Dell and Intel crash together 9 May 2006 The alliance between the world s largest computer seller and chip maker once benefited both now it causes mutual profit warnings. The problem is the environment for technology has changed, and the symbiosis between these two groups is as fragile as a lichen.
BSkyB cornered on football rights 8 May 2006 The pay broadcaster relies on the sport. So it couldn t afford to lose the lion s share of the UK Premier League matches. BSkyB did win four out of six packages, but it paid 30% more than last time. It also gets an aggressive new competitor Setanta.
Teck Cominco’s C$18bn bid puts Inco on the spot 8 May 2006 Canadian miner Inco will be hard pressed to reject its rival s offer. Its own shares have underperformed since it bid for Falconbridge. That deal s not only been bogged by regulatory worries, it looked like Inco was going to have to pay more. Selling out is preferable.
Wachovia plays with fire in $26bn Golden West deal 8 May 2006 The takeover of the Mom and Pop thrift would fill out Wachovia s glaring gap in the fastergrowth Californian market. But it comes with housing and credit bubble risk at a hefty price of nearly three times book value. This dream could become a nightmare.
Expect no more home runs from Buffett 8 May 2006 The billionaire downplayed expectations at his AGM. But he still believes the Berkshire Hathaway culture creates a longterm advantage. But it's difficult to see how the "faith" uniting the conglomerate and its shareholders can survive the inevitable departure of its boss.
Fisher sells to Thermo for $11bn and low premium 8 May 2006 Given that Fisher is nearly 50% bigger than its buyer, and Thermo s management gets to take over, the 7% premium on offer seems cheap. Moreover, Fisher s managers had their own incentives to sell. Despite these issues it looks the deal will pay off for Fisher shareholders.
Blair’s woes are no big deal for investors 8 May 2006 The infighting in the Labour party may or may not cost the UK prime minister his job. But this has more to do with personality than policy. True, important decisions may be further delayed. But if the government runs into the ground, a revived Tory party waits in the wings.
Markets should be wary of state capitalism 8 May 2006 Foreign investors are happy to seize the monopoly profits from Russian stateowned companies such as Gazprom and Rosneft. That makes sense while energy prices are high and the government is selling cheap. But the arrangement invites profitsapping corruption.
Meet the antidote to a put up or shut up defence 7 May 2006 Quasihostile bidders for UK companies like Tchenguiz s approach to M&B often get flummoxed when told to put up or shut up. A cheeky way of buying time would be to put in a fullyfinanced firm offer of 1p for the target s entire share capital.
Buffett premium continues shrinking at Berkshire 6 May 2006 Shareholders still keep the faith, but the world's most famous investor hasn't delivered in recent years. Recent acquistions, such as an Israeli machinery company and sweatshirt maker Russell, aren't the home runs they're hoping for.
Air Berlin is being too greedy 5 May 2006 Investors shunned the budget airline s IPO, forcing it to extend the offer period until next week. But that alone won t fill up order books. The loss making carrier might not make a profit this year as competition is fierce. It'll have to scale back the IPO to attract buyers.
Sweeter private equity bid may tip balance at VNU 5 May 2006 The latest offer for the Dutch media group is a mere 3% higher than an earlier offer that was rejected by shareholders. But the acceptance threshold has been lowered, former holdouts have already come on board. That may be enough to swing the deal.
EU approval of EMI and Warner not a slam dunk 5 May 2006 The UK and US music groups will have an easier time jumping through the regulatory hoops this time round. But they still have to convince the EU that shrinking the market to three major players isn t a problem.
Copper bulls should stick to equities 5 May 2006 Want to profit from copperintensive Asian growth? Wait for the metal s price to collapse. It s only propped up by index buying. But if you must buy now, go for the big producers shares. They have a yield. And their prices are only up half as much as the metal.
Lehman sets its analysts free 4 May 2006 The broker is moving some stock analysts away from publishing and onto trading desks, making it easier for top clients to pick their brains. But small investors end up with the crumbs. Eliot Spitzer s crusade against Wall Street research may be leaving them with fewer resources.
Debenhams forced to put itself on special offer 4 May 2006 The UK retailer has priced its shares at the very bottom of the range, at a 20% discount to rival Marks & Spencer. That may be well below the sort of values Debenhams' owners were shooting for. But niggling uncertainties mean it's still no bargain.
Autostrade counter-bid looks a long shot 4 May 2006 Rome hates the Abertis tieup. So one theory is that it might tilt the playing field in favour of a domestic bidder. But that would be hard to justify. Meanwhile, Abertis and the Benettons have sought to lock counterbidders out.
Shell promises more jam tomorrow – maybe 4 May 2006 To compensate Shell is offering more jam today through buybacks and dividends but at a fraction of BP s levels. The oil firm is investing hand over fist, but says rising costs may jeopardise its long term reserves and production targets.
Companies sell stock to buy it back 4 May 2006 That may sound wacky, but a handful of US firms seem to be doing just that by issuing a convertible bond with funky derivatives attached. The net result is a much lower funding cost. More growthoriented companies are sure to follow suit.
Tchenguiz’s last-gasp M&B bid falls flat 4 May 2006 The entrepreneur has corralled together the financing to stick a preconditional 550p offer on the table for the pubs group. But it doesn't look good enough. And he's only got until Monday to bearhug a reluctant M&B into talks.
UBS fails to keep up with investment bank pack 4 May 2006 While the bank s traders had a strong Q1, it wasn't as good as rivals apparently due to gaps in commodities, fixed income and high yield. UBS is urging investors to be patient while it fills these holes. Thank goodness asset management has given them a reason to stick around.
Duff Vedanta bond turns into winner for Barcap 4 May 2006 But high metal prices have sent Vedanta s stock and convertible soaring. Ironically Barclays may make a lot from failing to sell the bonds. The UK investment bank's convertible issue for Indian miner Vedanta was too racy for investors, and much was left on Barcap's books.
CEOs crave for more than cash 4 May 2006 It s no longer enough to be paid a large fortune. Executives want to be seen as gurus as well as managers. They seem to be ignoring a key management idea focus on what you do best.
Dross floats to top in frothy art market 4 May 2006 When asset values rise across the board, prices for fine art get an extra boost from the wealth effect of conspicuous consumption. That may explain why Dora Maar fetched $95m. At least Picasso is a blue chip. The real froth lies in the contemporary market.
UK rates set to increase before year-end 4 May 2006 That s what the market is counting on, and with good reason. Growth looks strong and 10% house price inflation is too high. Low inflation gives the Bank of England time to reflect. But the bank will want to act before the psychology of inflation sets in.
Deutsche Bank’s traders deliver the goods 3 May 2006 The German investment bank sparkled in Q1. The trading desks drove the group s pretax return on equity way above target. So they should thrive in what is usually the group s strongest period. The bank needs to keep up the pace to close its discount.
Nasdaq inches ahead in race for LSE 3 May 2006 The US exchange has increased its stake in the LSE to almost 19%, while Euronext says it s no longer discussing an offer for the UK group. But Nasdaq isn't yet home and dry. And it somehow needs to persuade the LSE to come to the negotiating table.
Warner rejects £2.3bn EMI bid 3 May 2006 The problem for the UK music group is that it doesn t have much room for manoeuvre. If EMI sweetens the terms much further, it runs the risk of paying away all the value to Warner shareholders.
Microsoft should merge MSN with Yahoo 3 May 2006 A better solution would be to put all of Microsoft s internet operation into Yahoo. The software giant mulled taking a stake in the internet group. Shareholders are worried that Microsoft will blow a fortune fighting Google.
Resolution chases another audacious deal 3 May 2006 The insurance group only recently failed to buy Standard Life. Now it is trying to buy another larger entity Abbey s life business. Why is it being so aggressive? Simple. Its mission is to roll up unwanted UK life businesses. To do that it needs to stay ahead of rivals.