RBS strengthens hold on ABN Amro 16 Jul 2007 That makes its bid even more attractive than that of rival bidder Barclays. It s not clear how Barclays can close the gap. The UK bank has got a consolation prize from losing out on ABN s US bank. Thanks to the sale, RBS can now raise the cash part of its offer.
Dutch Supreme Court solves one ABN problem 13 Jul 2007 The judges have approved the Dutch bank s sale of LaSalle to Bank of America. That should put an end to legal doubts. Both bidders can claim victory. Barclays can proceed as planned, while a RBSgroup offer will no longer come with an uncertain liability.
Sheikh Mo pushes through $11bn banking merger 12 Jul 2007 The Dubai leader has turned his dusty desert land into a luxury tourist destination. The new bank will add to the emirate s financial clout. This is the biggest public deal yet in Gulf financial services. But this sheikhdriven deal still has a taste of the region s old ways.
RBS could be an interesting activism target 11 Jul 2007 The Scottish bank could create more value by selling its subscale US business than by competing with Barclays to carve up ABN. Both ABN and Barclays have attracted activists. A change of strategy could boost RBS's shares nearly 30%, maybe it too should be a focus.
UBS shake-up leaves Ospel on top 6 Jul 2007 The Swiss bank cited generational and governance reasons for ousting CEO Peter Wuffli. But that hardly looks the whole story. UBS s investment bank hiccups may have played a part. Whatever the reason, Marcel Ospel who s staying on as chairman won t be too hurt.
Akzo right to bide its time in £7bn ICI bid 6 Jul 2007 The Dutch paint producer s informal offer for its UK rival was last month rejected. Now ICI wants a formal proposal to end uncertainty. Akzo will have to comply with UK put up or shut up rules. But with no sign of rival bidders, it has nothing to gain from hurrying.
Conglomeration isn’t all bad for private equity 5 Jul 2007 Buyout groups strenuously deny parallels with the heavily indebted, sprawling giants of the 1960s such as ITT or LTV. But girth has advantages. Look at Apollo s $6.3bn Huntsman bid. Synergies with its other chemical holding enabled it to make a better offer.
Commerce Bancorp bulls may have to wait 29 Jun 2007 The bank s shares popped Friday on news that it showed its scandaltinged founder the door and sorted out problems with regulator. Investors seem to think Commerce is now an attractive takeover target. But that depends on whether it can resume its fast branch growth. The bank s shares popped Friday on news that it showed its scandaltinged founder the door and sorted out problems with regulators.
Will Italy’s popolari banks ever rationalise? 27 Jun 2007 The failed E12bn deal to merge the Milan and Emilia Romagna banks is a setback. Milan's shareholders won't mind: value would have been lost. Unfortunately, it was unions sitting on the board who reportedly sank it. That's worrying.
Dutch supremo tightens BoA grip on ABN’s LaSalle 26 Jun 2007 Advice from Holland's advocate general has cut the odds of the US bank clinching its deal. The fate of the rest of ABN is still unclear. Even if his advice is followed by Dutch court, it wouldn t put RBS out of the game. The only certain loser is the Dutch justice system. Even if his advice is followed by the Dutch court, it might not put RBS out of the game. Its team might just bid for the rest of the group.
It doesn’t really pay to Discover 22 Jun 2007 On the face of it Discover looks to have the potential to grow. But it is unlikely to outperform rivals American Express and MasterCard. The US credit card division of Morgan Stanley is to be spun off to shareholders. But an independent Discover doesn t look worth owning.
Unicredit scratches its itch for risk 22 Jun 2007 After consolidating at home, the Italian bank has renewed its taste for adventure. Buying Kazakhstan s ATF opens a new frontier. But assets in traditional emerging markets are getting pricey. Unicredit at least has a decent track record of succeeding in new countries.
Fortis ripe for activism treatment 21 Jun 2007 The Belgo Dutch group s investors don t seem to think much of its plans to buy part of rival ABN Amro. Its shares have fallen 11%. That may give hedge funds the chance to mete out to Fortis the kind of treatment Atticus is giving Barclays and TCI is giving ABN.
Morgan Stanley cruises past its rivals 20 Jun 2007 What s more, Morgan has also closed the gap on Goldman. That s not a bad early second anniversary gift for boss John Mack. The brokerage shrugged off other firms jitters to post a record quarter, and topped Lehman s showing by beating estimates by 23%.
UBS’s financial virtue may go unrewarded 20 Jun 2007 The Swiss bank s boss Peter Wuffli warns that financial exuberance usually leads to lawsuits. But no leading firm can stay totally clean. UBS has already lost out for being too cautious while business is good and is succumbing to pressure to follow the herd.
ICI right to reject Akzo’s 600p bid 18 Jun 2007 Sure, the Dutch group s offer wasn t stingy, given recent sector deals. And it probably can t pay a lot more without destroying value. But ICI is in recovery mode and may have good news to tell. And even if ICI no longer commands prestige value, it still has scarcity value.
ING’s E2bn Turkish purchase misses the point 18 Jun 2007 Buying Oyak Bank will polish up the Dutch group s earnings profile. But, at such a high price, it s not clear the deal will add value. With ING trading at such a steep discount to the sum of its parts, it might do better breaking itself up rather than doing pricey deals.
Senators take on Schwarzman, not private equity 15 Jun 2007 Finance Committee leaders unveiled a bill that looks patently designed to strip Blackstone of favourable partnership tax status. It s not an attack on carried interest. It looks more like an assault on the Blackstone chief s ostentatious display of wealth.
Cerberus sounds out Germany’s taste for capitalism 15 Jun 2007 The private equity group is offering 50% more for RAG than the stateowned German conglomerate might raise in its planned IPO. In such a liquid M&A market, German companies are facing an increasingly stark choice between financial sense and political interests.
Lloyds chooses opportune moment to sell Abbey Life 15 Jun 2007 The UK bank has taken its time selling its closed life insurance business. This is one occasion when dallying might pay off. By selling now, Lloyds should get a good price. That may bolster faith in its managers at a time when Europe s banks are pairing off.