 2005 For years, Vittorio Mincato, the oil firm s steely CEO, has staved off political interference from Rome. As a result, Eni has done well. Now the politicians have had their revenge. The worry is that he will be replaced by a more malleable figure in the shape of Paolo Scaroni.
JP Morgan backs hostile bid for Cazenove client 13 May 2005 Hang on wasn t this something the two sides said would never happen when they formed their joint venture a few months ago? No doubt they ll argue Man Utd is a special situation. But that s pretty arguable. Both sides need to make sure this doesn't happen again.
Boerse risks another corporate governance spat 13 May 2005 The exchange is not disclosing ousted CEO Werner Seifert s contractual payoff, reported to be a staggering E10m. Disclosure in Germany is improving. But this case shows investors still struggle to get the information needed to hold managers to account.
Glazer wins over Irish to get Man Utd majority 12 May 2005 The US sports tycoon has finally persuaded the football club s biggest shareholders to sell their shares. It seems they were willing all along they just wanted cash and no conditions. Fans may hate it, but Glazer's bandwagon looks hard to stop.
German utilities are undervalued 12 May 2005 RWE and E.On both trade at a sharp discount to their European competitors. This is largely unwarranted. Of the two, RWE looks a better bet given E.On s renewed hunger for acquisitions.
Sabre to buy Lastminute for a 57% premium 12 May 2005 The online travel group has a knack for being in the right time at the right place. First, it floated at the peak of the internet bubble. Now consolidation in the online travel business has lent it scarcity value and a healthy premium too.
Middelhoff named Karstadt boss 12 May 2005 The struggling retailer s former chairman will shakeup Karstadt s mail order business, whose sales fell sharply in the first quarter. A firmer hand may be what Karstadt needs. But constant management changes signal growing uncertainty about Karstadt s future.
US trade news supports dollar bulls 12 May 2005 The trade deficit declined by $6bn from February to March. The positive surprise adds to the evidence that the US economy is picking up. But the trade trend remains grim. The gap was still 17% higher than in March 2004. And reshaping US industry will be a hard slog.
Worst fears of UK ad slowdown are misplaced 12 May 2005 Some believe the slump in UK radio, TV and newspaper ads is a sign that the ad market and by extension the whole economy is slowing. That is overegging it. Ad revenues continue to rise for some media firms especially cable and internet players.
Hats off to Consob 11 May 2005 Italy s notoriously ineffective stockmarket watchdog seems to have finally found its teeth over the Antonveneta takeover battle. Wellconnected Italian insiders have run rings around the regulator for years. This could mark a seismic shift in Italian finance.
Consob drops bombshell in Antonveneta war 11 May 2005 The regulator's ruling that Lodi formed a concert party to thwart ABN's rival bid for the Italian bank could have farreaching consequences. Lodi may be forced to make a cash bid that it can't afford. That could put it in a real pickle and swing the battle in ABN's favour.
KKR set to make juicy return with MTU 11 May 2005 The private equity group looks as if it will make nearly four times its money in just 18 months by funding a cheap deal with cheap debt. With returns like these, it s little surprise that financial buyers are swarming around German assets.
Lastminute.com receives a bid approach 11 May 2005 A takeover of the online travel group will bring to an end one of the most entertaining business sagas of the last decade. The online travel group built an iconic brand, a large customer base and huge transaction volumes, but has never managed a profit.