BEADS politics ain’t as bad as they used to be 13 Sep 2012 Europe’s three largest powers are involved in the proposed jumbo merger between EADS and BAE, yet there’s a hope politics might play a limited role. Governments have other things on their minds, and EADS isn’t the political mess it was five years ago. But the risk still exists.
Old dogs of war get mega M&A deal 13 Sep 2012 Bankers often say they are in the relationship business. With the proposed EADS/BAE tie-up, this sales patter is actually true. Advisers such as Evercore’s Bernard Taylor and Gleacher Shacklock’s Tim Shacklock have been counselling these companies for donkey’s years.
Euro defence monster flies out of crisis 12 Sep 2012 Civil aviation and defence both are cyclical businesses. But marrying EADS, the continental outfit behind Airbus, with UK defence giant BAE should yield a stronger combined group. Cost savings will be limited, and the terms favour BAE. But EADS becomes a less political animal.
Misguided share buybacks at least help Wall Street 23 Sep 2011 Companies don’t often time stock repurchases well for their own accounts. But the roughly $500 bln expected this year couldn’t come at a better juncture for ailing investment bankers. IPOs and other new equity deals have slumped, so even paltry fees on buybacks will be welcome.
United Tech’s $16.5 bln buy relies on debt markets 22 Sep 2011 The nearly 50 pct premium it’s paying for Goodrich might have been lower if United Tech’s intentions hadn’t been leaked. But low interest rates, strong demand for blue-chip debt and a good fit should make the deal easier for shareholders to swallow despite the jet-fueled price.
Qatar risks a foreign investment pile-up 19 Sep 2011 The gas-rich state might have around $100 bln to throw at foreign assets, based on guesses at the size of its sovereign fund. A 7.5 pct stake in Franco-German EADS would cost less than $2 bln. But Qatar’s overseas spending doesn’t look as focused as its domestic growth ambitions.
Grounding Boeing would cede too much to unions 14 Jun 2011 It's common for U.S. firms to shift production between states. But a federal agency is trying to stop Boeing from doing just that, saying the aircraft maker's move is unfair to its unions. That looks a serious stretch. But if Boeing loses, other businesses will feel the chill.
Governance row could cloud EADS’ new found success 13 Jan 2011 The Airbus maker finds commercial fortune as rumours about its governance circulate. Critics say Arnaud Lagardere, set to become company chairman next year, isn't up to the job. But new rows among EADS' FrancoGerman owners would be worse than having an unimpressive chairman.
Rolls-Royce finds clever succession solution 30 Sep 2010 After his 14 years as CEO, succession to John Rose was coming to dominate analysis of the UK aeroengine maker. Now he is finally stepping down, an outsider from food retailing has been appointed in his place. The move makes more sense than it might seem.
EADS has strong hand in defence row 12 Jan 2010 The European aerospace group is embroiled in a major dispute with various governments over the cost of its Airbus A400M military plane project. A compromise with these major customers looks likely. After all, EADS has the nuclear option of scrapping the programme outright.
London should forget its fantasy-island airport 15 Oct 2009 Mayor Boris Johnson s plan for a new airport on the Thames Estuary doesn t tick enough boxes. Construction would be hugely expensive and the area s birds could be a crippling problem. Then there s the fate of Heathrow and its 72,000 employees. The idea is a distraction.
Eads should stop backing insider-trading suspects 29 Jul 2009 A report for French regulators says the European aerospace group s former CEO and other executives should be fined for their controversial sale of Eads shares in 2006. Eads has always defended its employees actions. Continuing to do so will damage its reputation.
BA may need several trips to the market 15 Jul 2009 The UK airline plans to raise capital perhaps £400m through a convertible. A rights issue would be better, but BA can t get one away before its big restructuring is finished. Operating losses and a deepening pension hole might require further capital treatment.
BAA still on a tightrope 9 Jul 2009 The UK airport group avoided a fire sale of Gatwick last week but the need for a quick sale remains. And even after BAA sells Gatwick, it will have to find extra cash to repay maturing debt. Shareholders, led by Ferrovial, could eventually be pressurised to put in more equity.
European airlines could be next to raise capital 3 Jul 2009 Air France has already tapped the market. Lufthansa and British Airways could follow. Both will struggle to finance capital expenditure programmes organically, and their debt capacity may soon be exhausted. Something has to give.
BA boss picks tough but necessary fight 18 Jun 2009 Willie Walsh has secured important concessions from the UK airline's pilots, who are recommending that union members accept being paid partly in BA shares. But he hasn t won over all BA s employees. So long as the threat of a strike looms, the airline and its CEO are in trouble.
Gatwick auction moribund – but not quite dead 19 May 2009 BAA says the sale of the London airport is still on. But the highly leveraged airports operator got only one fully funded bid and it was painfully low. No wonder BAA has appealed the mandated breakup. A delay would buy precious time, and might keep it from crystallising a loss.
Tui board needs urgent shake-up 11 May 2009 A dissident shareholder in the German group is seeking a boardroom overhaul at this week s AGM. The register may be dominated by Tui customers who also sit on the board. But that s all the more reason for independent shareholders to protest at Tui s poorperforming management.
Tui shipping sale creates E4.5bn albatross 25 Feb 2009 The German group is still set to close a sale at the agreed value. But the buyer, a Hamburg consortium, can t come up with enough money. Tui may have to keep up to half the business and provide credit. But it's not clear there was a better alternative.
Gatwick auction may face hard landing 20 Feb 2009 Two out of five bidders have withdrawn from the bidding for the UK airport, whose sale may be demanded by antitrust authorities. With finance sparse, other bidders may also withdraw. If that happens, Ferrovial, Gatwick s Spanish owner, will hope the regulators show some mercy.