Abramovich’s Evraz move won’t involve Corus – yet 31 May 2006 The oligarch s mooted purchase of a £1.7bn stake in Londonlisted Russian steel group Evraz has incited talk of a tie up with Corus. This isn t likely at least for now. Abramovich s past role in consolidating Russian industries provides a better clue to his ambitions.
Citigroup promises fight over Eurotunnel 31 May 2006 The Channel Tunnel operator thought its deal with Goldman Sachs and Macquarie Bank was sewn up. Now it may have to think again. The US bank claims to have formed a restructuring plan that may leave more for shareholders and junior creditors than Eurotunnel's proposal.
Vonage IPO debacle may have just begun 31 May 2006 The internet telecom company hoped its IPO would cement customer loyalty. Instead, it has left them sitting on big losses. The company now says it will pay up rather than chase retail investors that didn t send their cheques. This will only make things worse.
Dexia pays $2.4bn for stake in Turkey’s DenizBank 31 May 2006 Shares in other Turkish banks have fallen 15% in the last month, yet Dexia is paying twice as much as other recent Turkish bank deals. As a result, returns look meagre and Dexia risks reviving its reputation for poor deals.
Engelhard finally caves in to $5bn BASF bid 30 May 2006 The US materials group didn t have much choice. Its plan to buy back its own shares at $45 each won little support from shareholders. BASF has answered critics who feared the German chemical giant would overpay. At $39 a share, the deal should deliver value.
Arcelor shareholders should fight for rights 30 May 2006 The steel group is effectively disenfranchising them by offering them only a bogus vote on its planned merger with Severstal. Shareholders should call an EGM to insist that the Severstal deal is put to a proper vote. They must act swiftly.
Vodafone’s Sarin lavishes shareholders 30 May 2006 The UK mobile operator is hiking its dividend by 49% and will return a further £3bn to shareholders. Underfire boss Arun Sarin still needs to show he can revive Vodafone's growth. But these changes buy him time.
Hank Paulson trades Goldman for Treasury 30 May 2006 It's easy to see why Bush might reach for Goldman stardust after picking two duds in a row. But why does Paulson want to join a losing team? This may reflect a patriotic belief that America needs better financial stewardship and that the best years at Goldman have passed.
Perella firm may contain Weinberg name too 30 May 2006 Slapping two instantly recognisable names on a firm s nameplate has some branding advantages. But personalising companies has its disadvantages too. It can make them look like oneman or, in this case twoman bands.
BAA rejects more credible offer from Ferrovial 30 May 2006 It s one thing turning the Spanish construction group down at 810p a share. But at 900p, it s getting harder to justify. It may not be the more than 940p BAA was gunning for. But that was always an ambitious target.
Kinder Morgan founder’s $22bn MBO offer looks cheap 30 May 2006 Richard Kinder is offering an 18% premium to take private the energy company he founded a decade ago. That looks low. The stock is already above the offer price. Kinder s 18% stake might discourage other bids, but the board should push for a better deal.
Bulking up in mortgages risky for Merrill, Morgan 30 May 2006 The two Wall Street firms are on the lookout to buy US mortgage lenders to help bulk up their capitalmarkets mortgages businesses. Lehman proved it can work. But the US housing market has fallen from its peak. They must be careful not to overpay.
Tribune wakes up with $2bn recap 30 May 2006 The US newspaper group will buy back a quarter of its stock. Finally it has recognized it's not in a growth business. Others should follow. The irony, however, is that the shareholderfriendly buyback could make the company impervious to KnightRidder style activism.
Eastern Europe is new drugs battleground 29 May 2006 Pliva, the Croatian drugs maker, is the subject of a $2bn bidding war, following a wave of foreign takeovers of Eastern European groups. The reason? Generic drug sales are going gangbusters. And low labour costs and EU expansion means the Eastern Europeans are in a sweet spot.
Becht won’t gamble Reckitt’s future for Pfizer 28 May 2006 Buying Pfizer s consumer drugs division might make strategic sense, but the Reckitt boss won t do it if the numbers don t stack up. The UK household goods group already has strong organic growth, and with £20m of his own money at stake, Becht won t do anything Reckless.
How Philip Green lost out on £1.4bn with M&S 28 May 2006 It s almost two years since the UK retail entrepreneur walked away from a possible 400p bid for the UK retailer. The story of M&S s subsequent recovery is well known. Less so is just how much Green lost out on by throwing in the towel.
Where will tomorrow’s financial scandals come from? 26 May 2006 Corporate wrongdoings at Enron, Fannie Mae and elsewhere continue to dominate headlines. But these outrages occurred during the last bubble. Today s credit boom is likely to produce its own rich crop of scandals.
Fortress locks up Marconi pension plan 26 May 2006 The hedge fund is paying £346m for Telent, the overcapitalised rump company formed after Marconi sold most of its assets. Nobody has figured how to separate Telent from its overfunded pension plan. Fortress is essentially buying an option.
Arcelor tries to ram through E10bn Severstal deal 26 May 2006 Whether the deal is any good is another matter. The terms aren't transparent and the idea the deal values Arcelor at E44/share is fanciful. Shareholders aren't being given a fair chance to assess this deal compared to Mittal's hostile offer. This is democracy Russianstyle.
Aegis tries to rally the troops to fend off Bollore 26 May 2006 The British ad group is campaigning hard for shareholders to vote down Bollore s motion for board representation and quite right too. But Bollore owns 29% of Aegis. So it needs an especially big turnout to thwart the French investor's attempt to grab control.
How to go from minority to control without spending a dime 26 May 2006 That s what Jeff Smulyan has achieved at Emmis, the US radio station operator he runs and wants to take private. He got there by using Emmis s cash to repurchase shares and issue options that convert into supervotes.
Telefonica’s Alierta turns back on big acquisitions 26 May 2006 The Spanish telecoms operator s boss has capped his takeover budget. That looks likely to put some tempting deals out of reach That may limit his ambitions to build a global telecoms empire. But that is the price investors sought in return for their confidence.
Why are hedge fund bosses minting fortunes? 26 May 2006 The average pay of the top 25 hedge fund managers rose 45% to $363m in 2005. That partly reflects the scale of management fees. The old 2 and 20 fee structure gave way to 5 and 44 in the case of Renaissance Technologies, whose boss made an astonishing $1.5bn.
OFT throws spanner in BAA bid battle 25 May 2006 The UK competition watchdog's review of the airport market could conceivably lead to a breakup of BAA's monopoly. It may undermine BAA's value. But it could also deter Ferrovial from sweetening its hostile bid.
Fortress Investment considers IPO – exclusive 25 May 2006 This would be the first time a major US alternative asset manager floated its management firm. Fortress could be worth up to $6bn. It is a dream scenario for founders wanting to cash in the goodwill and brand equity they ve created while incentivising future partners.
IPO window unlikely to re-open soon 25 May 2006 Nervous investors aren't in the mood for new paper, particularly with some recent floats in Italy, the UK, US and Germany still under water. That's bad news for the nearrecord number of companies lining up to float. They may have to wait some time.
Enron duo found crooked at long last 25 May 2006 The convictions of Ken Lay and Jeffrey Skilling were no surprise and were not based on the nuances of style or demeanour. Evidence that the company s finances were shaky and that the defendants lied to hide the facts was simply overwhelming.
Nil-premium US bank mergers reappear 25 May 2006 AmSouth s $10bn merger with Regions illustrates how consolidation in US banking sector can continue given the environment. With synergies worth $2.5bn, a deal made sense. But AmSouth s valuation at three times book meant Regions couldn t justify paying a premium.
Cable & Wireless presents grim face 25 May 2006 The telecoms operator is in a bind in the UK. Ebitda in the core business will drop next year. Its broadband business is bleeding cash. Things are so bad that investors may be prepared to pay Pluthero and other executives a fortune if they manage to turn things around.
Frere splits difference with Mohns in Bertelsmann exit 25 May 2006 By buying Frere s stake for E4.5bn the media firm avoids listing itself but at the price of selling its music assets to raise cash. Meanwhile the Belgian financier finally secures an exit but at a price that makes his return on this investment look mediocre.