Cazenove may be Barcap chief’s reward 11 Jun 2004 It was always likely that Bob Diamond would be given a big sweetie to cheer him up after missing out on the top job at Barclays. That may be the price of keeping him. The snag is that few investment banking acquisitions make much financial sense.
Zumwinkel should use head, not heart on Postbank IPO 10 Jun 2004 Deutsche Post s CEO is trying to sell the bank s shares to the market at too high a price largely as a point of pride. Of course, he could just cut the price. But a better option would be to scrap the IPO and spin off Postbank instead.
European bank CEOs can’t stop talking about deals 8 Jun 2004 Bigwigs at Deutsche Bank and Barclays are openly talking about the need for crossborder deals. They should listen to the chairman of Lloyds. He s given up on the idea and is reconsidering domestic deals, despite regulatory opposition.
Postbank IPO is a tough sell 7 Jun 2004 The punchy price range seems designed to appease the bank s parent company Deutsche Post. Institutions will need to be convinced Postbank deserves a premium rating. The issue may rely dangerously on support from retail investors.
AIB boss needs a miracle to survive latest scandal 2 Jun 2004 The Irish bank, headed by Michael Buckley, has been rocked by news of its ties to a tax avoidance scheme for top execs during the 1990s. For much of the time, Buckley headed the division responsible. Unless the inquiry clearly shows why he didn't spot the rot, he should quit.
CSFB uses incubator to retain top trading talent 1 Jun 2004 Remember incubators from the dotcom boom? Then investors offered capital to fledgling dotcoms in the hope they'd turn out to be winners. CSFB's incubator is designed to staunch the exodus of young trading talent to hedge funds. Yet more evidence of the hedge fund bubble.
Deutsche Bank drops big hint on Postbank’s value 28 May 2004 The colead bank on the flotation of Postbank has suffered an embarrassing leak. An internal memo puts a lower valuation on Postbank than the vendor, Deutsche Post, expects. But the leak may make the client get real.
Barclays runs to stand still 27 May 2004 The UK bank is piling on costs to drive organic growth. But its retail banking and credit card businesses are not taking market share. With debt markets weakening, Barclays Capital will struggle to compensate. The only crumb of comfort is continuing share buybacks.
Cazenove teases its suitors 24 May 2004 The independent UK investment bank hasn t yet deemed any of its various takeover approaches worthy of formal talks. It says it still prefers a float. But in protesting so much, Cazenove seems to be inviting its suitors to make an offer it can t refuse.
Rhodia crippled by rescue’s cost 17 May 2004 The French chemicals group has fought off insolvency with a successful rights and bond issue. But the treatment did not cure, and has given rise to a nasty set of side effects.
1+1 may equal 2 or less in Agricole/Lyonnais merger 14 May 2004 Investment banking is the bit of the deal that's supposed to deliver the integration benefits. Unfortunately, it's also the area that has been most marked by infighting.
Pinpricks of light for Italian banks 13 May 2004 The domestic economy is still pretty grim. But investors have woken up to the dangers this may pose to Italian banks. Meanwhile, Intesa has shown it can squeeze more juice out of its recovery, and Unicredito may have hit its trough.
Weak investment banking soils SocGen’s Q1 13 May 2004 Revenue growth in the investment bank was lacklustre. So much for SocGen s racy leverage to an equity recovery. And the current climate highlights the virtues of rival BNP Paribas more diverse business.
Ackermann damaged by Postbank affair 13 May 2004 The onoff deal has exposed divisions over strategy at the top of Deutsche Bank. It has also weakened Ackermann's authority, making it harder for him to keep the old guard at bay.
Dirigisme alive in Germany too 12 May 2004 Berlin's meddling in Postbank is reminiscent of the French government's intervention in the Sanofi/Aventis bid. If the Germans emulate the French, it will be another black day for the market.
Investment banks lose $90bn of value 12 May 2004 Since hitting highs in March, investors have sliced that much from the market caps of the big seven US investment banks. At a time when corporate finance is improving, investors are taking negative views on prop trading, rising costs and, now, litigation risk.
Berlin tries to broker Deutsche/Postbank deal 11 May 2004 But it is unlikely to revive the moribund German banking industry. Such a marriage would satisfy Gerhard Schroeder's desire for an eyecatching initiative before the summer break.
Another US bank fetches megabucks 10 May 2004 SunTrust's $7bn takeover of National Commerce has shown yet again the sort of skyhigh prices US banks are fetching. Even in a bestcase scenario SunTrust's return on investment looks pretty low.
Citi in $2.6bn WorldCom settlement 10 May 2004 With that, and an increase in litigation reserves, Citi's bubbleera practices look set to cost shareholders about $9.3bn in total. This is an unfortunate finale to Sandy Weill's legacy. But fighting it in the courts would probably cost even more.
Greenhill shows it’s not only Google that’s hot 7 May 2004 A brisk trade is taking shape in IPOs by companies leveraged to a comeback in the investmentbanking business. Greenhill's IPO was a knockout success. Leaguetable ranker Dealogic did well, too. Now comes Morningstar.