Sainsbury private equity approach well-timed 2 Feb 2007 The stars look nicely aligned for a buyout of the UK retailer. Midway through the turnaround, almost every analyst is a seller. With the family trust selling and a chief executive who has previously grumbled about his pay, private equity should be sure of a hearing.
No need to panic on global warming 2 Feb 2007 The Panel on Climate Change has cut its worstcase estimate for global warming over the next century. That means marketfriendly measures can address this problem. Carbon taxes are a far better solution than the emissions trading system.
Jail time for hedge fund managers is the best regulatory tool 2 Feb 2007 Durus Capital s Scott Sacane is facing three years imprisonment and large financial penalties for breaking securities laws. Politicians are calling for greater hedge fund transparency. But enforcement of existing laws and stiff penalties is the best deterrent.
Sanofi faces financing dilemma to bag E53bn BMS 2 Feb 2007 Given the huge synergies on offer, the French group could afford to pay 20% on top of an inflated price and still create a bit of value. But Sanofi's boss doesn't like excessive leverage and the BMS shareholders may not be too enamoured of French paper.
Macquarie’s tactics backfire in Techem LBO 2 Feb 2007 The Australian bank thought a 27% stake in the German metering company would cut its final price and scare off potential rivals. But the big position left Macquarie desperate to win. Hedge funds smelled blood. They ve blocked Macquarie s bid, leaving it in a quandary.
Futures exchanges need more independent directors 2 Feb 2007 NYSE rules requiring boards to have a majority of independent directors are unevenly applied. The likes of the Nymex can count officials from member firms among their independent directors. New guidelines fail to fix this problem.
Sberbank’s $12bn share issue looks like Rosneft re-run. 2 Feb 2007 President Vladimir Putin has endorsed the giant statecontrolled Russian bank's offering. He has said the shares are a good buy. Like with Rosneft last year, Sberbank looks to be picking a good moment to sell shares. But it is seeking a high price.
The IMF should cut costs, not sell the family gold 2 Feb 2007 Lack of borrowers has caused income to slump, yet expenses have remained high. Flogging some of its gold allows the IMF to breakeven. But it would be better to cut costs and return excess capital to member countries.
D.Bank’s efforts to broaden mix founder 1 Feb 2007 The attempt to beef up in asset and wealth management isn t paying off yet. Until it does so, the shares may struggle. The German bank did okay in Q4. But that was again down to investment banking and a little polish from oneoffs.
Michael Dell tries a Steve Jobs 1 Feb 2007 Jobs brought innovation and design flair back to the firm. Dell s great invention lowcost manufacturing has been copied by rivals. Investors hoping the return of the founder to his computer firm s CEO slot will herald a turnaround like Jobs at Apple may be disappointed.
India no pushover for Western retailers 1 Feb 2007 Like China a decade ago, India offers massive growth and little organised retail. No wonder WalMart and its peers are queuing to get in. But the risks to success in India are greater. That s because India has plenty of experience in something China didn t capitalism.
Tata Steel faces up to Corus challenge 1 Feb 2007 The Indian steelmaker has done the easy part winning the auction for its larger rival. Now it has to make the highly leveraged deal work. A total rethink of operations comes first. Then there will be some new equity, and a hope that the steel cycle does not turn down too soon.
Greifeld’s LSE threats smell of bluster 1 Feb 2007 But while this sounds scary, it lacks coherence as a strategy. Greifeld s comments smack of deperation rather than resolution. Nasdaq s boss is trying to bully London s shareholders into accepting his bid by threatening to undermine the exchange s value if he fails.
Iberian poison pills should go 1 Feb 2007 Arcane shareholder voting restrictions are central to the final stages of the Endesa and Portugal Telecom takeover battles. In theory, they could lead to a better deal for the targets investors. But such caps can also stop deals being done at all.