Another red flag raised over UK corporation tax 27 Sep 2010 Wolseley is redomiciling to Zurich for tax reasons. The bluechip UK building supplies group will escape harsh taxes on income from its sprawling global empire. Capitalised, the savings could be worth 400 mln stg. This may add oomph to the coalition's review of the status quo.
Hochtief’s defences look thin 20 Sep 2010 The German construction group is mulling its options in the face of an unsolicited bid from Spain's ACS, which already owns 30 pct. Hochtief would struggle to dilute ACS with a big rights issue. A white knight also looks tough. That basically leaves talking up the share price.
ACS’s cheeky Hochtief offer looks tactical 16 Sep 2010 The Spanish construction group's paper bid for the 70 pct of Hochtief it doesn't own contains no premium. Hochtief investors may laugh. But the approach enables ACS to buy more shares in the market and perhaps, secure control. It will be up to the market to make ACS pay up.
M&A toolkit can, sometimes, benefit shareholders 21 Jul 2010 Research supports the idea that shareholders of acquisitive companies usually get the short end of the stick. But that s not always the case. Stanley Black & Decker, the big U.S. tool combo that merged earlier this year, is shaping up to be a notable exception.
Lowe’s still waiting for its housing bump 22 Feb 2010 Delayed gratification isn t cutting it for Lowe s shareholders. The American home improvement retailer is asking investors to trust that a sales recovery is coming, eventually. Investors are right to be cautious given the still murky outlook for housing.
Cosy Cimpor deal deprives minorities of auction 4 Feb 2010 Two of the Portuguese cement group's leading shareholders have sold their holdings to Brazilian conglomerate Votorantim. The move stymies an attempted bid for all of Cimpor by Votorantim's rival, CSN. The deal suits many constituencies except Cimpor's minorities.
China needs fertilizer more than steel 27 Jan 2010 If the Middle Kingdom's industrialization follows the course of other nations, per capita demand for infrastructure like concrete and steel will peak long before meat consumption. This may explain why M&A in agriculture, not steel, is so hot. Case in point: Vale's $3.8 bln deal.
CSN’s aggression could backfire in cement battle 14 Jan 2010 The Brazilian steel company's hostile bid for Cimpor has flushed out a rival Brazilian suitor. Camargo Correa has put forward a vague plan to acquire a minority stake in Portugal's largest cement company. But a friendly plan with possible synergies could force CSN to offer more.
Hostile bid may have its day in Portugal 11 Jan 2010 CSN's unsolicited offer for Cimpor, Portugal's number one cement group, comes after several failed hostile bids in the country. But the typical obstacles politics or quirks surrounding voting rights will be less decisive this time. The big question is whether CSN can pay up.
Rewarding bosses for going shopping is daft 4 Nov 2009 Pfizer awarded CFO Frank D Amelio a $1.2m bonus for his role in buying rival Wyeth. Executives may need incentives to sell it often means they ll lose their job. Paying for purchases, on the other hand, encourages empire building.
Tool industry engineers near-perfect deal 2 Nov 2009 Stanley Works is buying Black & Decker for $3.5bn in a deal that leaves almost nothing for investors in the two companies to fret over. If only dealmaking was always this simple.
Heidelberg strikes once-unthinkable E9bn debt deal 18 Jun 2009 The German cement maker s refinancing with 50 lenders shows how far the global banking system has come in six months. The deal isn t cheap, but the alternative would have hurt lenders more. At least now, HeidelbergCement can focus on the equally daunting task of cutting its debt.
US earnings highlight breadth of downturn 21 Apr 2009 Caterpillar is a heartland manufacturer. BlackRock is a New York money manager. Both saw quarterly revenues and adjusted profits slump to a similar extent. That underlines the scarcity of shelter from global economic trouble and raises questions for policymakers, too.
Schaeffler restructuring tests Germany’s nerve 9 Apr 2009 The government has dangled the idea of helping the struggling familyowned manufacturer. But the problem is simple: Schaeffler has too much debt following its E12bn takeover of Continental. That's an issue for Schaeffler and its banks. The state should let them take the pain.
Merckles will take pain of HeidelbergCement’s mistake 6 Apr 2009 The German cement group overpaid for UK rival Hanson at the top of the cycle. Now Heidelberg is straining under E12bn of debt. The controlling shareholder, the Merckle family, has its own debt woes. Banks may be lenient, but the family look set to lose control.
Taylor Wimpey needs a deeper debt revamp 2 Apr 2009 The UK house builder s imminent deal with creditors may avert a shortterm covenant breach, but still leaves the group saddled with excessive debt. Unless the UK housing market makes a superspeedy recovery, TW will almost certainly need a second plan to get it on an even keel.
Masonite bankruptcy is taste of senior lender pain 3 Mar 2009 The KKRowned door maker says senior secured creditors will get new loans worth just 20% of their original principal, plus equity. That reflects the stretched capital structures created during the credit boom. Expect senior lenders to recoup less than anticipated elsewhere, too.
Lafarge, Saint-Gobain put market to E3bn test 20 Feb 2009 The French companies managed to stay profitable in 2008, despite severe slumps in both cement and building materials. But the two are bracing for even tougher times. They're cutting costs and reducing debts and asking holders to stump up for deeplydiscounted rights issues.
Rights issues: a new fee pool for commercial banks 19 Feb 2009 Conventional sources of underwriting investment banks and hedge funds are drying up. But in the UK, commercial banks are picking up the slack. It s a way of squeezing more out of existing lending relationships. The trend has further to run.
Dubai’s Nakheel drops 1km back to earth 14 Jan 2009 The stateowned property developer is wisely suspending a vainglorious project to build a 1km tower, which was trumpeted when Dubai s financial health was already looking a worry. With Nakheel still trying to refinance $3.5bn, this might not be its last retreat.