Help wanted at Fannie Mae 22 Dec 2004 No rightthinking person would want to run the US housing finance giant. What would their strategy be? Shrinking it risks a housing collapse. But growing it risks a financial meltdown. Its objectives can't be squared.
SEC chief faces grumble campaign 20 Dec 2004 The business lobby is pushing hard for President Bush to replace SEC boss William Donaldson with a more pliant sort. The complaints are misguided. The problem is not the SEC or its boss, but the new laws they are asked to enforce.
Forgeard wins battle to co-head EADS 17 Dec 2004 The appointment of the Airbus boss should allow the FrancoGerman group to focus on business after weeks of wrangling in the French camp. But FrancoGerman disagreements over the group s strategy are likely to continue.
Citigroup learns about diseconomies of scale 15 Dec 2004 The world's biggest bank made E15m on its government bond market raid in August but it is still paying for the coup in hostile headlines. Maintaining corporate reputations can require sacrificing potential profits. The bigger the company, the greater the sacrifice.
Forgeard threatens balance of terror at EADS 10 Dec 2004 The Airbus chief is increasing the stakes in his bid to become sole chief executive of the FrancoGerman defence group. The Germans have indicated they won t be bullied. Forgeard s strategy can only damage his chances of getting the joint chief executive post.
Fourtou digs in for long haul at Vivendi 8 Dec 2004 That is what the change in the group s structure suggests. Fourtou goes upstairs as chairman, but stays in charge of strategy. This frees him from the daily grind. It also suggests he is more likely to preserve the Vivendi empire than dismantle it.
Daimler picks strong man to co-head EADS 6 Dec 2004 The choice of Thomas Enders as joint boss of the FrancoGerman aerospace group shows a determination to counter growing French influence. He will be better able to resist French manoeuvrings and put forward an alternative vision of EADS's defence business.
EADS power struggle rightly doesn’t worry investors 3 Dec 2004 The European aerospace group s shares continue to rise despite FrancoGerman wrangling over the group s structure and strategy. Strategic uncertainty may not be optimal. But for investors it s better than EADS becoming the plaything of the French government.
Hedge fund ethics questioned over Vioxx 2 Dec 2004 A US fund shorted Merck after employing a researcher who played a key role in forcing its blockbuster painkiller to be withdrawn. The researcher didn't reveal his potential conflict. But the hedge fund must have known about it. That's dubious ethics.
Political meddling at Eni and Enel needs to stop 29 Nov 2004 The latest rumours have Enel s boss being parachuted into Eni, to replace the oil firm's CEO. Both men have their merits. But the real conclusion from this game of politicoindustrial musical chairs is that it should stop.
MyTravel ruling removes bondholder nuisance value 25 Nov 2004 In approving the travel group's contested debt swap, the judge has preserved value and contributed to more efficient capital markets. The ruling sets a precedent for valuing UK subordinated debt. If there is no economic recovery value, there is no nuisance value either.
Lastminute.com disappoints again 25 Nov 2004 Shares in the onceiconic online travel group slumped 18% in early trading following a sharp rise in pretax losses. The company blames the cost of integrating recent acquisitions but doubts about the strategy remain.
Romiti company probed over false accounting 24 Nov 2004 This is the latest blow for the Romiti dynasty, which used to be the powerbroker at Fiat, Mediobanca and Corriere della Sera. The probe could frustrate construction company Impregilo's planned capital increase, and the E550m bond repayment due in 2005.
Dexia puts SanPaolo deal on hold 23 Nov 2004 A meddlesome leak that the FrancoBelgian bank was pursuing a crossborder merger infuriated key shareholders. Now they have all but killed the plan. Dexia may still do a deal but only once it has resolved these conflicts.
Management incentives vary wildly in French bids 23 Nov 2004 At Thales, executives are incentivised to fight tooth and nail for a high bid price. Not so at Snecma. The contrast shows that stock options much maligned in recent scandals aren t always bad news for shareholders.
Investors threaten Karstadt refinancing 23 Nov 2004 Some shareholders argue it should flog more assets and not raise equity. That's frankly barmy. It's like turkeys voting for Christmas. Yet under German law, this trivial challenge could delay and even scupper the refinancing. That seems absurd.
Chinese aren’t riding to Rover’s rescue 22 Nov 2004 Reports that China's largest carmaker SAIC will secure the future of Rover s massive Longbridge production line are overblown. Any deal is likely to strip Rover of its last item of value its intellectual property rights leaving Longbridge to fend for itself.
Gold Fields defence moves off the back foot 22 Nov 2004 For the first time, the gold miner has started to talk about value as it tries to repel hostile bidder Harmony. That s good. But there are two problems. The approach is inconsistent with recent strategy. It is also partly valuedestructive.
EDF doesn’t need immediate capital injection 22 Nov 2004 The French utility's supposed capital requirement is a fiction aimed at getting unions to back an IPO. The state is trying to offload a problem on to the markets. Investors may wish to play this game. But they must impose careful terms.
Russia delivers Yukos’ coup de grace 19 Nov 2004 Until now, everything that Moscow has done to Yukos its escalating tax bills, even Khodorkovsky s imprisonment was reversible. Moscow s decision to auction off Yukos key oil unit in December truly marks the beginning of its end.