Trust Browne to do the right thing 25 Jul 2006 BP s chief executive is stepping down, as agreed, in 2008 after 13 long years in power. This should make succession planning, already under way, much easier to execute.
Germany tries to put tax theory into practice 25 Jul 2006 The government wants to limit the tax deductibility of interest payments. Good idea, if you are a financial economist. And not a bad one if you want to support local companies. But the details are typically devilish.
Sarin limps away from dust up with investors 25 Jul 2006 Vodafone s chief executive has survived a rebellion by the mobile operator s shareholders. But only just. That doesn t help either side. It isolates the rebel investors and leaves a wounded CEO at Vodafone s helm.
Hedge fund regulation not in the offing 25 Jul 2006 Despite the political bluster coming from a Senate hearing with SEC Chairman Cox on Monday, new rules do not look likely. The Bush administration is studying the issue with no deadline, a clue that farreaching hedge fund regulation is off the table for now. Despite the political bluster coming from a Senate hearing with SEC Chairman Cox on Tuesday, new rules do not look likely.
Doha collapse reflects new world dis-order 24 Jul 2006 The rich countries weren t strong or united enough to force a trade agreement. But they weren t weak enough to be forced into one. The result may be messy, but it need not be a disaster. Still, this failure increases the risk of protectionism.
Debt markets open for HCA deal 24 Jul 2006 The biggest buyout of all time won t have any problem attracting investors. But that doesn t mean they ll support a slew of megadeals. Because of its low leverage, growing ebitda and a nearly recessionproof business, HCA may have an easier time raising funds.
Will HCA’s $33bn LBO best RJR’s return? 24 Jul 2006 The takeover of the hospital chain by Bain, KKR and Merrill establishes a new private equity record, trumping the RJR deal. But unlike the lacklustre performance of its predecessor, it is easy to see how HCA s new owners can make this one work out financially.
Can Reckitt sustain this sparkling performance? 24 Jul 2006 The UK household goods group grew twice as fast as its markets in Q2 and improved margins despite rising cost pressures. True, it's still early days for its Boots OTC drugs acquisition. And shares have had a good run. But this company is at the top of its game.
UK manufacturing pays price for dire productivity 24 Jul 2006 The sector is losing ground at home to finance and overseas to almost everyone. The biggest problem is poorly skilled employees. But does it matter, as long as finance and services hold up the economy? Yes, eventually. The trade deficit can t go on growing forever.
Corriere ouster symptom of Italy’s ills 24 Jul 2006 The forced resignation of Corriere s globallyrespected boss illustrates the incestuous relationship between Italy s media and business. If the country is to modernise, it needs bosses like Vittorio Colao and a media that isn t so intertwined with big business.
Amvescap gambles on Wilbur Ross 24 Jul 2006 The fund manager s $375m purchase of WL Ross brings together the separate worlds of traditional asset management and private equity. Buying talent in the financial services world rarely works out as well as planned. But this deal could be an exception.
AMD extends Intel fight with $5.4bn ATI purchase 24 Jul 2006 The microprocessor group s purchase means its price war with Intel is set to expand into lowerend chips. This is bad news for both. Price competition has already wiped out half of AMD s market cap and a quarter of Intel s. This is set to run.
Vodafone subscribers give fillip to beleaguered Sarin 24 Jul 2006 The mobile operator has given investors two reasons to think twice about chucking out its chief executive. Vodafone grew solidly in Q1. And, with the retirement of Vodafone s highly rated European boss, it can illafford more changes at the top.
Dell trapped in ruinous price war 21 Jul 2006 The US computer company competes largely on price yet rivals HP and Lenovo are closing the gap. To counter them, it is investing heavily in customer service and cutting prices. This is killing Dell s margins.
Microsoft shocks with $20bn stock tender 21 Jul 2006 The software group will buy back 8% of its market capitalisation next month. This will bring the total return to shareholders over 14 months to more than $43bn. Microsoft is clearly acknowledging it is exgrowth.
Hertz makes Ford look like a schmuck 21 Jul 2006 Just seven months after buying Ford's carrental business, its new owners are already sitting on a handsome gain. For Ford shareholders it s yet another missed opportunity. The company should have spun the business off to its owners.
Microsoft promises fair play in search 21 Jul 2006 After complaints its new operating system would favour MSN search, Microsoft reversed course, opening to Google or Yahoo. The ploy is aimed to preempt the Feds slapping on fresh antitrust sanctions. Given Microsoft s buying $40bn of stock, it better work.
M&B pays top whack for Whitbread pubs 21 Jul 2006 This was a deal the UK pub operator was determined to do, and there was always a danger the price could have been higher still. In fact, the price looks reasonable providing M&B s highlyrated management team can turn around Whitbread s failing estate.
Eads chief tells EU states to stop meddling 21 Jul 2006 France, Spain and the UK have all responded to the Airbus crisis by scrambling to protect their national interest. But that s part of the problem. Eads needs to find a way to reduce state interference, not entrench it.
Options backdating claims first target 21 Jul 2006 The SEC swooped on the former boss of Brocade. But not for backdating, rather committing fraud. This highlights the difficulty of prosecuting options backdaters. As with Quattrone et al, the Feds have to get them for something else.
Heinz shareholders should give Peltz a chance 21 Jul 2006 The former raider isn t perfect, but he and his protege Peter May deserve board seats to keep the ketchup maker s feet to the fire. But as a further protest to its lacklustre performance, investors should withhold votes for a slew of other directors as well.
Partygaming stellar Q2 eclipsed by US fears 21 Jul 2006 The online gaming group says it is business as usual in its core US market despite the arrest this week of the boss of BetonSports. Investors can t afford to be so sanguine. Partygaming may be growing like topsy but that hardly matters if the business is illegal.
Google reports standout Q2 21 Jul 2006 Investor worries that Google's performance would mirror Yahoo's disappointing results proved wrong. Instead, Google posted healthy growth in revenue and profits from search both in the US and internationally.
Rosneft: big company with a small free float 20 Jul 2006 On paper, some 15% of the Russian oil firm is held by private investors. But in reality its free float is less than half that. That may not be enough to provide an accurate reflection of Rosneft s true worth. Its IPO was managed . Its market may be too.
Nobel Biocare experiences teething troubles 20 Jul 2006 The E5bn dental group on Wednesday received a regulatory slap in the face by Swedish regulators over a core new tooth implant. Though it accounts for just 5% of sales, this may slow product development and damage credibility. This isn t reflected in the stock price.
The real economic cost of Middle East war 20 Jul 2006 The attack on Lebanon won t cause much of a ripple in the global economy. Israel and Lebanon together make up only 0.3% of world GDP. What's troubling is the evident weakness of the global powers. World trade relies on trust and leadership. Both could be eroding.
Bernanke has restored his credibility, right? 20 Jul 2006 The Fed chief s latest words on inflation have gone down well in the markets a nice change from Bernanke's initial stumblings. But, in fact, he is taking quite an optimistic view of inflation prospects. If he is wrong, his credibility will be severely challenged.
Ebay unveils $2bn buyback 20 Jul 2006 With the stock down 40% this year, chief Meg Whitman needed to send a clear message to shareholders that she put their interests first. By launching the first buyback in Ebay history, Whitman signals she views the stock as cheap and shored up confidence in her stewardship.
Apple’s iPod looks tired 20 Jul 2006 Secondquarter results were shiny, largely thanks to betterthanexpected Mac sales. But the company is seeing sales of its iconic digital music player and music to play on it start to shrink.
Xstrata goes all out in pursuit of Falconbridge 19 Jul 2006 The UKlisted miner has added another 7% to last week s already enhanced bid. It s also willing to take under 50% of the shares. It's making full use of loyal backers. The new bid could be enough to stymie rival PhelpsInco, if their shareholders don t give up first.