Wallenbergs get tough over MAN-Scania 7 Nov 2006 By building an effective veto in the Swedish truckmaker, the family is showing it s against Scania being swallowed by its German rival. If Volkswagen, as kingmaker, insists on a friendly deal, it will now have to make some serious concessions to the Swedes.
MAN’s currency problem may require unusual tactics 1 Nov 2006 Investor wants the German truckmaker to offer shares in its bid for Scania. But MAN doesn t want to issue more than 20% of its capital. Solving the problem is tricky. One way might be buying out Investor separately. But it means offering different prices to different sellers. Solving the problem is tricky. One way is to buy out Investor separately. But it may mean offering different prices to different sellers.
Dr. Z should jettison Chrysler 27 Oct 2006 Daimler s boss has a soft spot for the US car business. But shareholders have already given up on the German car company s empire building. Bought for $46bn, Chrysler s now worth nothing and is undermining parent Daimler s value. CEO Zetsche should drive away from this failure.
Peugeot needs new CEO – now 27 Oct 2006 The French car company can t seem to shake off the doldrums. It just issued another profit warning. The current CEO is a lame duck, and search for a new one is dragging on. But Peugeot can t afford to wait. The French car company can t seem to escape the doldrums. It just issued another profit warning.
Michelin shows resilience in tough markets 25 Oct 2006 Despite the tragic death of its chairman a troubled car industry and rocketing costs, the tyremaker's shares are at an alltime high. It has strong brands and niche products and hence pricing power. Investors are also hopeful about the new managements restructuring plans.
Ford’s Q3 underscores attraction of going to Ghosn 23 Oct 2006 Selling the majority of its luxury car unit and striking a global alliance wouldn t just bring the Motor City car maker much needed cash. It would enable Ford to cut more costs and boost its credit arm s performance. New chief Mulally should jump at the chance to strike a deal.
Icahn puts new spin on classic greenmail approach 19 Oct 2006 Companies used to pay Carl Icahn to go away. But now Lear is offering the exraider a discount on shares and a seat on the company s board. Lear needs capital and turnaround expertise. But the struggling autoparts maker will be tougher to fix than some of Icahn s recent targets.
What’s the right way round for MAN-Scania? 19 Oct 2006 Scania countered a bid from its German truck rival by suggesting it should be the buyer. It says it s better run and has better governance. Management worries look overdone, but Scania has a point on governance. And its number two investor seems to agree. MAN will have to pay up.
VW must take sides in MAN/Scania battle 12 Oct 2006 Volkswagen, with 34% of Scania, wanted an amicable deal. Now it may have to choose between German interests and shareholder value. MAN has nabbed a 15% stake in rival truckmaker Scania after a surprise dawn raid. Friendly talks are off the menu.
Alitalia out of control with no parachute 11 Oct 2006 This is the way Romano Prodi describes Italy s flag carrier. He reckons the airline will go bust by January without radical reform. It would be nice to think the government is serious about reform. But at the moment it is following a depressingly familiar script.
Hedge funds right to target Volvo’s war-chest 10 Oct 2006 The Swedish truck maker may feel it has to keep a cash pile worth 10% of its market value to protect against a downturn and to buy rivals. But the arguments are weak. Rivals aren t so well padded. And if Volvo wants money for acquisitions, it can always go back to investors.
MAN forced to back down over Scania 9 Oct 2006 The truckmaker's decision to drop its hostile offer was inevitable after it hit opposition from VW, the biggest shareholder in both groups. But VW will have to make concessions too if it is to engineer a friendly threeway deal.
Mulally must reveal his plans for Ford 9 Oct 2006 The ailing car company s new boss cannot afford to spend much time mulling his options. The firm s burning through cash fast. A deal with Renault/Nissan, cuts and a realistic assessment of marketshare losses should be top of the list. But he needs to act quickly.
York’s departure bad for GM 6 Oct 2006 Kirk Kerkorian s representative has resigned from the car company s board claiming fellow directors were resistant to outside ideas. York s influence waned as GM s performance improved. The dispute over the failed alliance talks with Renault/Nissan was the final straw.
VW changes rules in MAN/Scania takeover game 4 Oct 2006 The German automaker has bought a 15% stake in MAN, the German group just two weeks after rejecting MAN's hostile E9.6bn bid for Scania. This makes some sort of MANScania deal more likely. The question is how it takes shape and whether VW has further compromises to make.
GM-Renault-Nissan talks will be tough 27 Sep 2006 The three companies have agreed to keep on studying a possible purchasing alliance. But they are starting from very different places. They have totally different views of the money, the risks and each other.
Ghosn tries to salvage GM alliance talks 27 Sep 2006 The Renault CEO is meeting counterpart Rick Wagoner in Paris today to discuss a possible costcutting alliance. But GM is still reluctant. The French are trying to tell GM what would be good for its own shareholders. This may be a sign that the talks will lead nowhere.
Tronchetti should quit Pirelli 26 Sep 2006 The Italian industrialist has already resigned as Telecom Italia s boss because of a fight with the government. Having lost E4.7bn for Pirelli investors on his disastrous TI adventure, Tronchetti doesn t belong there either.
VW pushes its luck over MAN-Scania 26 Sep 2006 The German auto group has set out a wishlist of what it wants from a combination between the two truck makers. But it will have to compromise. Otherwise, there won t be a deal at all. And that wouldn t be good for VW either.
GM-Ford alliance talks a good sign 18 Sep 2006 Put aside how messy a combo would be. That they even flirted with the idea of the Big One suggests they re grasping the nettle. GMFord cooperation may be too radical for Detroit at the moment. But given the longterm trends, nothing should be ruled out.