Accor’s newest broom would sweep governance aside 27 Aug 2013 The French hotel group’s board reckons appointing the head of its leading private equity shareholder as CEO can revive its fortunes. True, Colony’s Sebastien Bazin may speed up the sale of real-estate assets. But investors need to weigh short-term gains against a loss of control.
Bank capital reform means French gain and UK pain 23 Aug 2013 SocGen’s hybrid debt issue helps towards its capital and leverage ratios, the new yardstick for bank solvency. Yet UK rules mean similar bonds sold by Barclays will have less attractive terms. Regulators’ drive to improve capital standards could end up hurting competition.
EADS should play long game with Dassault stake 5 Aug 2013 Hedge fund TCI has done EADS a favour by calling on the aerospace group to sell its stake in French subsidiary Dassault Aviation - EADS already wants to exit non-strategic minority stakes. A market placing would be ideal. But if Paris meddles, no deal is better than a bad deal.
Mad Men bring the negative campaign to M&A 2 Aug 2013 WPP boss Martin Sorrell says Publicis-Omnicom is a lopsided merger that will lose staff and clients. Publicis’ CEO deplores “anxious” rivals. The unusual public sniping is entertaining. But as in advertising, that’s not really the point. Both sides have something to sell.
SocGen slowly creeping back up to top league 1 Aug 2013 The French bank built on its trading strengths to negotiate a tough second quarter better than many peers. Provisions are still high compared to larger rival BNP. But the bank’s balance sheet will be Basel III-compatible towards the end of the year.
End in sight for European carmageddon 31 Jul 2013 Decent half-year results at Peugeot suggest even Europe’s weakest carmaker may have passed its darkest hour. Sales are still falling and overcapacities abound, but survival strategies seem to work. Hopefully, the crisis might make Europe’s volume manufacturers stronger.
BNP’s sturdy model will help German push 31 Jul 2013 France’s largest lender weathered a hit at its investment banking division thanks to an old-style universal model. It now hopes to balance its exposure to weak economies like Italy with a push into Germany. That may prove challenging, but BNP’s solid balance sheet should help.
Alcatel recovery still has a long way to go 30 Jul 2013 The French-U.S. telecom equipment maker reported strong results and a smart R&D deal with Qualcomm. Shares soared. A U.S. spending boom is allowing new boss Michel Combes to bask in a honeymoon of sorts. But it’s very early days for the group’s third turnaround CEO.
WPP can sit out this bout of adland M&A 29 Jul 2013 A merged Publicis Omnicom would overtake the UK group as the largest advertiser. That must gall WPP boss Martin Sorrell. But he could poach clients, and charge more in a consolidated market. The benefits of gatecrashing this deal, or finding a consolation prize, look dubious.
"Equality" in Big Ad merger may be hard to sustain 29 Jul 2013 Publicis and Omnicom have formed a neat merger of equals, with co-CEOs, a balanced board, parallel listings and head offices. As a combination of autonomous units, no single culture can dominate. Day one will be fine. There is still a risk that paralysis or conflict comes later.
Ad men’s $35 bln bet: size matters in digital age 28 Jul 2013 Publicis and Omnicom are merging to create the world’s largest advertising group. Cost savings look modest. Some clients could defect. But this is a way to adapt to the digital revolution: the Franco-U.S. duo will be better equipped to stand up to giants like Facebook and Google.
Vivendi compromises to get shot of Activision 26 Jul 2013 The French conglomerate is selling most of its stake in the video games maker for $8.2 bln. With this and the sale of Maroc Telecom, Vivendi’s promised reinvention is finally underway. But in neither case do its shareholders get the premium that usually comes with ceding control.
Vivendi underwhelms with $5.5 bln Maroc telco sale 23 Jul 2013 The French conglomerate will forsake a control premium in the sale of its 53 pct stake in Maroc Telecom to UAE operator Etisalat, which is back on the acquisition path. The bright side for shareholders is that Vivendi has taken the first step in its overdue transformation.
Will the music ever stop for Vivendi’s bosses? 19 Jul 2013 The French conglomerate rejected an $8.5 bln bid for Universal Music, the FT says. Vivendi is trying to scale back in telecoms and focus on a ragbag of media assets. But why not aim for a full breakup? Rebuffing this rich offer leaves the company with some explaining to do.
Schneider has powerful chance of winning Invensys 12 Jul 2013 The French group has tentatively offered 3.3 bln stg for Invensys, the UK engineer chaired by veteran dealmaker Nigel Rudd. A counter-bid is possible: ABB, Emerson and GE could have a look. But the “for sale” sign has hung over Invensys for months and this is a pretty full price.
Italy: fertile ground for bold foreign buyers 10 Jul 2013 Recession, paralysis, corruption, credit squeeze: no wonder Italian M&A is slow. But local firms excel in everything from fashion to engineering. Foreigners could invest in some great businesses - if only they found ways to coax Italy’s ageing entrepreneur-owners to the table.
"Made in Italy, Owned Elsewhere" will have to do 9 Jul 2013 Loro Piana’s sale to LVMH is a cashmere bombshell. With Italy in dire economic shape, its industrialists face existential questions like whether to move HQ or sell out. Italian capitalism needs to be liberalised. The danger is that only the healthy few will have a choice.
Vivendi games over Activision cash sound worrying 8 Jul 2013 The French group reportedly wants to lever up Activision, its video games subsidiary, to pay itself a huge dividend. That would suggest fuzzy strategy at Vivendi. It would also raise concerns that a Moroccan selloff could fail, or that life in mobile land may get even tougher.
Peugeot family may hold key to European autos M&A 27 Jun 2013 Descendants of the French automaker’s founders may give up control for closer ties with General Motors, according to Reuters. Its U.S. partner may balk at a merger. But the family’s recognition that its time is up may help spur much-needed broader industry consolidation.
France’s poisonous politics bound to hit economy 26 Jun 2013 Corruption scandals are tarring all the mainstream political parties and populist organisations are on the rise. With no signs of economic growth, François Hollande’s useful but tentative reforms look ever more doubtful. France’s already-big credibility deficit is growing.