Airlines will bounce back – again 10 Aug 2006 Flights to the UK have been cancelled. Hand luggage, even mobiles, have been banned. Airline shares have suffered. Carriers typically rebound fast from such scares. High oil prices have hardly hurt either. But sectoral pressures are rising.
Pernod loses to Bacardi in Havana rum wars 9 Aug 2006 PernodRicard may have right on its side. But Bacardi has considerable political clout. Winning back the brand will be tough. The French drinks giant wasn't allowed to renew its claim on the Havana Club brand in the US.
US discount airlines better poised to handle economic turbulence 7 Aug 2006 Legacy airlines are back in favour. Their stock prices have recently soared while those of the discount carriers have remained grounded. But the relative performance could change as the economy slows and the true strength of the nofrills airlines reemerges.
Halliburton stock looks cheap 27 Jul 2006 The $33bn US oil services giant last week scuttled IPO plans for its beleaguered construction group, KBR, citing weak demand. Spinning off KBR could help Halliburton shed its image problems and free KBR to transform its business. There's 25% upside to be had.
Central banks fear instability more than inflation 27 Jul 2006 If Bernanke, Trichet and Co. were most worried about inflation, they d be squeezing harder. Growth is strong and prices are rising. But higher rates could threaten financial stability in a world that is risky and highly geared. No one wants another LTCM.
Airbus valuation still a mystery 12 Jul 2006 Why did Rothschild value the aircraft maker 35% below market guesses? Popular theories focus on Airbus cash advances and currency hedging. But neither seems fair. The worry is that Airbus faces deeper problems.
Europe goes green on aviation taxes 7 Jul 2006 International treaties have defeated past attempts to tax airlines. The EU may have found a way round. But don t expect airlines to give up without a fight.
BAA bondholders may skewer Ferrovial 22 Jun 2006 The Spanish group may have to buy back some of BAA's bonds at a fat premium because of the leverage it plans to load on the UK group. It is sometimes possible to negotiate around such clauses. But Ferrovial s highly geared bid makes bondholders likely to press for an exit.
Eads shareholder pact should be scrapped 22 Jun 2006 The shareholder pact that controls Eads is an anomaly that serves nobody s interests. The French government is right to demand reform. But the reform that s needed is not the sort France has in mind. The key is greater shareholder democracy not more French influence.
Eads share sales require rigorous investigation 16 Jun 2006 The boss of the aerospace group says it was an unfortunate coincidence that executives sold shares ahead of a profit warning. Perhaps. But the French authorities need to establish exactly when the A380 delays first came to light. And if the board wasn t told, why not.
Ferrovial locks out Goldman in BAA battle 6 Jun 2006 The Spanish construction company s consortium has secured BAA s recommendation for its 950p offer and bought 14% of the UK airport operator. That makes life very difficult, but not impossible, for rival bidder Goldman.
Ferrovial’s dawn raid on BAA looks to have failed 2 Jun 2006 Nice try. If Ferrovial had managed to buy 14% of the British airports operator, it would have locked out rival bidders. But trading volumes suggests it managed to get less than 5%. As a result, the battle for BAA remains wide open.
BAA rejects more credible offer from Ferrovial 30 May 2006 It s one thing turning the Spanish construction group down at 810p a share. But at 900p, it s getting harder to justify. It may not be the more than 940p BAA was gunning for. But that was always an ambitious target.
OFT throws spanner in BAA bid battle 25 May 2006 The UK competition watchdog's review of the airport market could conceivably lead to a breakup of BAA's monopoly. It may undermine BAA's value. But it could also deter Ferrovial from sweetening its hostile bid.
Air Berlin does a high-cost IPO 16 May 2006 The low cost carrier spent 17% of its IPO proceeds on fees the bulk on advertising, even picking up investors tax bills. The aim was to woo retail investors. But they were conspicuous by their absence, making up only 10% of the deal.
German bosses may get their contracts cut 9 May 2006 The nation s corporate governance commission is reportedly proposing to cut senior executives contracts to three years from five. Bravo. But if firms tepid response to the voluntary disclosure of bosses pay is anything to go by, only a new law will end the golden handshakes.
Air Berlin is being too greedy 5 May 2006 Investors shunned the budget airline s IPO, forcing it to extend the offer period until next week. But that alone won t fill up order books. The loss making carrier might not make a profit this year as competition is fierce. It'll have to scale back the IPO to attract buyers.
BAA delivers flimsy defence plan 3 May 2006 The UK airports operator rightly believes Ferrovial s current bid doesn t deserve a stronger defence plan. But BAA can t afford to sit on its hands. Sooner or later it may well have to beef up its defences.
Austrians bail out Bawag 2 May 2006 It was the attempted coverup that brought on the liquidity crisis. Ironically, it was not the huge losses it made on derivatives trades that nearly sunk Austria s fourth largest bank.
Air Berlin IPO should fly – at a 25% discount 26 Apr 2006 The lowcost carrier has made a loss for the last 2 years as competition stays cutthroat and fuel prices high. Not the best IPO backdrop. But sales are growing well as Air Berlin opens up new routes to Eastern Europe. At a 25% discount to Easyjet, the IPO should fly.