Munich Re faces dilemma over HVB offer 13 Jun 2005 The German reinsurer wants to reduce its 18% stake in the German lender, which has just received a E15bn bid from Unicredito. It may be tempted to sell some stock in the market before accepting the offer. But if that undermines the deal, Munich Re will regret it.
ABN sweetens bid for Antonveneta 13 Jun 2005 The Dutch bank is betting that raising its bid to E7.6bn will persuade investors allied to Lodi, a rival bidder, to switch sides. ABN is also extending its offer period in the hope that Lod''s bid will be hampered by regulators and prosecutors.
Citigroup pays $2bn to put Enron to rest 10 Jun 2005 As it did with WorldCom, the financial giant is taking the lead in drawing a line under its involvement with the bankrupt energy group. This should set a precedent for other banks facing Enron claims, though one based less on a precise formula than a backroom fight.
Mediobanca up on bid hopes 9 Jun 2005 There s no easy value in a break up and there s a pact. But neither hurdle has stopped other entrepreneurs from raiding Italian companies. Nevertheless, when insiders such as Mediobanca chief executive Alberto Nagel are selling the stock, buyers should beware.
Unicredito mulls further concessions to HVB 7 Jun 2005 The Italian lender has offered its German counterpart the chairmanship. Now it may allow HVB virtual autonomy if it agrees to a deal. In addition, it could pay a premium. Perhaps Unicredito boss Alessandro Profumo feels that without a merger, his options are limited.
Fazio shouldn’t let Lodi bet the bank 6 Jun 2005 The debtfunded deal the small regional bank has lined up to buy larger rival Antonveneta is not prudent and smacks of moral hazard. The central bank should force Lodi to shore up its capital ratios ahead of any bid.
Braggiotti threatens to quit Lazard 3 Jun 2005 The investment bank s partners seem to be going back to what they do best feuding. Investors in the recent IPO must be wondering what they have bought into.
Lehman takes conflict flak in L-3 deal 3 Jun 2005 The investment bank advised Titan on its sale to L3, which Lehman is also financing and on whose board two of its bankers sit. Like Goldman s role in the NYSEArchipelago deal, this has tongues wagging. But like that deal, it smells a lot worse than it tastes.
Calyon makes an unconvincing recovery 2 Jun 2005 Credit Agricole's investment bank has struggled since the Credit Lyonnais takeover. Does its strong Q1 mean it has turned the corner? Not necessarily. Earnings are up 48% mainly because of oneoffs. The underlying business still looks weak.
Whose side is Goldman on? 2 Jun 2005 That's the question private equity firms will be asking after the investment bank trumped them in the auction for Pirelli's cable assets. The rationale for the $9bn fund was that Goldman would facilitate client business, not compete with clients. That notion has taken a knock.
Gatecrashers threaten Italy’s salotto buono 31 May 2005 The strategic heights of Italian industry used to be controlled by blueblooded companies via a crisscross of shareholder pacts. But as BNL, Antonveneta and RCS have found, the pacts aren t impregnable. Brash new entrepreneurs are banging at the door.
UK bank investors spooked by rising defaults 30 May 2005 The UK banks sector has narrowed its traditional discout to the wider market in recent years amid hopes it had improved its risk management. But last week's warnings from HSBC and Barclays sent shares in the sector lower. It looks like normal service may have resumed.
Has Goldman lost its IPO touch? 27 May 2005 Goldman's IHS deal has been torpedoed by recalcitrant investors. That follows Boise last week, and the dismal performance of Lazard. The firm s yeartodate ECM record suggests Goldman overpromised issuers on value and possibly tripped up in execution.
Unicredito scratches its German itch again 27 May 2005 The Italian bank s mooted plan to buy HVB doesn t look as barmy as its 2001 bid for Commerzbank would have been. But look closer and there are plenty of problems with this transalpine tieup.
Barclays warns of growing bad debts 26 May 2005 The UK bank is revising guidance given only three months ago following a deterioration in its credit card book. It seems the bank s initial stance was complacent given mounting consumer fragility against which it has only limited powers of defence.
SocGen traders win upper hand 25 May 2005 The French bank has become more reliant on investment banking for profits than retail banking. Derivatives desks thrived in particular. SocGen has again defended its lead in the market. All the better if it can add more impetus to its retail arm too.
Goldman didn’t serve Deutsche Boerse well 19 May 2005 Being a good adviser means being prepared to deliver unpleasant messages. The Boerse was hellbent on buying the LSE without giving investors a say. Goldman should have advised a vote, and walked if it was ignored.
Unipol threatens smooth path of BBVA’s BNL bid 17 May 2005 The Spanish have hitherto avoided ABN Amro s Italian problems. But the insurer has shaken things up by asking to raise its stake. Unipol says it s only trying to protect a commercial agreement and it can t afford BNL. But if it could cause problems for BBVA.
Morgan Stanley loses Perelman case 16 May 2005 This is like weaponsgrade plutonium in the hands of chief executive Phil Purcell s growing army of detractors. It lost because of incompetence in coughing up emails related to the case, highlighting a systemic management problem.
ECB held back by fear of politicians 16 May 2005 It's not clear whether rates should rise but there's a feeling that the bank never moves them because it fears a political backlash. Sure, the ECB is supposed to be free from outside influence. But just look what politicians did to the Stability and Growth Pact.