Dutch court blocks sale of LaSalle 3 May 2007 This causes total legal confusion. It s hard to see what it means for ABN s suitors. Barclays could still win. But whatever happens, it s difficult now to see how Groenink can stay in place as ABN s boss.
Lehman’s fixed income epicentre moves to London 3 May 2007 The bank s decadelong campaign to boost nonUS revenues is one reason it s now running its biggest business out of the UK. It s easier to oversee European and Asian business from there. That s crucial since it needs to make its big investments pay off.
Dougan makes transition easy at Credit Suisse 2 May 2007 The incoming boss won t have too many worries about his old business, investment banking. It hit its 30% margin target in the first quarter. The Swiss bank was hardly slowed down by US mortgage problems, or by anything else. Dougan should stick to the strategy he has inherited.
Wolfowitz and Browne show risks of excess 2 May 2007 Love affairs got both the World Bank boss and the head of BP into trouble. But their arrogance and enemies made them vulnerable. Ambition and passion are necessary to get to the top. But they have to be kept under control.
Groenink ties ABN in knots 2 May 2007 The Dutch bank s sale of the US unit to Bank of America may not legally be a poison pill. But it reduces the chance of a higher bid. What s worse, it is almost impossible to undo without landing ABN in damaging litigation. No wonder ABN s investors are cross.
Rudd attack on analysts hits the mark 30 Apr 2007 The Boots chairman blames stupid analysts for failing to spot the true value of the UK pharmacy echoing the complaints of other bosses. Too many analysts are prisoners of oldfashioned thinking. The result has been huge opportunities for private equity and hedge funds.
Santander plays it coy with Capitalia 27 Apr 2007 Spain s biggest bank says it is not interested in ABN s almost 9% stake in Italy s Capitalia. But it would be out of character for Santander s boss Emilio Botin not to extract value from such a key piece in Italy s banking power game.
RBS might unlock LaSalle 27 Apr 2007 The Dutch bank has done its damnedest to lock the UK bank and their allies out. But a side door may be ajar. The key is for RBS to bid for LaSalle, and to make its bid conditional on a wider offer for the ABN group.
Another bank falls victim to becalmed markets 27 Apr 2007 Bank of Montreal just lost upwards of $404m on energy trading. But not because the market was whipsawing. Quite the opposite. Falling natural gas price volatility was the culprit. Calm markets are one risk banks often overlook.
ABN supervisory board needs to ensure fair play 26 Apr 2007 Opening its books to the RBS consortium is a good start. But the bank now needs to show rival bidders how to unpick the LaSalle sale to BoA. Shareholders distrust the ABN's impartiality. The supervisory board figures like Baron Rothschild, Eni's Scaroni should provide balance.
Merrill’s investment in Resona looks a good punt 25 Apr 2007 The Japanese bank s struggling to repay a heap of government debt, but making good money while it does so. At a fullyconverted 7 times earnings, Merrill s investment looks good value. Maybe Japan s bank bailouts weren t so stupid after all.
RBS consortium bid contains E28bn funding mystery 25 Apr 2007 E22bn of the E72bn for buying ABN will come from paying in shares. Another E22bn could come from trimming the banks capital ratios. But that still leaves a E28bn hole. RBS s own funding looks OK. But its partners Santander and Fortis probably need mega rights issues.
RBS’s E72bn bid puts ABN on the spot 25 Apr 2007 The Dutch bank must not now continue to recommend the offer from Barclays, given the RBS team is paying significantly more and mostly cash. Sticking with Barclays and a parallel deal to sell its US assets to BoA would be reprehensible.
Winner’s curse may put pressure on ABN Amro 24 Apr 2007 The Dutch bank s cunning plan to foil a consortium bid has made Barclays look the more likely winner of the bid battle. The snag for the Dutch is that this has dented the value of Barclays offer. And will increase the pressure on them to entertain a rival bid.
Barclays stretches to offer E67bn for ABN 23 Apr 2007 The UK bank has won the support of its Dutch rival's board but at a price. ABN is going for a big premium to betterperforming peers. Making the deal stack up relies on some demanding synergy targets. That could be taxing for a bank without much takeover experience.
No plum role for Goldman in ABN bid 23 Apr 2007 The investment bank has been missed out because it tried to pick the most likely winner and guessed wrong. Despite jumping from bidder to target, Goldman has ended up with a role that s likely to involve only writing a fairness opinion.
What happens if Barclays loses ABN? 19 Apr 2007 The bank has clearly signalled its desire for a transformational deal. As CEO Varley has hinted, failure to snag ABN could put it in play. But the list of potential bidders isn t long. A process of elimination leads to only a few with the desire and wherewithal, led by BofA.
Wellink’s attempt to shield ABN might backfire 19 Apr 2007 The Dutch central bank boss has hastily panned a potential consortium bid for ABN Amro. He looks obstructionist rather than cautious. That risks comparisons with Italy s Antonio Fazio who Wellink roundly decried. Foreign regulators will have good reason to complain.
Merrill Lynch unburdened by subprime excess 19 Apr 2007 The investment bank raised a few eyebrows last year when it paid over the odds for mortgage lender First Franklin at the top of the market. But the subsequent rout in the subprime market doesn t appear to have made a dent in the Thundering Herd s earnings.
Citigroup model works – for JPMorgan 18 Apr 2007 The bank delivered another strong set of results last quarter, complete with the earnings leverage crosstown rival Citi yearns for. Of course, JPMorgan boss Jamie Dimon is not running such a sprawling firm. But that just adds to the sense that Citi is too big to manage.