Corporate Money articles from July 1999

Corporate Money archives from July 1999

Bonds.
July 7, 1999... The week saw the first ever bond offer to be fully completed on the Internet. The European Investment Bank exchanged E800m of old bonds for new on its Web site. And Cantor FitzGerald launched its e.speed system, offering a global electronic...

Blair steps in to plug regional equity gap.
July 7, 1999... The Government is to provide [pound]50m in support over the next three years as pump priming for the new Regional Venture Capital Funds. The eight Regional Development Agencies in England will play a key role in attracting private finance to...

Lawyers look to Europe for growth.
July 7, 1999... Clifford Chance is on the verge of becoming the worldOs biggest law firm following the disclosure of merger talks with Punder Volhard Weber & Axster of Germany. If approved the deal will give the firm more than 2,700 lawyers. The firm had...

Strauss-Kahn clears the way for Elf bid.
July 7, 1999... Merger news in Europe was dominated by TotalFinaOs [pound]27bn unsolicited bid for Elf Aquitaine. If successful, the paper offer would create the worldOs fourth largest oil company; well behind Exxon-Mobil, Shell and BP Amoco-Arco. But ElfOs...

Amey branches out.
July 7, 1999... Construction group Amey moved away from its traditional core areas this week, with the [pound]86m acquisition of support services company Comax. The company is being sold by its majority shareholder, venture capitalist Cinven, which had taken...

BerisfordOs US deal.
July 7, 1999... Foodservice equipment producer Berisford has made a bold move into the US market with the [pound]437m acquisition of Scotsman Industries. The fact that the consideration is almost [pound]70m higher than BerisfordOs own market capitalisation...

Incepta bids for rival.
July 7, 1999... Communications group Incepta has made an unsolicited paper offer for rival company Lopex. Incepta, which owns financial public relations company Citigate Dewe Rogerson, feels that 9-for-4 share offer represents a definite value-enhancing...

Adscene set to delist.
July 7, 1999... Regional newspaper publisher Adscene has become the latest media group to rue the lack of investor interest in smaller companies this week, when it was bought out by a new management team with the backing of 3i. The new management is led by...

Swallow.
July 7, 1999... Leisure group Swallow has disposed of a 662-pub estate to allow itself to concentrate on its hotels and restaurants businesses. The group had pin-pointed an exit from brewing and wholesaling operations as beneficial towards the strategic...

WDR sets the tone.
July 7, 1999... A further sign that the Euro bond market is returning to form came from Warburg Dillon Read this week, when it announced the launch of its EURO Credit Indices. The growing institutional credit market in Europe has prompted WDR to augment its...

LloydsO multi-tranche.
July 7, 1999... LloydOs TSB announced the terms of its long-awaited multi-tranche bond issue, in an effort to finance its [pound]7bn acquisition of Scottish Widows last week. Of the [pound]1.8bn to be raised through the issue, four tranches worth E1.25bn,...

Bonds.
July 14, 1999... Ford wrote itself into the history books this week, with its $8.6bn issue becoming the largest ever corporate bond. The two-tranche issue is part of what is widely expected to become a common strategy, for companies to issue more regular liquid...

Equities.
July 14, 1999... All the main FTSE indices again reached record closing levels early in the week, propelled by the strength of Wall Street where all the main indices hit record numbers. Much activity came from the high levels of bid action also, a relative...

M&A.
July 14, 1999... A quieter week in terms of activity than in the recent past, though the [pound]3.3bn deal total is still impressive. Of course, much of this is due to CentricaOs [pound]1.1bn bid for control of the Automobile Association. The level of public...

No more help for mutuals.
July 14, 1999... Building societies and other mutuals must not expect further legislation to protect them from pressures to demutualise, the Government said this week. Patricia Hewitt, economic secretary to the Treasury, told the Commons Treasury select...

More froth in brewery sector as Wolves and Greene King battle for Morland.
July 14, 1999... There is another take-over battle going on in the brewing and pubs sector. It has not received much attention so far, but then itOs relatively small beer compared to the figures involved in the Whitbread, Allied Domecq, Punch Taverns brawl,...

Consolidation key as gas deal dominates.
July 14, 1999... Activity in Europe was dominated this week by a [pound]7.15bn recommended offer for BOC, the worldOs second largest industrial gases group. The offer came jointly from FranceOs Air Liquide and US-based Air Products and Chemicals. Though the...

Brent goes German.
July 14, 1999... Chemicals group Brent International was swept along by the wave of consolidation in the sector this week, as it agreed an [pound]82m cash bid from German company Chemetall. The sale ends years of woe for the company, which had been consistently...

Vymura goes private.
July 14, 1999... Gleadway, a newco which is wholly owned by Jersey-based Newby Manor, has launched a [pound]28.4m cash bid wallpaper group Vymura. The new company is owned by entrepeneur Trevor Hemmings who recently bought the Blackpool Tower. Gleadway director...

NSB in US merger.
July 14, 1999... AIM-listed software company is set to double in size following its merger with US-based Unlimited Solutions in a deal which values the latter at [pound]37.7m. Following completion of the merger, NSB is planning to move to the Official List as...

Weir buy down under.
July 14, 1999... Engineering group Weir has bought Australian pumps business Warman International from North Limited for [pound]195m. The acquisition is expected to be earnings enhancing in its first full year, and will be financed by a combination of existing...

NSB plans a move.
July 14, 1999... AIM-listed software group NSB Retail Systems completed its merger with US based Unlimited Solutions this week, in a deal which will see its size double. The deal is to be effected through the placing of slightly over 1m shares in the company,...

Giant Ford issue.
July 14, 1999... Ford issued the largest ever corporate bond this week, with a two-tranche note worth a staggering $8.6bn. The financial strategy involved could well mark a shift in the way that large companies exploit opportunities in the capital markets....

UK investment managers OcomplacentO.
July 21, 1999... OComplacentO investment managers will come under increasing pressure from investors to open up their business and operations to scrutiny, says PwCOs annual investment management survey. Instead of fearing such a shift in power, fund managers...

European banking sector still turbulent.
July 21, 1999... The long-running saga of accusations of protectionism aimed at Portugal failed to halt this week, with the European Commission ruling that the government must scrap its veto of the Spanish takeover of financial group Champalimaud. The...

CrestaCare details.
July 21, 1999... Healthcare company CrestaCare has been taken private by an acquistion vehicle backed by Alchemy Partners for [pound]70m. The company noted that a combination of the lack of real investor interest in smaller companies and rising costs in the...

CooksonOs US buy.
July 21, 1999... Materials technology group Cookson has acquired the Plaskon Electronic Materials business of BP Amoco for [pound]77m. Plaskon fits well with CooksonOs existing electronics materials unit, and is expected to slot into the division relatively...

Incepta loses?
July 21, 1999... Sometimes you just canOt lose. Incepta this week accepted defeat on its bid to buy public relations company Lopex, due to a substantially higher offer from the French group Havas. But Incepta can hardly be called the loser in the transaction....

Property venture.
July 21, 1999... Norwich Union and Milner Estates have announced the formation of a joint venture aimed at managing the formerOs retail holdings. The venture, Norwich Union Milner Retail Partnership, has acquired five shopping centres from the financial group...

Banner looks to US.
July 21, 1999... Industrial cleaning agent company Banner Chemicals has recommended an [pound]11.7m cash bid from Florida-based Petroferm. The company, which was formerly known as Sutcliffe Speakman, noted that current trading conditions made its future as an...

UK equities issues; week ending 18/7/99.
July 21, 1999... COMPANY Baron Corporation Developer of computer software systems for the leisure industry Sector: Software & Computer Services Market: AIM Type: Admission via placing TERMS Amount ([pound]m): 3.00 Price (p):...

LiontrustOs debut.
July 21, 1999... Specialist equities fund managment group Liontrust was admitted to the Official List this week, with a market capitalisation of almost [pound]38m. The company has funds under management of [pound]661m, which is some performance given that the...

UK equity issues, domestic and international bond issues; week ending 18/7/99.
July 21, 1999... COMPANY Abbey National UK listed banking group Market: US/UK/FRA Currency: USD TERMS Amount (m): 1000 Rating: AA2/AA Coupon: see details Maturity: August 2000 Price: 100.028 Features: see...

Wal-Mart mega-issue.
July 21, 1999... Wal-Mart announced that it is to issue its first ever global bond this week, with a $5bn note aimed at refinancing its acquisition of ASDA. The bond, which is the company expects to offer next month, begins a European roadshow this week. This...

GreenOs Sears break-up set to cause possible OStore WarsO.
July 21, 1999... Retail entrepreneur Philip Green has wasted no time in breaking up Sears, the declining High Street giant once valued at over [pound]2bn. In January he bought a 52.9 per cent interest in Sears in a deal which valued the company at [pound]548m....

Bonds.
July 28, 1999... Corporate activity continued to dominate the bond markets across the Atlantic. American Honda became the issuer of the largest ever asset-backed bond with its $3bn issue. On the domestic front, Abbey National consolidated its position as the...

M&A.
July 28, 1999... A strong week on the M&A front saw 28 deals worth a total of over [pound]3.5bn. The Vodafone-Airtouch acquisition of CommNet of the US stands out as the largest deal, weighing in at [pound]869m. It was joined by five other transactions in...

Australia top at privatisation.
July 28, 1999... Australia was the world wide leader in the value of privatisations during the first half of 1999, says a report on the country by Thomson Financial. The sector was worth A$7.5bn, or 15.4 per cent of the world market. The busiest industries for...

EASDAQ gains IPO green light.
July 28, 1999... EASDAQ, the pan-European stock market for international growth and technology companies, has received approval from the US Securities and Exchange Commission allowing US companies to undertake an IPO on EASDAQ without registering with the SEC....

Threat to partners lifts.
July 28, 1999... The government is under renewed pressure to find a slot in the next Parliamentary session for a bill to protect partners in firms from unfair legal actions for negligence. It is understood that the government will now publish a limited...

New law mooted to protect mutuals.
July 28, 1999... A clash between the Treasury and the Treasury Select Committee appears likely following the committee[superscript one]s decision to recommend legislation to protect mutuals. These include the remaining building societies, some life assurance...

Brothers get together - it[superscript one]s a question of scale and fund management.
July 28, 1999... The logic behind the recommended acquisition by Close Brothers Group of fellow bankers Rea Brothers is clear enough: being a relative tiddler in an ocean infested with giant sharks is not for the faint hearted. Survival requires growth and a...

Close Brothers rules out Euro roles for AIM.
July 28, 1999... Close Brothers, whose subsidiary, Winterflood Securities, is an AIM market maker, has cast doubt on the ability of London[superscript one]s junior market to integrate with either Euro.NM or EASDAQ to create a successful pan-European...

Bids, mergers, demergers and disposals; week ending 25/7/99.
July 28, 1999... BidderArtal Luxemburg FA: Credit Suisse First BostonTargetWeight-WatchersDieting businessVendor: HJ HeinzFA: Warburg Dillon ReadLF: Davis Polk & Wardwell (US)FinanceValue ([pound]m): 468.00DetailsArtal was assisted by Invus Group when acquiring...

FirstGroup buy in US.
July 28, 1999... Transport company FirstGroup has made a trip across the Atlantic this week to exploit what it sees as a serious opportunity for expansion in the USA. Its [pound]602m acquisition of schoolbus operator Ryder Public Transport Services may not be...

JBA for Canadians.
July 28, 1999... Business software supplier JBA Holdings has agreed to a [pound]92.5m offer from Canadian company Geac Computer Corporation. The company has been under new management following losses last year, and was keen to exploit what it saw as an exciting...

Engineering merger.
July 28, 1999... Cirqual became the latest company to succumb to the consolidation which is beginning the sweep smaller engineering companies this week, as it agreed a [pound]74.7m offer from components manufacturer L Gardner. Both groups see the benefits of...

Wassall divests.
July 28, 1999... Diversified industrial group Wassall continued its strategy of maximising shareholder value this week, with the [pound]184m sale of its DIY hardware division DAP to the US based company RPM. The group has been consistently streamlining for some...

Vodafone deal.
July 28, 1999... The recently merged telecommunications group Vodafone Airtouch is looking to expand its presence in the US market. The acquisition of mobile phone operator CommNet Cellular for [pound]869m will, it believes, give it a far stronger base in the...

Bids, mergers, demergers and disposals; week ending 28/7/99.
July 28, 1999... CompanyClose BrothersSpeciality finance groupSector: Speciality & Other FinanceMarket: Official ListType: PlacingTermsAmount ([pound]m): 45.00No of shares: 6,000,000AdvisersUnderwriter: Warburg Dillon ReadBroker: Warburg Dillon ReadFinancial...

UK equity issues, domestic and international bond issues; week ending 25/7/99.
July 28, 1999... CompanyAbbey National Treasury ServicesUK listed financial services groupMarket: US/UKCurrency: EAmount (m): 2,500Rating: AA/AA2TermsCoupon: see detailsMaturity: Sept 2000Price: 98.125Yield: see detailsFeatures: FRNFinanceLead managers: Goldman...

Greene King placing.
July 28, 1999... Brewery group Greene King is looking to finance its proposed acquisition of Morland via a share placing of 18% of its enlarged issued share capital. The increased offer consists of 0.3933 New Greene King shares and 270p in cash for each Morland...

E-bonds expansion.
July 28, 1999... Europe[superscript one]s electronic bond trading system EuroMTS is set to expand the range of its coverage to include more Euro-Zone benchmark government bonds. The system, which is owned by a consortium of banks, was launched in April of this...

Corporate revival.
July 28, 1999... The recent spate of jumbo corporate issues sparked off by Ford[superscript one]s strategy of regular offerings continued across the Atlantic this week. American Honda Finance Corporation, the US based arm of the Japanese company, launched the...

Abbey[superscript one]s jumbo issue.
July 28, 1999... Britain[superscript one]s most prolific issuer, Abbey National, is using investor fears about interest rate increases to issue a E2.5bn floating rate note. The one-year offering was snapped up by both European and Asian investors, eager to take...

Vivendi still hungry in week of consolidation.
July 28, 1999... The question appears to be: what would you do if you were Rupert Murdoch? With a hungry Vivendi shoving BSkyB towards a merger with Canal Plus, and the wily old Australian insisting that it will never happen; one cannot but see that something...