Gala plans risky bet on Coral 30 Sep 2005 The UK bingo operator's private equity owners hope to extend their gaming sector winning streak with a bid for the UK betting shop chain. But with few synergies to justify paying a premium, Gala will have to take a big gamble to derail Coral's planned IPO.
NYSE and LSE would make good partners 30 Sep 2005 The business and cultural fit between the exchanges in the world s top two financial centres might beat the other deals being mooted. But NYSE would have to satisfy LSE that a takeover, or merger, wouldn t diminish London s importance.
German minorities get stiffed – again 30 Sep 2005 At least this time the target firm, ProSiebenSat, acknowledges that bidder Springer isn t paying enough cash to pref holders. But the option that pref investors have been given instead swapping their shares for Springer stock is still a false choice.
BA’s new boss needs to focus on efficiency 30 Sep 2005 Willie Walsh's key task is to manage the airline s move to Heathrow s Terminal Five. The potential efficiency gains from this move are huge. Walsh s reputation hinges on whether he can capture them.
Boots’ Healthcare auction gets too hot 30 Sep 2005 The UK retailer s sale of its overthecounter drugs division is attracting numerous groups who want to consolidate the sector. Good news for Boots, bad news for the winner.
Volkswagen shouldn’t sell shares to Porsche 30 Sep 2005 It s one thing if Porsche buys a big stake in the market. There s nothing VW can do about that. But it should not help Porsche to do so. That would damage its own investors.
Is Google overstretching? 30 Sep 2005 The firm announces new initiatives at a dizzying pace. Some build on its core competences. But others, like a link with NASA, are far out. There may be a method to this madness. But the danger is that Google spreads itself too thin while search rivals sharpen their game.
Cablecom axes IPO for Liberty sale 30 Sep 2005 The Swiss cable operator's owners have sold it to Liberty for SFr2.8bn at just below the bottom of the IPO price range. That suggests that they weren't very confident of getting the IPO away. The punchy range may have been a negotiating tactic.
Porsche investors in muddle about VW stake 29 Sep 2005 Porsche s shares have yoyoed wildly since news of the deal broke. But it s not clear why. Taking a minority stake in VW is clearly a poor use of the luxury carmaker s capital.
Ras savers hold Allianz to ransom 29 Sep 2005 Owners of the Italian insurance group's savings shares have exploited a legal loophole to get a huge price for their shares. This windfall has sparked interest in other Italian savings shares. But not everyone will be able to pull off the same trick as Ras.
Ciampi should turn the screws on Fazio 29 Sep 2005 The discredited governor of the Bank of Italy has resisted calls for his head from politicians including Berlusconi, the prime minister. But Ciampi, Italy s wellrespected president, would be harder to resist. Read the transcript of our imaginary phone call.
VNU runs into opposition over E5.8bn IMS merger 29 Sep 2005 Despite the current M&A boom, not all firms get an automatic pat on the back when they announce a new deal. Investors in Dutch publisher VNU have complained quietly for a while about IMS. Now their grumbles are turning into shouts.
Cablecom and Telenet set punchy IPO ranges 29 Sep 2005 The Swiss and Belgium cable companies are seeking high valuations. They certainly deserve a rich premium over their main rivals. But they may be overplaying their hand. That is unlikely to impress investors who may have been burned in the sector before.
Top Morgan Stanley strategist joins hedge fund 29 Sep 2005 Byron Wien, once dubbed the world s mostread analyst , is leaving the bank for a hedge fund recently chaired by the bank s CEO John Mack. The irony is that Wien contributed to the downfall of Mack s predecessor, Philip Purcell. But that s the way Wall Street works.
French budget is a triumph of cynicism 28 Sep 2005 The government expects the 2006 deficit to fall within the Stability Pact limit, but only by using an unrealistically high growth rate. The hypocrisy is not particularly dangerous. Nevertheless, French politicians need to get used to lower growth expectations.
Greenspan calls stability destabilising 28 Sep 2005 The Fed s achievement of economic stability may cause financial bubbles. But its chairman says he can't identify or deflate them in advance. It looks like Greenspan is anticipating trouble in future but doesn't want to be held responsible for it.
Bush tells US to cut the driving 28 Sep 2005 The president s call for petrol conservation isn t a bad idea, but it s well behind the curve. A serious approach to conservation requires more than talk. It requires higher prices and tougher fuel standards.
Gazprom takes control of Sibneft for $13.1bn 28 Sep 2005 Moscow has cashed out oligarch Roman Abramovich, owner of both Sibneft and Chelsea football club. Abramovich, should he wish, could now buy two full football teams a year, made up only of David Beckhams, for the next 21 years.
Stringer fails to grasp the nettle at Sony 28 Sep 2005 The electronic giant s new boss has been less ambitious in his restructuring plans than other westerners hired to revive Japanese companies. Stringer s problem is that Sony s difficulties are not sufficiently severe to force its senior managers to support radical action.
Italy faces seven stuck months 28 Sep 2005 Berlusconi is increasingly impotent in the face of the country s economic problems. Now a massive budget fudge seems on the cards. His coalition will limp on until next spring s elections. Even then, there s no guarantee that a new government will drive things forward.
Compass boss Bailey stands down 28 Sep 2005 Mike Bailey has overseen two profit warnings in a year, and a 30% fall in the contract caterer s share price. He s right to leave. But the timing is lousy. Compass s chairman is standing down too. His replacement Sir Roy Gardner has his work cut out.
Chris Evans’ biotech fund investigated for fraud 28 Sep 2005 The UK biotech investor used to be the Pied Piper of UK biotech. His involvement was validation enough. The fraud investigation comes on the back of a dismal investment record. Investors won t listen to the pipes any longer.
Hedge fund loses Versatel legal battle 28 Sep 2005 Centaurus has failed to persuade the courts to outlaw a shoddy tactic Tele2 is using to take over the Dutch telecom. This isn t just a blow to the hedge fund. It makes a mockery of the Dutch law that supposedly protects minority investors.
Wal-Mart eyes Tommy Hilfiger 28 Sep 2005 The megaretailer has approached the $1.6bn Hong Kongbased fashion company, which put itself up for sale in August. At first blush, this seems an odd pairing. But it actually may fit in with the retailer s experience with Asda in the UK.
Constellation goes hostile for Vincor 28 Sep 2005 The US drinks group is going straight to the Canadian wine company s shareholders with its C$1.4bn a share offer. But investors expect it to pay a lot more. Unless Constellation wants to punish its shareholders, the arbs may be in for a beating.
Trygvesta’s E2bn IPO looks deceptively cheap 27 Sep 2005 The price range for the biggest insurance float since Toro has the Danish general insurer being sold on a lowly earnings multiple. That looks designed to tease in investors from outside Denmark. They should note that the pricetobook ratio looks less favourable.
How independent should central bankers be? 27 Sep 2005 Enough to be credible to the markets when setting monetary policy. But total independence is not sustainable. Central bankers have to work with politicians. The crisis in Italy has arisen because the central bank has too much freedom.
Kazakhmys plans £2.5bn London listing 27 Sep 2005 The Kazakh copper miner is floating 26% of its shares. It is a lowcost producer, and copper is booming. But it comes with the risks of an autocratic government and a listing in London cannot take that away.
Murdoch faces bid battle for Intermix 27 Sep 2005 The web company's former boss is trying to thwart News Corp s $580m takeover, saying it undervalues Intermix. He is unlikely to succeed. But the move has unleashed concerns about autonomy that it would profit News Corp to heed.
Findexa’s tax wheeze fails to deliver 27 Sep 2005 The Norwegian yellow pages company was supposed to deliver juicy returns through a cunning tax structure. The snag is that investors weren t sure it would work. That may explain why the company underperformed the market.