Merrill should consider hiving off brokerage 18 Apr 2006 Most of the firm s growth is coming from investment banking. Its brokerage and assetmanagement arms look lacklustre by comparison. CEO Stanley O Neal has already struck a smart deal for Blackrock to run the money manager. Perhaps the broker needs a life of its own, too.
UK shouldn’t jump on protectionist bandwagon 18 Apr 2006 News that the UK considered changing the law to protect Centrica from a bid by Gazprom isn t just embarrassing, it s also confusing. It would be a shame if the UK followed its neighbours down the protectionist road. If it plans to do so, it should explain its new approach.
Goldman pulls back from hostile bids 18 Apr 2006 This follows a series of unsolicited approaches for UK companies. Does it mean the bank is worried about treading on its clients' toes? Well, up to a point. Its reluctance to get involved in aggressive bearhug bids is completely understandable from a commercial perspective.
China’s CCB considers $4bn stake in Bear Stearns – WSJ 17 Apr 2006 China Construction Bank could buy a stake of up to 20% in the US investment bank. CCB is denying the reports. Bear Stearns would relish the prospect of gaining access to CCB s clients. What the Chinese would get out of the deal is less clear.
UAW split needed to save GM 17 Apr 2006 The union represents three times as many pensioners as active workers at the carmaker. That creates a conflict of interest. Like the shareholders, the UAW's active workers should support a radical cut in retiree benefits. Without it, GM and the UAW may be doomed.
LSE needs to put cash on the table 16 Apr 2006 That's the only way the UK exchange can pull off a Euronext merger now Nasdaq has bought shares at high prices. Actually, it is possible for London to offer investors a big slug of cash in a merger. But it will be hard to pull off.
Google sucks up to China 13 Apr 2006 The internet search engine defends Chinese censorship. It has now adopted a Chinese brand name the horribly conformist valley song". Outside China, Google peddles itself as a nonconformist, non evil sort of company. In the Middle Kingdom, things are different.
Price fall best cure for resource nationalism 13 Apr 2006 Even though Latin American countries are talking about nationalising mineral resources, international mining companies aren't panicking. Distribution of resources revenue is always a hot issue in a boom. But in the end, governments need the expertise of international business.
Tchenguiz bid for M&B looks forlorn 13 Apr 2006 The property tycoon can t pay more than 550p for the UK pub operator, but anything less than 600p will be considered hostile. As a result, Tchenguiz has lost the support of Goldman Sachs. It s not easy to see where he goes from here.
UK should join US and Italy on the sicklist 12 Apr 2006 Britain s unemployment rate is rising. So is its trade deficit. And the country imports much more than it exports. The government and central bank have little scope to take remedial action. Eventually, a shock may be required to restore equilibrium.
Hedge funds try to squeeze Bayer 12 Apr 2006 Funds are piling into Schering, the German drug maker being taken over by Bayer. They aim to hold the deal to ransom in hope of more cash. This is an old wheeze. But unlike prior cases such as Wella or Celanese, the upside seems relatively small this time.
Threadneedle’s LSE sale makes sense 12 Apr 2006 It s not that the fund manager got an exceptional price for its shares in the UK exchange. It s that the main driver the prospect of an auction for the LSE has slightly unravelled. Taking money off the table makes sense. It s not that the fund manager got an exceptionally high price for its shares in the UK exchange. It s that the main driver of the stock the prospect of a competitive auction for the LSE has slightly unravelled.
WH Smith breaks under high street pressure 12 Apr 2006 Hiving off the UK retailer s news distribution arm makes sense, given the lack of synergies. But there s scant value to be released. The best hope is that greater focus will help liven up the tired retail business or at least lure a private equity bidder.
Time for Eurotunnel shareholders to give up the fight 12 Apr 2006 Eurotunnel is optimistic about sorting things out with its holdout creditors. But afterwards, it still faces shareholder negotiations. Equity investors shouldn't get their hopes up. If they can hang on to what is already on the table, they'll have done well.
Nasdaq stakes its claim to London Stock Exchange 11 Apr 2006 By scooping up a near15% stake, the Nasdaq hopes to bring the LSE to the bargaining table. But its tactics are wildly aggressive. That could turn off regulators, attract a white knight and, at escalating prices, gives its own shareholders something to worry about.
Debenhams IPO plan looks too cheeky 11 Apr 2006 Having stripped out value through asset sales and dividend recaps, the department store s private equity owners are seeking a quick flip. Investors may be tempted to subscribe in a buoyant market, but they should demand a fat discount. The owners can afford it.
Private equity steps out of the shadows 11 Apr 2006 Top private equity firms are beginning to open to the outside world. They are considering creating a trade body to represent them publicly. Why the urge to engage when privacy has served them well in the past? It's a question of size.
Viacom bondholders give in too easily 11 Apr 2006 They settled for a sweetened price on last week s $4.8bn bond deal. True, Viacom s growth and cash flows look healthy. But it s also buying back stock and hunting for deals. Given chairman Sumner Redstone s record, bondholders should have pushed for more.
Prodi will struggle to address Italian woes 11 Apr 2006 The twin curses of high government debt and low competitiveness are likely to persist, until there s a crisis. But that won t be soon. The prime minister has won the narrowest possible victory. His mandate for change is tiny. And he may lack much will to go further.
Metro wins with sale of 40% Praktiker stake 11 Apr 2006 Just six months ago, the German retailer looked like a loser. It struggled sell the DIY chain. But since then, demand has surged. It s selling its Praktiker stake for E500m. But some investors may be angry with the banks that agreed to shorten the lockup period.
What Prodi means for banks, utilities and M&A 11 Apr 2006 Though Italy s probable next PM may be extremely weak, the corporate sector is still likely to be impacted by a new government. M&A, especially among banks, will probably revive. Telecom Italia could be squeezed. And Enel s moribund scheme to buy Suez may die.
BPI’s rosier outlook may not secure its independence 11 Apr 2006 The Portuguese bank has lifted its veil of secrecy to show better prospects than markets expected. That should raise the bar to a takeover. But BPI has used pretty much all its firepower if BCP significantly improves its offer, BPI will have to fold or find a white knight.
M&S knocks UK high street into a cocked hat 11 Apr 2006 The UK retailer s sales and earnings are motoring ahead mainly at the expense of less fortunate peers. M&S shares have now topped the price set by raider Philip Green by almost 50% yet could still have further to run.
Goldman, Merrill traders chose wrong type of flow 11 Apr 2006 Three junior bankers at the firms allegedly netted $7m from two crude insidertrading ploys before the Feds caught them. With a bit more patience, they could have made the money the legal way by joining their firms trading desks.
Wacker signals return of German retail investors 10 Apr 2006 The IPO of Wacker Chemie has gone swimmingly after retail investors made an unexpectedly strong showing. Pains from the Neuer Markt debacle have finally faded for small investors good news for the 30 big companies preparing to float.
Dimon’s first deal as JP Morgan boss stacks up 10 Apr 2006 The $3bn swap of businesses with Bank of New York plays to the JP Morgan CEO s costcutting strengths. It s a baby step, but structured cleverly. If Dimon can just get JP Morgan s trading engine humming, bigger ones may follow.
Compass sells SSP for stunning £1.8bn tag 10 Apr 2006 Has the catering giant kicked the habit of producing only bad news? In the last month it has landed a new CEO and sold its concessions unit. But in some ways Compass has done the easy bit. Turning round the core business won't be a simple task.
Chirac capitulation leaves French vacuum 10 Apr 2006 It s all over for France's controversial labour reforms, at least until the 2007 election. The president has completely rolled over. The entire political establishment is discredited. The risk is it now resorts to crude populism yet more protectionism, for example.
Copper price out of touch with mining reality 10 Apr 2006 A price of $2,800 less than half of today s level would be high enough to get production up to the future level of demand. But a small shortage and easy money have pushed up the price. Money, not metal demand, is likely to pop the bubble.
Lenders may turn nasty if credit cycle turns 9 Apr 2006 Leveraged companies may find their debt in the hands of unfriendly vultures, rather than patient banks. That's because institutional investors have edged out banks in buyouts. And they're not likely to hang around when the going gets tough.