Sarkozy win could change French politics 7 May 2007 The new French president, who campaigned as a complexfree man of the right, has been given a sweeping mandate. The socialist party is in disarray, so it can t do anything to block Sarko s plans. What the left needs is a more modern ideology.
Alcoa makes mega bid to recreate aluminium giant 7 May 2007 The US group s $27bn hostile offer for its Canadian rival 79 years after it was forcibly separated makes financial sense. Synergies more than pay the $4.5bn premium Alcoa is offering. There s a second benefit too. Alcoa execs may not have to learn Russian.
BAE pays Pentagon prices for Armor 7 May 2007 The UK defence firm s $4.5bn acquisition doesn t look like it creates much value on paper. But the deal makes BAE an even larger player in the race to get Pentagon contracts. That may explain why it s paying through the nose.
ABN Amro leaves next move to RBS consortium 7 May 2007 The Dutch bank judged the final offer for LaSalle too conditional to count as superior to the agreed Bank of America deal. But the consortium isn t out of the game. If they stay together, ABN could still go to highest bidder.
ABN refers RBS bids to lawyers 6 May 2007 The Dutch bank's board quite likes the offers RBS made for LaSalle and the whole of ABN but worries they couldn't legally count as offers. After a weekend of furious negotiations, ABN's future is still no clearer. The whole thing will probably be referred to shareholders.
How will Sarkozy use his victory? 6 May 2007 Based on his slamdunk election win, France s next president has a sweeping mandate for change. But numbers aren t everything. Sarko has campaigned as much for protection as for growth. Those who hope change will prevail will have to monitor a few test issues.
High prices settle into basic industry 4 May 2007 It s not clear what HeidelbergCement might pay for Hanson, a £7.5bn UK materials group. But the shares are now at 11.6 times ebitda. Vulcan paid that high a price for Florida Rock in February. That deal looks to have set a trend in this consolidating industry.
Fortis may underwrite mega rights issue at no price 4 May 2007 Underwriting without a backstop price may reduce the cost and conditionality of raising cash for an ABN Amro bid. But there s a risk. Fortis shares could be divebombed by hedge funds if the market didn t like the deal.
Property woes have a silver lining for US Reits 4 May 2007 The market s problems have made Reit stocks more volatile and prompted real estate investors to look for safer ways to gain exposure. That s given Reits new access to the convertible bond market. They ve jumped at the chance and pumped out $14.5bn in the past six months.
Reuters gets bid approach 4 May 2007 Days after Murdoch s Dow Jones bid, another big financial information group looks to be under the hammer. It s not clear who the bidder is, although Thomson looks possible. Under Reuters constitution, any deal would have to be agreed.
EMI gets yet another bid approach 4 May 2007 A rumoured $6bn offer for the UK music group could come to naught. But after a dreadful year, EMI is not in a good position to say no. This could be the trigger to an auction. The market seems to expect something this time.
Reuters/Thomson combo makes sense 4 May 2007 The synergies from cramming the two financial information providers together are likely to dwarf any other combination. With Reuters largest shareholder backing a deal, its days as a solo player look numbered.
Why have Reuters and Dow both received offers? 4 May 2007 Simultaneous approaches for two of the world s top global financial information providers isn t a coincidence. The world is globalising. Finance is globalising faster than other sectors. And Reuters and Dow Jones are plays on that trend.
Microsoft would give Yahoo boss an escape hatch 4 May 2007 The software behemoth is said to have reignited talks to buy the internet group led by former Hollywood boss Terry Semel. For nigh on a year, Yahoo has been in trouble and Semel s leadership questionable. A sale would allow him to save face.
Productivity still US weak point 4 May 2007 The reported increase in productivity helped push the stock market to a sixyear high. But over 20 years, the US record is still middling. It s likely to slip further, since US companies have preferred financial engineering to the real sort.
Microsoft could pay through the nose for Yahoo 4 May 2007 Combining the software giant and the internet company might generate enough value to justify Microsoft paying a $11bn premium. The hard part is rationalising the valuation attached to Yahoo even before news of talks between the two.
Bank of England’s next decade could be tougher 4 May 2007 The institution is celebrating the 10th anniversary of its independence. At first, it set the global standard in inflation control. But in the last two years, the UK has seen higher inflation than the eurozone and house prices are still high. The nice period has ended.
Clear Channel imbroglio may lead to proxy battle 4 May 2007 The radio company's buyout is headed off the rails. Its directors, the buyout shops, and the founding Mays family all look bad. Clear Channel s directors really need to polish their image. In the wake of the deal, disgruntled investors may call for their heads.
Private equity’s Altadis bid turns heat on Imperial 4 May 2007 CVC and PAI s E15.5bn offer for the Spanish tobacco group looks at the top end of what rival bidder Imperial can comfortably pay. The UK tobacco firm may yet fight back. But doing so would probably strain its finances and its credibility.
Icahn doesn’t deserve Motorola seat 4 May 2007 Activist investors can wake up sleepy companies. But yelling loudly isn t justification enough for a directorship. Icahn repudiated his one big idea for the tech company and he s too busy as is. Shareholders should vote his candidacy down.
ABN needs to cut a deal with BoA 4 May 2007 A protracted legal standoff over the LaSalle contract would damage the Dutch bank s business. If the Dutch don t sell LaSalle to BoA, they need to negotiate a figure it would accept to go away. $2bn$4bn might do the trick.
Cablevision dissenters face stiff odds 4 May 2007 Gamco and T Rowe Price say the Dolans $36 per share offer is too low. They threaten to block the deal unless they get upwards of $50. But that figure is based on generous assumptions. Other investors seem ready to approve the deal the stock is trading just shy of $36.
Valeo should open its tent to Pardus 3 May 2007 The car parts manufacturer would consider giving the US fund board representation but only on its own terms. But Pardus has dropped its insistence on a merger with Visteon and now says it only wants a strategic review. It should be allowed in.
Cablevision shareholders get a decent offer – finally 3 May 2007 Its independent directors sent the founding Dolan family packing twice before agreeing to a $22bn deal. The price is fair. The deal now has a better chance of being accepted. By holding out for a fair sum the directors have paradoxically done the Dolans a favour.
Lehman’s fixed income epicentre moves to London 3 May 2007 The bank s decadelong campaign to boost nonUS revenues is one reason it s now running its biggest business out of the UK. It s easier to oversee European and Asian business from there. That s crucial since it needs to make its big investments pay off.
Dow bid may make Pearson keen to offload FT 3 May 2007 The carrot is the high price Murdoch is offering for a trophy media brand. The stick? Having to take on a Murdochowned WSJ. The UK publisher would probably sell the FT if someone offered the right price. But Murdoch's bid for Dow Jones may make it keener to exit.
DT chairman wrangle shows Blackstone’s limits 3 May 2007 The private equity group has reportedly been agitating for Zumwinkel's removal. Pressure is building for him to go but not till next year. Normally, Blackstone would be able to get rid of a chairman immediately. The fact that it can't shows the oddity of its minority investment.
Last Yukos sale marks end of easy years for Rosneft 3 May 2007 The Russian firm has risen from almost nowhere to become one of the world s biggest oil companies in less than four years. But that is largely thanks to special access to Yukos assets sales and these are now drawing to a close.
Internet hotels are back 3 May 2007 A few years ago, they were all but worthless. Now Telecity Redbus of the UK is mulling an IPO valuing it at 20 times ebitda. Surplus capacity killed the first hotel wave. Now capacity is constrained. The snag is there s nothing to stop it going out of whack again.
Dutch court blocks sale of LaSalle 3 May 2007 This causes total legal confusion. It s hard to see what it means for ABN s suitors. Barclays could still win. But whatever happens, it s difficult now to see how Groenink can stay in place as ABN s boss.