GDF kicks off E4bn IPO 23 Jun 2005 The float of the French gas company will be the largest worldwide in three years. The discount to the sector means things should go smoothly despite the group s massive investment plans.
China goes hostile with $20bn cash Unocal bid 23 Jun 2005 But there's no certainty the Chinese bid will pass muster with either the company or the US government. Stateowned CNOOC looks to have delivered a knockout blow by offering some $1.5bn more for the US oil company than Chevron's bid.
FTSE expiry auction may be open to abuse 23 Jun 2005 Last Friday s auction fixed the expiry price for index futures and options contracts at a big premium to where the market had been trading. This meant owners of certain call options realised a 63fold overnight return. No wonder the regulator is interested.
Prime brokers boom in Q2 23 Jun 2005 Morgan Stanley had record revenues from servicing hedge funds. And prime brokerage was the dominant positive driver for Goldman Sachs. That underscores both the attractions of the prime broking business and the natural advantages enjoyed by the market leaders.
We’re coming to get you, FSA tells hedge funds 23 Jun 2005 The UK regulator has warned that it wants to crack down on hedge funds that are flirting dangerously with insider trading. It also says the chances of hedge funds causing market mayhem are increasing. But has it got the resources to grapple with either problem?
Infineon considers float of memory division – report 23 Jun 2005 How slow can decision making be at the German chip company's dual management board? More than a year after this idea was reportedly first considered, there is still no decision. Meanwhile valuations have plummeted.
Ameritrade may just fend off E*Trade with TDW bid 23 Jun 2005 Companies rarely fend off an unsolicited bid by buying someone else. But the US broker s bid for rival TD Waterhouse may do just that. It arguably creates more value than E*Trade could. And Ameritrade has matched the cash portion of E*Trade s offer with a special dividend.
J&J/Guidant deal spread looks wide 22 Jun 2005 Guidant shares fell to a 10% discount to Johnson & Johnson s offer price after the medical devices group offered to replace heart implants. But the deal is likely to go ahead as planned. Replacements aren t typically expensive unlike the deal s $750m break fee.
Bollore gets upper hand at Havas 22 Jun 2005 The departure of the French advertising group s chairman will make it easier for the corporate raider to have his way. But what he will do is still unclear. And even a new management will struggle to turn Havas around in a hurry.
Market still sceptical about C&W growth story 22 Jun 2005 The telecoms group's shares have risen 20% this year but more on a rising dollar and bid speculation than a reappraisal of its prospects. Indeed, a sum of the parts shows the market still ascribes no value whatsoever to the core UK business.
Morgan Stanley scarred by trouble at the top 22 Jun 2005 The US investment bank s Q2 numbers are even worse in many areas than last week s shock results from Goldman Sachs. Underwriting especially suffered. The hullabaloo over Philip Purcell s future as CEO seems to have damaged the franchise.
Lodi share price hard to square with its bond issue 22 Jun 2005 The Italian bank s equity has remained relatively buoyant, despite its risky bid for bigger rival Antonveneta. But debt investors aren t quite so relaxed. Lodi's new bond issue is coming at highyield rates.
ECB hints at rate cut 21 Jun 2005 Noone wants to be the scapegoat for eurozone stagnation, so it's no surprise the bank is sounding flexible. But don't expect anything more than talk. With real rates at zero and the euro down 10% from the peak, the ECB is unlikely to cut further.
Offers roll in for all and parts of Skandia 21 Jun 2005 Old Mutual s talks for the Swedish insurer have generated broad interest from trade buyers. Skandia now has options including a fullblown sale or a breakup. Old Mutual s ambitions of grabbing it on the cheap may be in trouble.
Football rights the least of Sky’s worries 21 Jun 2005 Football pretty much made Sky. But the beautiful game isn t as important as it used to be for the payTV operator. With increasing competition, good content will no longer be enough to keep subscribers happy.
Sir Ken Morrison backs down 21 Jun 2005 After a bitter fight with David Jones, the deputy chairman, Sir Ken has bowed to the inevitable and named three nonexecutives. It looks like Sir Ken realised that he would lose an outright war. A reasonable start, but there is a lot left to do.
Huge utility stock sales may be digestible 21 Jun 2005 European governments plan to sell E9.5bn of utility stock in the next few weeks seemingly enough to swamp markets. But as this week's highly successful float of Belgian utility Elia shows, investors still crave highyielding, regulated assets.
Emap wins control of Scottish Radio Holdings 21 Jun 2005 The UK media group's timing is unfortunate, given rival radio groups GCap and Chrysalis today warned of a sharp drop in radio ad revenues. Still, the tieup makes both financial and strategic sense.
UK attacks European Court of Justice 20 Jun 2005 No wonder. The ECJ is now the most federalist institution in the EU, and its rulings have been expensive for the Inland Revenue. The UK s proposed reform is likely to be blocked, but the ECJ could well get the message anyway. Expect less expansive rulings.
France races ahead with privatisations 20 Jun 2005 The government was expected to slow down the privatisation process in response to losing the referendum. Instead, it has upped the tempo. The state seems to be betting that it can create jobs with privatisation proceeds and that unions won t kick up a fuss.
US media break-ups all the rage 20 Jun 2005 Cablevision is the latest to join the bandwagon by hiving off its media interests and taking its cable business private. Though these breakups are mostly a shell game, Cablevision's governance problems might actually give a split greater merit.
Is Italy’s H3G really worth the same as Wind? 20 Jun 2005 The banks seeking to float Hutchison Whampoa s Italian mobile operator are gunning for values close to Wind s E12bn sale price. But this looks wishful thinking. Wind is larger and more profitable. And H3G faces increasing competition.
Now for the real Eurotunnel battle 19 Jun 2005 Eurotunnel s chairman may be able to soften his stance towards creditors after surviving a crucial shareholder vote. But the battle between shareholders and creditors during Eurotunnel s £6.3bn debt restructuring will still be a painful one.
Tesco still has plenty of growth 19 Jun 2005 The value of the retailer s international arm isn t properly appreciated by investors. Returns are improving, and investment is pouring in. And rather than being a mature market, the UK is still growing strongly too.
Doughty Hanson pushes its luck with RHM float 19 Jun 2005 The private equity group will roughly triple its initial equity investment in RHM if the UK food group floats at its expected price. But investors may not be so lucky after the float. RHM is struggling to grow, and the shares have little in their favour beyond a 5% yield.
Constellation walks away from Allied Domecq 17 Jun 2005 The US drinks group believed it was being used as a stalking horse after Allied decided to release details of its latest proposal. Nonetheless, its 720p a share offer, comprising a mix of cash and shares in Allied s relisted wine business, was still highly conditional.
Sanofi-aventis loses patent fight for biggest drug 17 Jun 2005 The French pharma s defeat in its Lovenox patent trial may seem like a critical hit it puts more than E1bn of sales at risk. But there is no way the plaintiffs can introduce a generic version of the drug.
Gold bugs celebrate the euro’s demise 16 Jun 2005 Gold prices usually track the dollar. As the currency falls, gold rises. But that relationship has broken down. Since the EU referendum, gold has rallied in all currencies. Gold is no longer just antidollar. Now it s antieuro too.
Emerging markets become net creditors 16 Jun 2005 One of the more bizarre features of the global economy is that savers in poor countries are funding debtors in rich countries. This stands traditional economics on its head. It is inappropriate, ultimately unsustainable and, in time, will reverse.
Goldman Sachs cracks like a hedge fund in Q2 16 Jun 2005 Proprietary and trading revenues plunged 43%. This is just the kind of volatility that investors feared. A rosy outlook statement has lifted the stock. But the results make it hard for Goldman to argue it is much more than a giant hedge fund.