Lagardere must be bolder on media strategy 14 Sep 2006 Arnaud Lagardere s decision to change the head of its magazine division was long overdue. Investors have cheered the move. But Lagardere must articulate its new media vision more clearly. Otherwise, it will remain an unloved conglomerate.
Eads must stand up to Putin 13 Sep 2006 Russia wants board representation and possibly a blocking minority in Eads, the owner of Airbus. The request should be turned down. A Russian director would make it hard for Eads to develop its defence business. And one shouldn t be needed to sell more Airbuses to Moscow.
Eads chief tells EU states to stop meddling 21 Jul 2006 France, Spain and the UK have all responded to the Airbus crisis by scrambling to protect their national interest. But that s part of the problem. Eads needs to find a way to reduce state interference, not entrench it.
BAE puts Airbus stake back to EADS 7 Apr 2006 The UK defence group is the latest strategic investor looking to reduce its stake in the European aviation group. It looks a sensible move, given EADS s risky expansion of Airbus and the strong civil aviation market.
Alcatel agrees to satellite tie-up with Thales 5 Apr 2006 The injection of the telecom equipment maker s assets into the French defence group was a necessary step for its merger with Lucent. It paves the way for more European defence consolidation, including a possible tieup between Thales and Italy s Finmeccanica.
Qinetiq’s frothy debut shows surf’s up for IPOs 10 Feb 2006 The UK defence technology group was priced at the top of its range, essentially offering no IPO discount. A wave of buyouts, acquisitions and other payouts has left investors with lots of cash and looking for a place to put it.
Thales and Finmeccanica deal could be a mess 15 Jun 2005 In theory, a tieup between the French and Italian defence groups would have industrial benefits. But navigating the political sensitivities and squaring Alcatel, another big shareholder, is likely to lead to a convoluted compromise.
Thales wants to stay independent 11 Mar 2005 After the attempt to bounce it into a deal with EADS, the French defence group is understandably fighting to retain control of its destiny. That s all right if it means resisting politicallymotivated deals. But Thales should not rule out valuecreating moves.
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.
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.
Rheinmetall to give all investors a vote 25 Nov 2004 Preference shareholders should welcome the German engineering group s plans to convert nonvoting shares into voting shares. But since a takeover now looks less likely, they have earned an equal right to be disappointed.
Thales minorities should keep their guard up 17 Nov 2004 The scheme may have temporarily gone away. But it probably isn t dead. A scheme for EADS to take over the French defence group might have involved two Thales investors snapping up its crown jewels on the cheap.
Sarkozy exits with bizarre E7bn Snecma deal 29 Oct 2004 There is little industrial logic in combining Snecma, an aeroengines manufacturer, with Sagem, the electronics group. But the move will protect French jobs and line the government's pocket the hallmarks of the finance minister's tenure.
Meggitt buys Dunlop Standard for £787m 5 Jul 2004 To finance the acquisition of a business larger than itself, Meggitt had to be creative. The defence firm has agreed to sell off half of the business to private equity, and to hold a £181m rights issue.
M&A arbs get their arms twisted 4 Jun 2004 Usually arbs want to get an auction going. But in the bid battle for UK tank maker Alvis, they agreed to close an auction down. They committed to a oneoff counterbid. Small wonder. Having bought in at above the price of the initial offer, they faced losses otherwise.
BAE boardroom rift explodes 5 Jan 2004 Paolo Scaroni, one of the group's most recently appointed nonexecutives, seems to feel he's been banging his head against a brick wall. His departure will leave a worrying gap among nonexecs dominated by oldhands. But it may spur investors to demand a boardroom overhaul.
BAe keeps lid on directors’ options bonanza 8 Dec 2003 The UK defence company has discreetly loaded up its directors with share options and relaxed the relevant performance criteria, too. The move is difficult to justify given BAe's performance. Major shareholders should have kicked up a fuss.
BAe’s partner search points to Boeing 22 Oct 2003 While many US defence contractors would like BAe s American arm, they are not wild about the rest notably its Saudi business. Only Boeing's experience in the Arab kingdom is sufficient to dispel the perception that the business would act as a poison pill.
Germany should accept defence consolidation 18 Aug 2003 The government is worried the sale of MTU Aero Engines to a private equity firm could undermine its national security. But it is being inconsistent. It approved a large defence buyout only last year.