Man U investors can always vote with their feet 20 Sep 2011 The soccer club may list in Singapore with “stapled” securities that could entrench the Glazer family’s control. But though new investors may not get the voting power they’d like, that can be reflected in the price. If the idea sounds too tricksy, would-be backers can say no.
Ruling is blow for Yukos compensation bid 20 Sep 2011 The European Court of Human Rights has offered only weak support for the claim that the Russian government expropriated the Yukos oil company, and ruled in favour of Russia on crucial points. The legal battle isn’t over, but Russia will breathe a sigh of relief.
China’s IPO delays could worsen capital crunch 20 Sep 2011 Two heavy equipment makers, Sany and XCMG, delayed plans to raise a combined $5 billion. That suggests another door closing for Chinese companies hit by slowing demand and tighter credit at home. For those facing cash shortages, weak global capital markets may be the last straw.
Proxy advisers’ clout is overstated 19 Sep 2011 When it comes to say-on-pay, director elections and the like, some U.S. companies fear that shareholders just parrot ISS and other purveyors of sometimes flawed advice when they vote. New research suggests the worriers should relax: company owners are more thoughtful than that.
Tyco sets new example for conglomerate bondholders 19 Sep 2011 When the industrial group last broke into three in 2007, an ugly fight with creditors ensued. This time, Tyco’s paying them more heed. It plans to spread $4 bln of debt evenly rather than dump it into one unit. Lenders to other breakup candidates may want to gird themselves.
Shareholders need more power over boardroom pay 19 Sep 2011 The UK’s maverick business minister used his party conference as a platform to launch a government rethink on executive pay. The move isn’t as politicised as it might seem. Vince Cable has investors in mind, and the aim is to promote transparency and pay-for-performance.
Qatar risks a foreign investment pile-up 19 Sep 2011 The gas-rich state might have around $100 bln to throw at foreign assets, based on guesses at the size of its sovereign fund. A 7.5 pct stake in Franco-German EADS would cost less than $2 bln. But Qatar’s overseas spending doesn’t look as focused as its domestic growth ambitions.
UniCredit’s capital options lie eastwards 19 Sep 2011 Since missing the boat on capital raising earlier this year, sovereign concerns have smashed the Italian bank’s share price. Underwriters may only back a rights issue if the euro zone crisis eases. The best option might be to find a deep-pocketed Middle Eastern investor.
Five questions the UBS investigations must answer 19 Sep 2011 The $2.3 bln rogue trading scandal raises questions about the Swiss bank’s cash management, internal controls, and supervision of its traders. It also points to structural flaws in the market for exchange-traded funds. Here’s what investigators and regulators should focus on.
Settlements feed U.S. prosecutor overreach 16 Sep 2011 From Google to tire-maker Bridgestone, firms pay big money to avoid fights with the government in U.S. courts. Trouble is, these deals encourage prosecutors to go after what they can punish, not what the law prohibits. It’s another unpredictable cost of doing business.
Netflix storyline hits a disturbing plot twist 16 Sep 2011 The fast-expanding web video firm’s decision to raise prices has forced the firm to cut its subscriber growth forecast. That’s a hit to the virtuous circle fueling Netflix. If growth slows further, it could impede Netflix’s ability to secure content on favorable financial terms.
Repsol is wrong to get heavy with activists 16 Sep 2011 The Spanish oil giant is angry at a new shareholder pact between construction firm Sacyr and Mexican energy group Pemex. The activists’ interests may conflict with those of other shareholders. But their immediate demands make some sense, and a big battle benefits no one.
Morgan Stanley misses a trick on Mack succession 15 Sep 2011 The chairman’s departure isn’t a terrible thing. But adding his duties to CEO James Gorman’s already full slate is unfortunate when investors haven’t fully embraced his strategy. It also frees other banks to unify the roles and legitimizes the status quo at Goldman. Too bad.
Frac Tech’s sellers need a racy valuation in IPO 15 Sep 2011 The U.S. fracking specialist’s debut was delayed in May by a buyout. Now it’s coming back to market. The new owners will want an equity valuation above the $3.5 bln they paid. That may be rich for a firm that, while growing swiftly, remains vulnerable to a supply glut.
How could UBS not have learnt from SocGen? 15 Sep 2011 Unauthorised trades that cost the Swiss bank $2 bln took place in the same area that spawned a $7 bln fraud at SocGen in 2008. “Delta One” is meant to be a low-risk client-focused unit. One theory is that related arbitrage trades went awry. Right or wrong, it’s still baffling.
Central banks dive in where markets fear to tread 15 Sep 2011 The Fed, ECB and other major central banks will give embattled euro zone lenders a boost by offering longer-term dollars. The move should ease fears of a funding crisis in the money markets. But it mustn’t incite banks to delay the restructuring of their weak funding profiles.
Rogue trader puts UBS investment bank at risk 15 Sep 2011 The source of unauthorised trades that triggered a $2 bln loss is unclear. But the bombshell is a blow to the Swiss lender’s claim that its de-risked trading business poses no threat to its private bank. Though UBS can weather the financial hit, a break-up is back on the agenda.
When Frank Quattrone comes calling, buyer beware 14 Sep 2011 The latest coup for the former CSFB ace is persuading Google to bid against itself for Motorola Mobility. Since launching his boutique a few years ago, Quattrone has extracted nearly twice the premium for clients as rival tech bankers. Silicon Valley now has fair warning.
Petrobras should choose its own business partners 14 Sep 2011 Offering 40 pct of a new Brazilian refinery to Venezuela’s state oil group seemed politically smart in March 2008. But PDVSA’s cash is not forthcoming, so Petrobras is on the hook. It has the money, so there’s no big loss - just a warning against deals inspired by Brasilia.
UK bank reform will accelerate funding pain 14 Sep 2011 Britain’s banking commission wants big lenders to hold extra buffers of debt that can be written down in a crisis, and for depositors to be repaid before other creditors. UK bank funding costs will rise. But the hit should be manageable - as long as other countries follow suit.