Citigroup lowers its sights 20 Jan 2004 Why the change? It may be that Citi fears US consolidation will make the banking market more competitive. The US investment bank used to promise "superior growth", now it just promises "consistent growth".
Air Liquide buys Messer Griesheim for E2.7bn 20 Jan 2004 The French industrial gases company is buying assets on the cheap. But will the deal close? The combination carries high risk of antitrust concerns.
US bank merger raises the bar for Europeans 16 Jan 2004 As the Americans get bigger, it is getting harder for Europeans to make meaningful inroads into the US. Indeed, the boot is on the other foot. With their growing scale advantage, US banks look likely to snap up Europeans.
Will Bank One fetch a rival bid? 16 Jan 2004 Judging by the market reaction, JP Morgan's shareholders are relieved it hasn't overpaid. But that may mean Bank One sold itself short. By some measures, it may have. But it's not likely Wells Fargo or Wachovia have the guts to make a counter offer.
Dollar takes bite out of bonuses 14 Jan 2004 Last year was a good one for most bankers, but those working for US firms are feeling the pinch from the sliding greenback. Goldman bonuses, for example, came in this week higher than the year before, but needed to rise by nearly 15% just to offset the buck.
Rhodia’s bondholders face bleak future 7 Jan 2004 The French chemicals company s refinancing package looks set to go through. But Rhodia s banks have made a heads I win, tails you lose bet at the expense of bondholders, stockholders and the company.
China recapitalises two of its biggest banks 6 Jan 2004 Hopefully, the giant $45bn cash injection will be followed by reform of the baddebt riddled banking system. As the Japanese example has shown, just writing cheques doesn't solve the problem.
Leveraged buyouts to keep M&A moving 31 Dec 2003 Without the LBO, it would have been a terrible year for M&A. 2004 will be much the same, with one big difference. Whereas buyout firms bought companies in 2003, this coming year they will have to start selling a few.
Bond investors need to get defensive 30 Dec 2003 Bullish buyers drove bond prices up in 2003. The market now looks very expensive. And which ever way the global economy goes in 2004, they are exposed.
Parmalat stirs old fears about Italian banks 29 Dec 2003 The food group s collapse has reminded investors that some banks are still weak. Valuations which rocketed in 2003 look stretched. The best hope for 2004 is that the Parmalat shock will act as a powerful catalyst for industry consolidation.
Rhodia pays for breathing room 23 Dec 2003 The French chemicals company has come to an agreement to reschedule its onerous debt. But Rhodia will be forced to raise E300m in equity at a heavily diluted price.
The French chemical group is close to violating loan terms that would force a E362m repayment on bonds issued in a private placing. 19 Dec 2003 The French chemical group is close to violating loan terms that could force a E375m repayment on bonds issued in a private placing. If the company cannot restructure the notes, a full repayment could start a downward spiral of covenant breaches on other debt.
Goldman executive tapped by NYSE 18 Dec 2003 John Thain's arrival is a boost for the NYSE. But his $300m of Goldman stock means he is not free of potential conflicts of interest. But if his arrival at the NYSE is clouded, his departure from Goldman is clearcut. Bond honcho Lloyd Blankfein has a clear run at the top.
Morgan Stanley chases Goldman in M&A 18 Dec 2003 The fourthquarter figures show that Goldman is best placed to benefit from an M&A revival in 2004. Snag is there's no visible sign yet of a strong recovery in the deal business.
UK banking sector set for shake-out 17 Dec 2003 Over the last three years, surging volumes offset falling margins in the UK banking sector to the benefit of all banks. But this doesn't mean higher margins will offset a decline in volumes now the interest rate cycle has turned. A shakeout is in prospect.
Blackstone makes E3.1bn bet on Celanese 16 Dec 2003 The German chemicals company is weighed down by an enormous E1.5bn in debt and pension costs. The bid is a highlygeared bet on the depressed chemicals sector.
Morgan Stanley revives the rainmaker 15 Dec 2003 By unshackling some of its top bankers from administrative duties, the firm is signalling the end of costcutting and a rebound in activity. But there is also a hint of the defensive in the move the firm lost some top bankers and was seen to have lost momentum in the downturn.
CSFB takes further step from maverick heritage 5 Dec 2003 A radical change to its pension schemes takes CSFB another step away from its past as a guarantor of big bonuses and home to fiefdoms. A chunk of retirement pay will now be linked to the firm's ability to meet return on equity targets.
Rhodia’s banks face condundrum in debt talks 2 Dec 2003 The issue is whether the French chemicals group needs a rights issue any time soon. Regardless of the pressures on Rhodia's balance sheet, a rights issue could be sensitive for the banks that sold its recent highyield bond.
Lazard holding companies discuss merger 1 Dec 2003 The immediate benefit of a merger between Rue Imperiale and Eurazeo would be to unlock the discount to NAV at Imperiale. But the bigger prize is to unlock the discount at Eurazeo. That would require the sale of its stake in Lazard.