Sarin’s job is still on the line 6 Mar 2006 The decision to sell Vodafone s Japan business and hint of a big dividend have bought the mobile group s CEO breathing space. But unless Sarin shows he can get a grip on Vodafone s disparate empire, Sir John Bond, the incoming chairman, will have to junk him.
Generali’s strategic plan radical but believable 6 Mar 2006 The Italian insurer is at last addressing its flabby balance sheet gearing up to buy out minorities and launch a buyback. Investors may be sceptical of plans to reap groupwide synergies, and hints of M&A. But management s track record should give confidence.
GM’s $2bn Suzuki deal shows it still doesn’t get it 6 Mar 2006 The US carmaker says it has a oneyear option to buy back the Suzuki stake it s now selling. What's the point? It s not a strategic asset. That it even entertains the notion suggests its executives still aren t in adequate crisis mode.
Buffett sees alternative investments disappointing 6 Mar 2006 Investment returns are ultimately determined by the profitability of businesses, observes the Berkshire Hathaway chairman. Rising moneymanagement fees and excessive portfolio turnover will reduce future returns. His argument is hard to fault.
Arab petrodollars return to the US through hedge funds 6 Mar 2006 The US ports controversy has raised Arab concerns about direct investment in the US. Nevertheless, Gulf oil money is returning to the US through offshore hedge funds.
Verizon loses upper hand over Vodafone in the US 6 Mar 2006 Following the AT&T/BellSouth tieup, the US telecom group is even keener to buy out Vodafone's minority stake in its wireless joint venture. But the balance of power has shifted. Vodafone s Japan deal has eased the pressure on its CEO.
GE throws caution to the wind with $600m web deal 6 Mar 2006 After Viacom snapped Dreamworks from the conservative conglomerate s clutches, GE looks to be jettisoning its traditional measures of value. It s paying 34 times ebitda for a women s site with slowing growth. CEO Jeff Immelt must have a trick up his sleeve or he's been seduced.
Linde’s E12bn BOC buy just stacks up 6 Mar 2006 The E250m industrial synergies between the two gas companies wouldn t justify the whopping E3.3bn premium the Germans are paying. But BOC left itself vulnerable by undergearing. Throw in tax benefits from debt financing, and the highly geared offer just washes its face.
BAA should fetch more than 900p a share 5 Mar 2006 That was the price at which one of the UK airport operator s biggest shareholders said he would sell the firm for. But what if BAA is worth more to Ferrovial, which is expected to announce its bid soon? BAA could be worth 1025p to the Spanish.
Investors should be wary of hedge fund floats 5 Mar 2006 Hedge funds are swarming around London s Aim market seeing if they can go public. Whether they are sufficiently large and diversified to be listed companies is another matter.
AT&T’s $67bn BellSouth deal adds up 5 Mar 2006 The longanticipated Ma Bell revival provides big benefits to shareholders. It unites Cingular wireless and will yield $3bn of synergies. Moreover, regulators may not even object to the combo, which also puts immense pressure on Verizon to get Vodafone to the bargaining table.
Blackberry addicts breathe easy 4 Mar 2006 The device s maker, RIM, is paying $613m to end its patent dispute with NTP. All things considered, this is not a big price. Sure, RIM might have won in court. But client concerns were getting serious enough to erode the addiction of the crackberry.
EU fights back against protectionism 3 Mar 2006 Despite all the protectionist rhetoric from France and Spain, the EU holds most of the cards and it shouldn't be afraid to use them. This is a battle it must not lose. Its relevance, if not its future, is at stake.
Mittal doesn’t want to stop with Arcelor 3 Mar 2006 A takeover of Arcelor would double Mittal s size. But it wants to double again before 2015, according to its leaked merger plan. Arcelor s promised 15% ebitda gain by 2008 looks pale in contrast. Investors must decide if Mittal can manage the growth.
HMV should accept Permira’s sweetened offer 3 Mar 2006 At more than 200p a share, the buyout firm s raised offer for the UK music retailer should be enough to win the day. HMV is unlikely to squeeze out any more. Unless something better comes along, it should take the cash.
Politicians don’t make the best corporate financiers 3 Mar 2006 Former president Bill Clinton and former New York mayor Rudi Giuliani are both embroiled in controversial takeover battles. Politicians covet the fees that can come from such assignments. But their involvement can muddy the waters. They d do better to stay away.
Size matters in shareholder activism 3 Mar 2006 That s one conclusion to draw from recent highprofile shareholder activism at Wendy s, McDonald s, Time Warner and now Heinz. The record suggests that smaller corporate targets provide better returns for uppity investors.
Vodafone finally sees sense over Japan 3 Mar 2006 The mobile operator should have bitten the bullet years ago over its troubled Japanese subsidiary. A sale to Softbank would show that Vodafone is finally ditching its goal of global domination. Investors will be relieved.
Colgate succession may spark a deal 3 Mar 2006 The toothpaste and soaps giant has struggled of late. So Reuben Mark CEO for 22 years will want to hand over the reins on a high note. One way to do that is to clinch the $13bnplus sale of Pfizer s consumer and OTC business. But this is not without risk for shareholders.
RAG’s rise from the ashes a political fix 3 Mar 2006 The unlisted German coal group has bounced back from neardeath to make an E3.4bn acquisition and now plans to float. But how? The answer lies in politics and a deal that was probably struck at the time of E.on s takeover of Ruhrgas.
Parents shouldn’t chair companies run by their kids 3 Mar 2006 The chairman of Overstock is thinking about stepping down, having failed to rein in his voluble CEO son. Had Jack Byrne been a stronger father and a more responsible chairman he would have axed son Patrick.
Dana directors look like nincompoops 2 Mar 2006 Pity investors in the carparts firm teetering on bankruptcy after failing to pay interest on its bonds. Things could ve been so different. Just two years ago the board rejected a big cash bid from ArvinMeritor. The directors who supported that foolish decision should be fired.
France short on defensive weapons 2 Mar 2006 The prime minister says stateowned investment fund CDC should help fight foreign corporate invaders. But it s too small to offer much aid. If the government could just veto deals, it would be happy. But its hands are tied by EU rules. So it can only arrange nationalist mergers.
DT steadies investors’ nerves with record dividend 2 Mar 2006 The German telecoms operator is offering investors a chunky 5.3% dividend yield. As well it might. With the group facing a fall in ebitda, a capex splurge and dispute over job cuts, shareholders may need an extra a reason to hang on.
Capitalia’s Arpe embroiled in Parmalat probe 2 Mar 2006 Since Arpe is viewed as the Italian bank s new broom, the request to indict him for his role in Parmalat s collapse is potentially worrying. It could conceivably make Capitalia, which is already swept up in takeover speculation, more vulnerable to a bid.
Sacyr tries romance to smooth cross-border M&A 2 Mar 2006 The Spanish construction firm has France s Eiffage in its sights. It could go hostile but wisely is using sweet talk instead. That is partly a sign of protectionist times. But it s also pragmatic: most of Eiffage s business is with the French state.
Veolia – victim or villain? 2 Mar 2006 Did the French water group pull out of its joint bid with Italy s Enel for French utility Suez because it was nobbled? Or was it offered something juicy in return?
Pre-IPO bonds make a comeback 2 Mar 2006 Companies rarely use these unusual stocks because they are hard to shift. But in recent weeks there have been three issues. But two of these issues had weird features, and the other didn t sell. PreIPO bonds remain a minority taste.
VW boss’s job back on the line 1 Mar 2006 Pischetsrieder s position looked to be safe. But now VW chairman Piech has put him under fresh pressure by questioning his future. This should alarm investors. Piech would probably use the opportunity to replace him with one of his unionfriendly buddies.
FSA must set the record straight on pre-marketing 1 Mar 2006 Despite fining GLG and Jabre, the regulator has not made crystal clear what the rules are. It should without any further delay.