Orange purchase of Jazztel is pricey but necessary 16 Sep 2014 The French telco had a problem in Spain, where both Telefonica and Vodafone were better placed to sell TV, internet, fixed and mobile together. The answer is to buy Jazztel for a hefty $4.4 bln. At least costs can be cut - and consolidation should benefit the whole market.
Catalonia a risk for 2015 whatever Scots say 15 Sep 2014 The Scottish referendum has spurred supporters of the Spanish region’s independence. A vote against secession, or a messy separation, will only slightly curb their enthusiasm. Catalans probably won’t get a vote this year. But at least Madrid is admitting it has a problem.
Five changes for Ana Botin’s Santander 10 Sep 2014 She takes over a successful bank from her father. But the existing strategy needs a rethink. Capital looks low, the dividend policy is overly generous, and Brazil and America need work. None of these should be sacred cows. Botin’s objectivity will be paramount.
Santander loses a leader and gains an opportunity 10 Sep 2014 The death of Emilio Botin, the Spanish bank’s patriarch, leaves a succession quandary since his daughter Ana may not be ready to take over. But the future of the euro zone’s biggest bank shouldn’t depend on a last name. It can now adopt modern corporate governance.
Botin’s swashbuckling hid a conservative streak 10 Sep 2014 He took many risks transforming a regional Spanish lender into a global giant. But it was his ruthless caution that enabled Santander to survive the ABN Amro wreck and economic catastrophe at home. That is the reason why Emilio Botin led the bank for as long as he did.
Spanish property outlook gets just a bit sunnier 9 Sep 2014 With prices up for the first time in six years, the Spanish housing market may be near the end of the slump. But real estate remains expensive, transactions are scarce and there is a glut of supply. On the demand side, falling wages and high unemployment will temper the recovery.
Vivendi boosts shareholder credentials in GVT sale 28 Aug 2014 The French media group says it favours Telefonica’s $10 bln bid for its Brazilian mobile unit. Telefonica could pay more, but it’s good that Vivendi has chosen the surest exit for shareholders. As for rival bidder Telecom Italia, it now faces an uncertain future.
Telefonica may have to inch higher for GVT 28 Aug 2014 The Spanish telecom group has given Vivendi a soft deadline to accept a new 7.5 bln euro cash-and-stock offer for Brazilian subsidiary GVT. Telecom Italia’s bid is only 7 bln euros, has less cash and is more conditional. Still, Vivendi could yet wring more out of this auction.
Vivendi can push for more in GVT sale 5 Aug 2014 The French group got a 6.7 bln euro bid for Brazilian broadband unit GVT from Telefonica. Some natural counter-bidders will struggle to respond but Vivendi could still try to start an auction. At the least it could demand a higher price and more cash from its Spanish suitor.
Spain’s import surge underlines need for reform 30 Jul 2014 Spain is growing faster than expected and creating more jobs. But exports are stalling due to the weak euro zone recovery, and growth is driven by a pickup in internal demand, which is boosting imports. The pattern isn’t sustainable over the long term.
Crisis a distant memory in BBVA’s Catalonia buy 22 Jul 2014 The Spanish bank won an auction for the bailed-out Catalunya Banc. BBVA was willing to sacrifice 55 basis points off its capital ratio to double market share in rich Catalonia. The price reflects government guarantees, and confidence that banks have turned the corner.
Blackstone needed a little help on its Spanish bet 18 Jul 2014 Madrid twice failed to flog bailed-out Catalunya Banc. Selling 6.4 bln euros of the bank’s bad loans to the U.S. buyout group will help a privatisation – but only after Spain stumps up another 572 million euros. In return, Madrid gets some potential upside. Strictly potential.
Why investors were taken in by Gowex 11 Jul 2014 The scandal-hit Spanish wifi provider raised many red flags. Why were they all ignored? Because more people benefit when companies flourish, and Spain needs success stories. Gotham City, Gowex’s nemesis, did everyone a service, but its work shouldn’t have been necessary.
Gowex collapse leaves egg on many faces 7 Jul 2014 The Spanish wifi provider has said its CEO admitted falsifying the accounts, days after short-seller Gotham City attacked the company. Gowex’s status as a poster child for Spanish entrepreneurialism means the fallout will go beyond increased risk aversion to junior listed stocks.
CaixaBank opts for abrupt shake-up 2 Jul 2014 In a surprise move, the Spanish bank’s current CFO will replace Juan María Nin as chief executive. Meanwhile, Chairman Isidro Fainé consolidates his power. New CEO Gonzalo Gortázar is well regarded but he lacks retail bank experience. He still deserves the benefit of the doubt.
Spain’s tax reform misses most goals 27 Jun 2014 The reform of Spain’s tax system was supposed to make it more efficient, help boost growth and make companies more competitive. Instead, its effect on growth looks minimal and it will have an adverse impact on public finances.
Spexit comes two years late 19 Jun 2014 The unthinkable has happened. Spain stayed in the euro but exited the World Cup in the early group stages. The negative correlation with the economy is striking. Like its monarchy, Spain’s national team has modernised less rapidly than its economic policy in recent years.
Spanish government oddly passive on Catalonia risk 13 Jun 2014 Barcelona and Madrid have reached an impasse over a referendum on Catalan independence. The government says it is open to constitutional reform but won’t take the initiative. It should.
Edward Hadas: A corporate abdication of corruption 4 Jun 2014 King Juan Carlos’ abdication came amid popular anger at alleged fraud by the Spanish monarch’s son-in-law. That may suggest unsound practices are under pressure globally. On the contrary. Corruption - legal, semi-legal and illegal - is probably on the rise.
Pemex and Repsol separation is for the best 4 Jun 2014 The Mexican oil firm is selling most of its stake in its Spanish rival. The investment, made in another era, serves little purpose. Pemex can use the cash at home. For Repsol, the sale removes a stock overhang and underlines the challenge of spending its growing cash pile.