Fiat buys time by delaying GM put 27 Oct 2003 Postponing the right to sell GM the rest of Fiat Auto staves off the threat of a legal battle for at least another year. But it does not clarify the longterm ownership of the business, which most certainly belongs within a bigger group.
Ford dices with credit downgrade 23 Oct 2003 A further cut in its rating would leave the US carmaker just one notch above junk status. The only practical way to avoid the chop is to embark on another restructuring.
Daimler may extend CEO’s contract – WSJ 8 Oct 2003 Jurgen Schrempp may be the right guy to lead Daimler well beyond 2005 but it's premature to make that assessment. At the moment his baby the takeover of Chrysler looks like a mistake. He needs to prove otherwise before the board extends his stay.
Fiat nabs new car boss 8 Oct 2003 Herbert Demel's operating experience will help drive Fiat's plans to launch 20 new models over the next three years. But if September's sales are any indication the company may need a marketing whiz more than anything to save Fiat's damaged brand.
Ford re-enters unsecured bond market 17 Sep 2003 The automaker has capitalised on the economic uplift and its agreement with labour unions. But investors don t really see Ford on the road to recovery. They bought into the $3bn bond because of a lack of highyielding alternatives.
Currency trades drive DaimlerChrysler’s profits 21 Aug 2003 The GermanAmerican automaker admits that over half of its operating profits in the second quarter came from currency hedging. Investors deserve better and more timely disclosure.
France places E1.2bn of Renault shares 28 Jul 2003 Secondary share sales are becoming all the rage. Big investors may be worried that the market rally won't last. The sale reduces the overhang of stock, which may buttress the value of the state's remaining shareholding in the French car maker.
Volkswagen eyes MAN trucks – report 7 Jul 2003 That might be good for MAN, Scania and Fiat shareholders. But it s hard to see what Volkswagen s investors gain besides more pain. A breakup of the unwieldy German conglomerate might unlock value and kickstart mergers in the trucks industry.
Agnellis give Ifi minorities poor deal 3 Jul 2003 One theory doing the rounds suggests this is the beginning of a squeezeout of Ifi to gain full control of Exor. The terms of a capital increase at the top of the Fiat chain look designed to give the family greater control.
Fiat turnaround falls short 26 Jun 2003 Chief executive Giuseppe Morchio has delivered the most credible plan yet to bring Europe's serial value destroyer back into profit. But he leaves too many questions unanswered to merit participating in the Italian industrial group's E1.8bn capital increase.
GM swaps one debt for another 24 Jun 2003 The US carmarker has acknowledged that its pensionfund deficit is a liability. This transparency is welcome. GM may simply be postponing a pensions crisis. And why not, if investors will let it?
Fiat likely to tap shareholders for more cash 23 Jun 2003 It is hard to see how this would be in their interests especially if it allowed the banks to get off the hook. Fiat currently has the option to force its banks to take E3bn of equity at an inflated price. It should try to preserve this option.
Daimler trashes Chrysler profit target 4 Jun 2003 Investors don't believe in Daimler's promises of a turnaround, judging by the implied value of the business based on current prices. On this basis, shareholders appear to reckon Chrysler is on as solid a footing as Italian basket case Fiat.
Fiat shows no sign of turnaround 13 May 2003 Losses continued and debt widened in the first quarter. So why is Fiat considering letting its lenders off the hook? Shareholders are best served by Fiat s banks pledge to convert E3bn of debt to equity. Don t scrap it.
Colaninno circles Vespa-maker 6 May 2003 The Italian financier wants to inject E100m for 51% of Piaggio's voting rights and convince banks to convert debt. Public shareholders would balk at his plans. But there are none. Here is Colaninno's chance for a comeback.
European buy-outs down by 20% in 2002 14 Apr 2003 Falling stock prices and economic uncertainty have finally taken their toll. Companies are less keen on M&A of any sort and that reduces opportunities for private equity.
Fiat reaches E1.6bn deal for Avio 7 Apr 2003 Fiat's banks may be relieved its disposals did not degenerate into fire sales. But shareholders must still be wary. A quick sum of the parts shows the group's assets barely cover liabilities when factoring in an appropriate discount.
Agnellis face investor rebellion 4 Apr 2003 A big US investor in their Ifil holding is threatening legal action over a planned asset shuffle. But victory won t be easy. Still, a public brawl could be damaging for the Agnellis. And there are some good questions on the proposed deal.
Ferrari boss’s bonus outlandish 21 Mar 2003 It can t, unless it admits the money was the only way to retain his services after torpedoing his IPO plans. How can moneylosing Fiat justify paying Montezemolo a E18.2m bonus in a year when Ferrari s profits halved?
GM casts doubt on Fiat put 14 Mar 2003 The US carmaker's 10K filing, suggests Fiat might never or may be unable to exercise its right to sell Fiat Auto. And if it were forced to do so, GM is not committing itself to funding Fiat Auto's ongoing liabilities.