UK pension deficits cut in half 16 May 2006 It s an accounting miracle. Marktomarket calculations have allowed the deficit to fall from £77bn to £34bn since January. That s too fast a change for a such a longterm liability. No wonder investors have mostly ignored it.
NYSE rightly scraps anti-shareholder takeover loophole 16 May 2006 The Big Board wants to stop companies using treasury shares to cede control without a shareholder vote. That s good news for investors. But it comes too late for Sovereign Bancorp shareholders. They argued against its use of the exemption last year with Santander, and lost.
Evercore partners set for big bonanza 15 May 2006 The boutique M&A advisor opened its kimono for the first time as it filed for a public stock offering that may value it at some $800m. Based on its fast growth rate, planned compensation ratios and Greenhill s valuation, its partners may see $30m windfalls.
Mario Gabelli breaks his own rules 12 May 2006 The famed investor runs his own firm in contravention of some principles set down 18 years ago in his "Magna Carta of Shareholder Rights." One of these issues was brought home in a failed protest by shareholders to rein in Gabelli s humungous pay relative to Gamco s performance.
Bullish credit spreads don’t tell the whole story 12 May 2006 Fears of a downturn in the bonds markets are not being reflected in credit spreads, which remain remarkably buoyant. Why? The answer lies in the growing demand for credit derivatives, used in structured debt products. These are keeping spreads artificially low.
Commodity traders should plan ahead 12 May 2006 It s easy to get hired in this booming market. Anyone who can say crack spread without laughing is worth millions. Banks want to pay up now while prices are still high, but they ll be just as fast to fire. Wise traders should ask for multiyear contracts.
KKR fund opens door to hostile LBOs 12 May 2006 But having a licence isn t the same as using it. Although KKR's $5bn listed fund doesn t prohibit hostile bids, KKR won't change its policy. That's understandable while other KKR funds can't go hostile. But if the industry moves to greater reliance on public cash, that may evolve.
Spain rocked by stamp fraud probe 10 May 2006 350,000 investors may lose buckets on schemes offering guaranteed returns on investments in stamps. This looks like another sign of extreme financial exuberance.
Wachovia plays with fire in $26bn Golden West deal 8 May 2006 The takeover of the Mom and Pop thrift would fill out Wachovia s glaring gap in the fastergrowth Californian market. But it comes with housing and credit bubble risk at a hefty price of nearly three times book value. This dream could become a nightmare.
Lehman sets its analysts free 4 May 2006 The broker is moving some stock analysts away from publishing and onto trading desks, making it easier for top clients to pick their brains. But small investors end up with the crumbs. Eliot Spitzer s crusade against Wall Street research may be leaving them with fewer resources.
Nasdaq inches ahead in race for LSE 3 May 2006 The US exchange has increased its stake in the LSE to almost 19%, while Euronext says it s no longer discussing an offer for the UK group. But Nasdaq isn't yet home and dry. And it somehow needs to persuade the LSE to come to the negotiating table.
Man’s new fund makes eye-popping fees 30 Apr 2006 The UK listed hedge fund group is getting a remarkable 5% management fee on its recent record $2.3bn retail fund launch. If all goes to plan, Man s fees over the life of the fund will be worth about $1.6bn an astonishing 70% of what investors are putting in.
Thomson investors will be wary of management buyout 21 Apr 2006 Investors naturally distrust MBOs because insiders could underbid. And this one would carry several potential yellow flags. The French group is run by a politicallyconnected, exinvestment banker. And a private equity fund already has a say in the boardroom.
China’s CCB considers $4bn stake in Bear Stearns – WSJ 17 Apr 2006 China Construction Bank could buy a stake of up to 20% in the US investment bank. CCB is denying the reports. Bear Stearns would relish the prospect of gaining access to CCB s clients. What the Chinese would get out of the deal is less clear.
LSE needs to put cash on the table 16 Apr 2006 That's the only way the UK exchange can pull off a Euronext merger now Nasdaq has bought shares at high prices. Actually, it is possible for London to offer investors a big slug of cash in a merger. But it will be hard to pull off.
Threadneedle’s LSE sale makes sense 12 Apr 2006 It s not that the fund manager got an exceptional price for its shares in the UK exchange. It s that the main driver the prospect of an auction for the LSE has slightly unravelled. Taking money off the table makes sense. It s not that the fund manager got an exceptionally high price for its shares in the UK exchange. It s that the main driver of the stock the prospect of a competitive auction for the LSE has slightly unravelled.
Goldman’s Paulson gives investor the bird 31 Mar 2006 The broker s conservationist CEO saw off a shareholder s claim that chairing an environmental group conflicted with running the firm. Investors should be concerned if a CEO s outside directorships hit company profits. That s hardly a problem for Goldman.
Appaloosa makes risky, not mad, bankruptcy bets 31 Mar 2006 The renowned distressed debt hedge fund s shift into buying shares in bankrupt car parts companies should not worry its investors. The rewards, while tough to reap, could be large. And the stakes in Delphi and Dana it has taken are small in any event.
Nasdaq hit by curse of LSE 30 Mar 2006 Like the other bidders for the London Stock Exchange, Nasdaq is having to withdraw after seeing the share price run away from its offer. The LSE won t be too upset by the 7% drop in its shares. It s still worth more than it was three weeks ago before it disclosed Nasdaq s bid.
NYSE tries to make LSE numbers work 20 Mar 2006 Big Board chief John Thain is expected to engage Nasdaq in a battle for the London market. But like Nasdaq, he risks destroying value. The LSE s share price is too high for either to make a return above their cost of capital. They need other reasons to pull the trigger.