Credit crunch vindicates GE model 13 Dec 2007 Investors yawned at Jeff Immelt's forecast of 10% EPS growth in 2008. But with the prospect of recession ahead and continuing uncertainty in credit markets, that might be a pretty good performance. And it may vindicate GE's diversified portfolio.
Rexel gets second chance to make good with shareholders 12 Nov 2007 The French electricalparts distributor s bid for Hagemeyer has turned friendly after it sweetened its offer. With its own shares down 12% since its April IPO, Rexel should use the opportunity to focus on valuecreating growth.
Credit crunch may help some deals get done 22 Oct 2007 Look at Techem, the E1.9bn German metermaker in the midst of a yearlong tussle among management, hedge funds and wouldbe private buyers. The latest agreement with Macquarie might stick, if hedge fund shareholders decide tighter markets make a higher offer improbable.
Harman’s compromise is better than nothing 22 Oct 2007 KKR and Goldman will buy $400m in converts instead of taking the stereomaker private. It's better than paying a $225m break fee. Harman gets an infusion of cash and the consolation prize of a vote of confidence in its shares. Sallie Mae might want to take note.
Ericsson Q3 warning may not be so bad 16 Oct 2007 The telecom equipment maker has shocked the market by revealing that highmargin sales of network kit to existing customers have collapsed. Yet, as mobile traffic continues to grow, operators will eventually need to upgrade their systems. And Ericsson, as the market leader, should then benefit.
Sonepar signals readiness to pay more for Hagemeyer 16 Oct 2007 The secretive French electrical parts group has been buying shares in the market at a premium to its E4.25 a share indicative offer. Its Dutch target may be right in saying the offer substantially undervalues the group.
Sarko should drop Thales-Safran merger idea 12 Sep 2007 The French president reportedly has ideas for another national champion in the defence sector, with a merger of Thales and Safran. He should forget it. Neither the electronics group nor the plane engine maker want to merge. Making them invest in Eads would be even worse.
Sir Alan Sugar takes well-timed curtain call 31 Jul 2007 "The Apprentice" may be a hit, but Sugar s Amstrad empire isn t. He is selling it to James Murdoch s BSkyB for 10% of its stock market peak. Amstrad's new owner is a younger, more dynamic breed of entrepreneur. Maybe it s time "The Apprentice" had a new guy in the boss's seat.
Motorola forced into shrinking niche 12 Jul 2007 The US handset maker sold 30% fewer phones in the second quarter than it did last year. Nokia has won most emerging markets. Apple's iPhone and Blackberry are tough highend rivals. The shrivelling middle isn t a fun place to live.
eSpeed’s BGC deal unlikely to pacify its shareholders 30 May 2007 US electronic broker eSpeed is buying BGC, a fellow Cantor Fitzgerald unit, for $1.3bn a 7% discount to BGC s fair value, Cantor says. But the deal isn t as favourable as it looks. If eSpeed is valued on peer multiples, it is buying BGC for a hefty 17 times 2007 profits.
Icahn doesn’t deserve Motorola seat 4 May 2007 Activist investors can wake up sleepy companies. But yelling loudly isn t justification enough for a directorship. Icahn repudiated his one big idea for the tech company and he s too busy as is. Shareholders should vote his candidacy down.
Stub equity makes first grand US appearance 26 Apr 2007 KKR and Goldman are offering shareholders of hifi maker Harman a chance to take a ride alongside them in the $8bn buyout. In theory this approach should mitigate MBO conflict concerns and head off protracted negotiations on price. That may be wishful thinking.
Enel and Acciona trump E.on’s sweetened bid 26 Mar 2007 The Italian utility and Spanish builder are offering at least E1 a share more than the Germans, provided E.on s bid fails. But their bid still carries risks. As for E.on, it will have to do more than throw money at the problem if it wants to stay in the game.
Palm offers cautionary tale to tech titans 6 Mar 2007 The handset maker was a hot consumer tech company worth $92bn. Now its most attractive attributes are its cash and tax losses. Palm s shift from darling to alsoran illustrates the challenge of retaining a competitive advantage in consumer electronics.
Vista’s slow start could hit semi firms 19 Feb 2007 Semiconductor companies are geared up for a party. But the slow uptake of Microsoft s new operating system has intensified a chip glut. The chipmakers are likely to suffer. And their suppliers may get hit too.
Siemens telecoms unit stirs up trouble for Kleinfeld 23 Nov 2006 The German boss has been trying to sort out its underperforming Com telecoms unit to show he means business with his restructuring plan. But in doing so, he has stirred up a political ruckus and a fraud probe. These may cost Kleinfeld his job or turn him into a lame duck.
NBC is still GE’s albatross 13 Oct 2006 The industrial giant s entertainment business remains a drag on earnings and the company s weak link. Things may improve next quarter, but patience is wearing thin. Shareholders should support a spinoff of the business.
Has US anti-trust policy been relaxed? 30 Mar 2006 Given the Whirlpool/Maytag merger will have over 70% of the US washerdryer market its approval suggests a rethinking of antitrust policy. If regulators are making decisions by divining the future of a market, it opens many possibilities. Hey, why not a FordGM merger?
Alcatel should be wary of acquiring Lucent 24 Mar 2006 The last time the French and US telecom kit makers tried to merge in 2001, they failed because they couldn't agree who would run the group. This time it is more clear. It's easy to see why Lucent would sell itself. The question is should Alcatel buy a company that is still weak.
Blackberry addicts breathe easy 4 Mar 2006 The device s maker, RIM, is paying $613m to end its patent dispute with NTP. All things considered, this is not a big price. Sure, RIM might have won in court. But client concerns were getting serious enough to erode the addiction of the crackberry.