Merrill’s Blackrock deal unlikely to be widely imitated 16 Feb 2006 Apart from Morgan Stanley, no other investment bank s fundmanagement units face the same conflicts. But as competition from index and hedge funds increases, these captive asset managers risk becoming wasting assets.
Merrill unlocks value with Blackrock deal 15 Feb 2006 At first blush it looks like Merrill is accepting a low price to hitch onto a market leading highvalue bond manager without control. But the deal values its asset management business at a big premium to Merrill s overall multiple. That creates value for its shareholders.
Bankers hold Credit Suisse to ransom 15 Feb 2006 The Swiss bank achieved okay revenue gains in investment banking in the fourth quarter. But staff and other expenses spun out of control. Credit Suisse has long battled with an addiction to excess costs. The M&A boom has tempted it fall to off the wagon again.
BNP Paribas falters in shift abroad 15 Feb 2006 Foreign retail businesses contributed more than domestic ones to BNPP's revenues last year. With Italy's BNL on board, that lead will grow. BNPP is escaping its sluggish home market, but at a price. Investors are fretting it will be tempted into more acquisitions.
UBS strikes gold in M&A boom 14 Feb 2006 The Swiss bank saw advisory revenues climb 43% yearonyear in the fourth quarter. Its wealth management franchise also thrived. Cost pressures are mounting, and plans to return capital are sadly modest. But UBS's ability to generate stellar returns is not in doubt.
Merrill pips Morgan in $8bn Blackrock deal 13 Feb 2006 Having lost out once already on finding a home for its asset management arm, Merrill is pouncing on the opening Morgan Stanley left wide. This reflects a greater evolution in Stan O Neal s strategic thinking than John Mack s, provided he doesn t squander value for stockholders.
Fox-Pitt is a serious threat under Flowers 13 Feb 2006 The research boutique s franchise may be damaged. But its specialisation in financial institutions is still a huge advantage. With exGoldman whiz Chris Flowers backing its MBO, FoxPitt could yet poach clients from other boutiques if not bulgebracket firms.
HSBC may need an investment banking deal 10 Feb 2006 It isn t the first bank to discover how hard and slow a process it is to build an investment bank organically. HSBC has shied away from buying on grounds of risk. But to succeed in breaking into the business, it may have to steel its nerve.
Mack makes up his mind…sort of 9 Feb 2006 By naming Zoe Cruz and Bob Scully copresidents, Morgan Stanley s boss has put an end to the firm s nebulous management structure. But since neither is an obvious candidate to lead the company longerterm, Mack has left an opening for a successor and probably a deal.
Lazard’s lofty multiple is deserved 8 Feb 2006 They're also highly correlated to M&A which is in an upward cycle. With another year to run, earnings could feasibly grow 10%plus again. The boutique firm, trading at 19 times forward earnings, may be less diversified than larger peers. But its earnings are more transparent.
Akzo Nobel split will eliminate conglomerate discount 7 Feb 2006 It is no wonder the market is pleased with the E11bn Dutch conglomerate s plans to float its pharma division. The plan will more than reduce Akzo s persistent conglomerate discount the pharma unit is likely to attract a takeover premium.
Rise in protectionist rhetoric deceptive 6 Feb 2006 From the angst in France, Italy and the US over crossborder takeovers, it might seem like the barriers are going up. In fact, these are desperate rearguard actions which will thankfully not stop the trend towards closer integration of global economies.
German shareholders deserve vote in takeovers 6 Feb 2006 Take Linde. The German conglomerate s E12bn bid for BOC would more than double Linde s size and leave it highlygeared. Yet Linde doesn t have to offer shareholders a vote. Only the supervisory board votes and may not represent the will of minority holders.
Deutsche ends good year on sourish note 2 Feb 2006 Trading hiccups and a charge for its German property debacle meant returns in Q4 dipped. But Deutsche still beat its stiff fullyear target. Ackermann has reaffirmed those targets going forwards. But that's of limited reassurance, as Deutsche's boss may not be around for long.
Merrill dolls up its US mutual funds 31 Jan 2006 Its assetmanagement arm is removing the Merrill name entirely. That should make its funds more palatable for third parties to sell. But CEO Stan O Neal has also been discussing hiving off the division. The name change could also be the precursor to a deal.
Mellon’s new CEO shores up the strategy 31 Jan 2006 Robert Kelly s appointment as Mellon s new boss should silence critics demanding that the US bank split in two. He s a fan of Mellon s current business mix. Given the performance of the company and the share price, he s right.
Morgan Stanley crafts decent $2.5bn aircraft exit 30 Jan 2006 CEO John Mack has extricated the investment bank from its troublesome aircraft leasing unit, squeezing a price $500m higher than expected. It was Mack who took the firm into in this business, in his former role as president. By exiting on these terms, he has salvaged some pride.
Ineos cleverly exploits appetite for yield 27 Jan 2006 The UK chemicals group has succeeded in squeezing better terms for the financing package accompanying its E7.4bn purchase of BP s Innovene. Ineos has proved that, for the right deal, debt issuers can drive a hard bargain in this market.
Goldman pulls off Chinese coup 27 Jan 2006 It is paying $2.6bn for a stake in the country's biggest bank, ICBC, that may actually be worth more like $6.6bn. How has Goldman got this steal of a deal despite not obviously bringing much to the party? Probably because it's been close to ICBC.
HSBC mulls new role for Studzinski – report 27 Jan 2006 Three years after signing M&A supremo John Studzinski for a fat fee, the bank is reportedly shifting him upstairs. That would leave cohead Stuart Gulliver in charge of HSBC's investment bank. The unit may have been too small for two highprofile bosses.