Monte Paschi calls BNL deal `frozen’ 15 Nov 2002 This dovetails with talk the Bank of Italy wants to reduce the influence of Monte Paschi's foundation before approving a BNL deal. Combined with new shares Monte Paschi is issuing to mop up minorities, a nilpremium BNL offer would dilute the foundation to below 50%.
HSBC to buy Household Intl for $14.2bn 14 Nov 2002 The price, at 1.6 times book value, looks relatively good for HSBC shareholders. By contrast, Citi paid 3 times book for Associates. At 7.2 times estimated 2002 eps, the deal also compares favourably. HSBC may be striking at the right time of the credit cycle.
Credit Suisse suffers big Q3 client outflows 14 Nov 2002 Particularly worrying was the decline in private banking inflows. UBS took nearly three times as much money in Q3. Credit Suisse s private bank accounts for most of the group s value.
Commerzbank results window dressed 14 Nov 2002 The group has written up a highly questionable gain on a mortgage bank merger deal. Investors should not give too much credit to this.
Lazard’s Felix Rohatyn rides again 14 Nov 2002 The bankers at Lazard must be fuming. The former NY senior partner popped up as consigliere to HSBC. Is this old face the new face of M&A advice? At least HSBC can be sure that one man and a secretary poses no conflicts of interest.
SCH’s Banesto share offer a piece of internet arcana 13 Nov 2002 Remember how cashhungry telecom firms floated illiquid minority stakes in their internet subsidiaries at the height of the tech boom? Spanish bank SCH has now made the idea its own. It didn t work well for investors then. It is unlikely to do so now.
UBS Q3 tops forecasts, drops Warburg name 12 Nov 2002 The private bank is humming along. Cost control is good, as is credit quality. And the group s capital base is strong. Yet this is only a picture of relative strength. UBS has escaped many postbubble problems, but not the broader slowdown.
Commerzbank falls into loss in 3Q 12 Nov 2002 Ignoring a paper gain on the deconsolidation of a subsidiary, the figures were horrendous. Commerzbank is trying to cut costs but it can t afford to leak revenues in the process.
European banks face bad loan double-whammy 11 Nov 2002 Not only are default rates still on the rise, but recovery rates have plummeted. The effect is to erode bad debt provisions. Banks may need to set aside more.