Robinson makes skimpy Rentokil proposal 8 Sep 2005 He wants Rentokil to give away 2.6% of its equity worth £76m plus a salary, in return for having him as executive chairman. And it isn t clear what Robinson would do differently other than pay shareholders a special dividend.
Lafarge profit fall hits like a ton of cement 8 Sep 2005 The 20% drop in halfyear EPS was totally unexpected. Yet the company says there was no need to warn about the interims beforehand. It still expects to make its projected operatingprofit growth for the year. But investors are rightly sceptical.
De Villepin’s first 100 days fail to impress 8 Sep 2005 The French prime minister pledged to use his first 100 days to transform the country's economic direction. But so far, his accomplishments have been modest. And the latest talk of social growth is simply confused.
Intercontinental sets tough growth targets 8 Sep 2005 The UK hotel group has delivered huge returns to shareholders, including another £250m share buyback. But that process is nearly complete. Now it must prove its franchises can deliver the promised growth. That depends on its ability to sell the model to European hotel owners.
Skandia board split on Old Mutual approach 8 Sep 2005 It s not hard to see why it is struggling to give a recommendation. Patriotic feelings towards the Swedish insurance company run high. But it is hard to see shareholders backing a standalone strategy. And there are no alternative offers. The board should recommend.
Versatel investors hold out against Tele2 7 Sep 2005 It s reminiscent of Cable & Wireless recent bid for Energis in the UK. There, the Energis holdouts ultimately caved in. They did so because the bid wasn t really mean and they had no better alternative. Versatel s investors look to be in the same boat.
Germans do not want economic reform 7 Sep 2005 Polls show challenger Merkel s reforms are almost as unpopular as Schroeder's. Voters want more jobs, but not big changes. Their reluctance makes some sense. After three years of wage cuts, the German economy doesn't look that sick.
Dixons frustrates the bears 7 Sep 2005 The UK electrical retailer is a leading indicator for the British high street. Investors were expecting its latest update to be diabolical. Their worst fears have not been realised. But the trends are still heading in the wrong direction.
Supreme Court nominee looks good for business 7 Sep 2005 Federal judge John Roberts will probably succeed William Rehnquist as chief justice of the highest US court. Luckily for capitalism, some of the rulings he has made have been favourable to business, if not in the mould of kneejerk conservatives.
ITV talks up its digital prospects 7 Sep 2005 The UK broadcaster has little choice. Audience share for its flagship ITV1 is falling, and so are its advertising revenues. Launching new channels and a free satellite service will help. But they are still a small part of the ITV package.
Fiat’s stock has overshot 7 Sep 2005 On fundamentals, the carmaker looks expensive. But short sellers fear that a E3bn debt to equity swap could spark some corporate action. That doesn t look terribly likely. For the brave, Fiat s stock could be a good short.
Fazio looks increasingly isolated 6 Sep 2005 Italy's government chose a tortuous path to fixing the crisis surrounding the Bank of Italy's governor, but it may at last be getting there. And if Fazio did go, it might not be too late to mitigate the damage done by this affair if the succession is conducted properly.
Deutsche Post gears up for Exel battle 6 Sep 2005 The German postal group is tabling a full price for the UK logistics group. But it may have to go even higher. That s because UPS is unlikely to let Exel go without a fight and it has the financial firepower to muscle in.
How should Endesa defend itself? 6 Sep 2005 The Spanish utility may be starting from a weak position. But that doesn t mean Gas Natural's hostile bid is a knockout. Far from it. There are lots of holes that Endesa could pick in the approach.
E.on considers £11bn bid for Scottish Power 6 Sep 2005 The acquisition would make the German utility the largest electricity generator in the UK. But there are only modest economies of scale. Even if the regulatory hurdles can be overcome, it will be difficult for a deal to add value at the current share price.
Partygaming results spook investors 6 Sep 2005 The online poker giant admits market growth is slowing, and players are spending less time and money online. True, the market could still grow almost 60% this year. But these results should give investors a muchneeded reality check.
UBS sale to Julius Baer realigns Swiss banking 5 Sep 2005 The SFr5.6bn deal more than doubles Julius Baer s size and turns it into the number three in the Swiss private banking market. Small Swiss banks have come under increasing pressure. This deal may encourage them to ditch historic family loyalties and merge.
Italy fluffs central bank reform – again 5 Sep 2005 Rome wants to introduce a fixed term of office for the Bank of Italy s governor but only for Fazio s successor. Other thorny issues, such removing antitrust powers from the BoI s competences, are also left unresolved.
Sportingbet won’t win Empire without a fight 5 Sep 2005 The UK betting operator's offer for the internet gaming group values it at 14 times this year's earnings a 54% premium to its float price. But other big gaming sites are unlikely to sit by and watch Sportingbet snap Empire up. A fierce auction may be on the cards.
Gas Natural in hostile bid for Endesa 5 Sep 2005 Spanish utilities have been trying to merge for years, with no luck. Politics usually got in the way. Gas Natural has tried and failed deals before. Another failure would be seriously damaging for its credibility.
Spirit auction becomes fractious 5 Sep 2005 The UK pub group denies shareholders and management are at war . But bidders accuse Spirit s management of frustrating the auction process. Spirit has failed to supply details of its leasehold properties. Given Spirit s complex financial structure, this is crucial information.
Katrina chaos exposes fallacy of high US growth 5 Sep 2005 If the US really had such a great economic record, New Orleans would have been better equipped to withstand the hurricane. The problem is that the GDP measure is misleading, because it mixes investment with consumption. And the US is much better at consuming.
Will Albertsons spark a Safeway-style scrum? 4 Sep 2005 The sale of the US chain bears many similarities to the auction two years ago of the UK s Safeway, which gave every investment banker a job. There are more potential trade and financial bidders for Albertsons, but the spectre of WalMart clouds the opportunity considerably.
KKR leaves investors fuming over Alea debacle 2 Sep 2005 The private equity firm sold the insurer s shares in London two years ago with the help of hedge funds tempted by an unambitious valuation. But Alea keeps having to top up its reserves. Had it listed in the US, KKR and its advisers would probably be facing shareholder litigation.
Katrina batters the US dollar 2 Sep 2005 Investors are betting that the hurricane disaster will spell an end for now to monetary tightening. That may be bullish for stock markets, but it's not good news for America's huge trade deficit or the dollar.
ECB hints at tightening bias 2 Sep 2005 The eurozone has lower real rates than any other big economy. That makes the central bank uncomfortable. Politicians have been the big blocker on any upward movement. The commodity price shock could give the ECB the excuse to take them on.
Old Mutual bids E4.8bn for Skandia 2 Sep 2005 The South African insurer s offer is dependent on a recommendation from its Swedish counterpart within three weeks. To dismiss it, Skandia will have to show that Old Mutual has undercooked the synergies it s proposing to justify the price.
Reg FD hurt, not killed, by court case 2 Sep 2005 It s certainly a blow to the SEC that it has lost its first Reg FD case against Siebel Systems. The judgment may seem to raise the bar against Reg FD, but it's not likely to be influential. Reg FD is not dead.
Italy set to reform its central bank 1 Sep 2005 The government wants to limit the governor s tenure and improve decision making. These are obvious, overdue and easy changes to make. The hard part will be returning the BoI to public ownership, and deciding how much to pay current shareholders for their stakes.
Tech giants unite to launch iPod phone 1 Sep 2005 Apple, Motorola and Cingular are not coming together from a position of strength. Their reported plan to launch a mobile phone with a music player betrays the intense pressure they face from technological convergence.