BBVA raises E3bn warchest 27 Nov 2006 The Spanish bank is using the hot Spanish equity market to top up its Tier 1 core capital after chipping away at it with acquisitions. It also gives BBVA extra firepower to do more. But don t expect any megadeals in the near term.
A dollar break will happen suddenly 27 Nov 2006 Despite recent weakness, record US deficits suggest that the dollar is still overvalued. It s been sustained by foreign inflows. Among them are speculators, who may panic if their position turns sour near yearend.
Ford hocks silver to keep it 27 Nov 2006 The carmaker s $18bn secured financing deal suggests it has decided against selling assets like Volvo and its credit arm. Given the market for these assets, this may be wise. But if it fails to execute a turnaround with the proceeds, it s game over.
Hugh Osmond misses out on £1.3bn 27 Nov 2006 That s what the UK entrepreneur would this week be collecting if his opportunistic breakup bid for Six Continents in 2003 had succeeded. SixCon rightly concluded it didn t need to pay Osmond a huge slice of the upside for something it could do itself.
Willie Walsh is a man in a hurry 26 Nov 2006 The British Airways chief executive is making progress on the big problems, like the pension deficit and the sale of the regional business. But this is far from done and dusted. And crowing about such "successes" could easily backfire.
Scardino should have done the opposite at Pearson 26 Nov 2006 Many of the businesses that she sold, such as Madame Tussauds, are now worth more than when she sold them. The value of many of businesses she bought are also now worth less. An "antiScardino" would have done better than the real one.
Technip investors should welcome Eni bid 24 Nov 2006 The French oil services company has been underperforming. A deal with Eni s Saipem unit could allow it to improve its pricing power. Some of Technip's customers may feel uneasy, but the company shouldn t hide behind the French government to try to thwart the deal.
Wall Street goes a bridge too far in LBOs 24 Nov 2006 First Boston s bridge loan demise 15 years ago appears to have been erased from the securities industry s collective memory. How else to explain the willingness of Blackstone s bankers to commit $3.5bn in a record equity bridge financing for its EOP buyout?
Branson’s string of listed duds bode ill for NTL 24 Nov 2006 The serial entrepreneur s latest quoted flop is Victory , a struggling jewellery business which he plans to delist. Branson s Virgin Mobile was an exception. But he has folded it into NTL a wobbly, highly geared firm. He may yet keep his record intact.
India’s cost advantage isn’t just with the workers 24 Nov 2006 Companies such as Infosys pay their top management a small fraction of what US bosses get. With the average Fortune 500 CEO paid 600 times as much as the average employee, it s time to outsource the boss.
Mannesmann six let off with E5.8m fine 24 Nov 2006 Cue widespread relief. The courts avoid handing out unmerited criminal convictions; the accused avoid having to defend fat bonuses. Klaus Esser may rue how much of his pesky bonus has been gobbled by the German state. Josef Ackermann will just be relieved it s all over.
Lazard partners cash in gains 23 Nov 2006 Although it may seem worrying that 100 bankers including some bighitters are selling down, in fact it can be a sign of healthy renewal. Senior bankers who ve made their pile can leave, and fresh talent can take over. The visible wealthcreation encourages the young to stay.
Siemens telecoms unit stirs up trouble for Kleinfeld 23 Nov 2006 The German boss has been trying to sort out its underperforming Com telecoms unit to show he means business with his restructuring plan. But in doing so, he has stirred up a political ruckus and a fraud probe. These may cost Kleinfeld his job or turn him into a lame duck.
Versace dresses up for IPO 23 Nov 2006 Now Di Risio is in expansion mode. That points to a possible IPO in 2008 that could allow some of the shareholders to cash in. The coming of age of Allegra Versace has allowed CEO Giancarlo Di Risio to limit Donatella and Santo Versace s grip on the troubled group.
Swisscom hands Sarin chance to shine 23 Nov 2006 The Swiss telecoms group is the only likely buyer of Vodafone s stake in their mobile venture. But that doesn t mean it s got a strong hand. Owning the whole of mobile is important to Swisscom to push ahead with fixedwireless convergence. Sarin, for once, has some cards.
Berlin leans on German banks to buy Eads stake 23 Nov 2006 Or that s how it looks. There's no other reason why the banks would buy part of Daimler's unwanted Eads stake. The move means there's still a big "German bloc" in Eads. It would be surprising if the banks hadn't extracted something in return.
BC Partners trumps Macquarie with E1.3bn Techem LBO bid 23 Nov 2006 The buyout firm's counterbid for Techem looks tough to beat. It's 18% higher than Macquarie's bid, and is agreed. But this is no straightforward LBO. Macquarie still has a 19% stake in Techem, and getting them out might be tricky.
BBVA’s E1bn China deal looks a bit me too 22 Nov 2006 But the move isn t so exciting close up. Most of the new exposure is in competitive HK, the initial stakes are small and the prices high. The Spanish bank has boasted of its purchases of stakes in Far East banks, and reduced its relative exposure to volatile Latin America.
Colombia to test Democrats’ protectionist leanings 22 Nov 2006 The leading party in Congress has vowed to oppose free trade agreements with inadequate labour protections. Columbia s their first target. The South American country has a highly competitive economy but it s a dangerous place for labour rights advocates. The leading party in Congress has vowed to oppose free trade agreements with inadequate labour protections. Colombia s their first target.
Time Warner copies Yahoo playbook at AOL 22 Nov 2006 By poaching a media executive from NBC, it hopes to jumpstart the transition from subscriberdriven revenues to advertising. This may explain why boss Parsons thinks AOL is worth $26bn. But it s hard to see how that is possible even with perfect execution.
Capuano gets second run at Borsa Italiana IPO 22 Nov 2006 But they reckoned without Capuano s interpretation of the group s stated strategic mission. It looked like an IPO had been snatched from the exchange boss s grasp by its shareholders earlier in the year.
Branson bites the hand that feeds him 22 Nov 2006 The British entrepreneur used to be an arch player of the media game. After all, he built his Virgin empire by courting free publicity. This skill has deserted him now he too is a media mogul. How else to explain his Quixotic tilt at the Murdochs the biggest of all moguls?
Macquarie, TPG in A$10bn Qantas LBO bid 22 Nov 2006 This looks like another sign of buyout mania. Few private equity investors have bought airlines, and even fewer have made money. True, TPG has been one of the lucky few. And Australia s Flying Kangaroo looks less risky than others. But it s far from an ideal buyout.
Liquidity drives fear from the markets 22 Nov 2006 There s a virtuous cycle in the market. Strong credit growth drives down volatility, while lower volatility encourages still more credit. Yet a number of factors could spoil the party. Now is the time to buy cheap insurance.
Suez-GdF merger in jeopardy after court decision 22 Nov 2006 A Paris court has found that GdF failed to give the unions enough time to consider the deal with Suez. So it can t happen before next March. But that is also when the French presidential campaign will be in full swing. The merger may be deadonarrival.
Politics make Paulson meek 21 Nov 2006 The Treasury boss delivered an underwhelming address on competitive issues facing US business and financial markets. Paulson's retreat from his earlier, bolder stance reflects the new political dynamics with Democrats in charge of Congress.
Has buyout mania hit bubble territory? 21 Nov 2006 It s starting to look that way. LBO shops haven t just been piling on leverage. They re also being linked to nuttierlooking deals. Equity Office Properties, Timberland and United Airlines aren t ideal LBO candidates. The privateequity market is getting frothy.
French law rides to rescue of Eurotunnel plan 21 Nov 2006 The vote of the senior creditors next week is what really matters. And while there are angry dissidents among them, they are in a minority. The French safeguard bankruptcy process marginalises potential opponents. Bondholders can kick up a fuss, but they ve done relatively well.
Murdoch meets new hurdle: good taste 21 Nov 2006 The media mogul has made a fortune pushing the limits of acceptable standards of decency on television and in print. He met his match with OJ Simpson s fictional tellall If I Did It. But the calculus was economical keep an eye on MySpace.
When is a board seat worth $1.4bn? 21 Nov 2006 How about when the NYSE gives one away to its European merger partner, Euronext, to seal a nilpremium merger? The Big Board s decision to equalize board representation by ceding one seat sent NYSE shares on a tear. This was a smart move.