SEC mulls CEO pay disclosure rules 21 Sep 2005 Executive pay has grown in recent years. It has also grown more complex what with perks, bonuses, options and retirement packages. The SEC should require disclosure to be simpler to understand. For one, firms should add up for investors the grand total of what CEOs make.
Time Warner may spin off more cable 21 Sep 2005 This is a good sign that the media firm's boss is willing to entertain shareholderfriendly proposals, such as those from Carl Icahn. Spinning off cable and buying back more stock might also buy Time Warner chief Parsons time to focus on his top priority fixing AOL.
Aegis soars on £1.6bn approach 21 Sep 2005 It s not clear who the mystery bidder for the UK advertising agency is, but chances are it s either Omnicom or Publicis. Either way, the offer price at more than a 25% premium to the sector will certainly get the company s attention.
Can private equity get a return from TDC? 20 Sep 2005 Denmark's national telecoms group looks pricey by any conventional measure. Trade buyers have been deterred. But the miracle of leverage means private equity buyers could still make decent returns from the deal.
Hedging may be key to winning oil deals 20 Sep 2005 Some smaller oil companies are hedging production to justify highly priced acquisitions. That lets them outbid more conservative rivals. So far, the majors haven t followed suit. But if the oil price keeps rising, and reserves keep falling, they'll have to be more aggressive.
Fidelity cut threatens price war 20 Sep 2005 The US fund manager has cut fees on its UK tracker. It is using its scale to put the squeeze on smaller funds. The move has implications not only for other trackers, but for active funds too.
Goldman cashes in during Q3 20 Sep 2005 The Wall Street firm surpassed earnings expectations by more than 40% as trading and investmentbanking revenues surged. But more than ever it is too hard to see where the money is coming from to justify the firm s recent rally and chunky valuation.
Reborn Parmalat a complex beast 20 Sep 2005 Investors valuing the Italian dairy group as it relists face a difficult task, since only 60% of its value lies with its milk business. The rest, some E2.1bn, lies in potential legal claims. One solution would be for the company to spin these off into a separate vehicle.
Tesco sounds bum note on UK retail market 20 Sep 2005 The market leader is always cautious about the outlook, and this time it sounds especially gloomy. But tougher times will make it easier for the more efficient UK retailers to press home their advantage.
LogicaCMG to buy Unilog for E930m 19 Sep 2005 The UK/Dutch IT consultancy is launching a heavily discounted rights issue to fund the purchase of its French competitor. Shareholders should pony up. The deal looks strategically and financially sound.
Tesco should stick to what it knows 19 Sep 2005 The UK retail giant is reportedly considering a bid for Albertsons, the $16bn US supermarket group. But Albertsons would bring a whole host of problems. And it isn t as if Tesco is anywhere near running out of growth.
US shouldn’t buckle to bust airline pension demands 19 Sep 2005 Delta and Northwest want the government to allow them up to 20 years to make good their $16bn combined pension deficits. That would just delay the day of reckoning, meaning a bigger tab when the government's own pension agency finally has to clean up the mess.
Citi faces losing fight with hedge funds 19 Sep 2005 Clients in some of its closedend funds don t want to be sold short when Citi transfers its asset management business to Legg Mason. The funds may be opportunists. But instead of trying to squeeze every last buck out of the deal, Citi should give in to their requests.
Dollar has Ponzi characteristics 19 Sep 2005 The current account deficit is heading for $800bn, or 7% of GDP, but foreigners keeping pouring funds into the greenback. This gives the illusion that all is fine. But it isn't. Borrowing on this scale can't continue much longer.
German election stalemate thwarts markets 19 Sep 2005 Investors hoped for a Merkel victory, which might have produced enough reforms to bring back job creation. But German voters, and the rigid electoral system, have let them down. Whatever coalition emerges is likely to be politically paralysed.
Deutsche Post risks overstretch with Exel buy 19 Sep 2005 The German postal group is overpaying for the UK logistics group. And it is doing so before sorting out DHL its last big deal. Deutsche Post may feel it has to move now to avoid being boxed in. But in avoiding that fate, it risks destroying value.
Euronext gets Deutsche Boerse treatment 19 Sep 2005 The FrancoDutch exchange s top shareholder has said it should do a merger of equals with its German rival instead of buying the LSE. That may be a fanciful idea. But Euronext should heed the subtext: investors may be sceptical of any deal where it pays a control premium.
Hedge funds muscle in on buyouts 18 Sep 2005 Bids for the UK s Drax power station and retailer Peacocks have confirmed private equity s fears about growing competition from hedge funds. Private equity firms may have to become more amenable to sellers, and settle for lower returns, if they don t want to lose more deals.
Agnellis buy E600m of Fiat stock to retain control 16 Sep 2005 The founding family acted to prevent it losing control of the Italian carmaker following Fiat s forthcoming E3bn debttoequity swap. But it is hard to square with recent claims by Ifil, the family holding company, that it wasn t planning to buy Fiat stock.
Will mega-buyouts lead to indigestion? 16 Sep 2005 As deals get bigger witness Hertz, Sungard Albertsons the options for exiting them diminish. IPOs are the only obvious way out. Still, given the private equity industry's compensation structure, the dealmakers will make their money regardless.
Ex-Tyco boss to learn his fate 16 Sep 2005 Dennis Kozlowski, poster boy for corporate vulgarity and misconduct, will be sentenced by a New York court on Monday. But it's hard to see what lesson has been conveyed. Even the most piggish CEOs deserve some clarity in the law before they are sent to jail.
Bush promises to rebuild New Orleans 16 Sep 2005 That's a noble ambition. But it's not clear where the cash is going to come from. But then Bush has never shown much interest in sound money.
Fed has mishandled oil price boom 16 Sep 2005 The policy of accommodating high oil prices with loose money has kept demand buoyant but stored up future trouble. America s debt problems are worse; and inflationary risks have increased. The Fed should increase rates sharply to rein in demand.
Time Warner should heed Icahn’s advice 16 Sep 2005 The billionaire investor may be pesky for Time Warner boss Parsons, but some of his ideas would create value. They might also further Parsons' own agenda in exorcising the lingering demons of the AOL deal once and for all.
BPI and ABN signal end to Italian banking fiasco 15 Sep 2005 The Italian bank is ready to sell its stake in Antonveneta; the Dutch bank still wants to buy it. It looks like an end to a damaging battle. The temptation will now be to sweep the remaining issues under the carpet. That would be a big mistake.
888.com hacks IPO range by 20% 15 Sep 2005 The online casino group is ploughing on with its IPO despite Partygaming's profit warning last week, which slashed sector valuations. 888 will have to convince investors that Partygaming's problems were largely selfinflicted. That will be tough, but not impossible.
Is champagne a national treasure? 15 Sep 2005 French industrial patriotism is in danger of descending into farce, with reports that Paris wants to keep Taittinger out of foreign hands. After all, this is one company where the owner foreign or otherwise can't take production offshore.
Skandia reveals internal differences over strategy 15 Sep 2005 The Swedish insurer has published secret business plans provided to its suitor Old Mutual as part of due diligence. It has also been forced to acknowledge management doubts over its ability to execute its strategy. That plays into Old Mutual's hands.
Telstra vote paves way for $22bn disposal 15 Sep 2005 Australia s government has won powers to sell its 51.8% stake in the telecoms operator, heralding the world s biggest share sale since 1987. But now it has to find takers. Given tougher regulation and the risk of industrial unrest, that may not be easy.
Microsoft/AOL talks target Google 15 Sep 2005 The software giant reportedly hopes to switch AOL, currently Google s top customer, to its own search engine. The last time Microsoft targeted an internet upstart, it was Netscape now part of AOL. Google will be hoping it doesn t get Netscaped.