Warner rejects £2.3bn EMI bid 3 May 2006 The problem for the UK music group is that it doesn t have much room for manoeuvre. If EMI sweetens the terms much further, it runs the risk of paying away all the value to Warner shareholders.
EMI shouldn’t pay much more for Warner 2 May 2006 The US music group s shares are up 38% over three months in anticipation of a takeover from its UK rival. While there is commercial logic in a deal, tilting the terms further in Warner s favour would stop EMI keeping any of the value.
VNU bid looks hopeless 28 Apr 2006 Private equity s bid for the Dutch media group doesn t have a hope in hell of reaching the allimportant 95% acceptance level. That will leave VNU without management and board. But that doesn't seem to worry dissident investors, who are confident in their own plan B.
Markets complacent over risks to growth 24 Apr 2006 Not even a 6% rise in the oil price last week could dent investor confidence that global growth will continue to motor. Only the bond markets seem remotely worried. But the whole train could derail if inflation picks up.
EBay tries to restore balance of power in cyberspace 21 Apr 2006 The current battles between internet giants resemble those of the Great European Powers in the 18th century. The web auctioneer now fears the rising power of Google, just as France fretted over the growing might of Prussia.
Italian financier Ricucci arrested 19 Apr 2006 While many of the lynchpins of last summer s financial scandals have been marginalised, the cleanup is not yet complete. The hope is that, under the new Prodi government, it may become slightly easier to crack down on financial crime.
Google sucks up to China 13 Apr 2006 The internet search engine defends Chinese censorship. It has now adopted a Chinese brand name the horribly conformist valley song". Outside China, Google peddles itself as a nonconformist, non evil sort of company. In the Middle Kingdom, things are different.
Viacom bondholders give in too easily 11 Apr 2006 They settled for a sweetened price on last week s $4.8bn bond deal. True, Viacom s growth and cash flows look healthy. But it s also buying back stock and hunting for deals. Given chairman Sumner Redstone s record, bondholders should have pushed for more.
Murdoch caves in over News Corp poison pill 7 Apr 2006 This is a real coup for shareholders. The media tycoon has bowed to their demands that he allow a vote on the controversial defences. The wider significance of this victory is that firms listing in the US can still be held to Europe s higher corporate governance standards.
VNU investors look at ITV-style bid structure 7 Apr 2006 Shareholders in the Dutch media group are reluctant to accept their discredited board's advice and sell the company to private equity. Dissident shareholder Knight Vinke has come up with a solution a partial bid. An interesting idea, but it won't be easy to pull off.
Can private equity ever win unsolicited UK bids? 2 Apr 2006 Financial buyers are increasingly going unsolicited . But they aren t getting anywhere. Look at ITV, HMV, Kesa and LSE. Why? Private equity can t go fully hostile, it doesn t want to pay up and public companies are being more confident about saying no.
Goldman’s ITV bid rightly dies 31 Mar 2006 Although the structure of its consortium bid for the UK TV group was interesting, it was just too greedy and it made tactical errors. Goldman s stingy cash alternative was unrecommendable. But Allen, ITV s boss, shouldn t be complacent. He s had a lucky escape.
Cable company cuts out bank lenders 30 Mar 2006 German cable company Unity Media has replaced all its bank debt with bonds, giving the company more flexibility for not much extra cost. This is yet another example of investors stepping on banks toes. Before they were buying pieces of loans, now they are replacing them.
How Goldman can square ITV circle 29 Mar 2006 The Goldman consortium will have to offer cash as an alternative to its dividendcumstub equity offer to win over the UK TV group s board. But it then risks everybody taking cash, leaving it to write a much bigger cheque. It s possible but not easy to square the circle.
ITV would have ceded control for sellable deal – exclusive 23 Mar 2006 The UK broadcaster s board might have accepted a deal that locked in the consortium for longer and offered a cash alternative. These demands don't look wildly onerous. Charles Allen is pretty lucky to survive.
ITV approach too greedy 23 Mar 2006 Goldman will need to inject more capital or leave existing shareholders with more of the equity if its scheme is to fly. Particularly as ITV could gear itself up, find a new boss and even look for a white knight.
Goldman, Blackstone and Apax try to nab ITV on the cheap 22 Mar 2006 By taking a £1.5bn stake in the UK broadcaster and gearing up, private equity would effectively control ITV without paying a premium. Sure, investors would get to ride on the coattails of private equity. But the alternative is to do it themselves.
Vivendi agitators have the right idea 22 Mar 2006 A US private equity group has taken a small stake in the French media group with the aim of breaking it up. Great idea. But France's establishment is unlikely to let its champion go to pieces, especially at the hands of a group with questionable credentials.
McClatchy gears up like newspapers should 14 Mar 2006 Most US newspaper publishers have capital structures that suggest growth ahead when there isn t any. In that sense, McClatchy is doing to Knight Ridder what the publisher should have done to itself by adding leverage.
Don’t pin hopes on next Trinity Mirror chairman 12 Mar 2006 Investors seem hopeful that the UK newspaper group will find a strong replacement for Victor Blank, who will then sort it out. But Trinity could easily end up like Pearson: with a laid back chairman rather than a tough guy. Indeed the parallels are eerie.