New York Times flounders in internet era 21 Oct 2005 The media company s profits are down on rising costs and fading circulation growth. It needs to revamp its online strategy and figure out a way to monetise the vast store of knowledge it owns.
Bloomberg may sell after NY election 21 Oct 2005 With Mayor Bloomberg heading for a second term, the likelihood of a sale of the eponymous business will increase. While there are many potential trade buyers, a leveraged buyout for the $16bn business may also make sense.
Proposal to end US mortgage tax deduction won’t fly 20 Oct 2005 The US home mortgage interest deduction is unfair and expensive. But the tradition of pricing the deduction into housing costs has created a powerful voting block against the reform plan.
Bollore should not count on an Aegis board seat 20 Oct 2005 The corporate raider bought 20% of media group Havas and installed himself as chairman. Some think he ll try to do the same at Aegis. But the UK media buying firm doesn t need fixing. And Bollore s presence on the board would create some serious conflicts of interest.
Nestle should gear itself up 20 Oct 2005 The Swiss food giant is performing well across the board even in the US, where Cadbury and Kraft are struggling. A fresh buyback is a positive step too. But Nestle could do more if only it could be persuaded to part with its prized tripleA rating.
BPI reveals E1.8bn of controversial financing 20 Oct 2005 The beleaguered Italian bank invested E925m in hedge funds, some of which was used to buy BPI shares. Another E850m was lent to a property magnate, who owns BPI shares. No wonder shareholders have run for the exits.
Bond and equity markets both wrong on inflation 20 Oct 2005 Headline and core measures tell different stories. The high headline rate troubles equity markets. But low core inflation calms bond buyers. They re both wrong. Equity investors should not worry about inflation. And bond investors are too optimistic.
Philip Green tucks away £1.2bn Arcadia payout 20 Oct 2005 The UK retail tycoon hardly needs the money and he hasn t got any targets on his radar screen. But the refinancing makes sense from a private equity perspective and does not leave the fashion group noticeably undercapitalised.
Miami speculators should heed Wilma warning 20 Oct 2005 The progression of Hurricane Wilma towards Florida s coastline remains dangerous. But if history is any guide, the greatest threat may not be to life and limb but to Miami s wildly speculative property market.
Private equity scrambles for telecoms assets 20 Oct 2005 Texas Pacific and Apax recently ditched a bid for Greece's QTelecom but quickly returned offering some 30% more for the mobile operator. The fluff is a sign of growing competition for telecoms assets and private equity s desperation to secure deals.
US equities still look vulnerable 19 Oct 2005 They ve underperformed the global index by 4% so far in 2005. But global investors are expecting worse to come. And they are right to be the most underweight since 1999. Rates, valuation and currency all point to a weak US market.
Spirit raises the bar for bidders 19 Oct 2005 Strong quarterly sales suggest the privateequity owned UK pub group has turned the corner after a slip earlier this year. This will significantly strengthen its hand in negotiations with prospective bidders, who now have until midNovember to put up or shut up.
Tamiflu supercharges Roche growth 19 Oct 2005 The Swiss drugmaker can t keep up with demand for its flu treatment amid fears of a pandemic. And sales of its cancer drugs are booming. But the real story behind the Q3 sales update is that margins are almost certainly rising sharply.
High yield investors fed up with junk 19 Oct 2005 Higher interest rates and the prospect of jumbo LBO bond issues may be reducing investors appetite for junk bonds. The tide is turning against private equity as new junk bond deals are cancelled or scaled back.
Serono pharma scandal may be first of many 19 Oct 2005 Serono s plea to criminal wrongdoing flags up the common problem of drug company gifts to doctors. This case may be just the tip of an iceberg for the industry. The US Justice Department claims that 150 similar cases are pending.
JP Morgan speeds up Dimon’s succession 19 Oct 2005 The bank's stock has lagged its peers this year, so Sandy Weill's former protege needed a strong set of quarterly results. Having achieved them, he will become CEO six months early. But now he has no scapegoat if future results disappoint.
Market jitters come to early end 19 Oct 2005 Investors were nervous about inflation and a more hawkish Fed. But they seem to have adjusted quickly. Gradual rate increases are not enough to keep investors scared. But if inflation does not slow quickly, the mood could shift again.
Hennessee dragged to court over Bayou 18 Oct 2005 A university claims the hedge fund advisor failed in its duty to vet the credentials of the defunct Bayou. Hennessee paid by both Bayou and the investor was conflicted. But this was made clear in the fine print. It should have been read.
Delphi boss seeks 10% of equity 18 Oct 2005 So take Steve Miller s generous voluntary offer to cut his annual salary from $1.5m to just one dollar with a big hunk of salt. Imagine Delphi with a pristine balance sheet and net margin of just 2% in two years, and that equity would be worth hundreds of millions.
Altana would fetch juicy premium by selling pharma 18 Oct 2005 The German pharma and chemicals group should be able to eliminate its conglomerate discount by splitting into two businesses. But the company could do better by selling off its drugs division, which could be worth more than the entire company.
Goldman alumni come to Refco’s rescue 18 Oct 2005 Former Goldman partner Christopher Flowers offer of $768m for Refco s futures unit may leave nothing for shareholders. Given Goldman s numerous conflicts of interest, outsiders will want to know whether Flowers got too good a deal.
Merrill reports record quarterly results 18 Oct 2005 The bottom line certainly looks good. But how Merrill got there still leaves questions about its ability to generate revenue. The top line only grew because of rising financial income. The operating divisions were flat overall. Merrill is still a costcutting story.
Deutsche flogs RCS and other Italian stocks 18 Oct 2005 The German bank hasn t said why. But the rumour is it s selling the collateral it took against loans it made to Ricucci the RCS raider. That wouldn t be surprising. RCS's stock has fallen. And more selling could follow if BPI also places the 15% it holds as collateral.
Glaxo applies to sell first OTC diet pill 18 Oct 2005 An FDAapproved diet drug may seem to be a slam dunk in the US market, but it's probably not. Though the US has a surfeit of fat folks, the market for diet products is well fed already.
New Star IPO demands faith 17 Oct 2005 The mooted £600m price tag for John Duffield s fund management float demands that investors believe its stunning growth will continue. With so little stock being sold, the aim appears to be to get a listing, then wait for a bidder to give everyone a proper exit.
BSkyB hedges bets with broadband 17 Oct 2005 Bidding for Easynet would be a wise, if defensive, move. Sky may be the dominant force in UK pay TV today. But BT and cable are a more potent threat. And the mass takeup of broadband is making its satellite platform look increasingly obsolete.
GM considers sale of GMAC 17 Oct 2005 Finally, GM boss Rick Wagoner has bitten the bullet. The problems of the parent are a drag on GMAC and caused its funding costs to soar. Selling GMAC is good for shareholders if it accelerates GM's reckoning with its larger problems so long as the proceeds are handed over.
Abandoned Rentokil bid harms Robinson’s credibility 17 Oct 2005 Sir Gerry Robinson has rightly dropped his bid. It was little more than an expensive job application for a vacancy that didn t exist. But the episode has done Robinson no favours at all, raising questions about his greed, his prior track record and his appetite for work.
European bidders start Marconi bidding war 17 Oct 2005 But this is more of a cold war than a hot one. Ericsson and Siemens aren't itching to get their hands on the UK telecom equipment maker. But they can offer more than Marconi's main suitor, Huawei. And they probably want to force the Chinese to pay up.
Bawag must answer questions on Refco loan 17 Oct 2005 How did the small Austrian bank come to have a E425m exposure to the brokerage? And to whom precisely did it lend the money? These are questions Bawag has yet satisfactorily to answer. It needs to do so soon.