BNPP’s E9bn BNL bid is not compelling 5 Feb 2006 The financial merits of buying the Italian lender at this price are weak. The immediate strategic benefits are questionable too. The best that can be said is that the French banking giant has given itself some new longterm options in a market with growth potential.
Nasdaq and NYSE display European affections 3 Feb 2006 The two US stock exchanges have made crystal clear their interest in playing a role in the consolidation of European stock markets. Both have their hands full right now. But neither wants to lose out on a European deal. This is just the start of the dance.
Meyer achieves record $5bn hedge fund launch 3 Feb 2006 Harvard s former investment whiz made his name by delivering high returns over many years. But his new fund offers bondsized returns with low volatility and low fees. Given Meyer's profile, this could start a trend.
Sovereign slams shareholders in political smack-down 3 Feb 2006 The Pennsylvania bank s boss has taken his fight with shareholders to his friends in the state's political arena. It looks like he ll win. Governor Rendell should veto the bill that undermines shareholders rights. It s bad news for shareholders in all the state s companies.
Mack should clarify presidency 27 Jan 2006 Morgan Stanley s boss has made an unstable situation worse by leaving Zoe Cruz in the role of acting president. When he first arrived, this made sense as a way to lure back talent. But he has failed to do so. Seven months on, he risks sowing confusion.
Greenberg turns tables on Spitzer 25 Jan 2006 AIG s former boss wants to put the New York Attorney General on the witness stand as part of a novel defence against civil charges. He is upset that Spitzer used findings from an AIG probe to force him out of the insurer. But he will struggle to get Spitzer s testimony.
Nasdaq cashing in on exchange bubble 13 Jan 2006 The end of the tech boom left the Nasdaq reeling. Now it s cashing in on the demand for securities exchange stocks. It s well timed. Nasdaq s shares have risen fourfold in a year. The exchange doesn t want to miss out on this bubble too.
Hedge fund in trouble over short-and-vote scheme 12 Jan 2006 Perry Capital is being hauled over the coals by the SEC for declaring a share stake in a takeover deal while simultaneously shorting it. Perry's scheme may look unsavoury. But investors who willingly lent their shares to Perry have no right to complain.
Rising hedge fund closures are part of evolution 9 Jan 2006 Roughly twice as many firms liquidated in 2005 as in 2004, even though both were average years for hedge fund performance. But if this is the longawaited "shakeout", it is still pretty modest. Indeed, it is evidence of the industry's growing maturity.
Weisel Partners IPO looks like a miss 6 Jan 2006 The former Montgomery Securities boss has taken lots of growth companies public. So why debut his investment bank given its poor results? It has made just $7m since 2000 and faces many competitive pressures. The reason must be to get rid of the pesky VCs who backed him.
Hedge fund’s assault on Mellon unjustified 6 Jan 2006 Highfields Capital Management wants to break up the US asset management firm. But that ignores synergies binding the business together. Furthermore, Mellon has taken the right steps to reduce its stock discount, and its businesses are performing well.
Hedge fund fees must come down 6 Jan 2006 It's an open secret that hedge fund charges of 2/20 are too high to satisfy investor requirements. Disappointing investment returns and the prospect of a hedgefund glut may give investors the muscle to demand lower fees.
Lloyds TSB’s £1bn Goldfish sale adds up 20 Dec 2005 The credit card brand never looked at home in the UK bank. Its assets fell despite the UK s lending boom. The disposal gives Lloyds muchneeded capital. And it has squeezed a good price from Morgan Stanley.
Underbidding has limited merits as M&A tactic 18 Dec 2005 Macquarie bid for the LSE below its share price because the exchange s stock already trades with a speculative premium. But if a bidder really thinks a target is overvalued, it is usually wiser to be patient and wait for the company s share price to correct.
Banks struggle to make money out of longevity 15 Dec 2005 People are living longer and it's causing a financial headache. CSFB is the latest firm to seek a way of laying off this risk. But it's not easy partly because there aren't many investors willing to bet on people living shorter lives.
Another US bank gets hit by the yield curve 15 Dec 2005 Commerce Bancorp is paying the price for rapidly growing its securities portfolio. The flattening yield curve is hitting profits. Its portfolio restructuring is not enough. The bank is likely to come under pressure next year, and may be forced to raise more capital.
Macquarie sets up as stalking horse for LSE 15 Dec 2005 The Australians cheeky £1.5bn bid won t get them into talks. It is really a hostile pitch straight to the exchange s shareholders. The offer throws down the gauntlet to other bidders. But even if none surfaces in the next three months, shareholders should sit tight.
Versatel ruling a victory for Dutch governance 14 Dec 2005 The way Sweden s Tele2 was pursuing its takeover of the telecoms group was questionable. Courts have rightly imposed independent scrutiny. That restores some sheen to Dutch corporate governance, which had appeared toothless in allowing Tele2 to squeeze minorities.
LSE bid is all about price 13 Dec 2005 A takeover of the London exchange by Macquarie Bank raises questions about the impact on users and the City s status as a financial centre. But these are a sideshow. Macquarie needs only to pay a price another exchange could justify, with a discount to reflect a bird in the hand.
Bear Stearns looks cheap 9 Dec 2005 Not too long ago, Bear and Lehman were derided as bond houses and sported identical market caps. Lehman has pulled ahead in a big way. But Bear may be the better stock pick. Strip out its global clearing arm at a decent multiple and the rest is undervalued.