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.
Aviva in play as much as Pru 20 Mar 2006 The UK insurer faces competition from European peers in its attempt to buy its domestic rival. The stakes are high. Aviva could be gobbled by Axa if its suit fails. By refusing to go hostile, it has left itself exposed.
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.
Nasdaq’s £2.4bn bid moves LSE to endgame 10 Mar 2006 The US exchange has made a surprise offer, perhaps hoping to catch the justlisted NYSE on the hop. It s an audacious move, but it probably won t pay off. The LSE won t have much difficulty in getting an auction going.
Apollo Investment’s success spawns few followers 7 Mar 2006 The buyout firm s public fund had teething pains on its 2004 debut. It has since rebounded smartly and is planning to raise more equity. Yet so far Apollo s success hasn t tempted imitators like KKR or Blackstone to launch similar funds. It might be time for a rethink.
Buffett sees alternative investments disappointing 6 Mar 2006 Investment returns are ultimately determined by the profitability of businesses, observes the Berkshire Hathaway chairman. Rising moneymanagement fees and excessive portfolio turnover will reduce future returns. His argument is hard to fault.
Hedge fund enters the loan shark business 22 Feb 2006 SageCrest Capital s relationship with a loan shark looks like a sign of excess capital in the hedge fund industry. However, it could make sense for hedge funds to lend to businesses shunned by conventional banks.
Macquarie gives up the ghost over LSE 20 Feb 2006 The Australian bank never stood a chance after London Stock Exchange shares rose 50% above its original lowball offer. The whole episode has damaged Macquarie s credibility. Meanwhile, the LSE finally looks free to determine its own future.
Italian bank sellout rich in irony 5 Feb 2006 The clique that fought tooth and nail to stop BNL from falling into Spanish hands has given it to the French on a plate. Not that patriotism was ever the real motive for blocking BBVA. Power and money were always more important.