Agricole-Intesa shouldn’t do sweetheart deal 21 Sep 2006 The French bank wants to broaden its presence in Italy before it gives the green light to the IntesaSanpaolo merger. Agricole wants Cariparma and full control of Nextra. If any sidedeal isn't transparent, other shareholders will feel shortchanged.
GLG tax deal highlights common City scam 21 Sep 2006 Too many Londonbased financial institutions are using dual contracts to help their highlypaid employees avoid paying their dues. The UK tax authorities have now forced a settlement on hedge fund GLG. They should have no qualms about going after the rest.
Hungary needs a fresh election 21 Sep 2006 Prime minister Gyurcsany's admission of boneheadedness is correct. His government has spent too much and made Hungary uncompetitive. Even though such candour should be encouraged among politicians, the Hungarian economy would benefit from fresh elections.
Lazard Europe at last gets a head 20 Sep 2006 This should allow Lazard to deal more efficiently with clients. But it's just a small step towards regaining part of its eroding influence. The bank is bringing order to its European operations. Paris chief Georges Ralli now becomes Europe boss, with London reporting into him.
Japan’s new PM inherits debt burden 20 Sep 2006 The battle against recession has left Japan with public debts a third larger than Italy s in terms of GDP. The population is also declining. To forestall a fiscal crisis or a temptation to inflate, Shinzo Abe will have to rein in the public deficit even more than his predecessor.
Oracle reaps unforeseen harvest 20 Sep 2006 The software group s market capitalisation rose by $10bn after a promise to support recently purchased software increased sales. The danger is that future costs could rise faster than sales once a backlog of orders has wound its way through the system.
Delhaize merger won’t get Ahold off the hook 20 Sep 2006 But other deals make more sense like Delhaize buying Ahold's US stores. That would also help unpick Ahold s clumsy conglomerate structure. A rumoured E25bn tieup between the two European retailers wouldn't fix Ahold's problems. The Dutch group needs to get smaller, not bigger.
Why has dollar defied another record deficit? 20 Sep 2006 The greenback hasn t fallen because all the US s big trading partners have stubbornly weak currencies, too. If only the dollar could fall against the woolan, the mythical Martian currency.
Sir John Bond: the $25k a day banker 20 Sep 2006 The former HSBC chairman's per diem rate to advise Bill Ford may look excessive with so many other advisers crawling around Ford. But Bond could play a key role in the Sidney Weinberg tradition.
Warner Chilcott IPO shows what JPMorgan will miss 20 Sep 2006 The 2004 buyout of the UK drugs group by a bankled consortium sparked controversy and nudged winner JPM out of private equity. Chilcott s upcoming float could result in the consortium nearly tripling its money. The associated returns will be sadly missed.
Morgan Stanley finally beats Goldman 20 Sep 2006 The investment bank logged a return on equity of 23% in the third quarter, besting its rivals including the usual top dog Goldman Sachs. Morgan s stock is hitting fiveyear highs, a sign that John Mack s turnaround is starting to bite. But asset management is still a laggard.
Putnam and MFS look ripe for private equity 20 Sep 2006 Mutual fund companies may not be as sexy as hedge funds, but it s a profitable business and a lot more stable. Two venerable Boston fund houses, Putnam and MFS, are up for sale. Both could be attractive to private equity firms.
Commodity fundamentals remain strong 19 Sep 2006 Hedge fund losses and a slowing US housing market are taking their toll on the commodities markets. However, the fat lady won t sing until China goes into recession or real interest rates rise. That s not happening yet.
Thailand looks like coup in a tea cup 19 Sep 2006 The state of emergency in Bangkok signals a political crisis. But unlike in 1997, Thailand won t spark a regional financial crisis. Nevertheless, emerging market investors who ve poured money into the country will get burned.
T-Mobile’s E3.3bn spectrum splurge makes best of bad job 19 Sep 2006 Buying more airwave capacity will help the German telecoms operator s US mobile arm launch the advanced services it needs to keep up. But, despite recent headway, TMobile s US venture is still a mammoth corporate fiasco. Adjusting for time, it has destroyed about E38bn.
Right to IPO won’t be magic bullet for French football 19 Sep 2006 Allowing clubs on the stock exchange is common sense. But only Olympique Lyonnais looks like an attractive proposition. Investment in football has its own, peculiar risks. The game is for privateequity players, rather than for individual investors.
Starbucks’ expansion looks ambitious 19 Sep 2006 That s aggressive for a chain that already seems to be on every corner and is facing increased competition. Chief Howard Schultz says he can double the number of coffee shops in the US before reaching the saturation point.
Freescale LBO could mint new record 19 Sep 2006 The chipmaker s $17.6bn buyout relies on slapping an excessive amount of debt on a company with poor and erratic cash flows. Either that or the financial sponsors will have to agree to inject a record amount of equity perhaps up to $8bn.
Yahoo loses credibility 19 Sep 2006 Just two months after surprising investors with a bombshell. Yahoo's management has done it again. Furthermore, sales may decline this quarter. It looks like no one has a clear idea of what's going on.
Amaranth fiasco worst type of casino capitalism 19 Sep 2006 The hedge fund lost $4.4bn on a strategy that seems to have been little more sophisticated that betting investors funds on red. Investors have only themselves to blame for putting up with a skewed incentive system that encourages precisely such behaviour.
GdF-EdF merger initiative is nonsense 19 Sep 2006 Some French MPs close to Nicolas Sarkozy are reviving an old project to merge the two companies and keep them in state s hands. The project is financially barmy. It is merely a political ploy that will make the current GdF privatisation debate more confusing.
YouTube tries to go legit with Warner deal 19 Sep 2006 But other music groups like Universal, which says YouTube owes it tens of millions of dollars, will need to be brought on board. The site's agreement to share ad revenue with the music group in return for carrying its videos looks sensible for both sides.
Ambitious bankers should avoid alternative investments 18 Sep 2006 True, investment flows into this area are still growing strongly. But that doesn t always translate into profits for assetgatherers. Worse yet, there s the imminent risk of a business downturn.
Russia bullies the Sakhalin two 18 Sep 2006 Is the Kremlin planning another Yukos? Sabrerattling over two foreign oil and gas projects in the pacific has prompted fears it might be. But while Russia would love to terminate contracts it signed with Shell and Exxon in the 1990s, it is likely to think hard before doing so.
GM-Ford alliance talks a good sign 18 Sep 2006 Put aside how messy a combo would be. That they even flirted with the idea of the Big One suggests they re grasping the nettle. GMFord cooperation may be too radical for Detroit at the moment. But given the longterm trends, nothing should be ruled out.
Unhedged energy stocks on a wild ride to nowhere 18 Sep 2006 ConocoPhillips decided not to hedge its $35bn Burlington acquisition. Now it s suffering from the collapse in natural gas prices. Anadarko, the other major US energy acquirer of the past year, followed a more prudent course.
Sweden’s right-wing election victory good for investors 18 Sep 2006 Angst over takeovers of crown jewels like Scania by foreigners and perceived bullying of treasures like Volvo by hedge funds will continue. But Reinfeldt, the new PM, is less likely than his predecessor to adopt extreme measures like banning pension funds from activist investing.
Amaranth is no Long-Term Capital 18 Sep 2006 Hedge fund Amaranth Advisors looks like the first big casualty from the collapse in commodity prices. While Amaranth s investors will feel their share of pain, the collateral damage looks to be limited.
New TI chairman must show he’s his own man 18 Sep 2006 Rossi must promote the interests of minority investors. That means standing up to Tronchetti and reviewing his dubious breakup strategy. It also means standing up to the Italian government and its meddlesome ways. Rossi has yet to prove he is his own man.
Scania rejection leaves door open for MAN 18 Sep 2006 The Swedish truckmaker has rejected a hostile E9.6bn offer from its German rival. But a deal between the two still has compelling logic. The best hope is that major shareholders VW and Investor aren't opposed to any ScaniaMAN deal just this particular one.