Katrina could lead to soaring petrol prices 31 Aug 2005 The hurricane may have shut down oil production in the Gulf, but loss of US refining capacity means oil inventories should actually rise. That should keep a lid on the oil price. But the real problem is gasoline prices.
Saint Gobain’s bid for BPB lacks muscle 31 Aug 2005 The French conglomerate s offer document neither scolds the current management nor promises added value. It just says that the 720p offer price for the UK plasterboard maker is generous. But it may take more cash to seduce BPB s shareholders.
France Telecom rights issue heavily oversubscribed 31 Aug 2005 The company could have sold the shares it is issuing to fund the purchase of Spain's Amena six times over. But that does not mean that other rights issues will go so well. There were specific reasons for buying into the FT story.
France spells out its strategic industries 31 Aug 2005 There s no mention of yoghurt. Instead, the government says it will only block foreign takeovers of sectors linked to national security. But security is a flexible concept that can be twisted to include pretty much anything.
Hammerson shrugs off retail downturn 30 Aug 2005 The UK property group has posted an impressive 8% rise in rental income at a time when its core retail customer base is struggling. Now that property investors can't rely on easy gains from falling interest rates, Hammerson s performance is particularly encouraging.
Old Mutual tries to bear hug Skandia 30 Aug 2005 The South African insurer isn t showering Skandia s reluctant board with cash. Its SKr42 (E4.50) a share bid is hardly a knockout blow. It seems to be hoping that Skandia s investors and a lack of alternatives will force the board to agree to a deal.
Sell-side analysts have a future after all 30 Aug 2005 Predictions that the unbundling of equity commissions would lead to the demise of the sellside analyst were wrong. Why? Because bulgebracket firms see analysts as essential to their franchise. Furthermore, the buy side is scaling back on research.
High oil pitches Indonesia into financial crisis 30 Aug 2005 Investors are worried about the cost of the government's fuel subsidies. It's ironic that Indonesia a big producer is in trouble. But the greater risk here may not be economic but political. Cutting the subsidy would be a risky move for the Yudhoyono government.
Is it time for US to tap emergency oil stash? 29 Aug 2005 Oil hit $70 after rigs in the hurricane hit Gulf of Mexico were evacuated, prompting calls on Bush to tap the Strategic Petroleum Reserve. The US doesn't have a clear policy on when to use the SPR. But it doesn’t look like now is the time to deploy it.
Whingeing about accounting rules is misplaced 29 Aug 2005 UK companies are complaining that IFRS is too complex. But in a complex financial world, simplicity is often the enemy of the truth. Analysts will, of course, soon find ways to oversimplify. But smart investors can use the extra information to their advantage.
Intelsat to buy PanAmSat for $3.2bn 29 Aug 2005 Private equity's string of astounding successes in satellite investments continues with the sale of the US group. The sponsors have more than quadrupled their investment in one year.
Lloyds TSB would struggle to see off a bid 28 Aug 2005 The UK bank s standalone strategy does not promise much in the way of growth any time soon. Foreign bidders may lack synergies. But a largely cash bid, even at a low premium, could well succeed.
Telewest tries to make perfect deal happen 28 Aug 2005 There are lots of good reasons for NTL to buy its fellow UK cable operator. But no reason to hurry, up to now. Telewest has put its Flextech unit up for sale. NTL will have to act soon and pay the price if it wants to get the whole company.
Suez walks political tightrope in Belgium 26 Aug 2005 The French group s bid for Belgian utility Electrabel appears simple it already has board approval and majority ownership. But Belgium s politicians could complicate matters. As the Walloon economic minister said: 'Electricity is more strategic than yoghurt.'
Greenspan’s legacy isn’t that great 26 Aug 2005 The Fed's chairman can look back at 18 years of moderate US inflation and steady economic growth. But he has also presided over a historic decline of the US trade position. And he will leaves his successor a big asset price bubble to pop.
WPP bullish on 2005 26 Aug 2005 This was supposed to be a tough year for advertisers. But the UK advertising giant s results point to an even better year than 2004. So good, in fact, that WPP has upped its margin targets. Given the resilience of corporate earnings, it shouldn't be difficult to deliver.
Japan’s population starts to decline 25 Aug 2005 This is the first time in modern history a rich country has lost people. A slower growth rate and fiscal problems are almost inevitable. The ageing and shrinking workforce could cut into Japan s international competitiveness. It is a big investment negative.
TPG avoids Gate Gourmet fallout 25 Aug 2005 For all the mudslinging in the Gate Gourmet saga, very little has landed on the catering company s private equity backers. That may be because TPG isn't a novice with tricky situations. But private equity will have to be increasingly careful to avoid a backlash.
Ryanair hurls more insults at rival 25 Aug 2005 The Irish airline says Easyjet doesn t know how to run a lowcost airline. It may think it's a good idea to whack a big rival. But Ryanair is courting retaliation. And if the two biggest lowcost carriers trash each other too much, the whole sector might suffer.
Misys shouldn’t pay people to stay 25 Aug 2005 The UK software company is awarding generous incentive packages to retain two divisional directors in case they don t get promoted to CEO. Paying people to stay against their wishes is a bad idea.
BPI approaches ABN about Antonveneta 25 Aug 2005 Were the Italian bank to sell its Antonveneta shares to the Dutch, it would be the cleanest end to a messy saga. But it should not be used by the Italian establishment to throw a veil over any skulduggery that has occurred.
Commerzbank a poor target for hedge fund activism 24 Aug 2005 The German bank has attracted hedge funds on to its register. That s unsurprising given its relative valuation. But parallels with Deutsche Boerse, which was the subject of successful hedge fund activism earlier this year, are wide of the mark.
Bidders flock to E13bn French motorway sale 24 Aug 2005 With shares in the three motorway groups at alltime highs, it s a good moment for the government to be selling down more of its holdings. Buyers still have more upside to play for. But much depends on the financing. At least there are plenty of banks willing to foot the bill.
BA throws a lifeline to Gate Gourmet 24 Aug 2005 British Airways has agreed a more generous contract with its beleaguered caterer, provided it resolves its dispute with the unions. This may seem like a charitable move. But the reality is that BA has few cards to play.
BHP Billiton goes for growth 24 Aug 2005 The Londonlisted miner plans to return less cash to shareholders this year than last, even though it has grown profits by 85%. CEO Chip Goodyear also plans to raise capital expenditure by 40% for the second year running. He seems to believe boom conditions will last.
Rentokil buyout will be hard to swing 23 Aug 2005 Gerry Robinson thinks he has found a way to buy out the services conglomerate with a miniLBO structure. Perhaps. But it isn't terribly attractive to Rentokil shareholders. They'll only tolerate it if they're completely fed up with current management.
European companies enjoy profit paradise 23 Aug 2005 With secondquarter earnings per share up 27% over last year, companies seem detached from the dull economy. More expensive oil will hurt next year, but debt is still cheap and wage pressures remote. Profits could rise modestly in 2006.
PC industry stares decline in the face 23 Aug 2005 This may seem premature when the number of computers sold is expected to rise by 13% this year. But total revenues will probably be stagnant at best. And today s unit growth may be borrowed from future purchases.
Inmarsat rally runs out of juice 23 Aug 2005 The satellite operator may still be growing its earnings at a decent clip, but its revenues are wading through treacle. Inmarsat s share price is now relying on the group s new investments to support it. But their success is hardly assured.
Tui surprises with $2bn (E1.7bn) shipping bet 22 Aug 2005 By snapping up CP Ships, the German conglomerate appears to have made an aboutface in its strategy of concentrating on tourism. With a E1bn rights issue looming, it will take a lot of convincing to get investors onside.