Welcome to Russia’s real world, Mr Hayward 6 Jun 2008 Faced with a possible eviction from its Russian joint venture with TNK, the BP boss has finally noticed something is wrong and wants Russia to abide by the ruleoflaw. After cozying up to the Kremlin for years, it s a bit late to cry. Other investors in Russia, take note.
TPG’s Alltel deals highlight loan market opacity 6 Jun 2008 The buyout firm bought some Alltel loans just before it was approached about selling the cell phone company. As part of Verizon's $27bn purchase, TPG may be making a profit on the loans. TPG seems to have had checks in place. But it s a reminder of the conflict potential.
Credit rating reform deal falls short 4 Jun 2008 The New York attorney general and three big raters are near an agreement to change the way the firms are compensated to evaluate complex deals. But it s a half measure that doesn t eliminate their financial incentive to provide rosy ratings.
Thompson’s ouster no panacea for Wachovia shareholders 2 Jun 2008 Its board finally ejected the architect of the disastrous Golden West acquisition. But shareholders should remain wary. Wachovia kept Thompson around long enough to raise its latest slug of capital. But a new boss may decide it needs more further diluting investors.
Healthy US bank needs to split top roles 2 Jun 2008 Wachovia, Washington Mutual and Citigroup now all have separate chairmen and chief executives. That s good, but it makes the split look like a sign of trouble rather than everyday good governance. The board and boss of a big bank that s in decent shape need to set an example.
Bud’s alternative to a takeover? An activist 30 May 2008 The king of beers faces a potential $46bn unsolicited bid from Inbev. But the Belgian brewer would add little value beyond slashing costs. Bud can do that itself. If it won t, some Peltzstyle activism may be in order.
What next for Sarin? 28 May 2008 Vodafone s outgoing boss will be in hot demand. After five years leading a successful UKbased global telecom operator, the Indianborn, USeducated executive has many options. Something else mobile, or a move into finance look obvious, but he might just do most good in India.
Activist victory at Atos could shake up France SA 28 May 2008 Two hedge funds have won their battle to force the IT services company to focus on shareholder value. The French companies that already feel the pressure of such professional investors should take notice. More companies might even start to accept tough love from shareholders.
Search for market manipulators in Bear’s downfall is quixotic 28 May 2008 US market watchdogs are scouring Bear's trading records in search of evidence that market manipulators were behind the firm s downfall. But there were plenty of legitimate reasons to pull cash and credit lines, and to short the stock. Proving nefarious intent will be difficult.
Exxon split defeat a result of bad packaging 27 May 2008 At today s AGM, the motion to split the chairman and chief executive posts received even fewer votes than last year. That s the result of a good governance idea being misidentified as hostile to investors interests.
Sarin makes timely Vodafone exit 27 May 2008 Two years ago, few would have believed the mobile operator s chief executive would survive to depart under his own steam, and in glory. Sarin s deals shifted Vodafone s growth to emerging markets. His chosen successor is left a fight to keep that momentum going.
M&B makes room at the top for Tchenguiz 19 May 2008 The UK pubs group is inviting the property tycoon, a 26% shareholder, onto the board. That may partly be an attempt to quell criticism of the group s strategy. But at least Tchenguiz, who looks to have lost £200m on M&B so far, will be focused on driving up the share price.
Will Icahn play Sinatra or Clooney? 15 May 2008 Like the heist film Ocean s 11, he is assembling a team of specialists to crack open Yahoo s vaults, pass the treasure to Microsoft and take a slice for themselves. In the Rat Pack version, the thieves get nothing. In the remake, they get the money. It could go either way.
Wall St and City bosses should get no bonus this year 13 May 2008 To drive home the message that foolhardy risktaking doesn t pay, regulators should inflict pain on firms that have relied on de facto state bailouts. No bonuses for CEOs and no dividends for shareholders should do the trick.
RBS’s McKillop should go 13 May 2008 The Scottish bank needs a new chairman to restore credibility after its bruising rights issue. Philip Hampton, the Sainsbury boss, would do the trick. He is financially literate and wouldn t easily be bullied by Fred Goodwin, the RBS CEO whose job is also on the line.
Banker bonus bust evens the score for investors 9 May 2008 City payout growth has outpaced investor gains by 10toone since 2002. It s clear who got the bull market spoils. But if a forecast 40% drop in the bonus pool proves right, and bank shares hold steady, the gap will narrow considerably if only for a while.
Separation of chairman and CEO shouldn’t be a stigma 9 May 2008 Wachovia relieved CEO Ken Thompson of the chairmanship. Because it follows stinging writedowns, this looks like criticism. That may be merited, but it's unfortunate. Investors should support separating the two roles in good times as well as bad.
Bank bosses get annual dose of reality 5 May 2008 CEOs get paid enough, even in bad years, to salve regrets about losses. So, mostly, do their peers. And for analysts, billions are often just numbers. So annual meetings serve a purpose they show bosses people who are truly suffering. Sadly, the impact is probably marginal.
Krumnow’s position at Tui looks untenable 2 May 2008 Dissident shareholders of the German travel group want the chairman to resign. He may be able to hold on in Wednesday s AGM vote, thanks to a cosy board structure. Yet after years of poor returns, and with almost 25% of the votes in open revolt, Krumnow s time looks short.
Citigroup still haunted by black hole 30 Apr 2008 The bank s role in Parmalat s collapse goes to trial on Monday. Proving Citi abetted fraud through securitisation may leave New Jersey jurors befuddled. But Citi s naming of a vehicle that allegedly disguised debt buconero black hole is easy to grasp.