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.
Goldman’s traders earn their discount 14 Jun 2007 It s tough enough understanding the investment bank s trading ops at the best of times. That s why investors ascribe no value to them. But this quarter s 20% revenue drop has them spooked. Goldman s other businesses just aren t big enough to make up the difference.
Has Bear Stearns been unfairly treated? 14 Jun 2007 Fears about mortgages and burps in prime brokerage have decimated the investment bank s shares, which trade at 1.5 times book. These worries look overdone. Bear is cheap, has more lowhanging fruit to pick than rivals and has appeal as a takeover target.
More cash may not win ABN for Barclays 13 Jun 2007 A lower reserve ratio would allow the UK bank to add E10bn cash to its bid. But a more generous offer risks angering its own shareholders. On the other hand, just increasing the cash portion of the mix wouldn t make the Barclays bid better than that of rival RBS.
Goldman learns lesson over UK conflicts 13 Jun 2007 The investment bank went out of its way to show BC Partners that it wasn t competing against it in the auction for New Look, the retailer. How different it is from early last year, when Goldman s UK advisory franchise was under threat after a series of clumsy attempted deals.
Lehman’s Q2 bodes well for rivals 12 Jun 2007 True, the mortgage heavyweight s credit trading revenue fell, but not by too much. Meanwhile, the rest of the firm had a bumper quarter. That should give a boost to Morgan and Goldman shareholders with less exposure to mortgages, these two should perform even better.
Finance company creditors may applaud rate rise 12 Jun 2007 Lenders typically hate interest rate increases. The recent spike in Treasury yields has many licking their wounds. But finance company bondholders, battered since the Sallie Mae buyout made them look vulnerable to LBOs, may actually benefit.
Should Texas Pacific be bidding for a Turkish bank? 11 Jun 2007 Buyout firms don t usually bid for banks. Nor do they typically dabble in emerging markets. TPG proposes to do both with its mooted Oyak bid At $2bn, Oyak isn t cheap. If TPG does pay 25 times earnings, it needs to radically transform the army bank to get its expected return.
Italian derivative woes offer cautionary tale 11 Jun 2007 A small Italian leasing bank has found itself in hot water after selling complex interest rate derivatives to its clients. It shows how complex instruments can make a bad situation worse and how hedges don t always provide protection.