Weekly “Best of”

India may boast world’s steepest rate cuts in 2015

2 Dec 2014

The Reserve Bank resisted strong pressure from the government to start cutting interest rates from their current 8 percent. Governor Raghuram Rajan wants more proof of correction and disinflation. It may be a short wait. A weak economy urgently needs lower borrowing costs.

M&A hackers attack on new front with old weapons

1 Dec 2014

A cyber group probably seeking a trading edge is targeting deal-prone pharma companies and advisers like lawyers. What’s striking, as in many more sophisticated hacks, is the basic mistakes people make to let the intruders in. It’s one more worry for the merger-minded.

If Vodafone wants Liberty it has to get creative

1 Dec 2014

The mobile giant is eyeing cable group Liberty Global for a $90 bln-plus takeover. The strategic case is easier to make than the financial one. Regulators may be persuadable. Investors and Liberty Chairman John Malone could be colder. Vodafone has to be resourceful.

Friends Life deal terms make an auction tricky

25 Nov 2014

The UK insurer is a bite-sized acquisition for bigger European peers. But both foreign and domestic buyers can see that Aviva has offered Friends a full price that pays away lots of synergy value. And matching Aviva’s premium could be just as tough for consolidators like Phoenix.     

London gets closer to harsh bonus cap reality

20 Nov 2014

An adviser to the European Court of Justice has quashed UK legal arguments contesting EU pay limits. A ruling against Britain is now more likely next spring. Base salaries will rise, and industry pay could remain high. It’s a blow to the BoE, but the banks brought it on themselves.

ThyssenKrupp recovery is credible but priced in

20 Nov 2014

After three years of losses, the German engineer’s annual results showed 195 mln euros of earnings. Cost-cutting is ahead of plan, orders are up and debt is down. A surprise dividend shows new confidence. On a rough 30 pct premium, the shares optimistically expect more good news.

BBVA’s timing in Turkey looks odd

20 Nov 2014

The Spanish bank is raising 2 bln euros to buy an extra 14.9 percent stake in Garanti. BBVA gets a larger share of growing earnings and board control. But it could have achieved the latter by 2016 – at a much lower cost. And Turkey’s attractions come with obvious risks.