Wasserstein pulls off Lazard IPO 5 May 2005 The investment bank sold $1.8bn of securities, ending 157 years of family control and putting the wily Wasserstein in control. Setting aside Lazard's investment prospects which are shaky Wasserstein has proven why he is one of the world s greatest dealmakers.
Credit Suisse warns of considerable slowdown 4 May 2005 The Swiss bank has been much more bearish than rivals about the extent of the market downturn in the second quarter. Perhaps it doesn t want investors overexcited about its restructuring. But mixed Q1 results mean they shouldn't be getting excited anyway.
UBS investment banking profit falls 19% 3 May 2005 The Swiss bank is content with its Q1 performance, saying the drop partly reflects a deliberate move to stay out of certain markets. But the underperformance relative to peers is disappointing for a bank that once reliably outperformed.
Lodi offers to pay less for Antonveneta 2 May 2005 It s not just lower than ABN s rival bid there are significant question marks over the true value of what it is offering. Normally, in such a situation, the bidder would be laughed out of court. But this is Italy.
ABN wins hollow victory 28 Apr 2005 The Dutch bank has finally received authorisation to boost its stake in Antonveneta to 30%. But with the shareholders meeting on Saturday, that doesn t leave ABN much time to buy and register new shares.
Rhodia’s future hinges on legal battles 27 Apr 2005 The troubled French group will find it hard to pay back its E1.9bn debt with the cashflows from its chemical business. But favourable results from two lawsuits particularly a E2.9bn one brought on its behalf by de Lasteyrie would change the maths.
ABN to speed up investment banking job cuts 27 Apr 2005 The Dutch bank missed out on the investment banking boom in Q1. Yearonyear revenues fell in all three units of its wholesale bank. ABN lacks the scale to compete with bulgebracket rivals. But evidence has yet to emerge that it has a credible strategy as a niche player.
Italian policing of concert parties is a joke 26 Apr 2005 Look at the Antonveneta battle. There is an intricate cat s cradle connecting Lodi, with 29% of the shares, and other investors with 14%. Consob, the regulator, is investigating. But given past form, there s precious little chance that it will judge this to be a concert party.
Intesa pursues jumbo E10bn loan sale 26 Apr 2005 The Italian lender is breaking new ground by trying to sell a giant chunk of its nonperforming loans, all in one go. That would help clean up Intesa s balance sheet. But it s not clear that agglomerating the loans for sale is the best way of creating value.
Barclays stretches offer for Absa stake to £2.8bn 25 Apr 2005 That s almost a third higher than the price first bandied about when the UK bank entered talks with the South Africans last year. The price is already at the limits of what can be justified. Sooner or later Barclays must tell Absa to take it or leave it.
Wall Street aflame with Goldman envy 22 Apr 2005 The firm s hydraheaded role in the NYSEArchipelago merger has rivals buzzing about conflicts of interest. But the real frustration may lie in the fact that Goldman managed these conflicts with aplomb and will continue to do so.
JP Morgan under pressure over cost cuts 20 Apr 2005 The group may be regretting its bold predictions of $3bn in savings from its merger with Bank One. It s going to be a close run thing to reach these goals. Nonetheless, the merger still created value.
Bank of Italy is a very strange regulator 20 Apr 2005 Normally, central banks like their local banks to be well capitalised. But the BoI has let Lodi swoop on Antonveneta an escapade that could trash its capital ratios.
Merrill may not be exact model for MS 19 Apr 2005 Phil Purcell's changes at Morgan Stanley seem eerily similar to those Stan O'Neal made at Merrill in 2002. And Merrill has since done well. But Purcell may find it hard to copy O'Neal for two reasons: business conditions are better; and MS is more dependent on investment banking.
Bond buyers should listen to ECB 19 Apr 2005 The central bank is worried about longterm inflation. But investors have pushed eurozone bond yields to nearrecord lows. They think slow growth is deflationary. But inflation can rise with low demand. Eurozone money supply is increasing too fast for comfort.
Antonveneta minorities must beware Lodi 13 Apr 2005 Lodi has a real chance of derailing ABN Amro s bid for Antonveneta. But not by offering more. Possibly by offering a complex cocktail including illiquid paper. And conceivably by offering nothing at all.
Morgan Stanley loses Perella, Meguid 13 Apr 2005 The top two investment bankers are the latest casualties of boss Phil Purcell's purge. This will hurt morale, and possibly business. But with their departures, Purcell now has free rein to implement his vision of the firm one where the brand matters more than the people.
Wall Street partnerships bite back 11 Apr 2005 The Morgan Stanley row illustrates the downside of replicating a partnership by loading staff up with equity. When the stock performs, the arrangement works. When it doesn t, present and former troops agitate for change.
RBS faces dilemma in Bank of China deal 11 Apr 2005 The Scottish bank is among the contenders to take a stake in BoC. And it could afford to buy as much as 20% without having to issue equity. But a deal would gobble up cash that could instead be used for boosting RBS s capital base and share rating.
Buying pushes Antonveneta above ABN’s bid 7 Apr 2005 It s unclear what s going on. But one theory is that it s customers and other locals who want to retain influence over Antonveneta. This clearly makes ABN s life more difficult. But it doesn t mean the Dutch are certain to be thwarted.