Banks

Lloyds TSB aims high in share registrar unit sale

5 Apr 2007

The UK bank is said to be asking 18 times 2006 earnings for this mature and lowmargin business. Antitrust considerations may keep large trade buyers away. This auction is a good test of just how keen asset buyers are.

No sense in a Dow bid for ICI

4 Apr 2007

A rumoured bid from the US company for the UK paint producer doesn t stack up financially. The synergies are tiny, and ICI is expensive. Akzo Nobel would be a more sensible buyer. But ICI isn t just waiting to be taken it s on the prowl too.

Is ICBC the most overvalued bank in the world?

2 Apr 2007

ICBC s market value has pushed ahead of Bank of America. It s now on double the earnings and book value multiples of BofA. The Chinese banking giant belongs to another era. It resembles a US money centre bank from half a century ago.

Banker swaps half the world for buyout Eldorado

29 Mar 2007

Leonhard Fischer ran Credit Suisse s operations from John O Groats to Cape Town. He s giving up all that for buyouts in Brussels. Investment bankers are always on the lookout for richer pastures. But their timing is often poor.

South Africa bank boss hits Barclays at sensitive time

29 Mar 2007

Central bank governor Tito Mboweni has made himself an international name by slating Barclays while it s in talks with ABN. That may help ensure he s considered top dog the next time a foreign bank invests in SA. But it may leave a cloud over Barclays plans.

Amvescap’s plunge looks extreme

29 Mar 2007

Deutsche Bank's raid on Amvescap's fixed income unit isn't good news for the asset manager. But the market's reaction is overdone. Amvescap shouldn't have much trouble finding new bond managers. Meantime, its shares look cheap compared to its peers.

ABN rejects break-up call

28 Mar 2007

The bank may be right to argue that breaking itself up for cash now won't deliver the best value. It needs to sort its businesses out first. But if the board really believes in value creation, it should not close off discussions with any other suitor in a merger or takeover.

ABN-Barclays deal might not start merger stampede

27 Mar 2007

Big European bank tieups are back on the agenda, now the Dutch and UK groups are in talks. But talk is still easier than action. Regulatory hurdles are lower, and activist investors are likely to keep stirring the pot. But willing targets still look hard to find.

Jupiter buyout risky but probably worth it for private equity

26 Mar 2007

It goes against convention for private equity to take a minority stake behind management. But that's what TA did in the £680m UK fund MBO. Why did TA do it? Because it's backing what it hopes are stars in a people business. And it helps that they're paying a low price.

Morgan Stanley changes with hedge fund times

23 Mar 2007

The investment bank is erasing the line between fixed income and equities in its sales and trading desks. The move won t do much for oldstyle clients. But Morgan Stanley has to keep up with its most important customers hedge funds.

Mack’s traders mask bankers’ lull

21 Mar 2007

The Morgan Stanley boss s push to pile on the risk paid off again in the first quarter. Trading revenue jumped more than at rival Goldman s. But his bankers weren t so lucky. True, advisory work isn t nearly as important to the bottom line. But it still carries bragging rights.

ABN shouldn’t ram through Barclays deal

20 Mar 2007

The Dutch bank has entered exclusive talks, raising concerns that CEO Groenink is more worried about a dignified exit than a profitable one. Selling to Barclays may be one way forward but it may not deliver the most value. Groenink needs to consider all the options.

UK inflation at highest level since 1991

20 Mar 2007

The RPI index, which includes housing, rose 4.6% in the last 12 months. That makes the overnight interest rate of 5.25% look low. The Bank of England looks at the more restrictive CPI index. Its 2.8% increase is less alarming, but still worstof class in Europe.

Shell could be the model for ABN-Barclays

20 Mar 2007

The Dutch have always been sensitive about economic power shifting abroad. The takeover of a large bank will be supersensitive. Barclays will need to find a way to assuage Dutch national pride. Fortunately, Royal Dutch Shell offers a handy template.

Barclays attempts ABN bear hug

19 Mar 2007

The campaign that hedge funds are waging against the Dutch bank has opened the door to an agreed takeover by its UK rival. But Barclays still has plenty of hurdles to overcome, including Dutch patriotism, the need for a premium and competition.

Should Citi join the ABN Amro scrum?

19 Mar 2007

But not to buy all of it. While Citi could find copious synergies to fuel a bid, its investors would howl and ABN s wouldn t want its paper. Instead boss Chuck Prince should offer to buy ABN s US and Latin arms. That would cost less, suit Barclays, and plug some of Citi s gaps. It could probably cut more costs than Barclays. But its investors would howl and ABN s wouldn t want Citi stock. Instead boss Chuck Prince should offer to buy ABN s US and Latin arms. That would cost less, suit Barclays, and plug some of Citi s gaps.

Cazenove shares hit new high – exclusive

16 Mar 2007

With the latest jump in its privatelytraded stock, they are up nearly 50% from where they traded before the JP Morgan deal. Caz s shares still lag rival banks. But that s partly due to its more limited exposure to lucrative proprietary and financing activities.

Can UBS afford to part with Ken Moelis?

15 Mar 2007

Losing your top investment banker doesn t have to be a disaster. After all, Morgan Stanley has done perfectly well without Joe Perella. But Moelis took the Swiss bank s US business into Wall Street's top tier. His departure would be the first real test of its durability.

What next for Akzo Nobel?

14 Mar 2007

Following the surprise disposal of its drugs unit, the Dutch coatings company is sitting on a hefty E11bn cash pile. That gives it options. A bid for the UK paint company ICI or US firm Sherwin Williams looks most likely. But Akzo has to act fast or risk itself becoming a target.

Lehman’s wobbles illustrate subprime confusion

14 Mar 2007

The investment bank s stock has been riding the waves of market worries over the impact of rising defaults in the mortgage markets. This doesn t just reflect investors concerns about its business it shows how poorly the effects of a subprime meltdown are understood.