Dexia pays $2.4bn for stake in Turkey’s DenizBank 31 May 2006 Shares in other Turkish banks have fallen 15% in the last month, yet Dexia is paying twice as much as other recent Turkish bank deals. As a result, returns look meagre and Dexia risks reviving its reputation for poor deals.
Engelhard finally caves in to $5bn BASF bid 30 May 2006 The US materials group didn t have much choice. Its plan to buy back its own shares at $45 each won little support from shareholders. BASF has answered critics who feared the German chemical giant would overpay. At $39 a share, the deal should deliver value.
Bulking up in mortgages risky for Merrill, Morgan 30 May 2006 The two Wall Street firms are on the lookout to buy US mortgage lenders to help bulk up their capitalmarkets mortgages businesses. Lehman proved it can work. But the US housing market has fallen from its peak. They must be careful not to overpay.
Nil-premium US bank mergers reappear 25 May 2006 AmSouth s $10bn merger with Regions illustrates how consolidation in US banking sector can continue given the environment. With synergies worth $2.5bn, a deal made sense. But AmSouth s valuation at three times book meant Regions couldn t justify paying a premium.
UBS’s China strategy makes sense 24 May 2006 The Swiss bank may seem to have a bit of a me too strategy, taking small stakes in the Bank of China and a Beijing brokerage. But it s actually trying to build goodwill in Beijing so it can take advantage of the opening up of the Chinese wealth management market.
BASF is closing in on Engelhard 22 May 2006 It upped its bid for the US catalyst maker to $39 a share and made it final. An extra $1 may not sound like much, but it may do the trick. Investors don t seem convinced by Engelhard s defence plan a $1.2bn share buyback. And there is no white knight to trump BASF s offer.
Wall Street cashing out 19 May 2006 As investment banking stocks have soared, top dogs at Lehman, Merrill and Goldman have quietly been selling out. They're not alone. Evercore is going public. Greenhill and Weisel completed secondary offerings. Are they signaling something?
French banks may stumble on appetite for deals 19 May 2006 BNPP, Credit Agricole and SocGen milked strong markets in Q1. They have earned their rerating compared with the investment banks. But their increasing reliance on investment banking and their hunger for deals may make it difficult to catch up with Europe s retail banks.
Univision highlights difficulty of being Goldman 17 May 2006 The broadcaster s $12bn auction is one of Wall Street s hottest deals, attracting all the top LBO firms and advisors, plus Bill Gates. This puts Goldman in a pickle. It runs the risk of angering private equity and corporate clients by competing against them as a principal.
Enron duo could be guilty for deliberate ignorance 12 May 2006 The judge presiding over the fraud trial said he would allow jurors to consider the socalled ostrich theory of criminal wrongdoing. This means if Lay and Skilling are shown to have put their heads in the sand while subordinates went wild, they could be found guilty.
UBS makes Pactual’s bankers earn their premium 9 May 2006 The Swiss bank looks, at $3.1bn, to be paying a premium to beef up Brazil. Goldman Sachs reportedly valued the business at half the price. But at least UBS is getting full control. And, in delaying most of the payment for five years, it has hedged itself against a blow up.
Biggest high-yield hybrid to test appetite 9 May 2006 Lottomatica is selling a E750m hybrid bond the largest junk hybrid in Europe despite some uncertainty in the US market. AArated Swiss Re s recent $2bn hybrid deal was well received, and early indications are that demand for a junk deal will also be strong.
UBS fails to keep up with investment bank pack 4 May 2006 While the bank s traders had a strong Q1, it wasn't as good as rivals apparently due to gaps in commodities, fixed income and high yield. UBS is urging investors to be patient while it fills these holes. Thank goodness asset management has given them a reason to stick around.
Deutsche Bank’s traders deliver the goods 3 May 2006 The German investment bank sparkled in Q1. The trading desks drove the group s pretax return on equity way above target. So they should thrive in what is usually the group s strongest period. The bank needs to keep up the pace to close its discount.
Credit Suisse’s investment bank bounces back 2 May 2006 The former CSFB flew in Q1. Revenue growth outshone US peers without the soaring costs which marred last year s results. That will go some way to rewarding dogged investors. But the division needs to show stamina and speed to help close the group s discount.
Wal-Mart bank critics guilty of hypocrisy 28 Apr 2006 Among the forces aligning against the retailer are community banks, who say WalMart would destroy American capitalism. But this assumes that small banks dole out credit better than big ones do. That s not what the numbers universally suggest.
Will carbon trading go up in smoke? 28 Apr 2006 It s a fair question after the price of emission permits fell by 50% in three days. It turns out Europeans aren t as gassy as expected. Some hedge funds are smarting, and some utilities might look less valuable. But the market serves a real need. It shouldn t disappear.
ABN toils under weight of reforms 26 Apr 2006 The Dutch bank struggled in Q1. Wholesale dragged down the US. The investment bank declined despite benign trading conditions. That's a sign of the huge task ABN has taken on in revamping wholesale and absorbing Antonveneta. Extra cost cuts will add to the workload.
New IMF mandate unlikely to solve anything 25 Apr 2006 The International Monetary Fund wants to do something about the huge US trade deficit and the country s too willing lenders. It won t be easy. The IMF can t force the US or China to change policies. And even if it could, it may be too late for good advice.
BSkyB sacks Goldman as broker – exclusive 21 Apr 2006 This may seem astonishing given the traditionally deep relationship between the Murdochs and Goldman. But given that Goldman just tried to buy ITV, one of Sky s biggest rivals, and is a close adviser to NTL, its other, you can see why.