BT looks unlikely suitor for ITV 5 Jan 2006 A deal has attractions. It would ease ITV s fears about a lack of digital distribution and would turn BT into a real rival to NTL and BSkyB. But ITV looks expensive. In pursuing a deal BT might reawaken fears it is once again courting value destruction.
Betfair struggles to overcome management jinx 5 Jan 2006 The online betting exchange may have revolutionised UK gambling, but it has a poor record at recruiting and retaining executive talent. That s because it tried to float too soon. Unless the latest management changes prove more successful, the best option may be a sale.
Crosby’s exit from HBOS is praiseworthy 5 Jan 2006 The resignation of the UK bank s boss is good for everyone. After all, Crosby has always been more of a fund manager than a banker. By leaving early, he has prevented his worthy successor retail banking maestro Andy Hornby becoming CEO elsewhere.
LBO firms aren’t reckless, says KKR’s Roberts 5 Jan 2006 No surprise there. But why say it? Perhaps because of concern that private equity is piling too much debt on ever bigger buyouts. Low interest rates and abundant liquidity currently support Roberts's case. The real test will come when financial conditions deteriorate.
Sovereign denies last right to shareholders 5 Jan 2006 The US bank's decision to delay its AGM until it sells a near 20% stake to Santander strips investors of their last way to vote on the deal. It s the latest in a string of decisions taken by chief executive Jay Sidhu to defy his shareholders.
BASF fails to justify $5bn hostile Engelhard bid 4 Jan 2006 The German company has excess capital from the oil boom. But the cash acquisition of the US chemical group will give returns of roughly 5%. That's less than the 9% BASF could have earned simply by buying back its own shares.
Euro stocks still undervalue economic upturn 4 Jan 2006 The region is enjoying the fruits of labour reform higher production but no pressure on wages. That s unusually supportive for profits. But the equity market has not fully caught on, despite a strong 2005. Compared to the US, eurozone stocks look attractive.
Europe misses out on oil M&A boom 4 Jan 2006 US oil firms racked up an impressive $110bn of deals in 2005, while European firms managed a meagre $15bn. That's partly because European firms preferred to build reserves through exploration. But pressure is building for megamergers everywhere.
Time to switch from M&S to Next 4 Jan 2006 Next, which had a dismal time before September, has put in a decent performance over the crucial Christmas trading period. Meanwhile, M&S s shares have had a great run. The retailer s recovery may be on track, but its near15% premium to Next now looks too wide.
Draghi faces conflict of interest on Unipol 3 Jan 2006 The Bank of Italy has to rule on the insurer s bid for BNL. It's an important test of the central bank's independence. But it puts the bank s new governor in a bind. He comes from Goldman Sachs, which advised on a rival bid. He should take a back seat.
Both sides at fault in Ukraine gas dispute 3 Jan 2006 This is a commercial dispute, not the start of a new cold war. Russia is right to demand that Ukraine pay market prices for its gas. But Russia is playing hardball with its demand for control of Ukraine s pipeline. Both need to back down.
Where will forecasters go wrong in 2006? 3 Jan 2006 The consensus missed the oil price rise and the weak yen is 2005. The best call was for steady US growth. They are expecting no big shifts this year. That may sound dull, but it is actually a bold forecast, given all the world s uncertainties.