Novartis should jump on selling Gerber 29 Nov 2006 It makes little strategic sense for the Swiss pharma group to sell mushy baby food. Yet it has held onto the brand for more than a decade. With Nestle and private equity groups eying Gerber, Novartis couldn't pick a better time to start an auction.
Wrigley investors rejoice at scion’s departure 23 Oct 2006 Bill Wrigley s stepping down as CEO gave an immediate 15% pop to the chewing gum maker founded by his greatgrandfather. That s embarrassing, even if it has juiced up his family s wealth by $225m. It also suggests great expectations hang over his successor.
Coke needs fresh blood at the top 20 Oct 2006 Finding talent to run an iconic brand should be a snap. Yet Coke investors have suffered a constant reshuffling of managerial ranks. Its latest candidate for the number 2 job comes with the taint of insider trading allegations on his resume. Is Coke getting desperate?
Nepotism alive and well at Anheuser-Busch 28 Sep 2006 The giant brewer named 42year old family scion August Busch IV as its new chief executive. The stock slid 2%. Given Bud s challenges it s disappointing the board caved in to the desires of a 3% shareholder. At least it split the chairman s role.
Starbucks’ expansion looks ambitious 19 Sep 2006 That s aggressive for a chain that already seems to be on every corner and is facing increased competition. Chief Howard Schultz says he can double the number of coffee shops in the US before reaching the saturation point.
Heinz’s new board looks solid 8 Sep 2006 Activist Nelson Peltz and one of his pals have won seats on Heinz s board, ending a bitter sixmonth proxy struggle. The newcomers add capital markets and marketing heft, and their presence will keep the pressure on management to deliver.
Heinz’s hardest work still lies ahead 31 Aug 2006 Embattled boss Bill Johnson says that the company s strong first quarter was the result of four years of restructuring. The ketchup maker managed to beat expectations, but Johnson will need more quarters like these to restore confidence and keep his job.
Peltz’s biggest challenge still lies ahead 17 Aug 2006 Activist investor Nelson Peltz appears to have scored a victory at Heinz by getting board representation. But a much bigger struggle lies ahead in revitalising the troubled ketchupmaker s operations. But a much bigger struggle lies ahead in revitalising the ketchupmaker s operations.
Danone deserves its fat premium 2 Aug 2006 A focus on healthy products and a slimmeddown profile have helped the French food producer deliver industrybeating 9% sales growth. Moreover, Danone is making progress on margins. Even without the promise of a bid, that justifies its 30% premium to the sector.
Heinz shareholders should give Peltz a chance 21 Jul 2006 The former raider isn t perfect, but he and his protege Peter May deserve board seats to keep the ketchup maker s feet to the fire. But as a further protest to its lacklustre performance, investors should withhold votes for a slew of other directors as well.
Peltz to Heinz: sell more ketchup 23 May 2006 Ok, that s not all the reformed raider asked for in his 21page white paper on the company. He wants $575m in cost cuts, too. The funny thing is Heinz s expenses aren t that out of line. By inference, it appears the food industry at large is Peltz s real target.
Tchenguiz’s last-gasp M&B bid falls flat 4 May 2006 The entrepreneur has corralled together the financing to stick a preconditional 550p offer on the table for the pubs group. But it doesn't look good enough. And he's only got until Monday to bearhug a reluctant M&B into talks.
Smith & Nephew shares look cheap 27 Apr 2006 The UK joint group s revenue growth has been kneecapped by governments clamping down on costs. Once the next wave of orthopaedic products hit the market, government pricing power is likely to disappear.
Buffett serves up the wrong formula at Coke 6 Apr 2006 CocaCola s board pay will be linked with earningspershare growth, according to a plan proposed by departing director Warren Buffett. Yet Coke s largest shareholder should know better than anyone the pitfalls of EPSbased compensation.
Tchenguiz struggling to put together M&B bid 6 Apr 2006 The property tycoon will have to fork out more than he bargained to get control of the UK pub chain. If he can t persuade shareholders to lower their demands, he could offer stub equity. Or he could walk away.
Tchenguiz will have to pay up for M&B 14 Mar 2006 The property tycoon will struggle to drive much value from the UK pub operator beyond piling on debt. In the meantime, Mitchells & Butlers has strong organic growth and consolidation potential. Its owners may drive a hard bargain.
Heinz spiced up by raider talk 28 Feb 2006 The ketchupmaker has rallied amid talk billionaire Nelson Peltz is building a stake to launch a proxy battle and management shakeup. Though it may be a dowdy business, as its latest results attest, Heinz s valuation makes it a juicy target but not necessarily for Peltz.
Cadbury tries to reassure market on margins 21 Feb 2006 The UK confectionery group is delivering strong sales growth, but the shares have been dogged by fears it will miss margin targets in 2006. Though Cadbury has reiterated those targets again, investors may take further persuading. Meanwhile, bid talk puts a floor under the shares.
Diageo reassures market with strong H1 results 16 Feb 2006 The UK drinks group calmed fears of a tougher spirits market with a strong first half, led by impressive growth from developing markets. Diageo's investment proposition of strong cashflow and high returns remains compelling. But questions surround its strategy on beer.
King of Beers faces shrinking realm 3 Feb 2006 AnheuserBusch, the world s biggest brewer, is in a pickle. Having sat on the sidelines of global consolidation, it s now paying a price. Its overdependence on the US hurts, as consumption and prices tank and costs rise. If M&A is the answer, a deal with InBev looks plausible.