New betting arrest throws sector into spin 7 Sep 2006 Sportingbet s chairman a nonexec has been detained in the US. Bang goes the theory that rival BetonSports was a lone target. Whether Sportingbet has done wrong is beside the point. While US authorities have an axe to grind against the industry, all bets are off.
Facebook revolt underlines difficulties managing social networks 7 Sep 2006 In most enterprises, owners call the shots and customers follow. But when users generate content, management finds it hard to get its way. That's what Facebook, a networking website, is discovering after attempts to broadcast personal information provoked howls of protests.
Fink plans timely departure from Man Group 7 Sep 2006 Fink leaves a hugely profitable hedge fund business. If the industry s growth slows, his successors will have quite different challenges. The 48year old marketing hot shot has announced a very early, but expected, retirement from active management at the group he built up.
Alcatel shareholders should call Tchuruk’s bluff 7 Sep 2006 Contrary to what Alcatel's CEO is arguing, the corporate governance provisions of Lucent's merger can be voted down. True, Lucent and Alcatel could both walk. But they would more likely try to salvage the merger. The alternatives for both are too bleak.
GdF privatisation: right choice, wrong reasons 7 Sep 2006 France wants to privatise its gas monopoly in order to merge it with Suez and so stop the latter being snapped up by a foreign group. Although the government s motives are contorted, privatisation still makes sense. But approving it shouldn t mean approving the Suez deal.
Hewlett-Packard’s chairman should go 7 Sep 2006 Snooping on directors private phone calls has so far produced a director s resignation and two inquiries into whether it broke the law. Having endorsed this questionable witch hunt for press leaks, chairwoman Patricia Dunn should walk the plank.
UBS tries to narrow gap with US broker rivals 7 Sep 2006 The Swiss bank s US wealthmanagement arm has similar costs to peers, but manages only half the assets. That s crimping its profit margin. Buying McDonald Investments, its second acquisition this year, could help rectify that. But more deals may be in the offing.
Big Brother to investors: Endemol at risk of a takeunder 7 Sep 2006 Takeover speculation has swirled around the TV producer of Big Brother ever since it listed 10 months ago, pushing up its shares. Much the same happened with another firm part owned by Telefonica, TPI. But it finally sold for less than investors thought.
Blair should go while economic going good 6 Sep 2006 Quitting would save the UK prime minister from humiliation at the hands of his party. It would also allow him to leave a strong economy. Whoever succeeds him is unlikely to enjoy such a gilded economic record. But they will want to get to the polls before the picture sours.
How do you make money from YouTube? 6 Sep 2006 Internet usergenerated video sites like YouTube are generating an astonishing amount of traffic. They haven t yet monetised those eyeballs. But they ll probably find a way just like social networking sites such as MySpace have.
Don’t count on moderate governments 6 Sep 2006 Not in Latin America, at least. Centreright governments haven t helped Mexico, and centreleft ones haven t crippled Brazil. Authoritarian governments can make a difference. Chile is still profiting from the Pinochet legacy. And Venezuela is suffering under Chavez.
Vivendi splashes out E1.6bn on BMG Music 6 Sep 2006 At least this deal makes more strategic sense for the French conglomerate than the aborted idea of buying Pages Jaunes. But it still doesn t stack up financially. At first blush, Vivendi appears to be paying away all the synergies and more.
Geophysique’s $3.1bn seismic bid is sound strategy 5 Sep 2006 But the French oil services company's acquisition of Veritas looks expensive. The $800m premium is 19 times aftertax synergies. But the combined company will be a joint global leader, with 30% market share. And the operation comes at the right moment in the cycle.
Vodafone appoints possible Sarin successor as deputy 5 Sep 2006 Colao s return to Vodafone as deputy CEO provides Sarin with a natural successor if the board pushes him out or he gets tired of the role. Shareholders will be happy to have an extra option for managing the mobile behemoth. But Colao can t count 100% on getting the top job.
Redstone reasserts total control at Viacom 5 Sep 2006 Fresh from his public dissing of Tom Cruise, the octogenarian chairman has replaced CEO Tom Freston with two of his cronies from the board. Perhaps this was his intention all along in undermining Freston with the Cruise affair. Either way, it s another reason to hate the stock.
Cairn India IPO plans disappoint 5 Sep 2006 The decision by the UK oil group to float less than half of its Indian subsidiary and retain some of the proceeds has surprised investors. Cairn argues the shares will be worth more closer to production. A more likely reason is the recent weakness of the Indian IPO market.
US telecoms regulator strikes right tone 5 Sep 2006 At first glance, the forces against deregulation were dealt a victory when Verizon and BellSouth were forced to give money back to clients. But look again. The FCC's decision actually gave legitimacy to deregulation by not handing a bouquet of roses to Big Business.
Genting raises stakes with Stanley Leisure offer 5 Sep 2006 The Malaysian conglomerate holds most of the cards in the complex poker game being played out in the UK casino sector. It has blocking minorities in both Stanley and the rival with which it had planned to merge. A bid for Stanley increases its options.
Bill Ford hands over keys to Boeing boss 5 Sep 2006 Talk about a rare act of humility Ford has acknowledged what the markets have long assumed he's not the man to lead a turnaround. Mulally has manufacturing experience and distance from Detroit. But to succeed, Ford must give him leeway to make some tough decisions.
Merrill adds mortgage muscle 5 Sep 2006 The bank joins a veritable Wall Street stampede into the subprime mortgage business with its $1.3bn acquisition of First Franklin. The timing seems counterintuitive. But it s not as bad as it sounds. Clever repackaging of risk will be the key to success.
UK free paper launches signal panic in the ranks 4 Sep 2006 Newspaper publishers have reacted to falling sales by trying different delivery platforms from podcasts and websites to freesheets. But the freesheets are being launched into a fiercely competitive market. It s hard to see the payback for the press barons.
Italian, German coalitions make for bad economics 4 Sep 2006 Coalition governments are nothing new in either country. But Germany's is too broad, while Italy's is too ramshackle. Neither Prodi nor Merkel has enough authority to push through votelosing but necessary reforms Things will get worse before they improve.
Knight Vinke fires shot across Suez bows 4 Sep 2006 The French government is confident approval for the Suez/GdF merger is in the bag. But the shareholder activist has a credible rival plan. It may not be enough to derail the process. But it sends a clear signal to Suez. It can expect a big fight over the final deal terms. The French government is confident approval for the Suez/GdF merger is in the bag. But the shareholder activist has a plausible rival plan.
Bankers more willing to back buyout hostility 4 Sep 2006 Barcap and RBS have just backed a $2.1bn hostile bid for Capio of Sweden. It isn't the first. Ferrovial bid for BAA earlier this year. The gloves aren't off entirely. Bankers are more willing to back unsolicited bids but only when there's scope for an agreed outcome. Barcap and HBOS have just backed a $2.1bn hostile bid for Capio of Sweden. It isn't the first. Ferrovial bid for BAA earlier this year.
Resolution engages in mission creep 3 Sep 2006 The days of easy money from buying closed life funds are over. So Resolution is trying to turn itself into a real insurer. Investors are understandably sceptical. After all, it s not clear why financiers would be better than anyone else at selling insurance.
Resource nationalism comes to metals and mining 3 Sep 2006 For the Londonlisted giants, statecontrolled national champions pose a longterm threat. They could ultimately get the best assets. There s still plenty of life left in Western groups. So investors may want to play both sides. They should do so with care.
Agius appointment signals Barclays’ openness to deals 1 Sep 2006 The Lazard banker clearly has a dealmaking role. But that doesn t mean he has come in to negotiate a sale of the UK bank. One of the problems with outgoing chairman Matt Barrett was that he had little rapport with European bank bosses. Agius will solve that.
Flowers’ German deal is a mystery 1 Sep 2006 The US financier is buying a minority interest in an unlisted bank controlled by public sector investors, where the only exit is an IPO. Flowers needs to jack up profits to make a return on his investment. But it s not clear whether he has the influence to effect this.
Majority voting gains momentum 1 Sep 2006 Home Depot s governance record leaves much to be desired. But its adoption of majority election rules is an example for others to follow. Companies like Verizon, GM and Bank of America should pay heed to their shareholders desires and follow suit.
NTL talks highlight Malone discount at Liberty 1 Sep 2006 Liberty Global is a better company than the UK cable operator. But it trades on a far lower multiple. The reason? It s the dead hand of controlling shareholder John Malone.