Corporate Money articles from June 1999

Corporate Money archives from June 1999

Bonds.
June 2, 1999... US and European bonds fell sharply this week, weighed down by stronger than expected US economic data and the falling euro. US bonds were hit by a NAPM report on the manufacturing sector which seemed to point to future interest rate rises and...

EQUITIES.
June 2, 1999... A volatile week for equities saw all leading stock markets lose ground, though the UK gained some support from continuing take-over activity. US shares fell in response to stronger than expected economic data and are now showing some classic...

M&A.
June 2, 1999... A massive week for M&A saw fifty deals announced worth a total of over [pound]5bn. Of these, WhitbreadOs acquisition of Allied DomecqOs UK retail business stands out, valued at well over [pound]2bn. The value of public takeovers soared above...

Adherence to rules complicates Cala takeover.
June 2, 1999... The Takeover Panel is in danger of loosing its reputation for even-handed flexibility following a decision last week to stop Miller Group raising its bid for the Scottish housebuilder, Cala. For the second time in little more than a month...

Citicorp backs CVCOs eastern expansion.
June 2, 1999... CVC Capital Partners is expanding in the far East and has announced the launch of a new $750m investment fund dedicated to the region. The fund will be run by one Vincent Frank, who was previously head of merchant banking at CVCOs former parent...

SJ Berwin adds Spanish office.
June 2, 1999... Further expansion lies ahead for solicitors SJ Berwin who have announced the opening of a new office in Madrid, SJ Berwin, Pazos, Gallardo y Asociados. The office will provide corporate legal services with a strong emphasis on M&A and private...

3i ponders European acquisition.
June 2, 1999... 3iOs investment in continental Europe doubled last year to [pound]240m in 152 businesses, reflecting the venture capital groupOs continued expansion outside the UK. Announcing full year results last week, chief executive Brian Larcombe also...

Smaller company take-overs reach new highs.
June 2, 1999... The surge in UK take-over activity since the beginning of the year reached a crescendo of activity last week as fourteen UK companies announced plans to merge or return to the private sector. The large number of bids last week means that...

F1 bond limps past the chequered flag.
June 2, 1999... Formula OneOs long-awaited eurobond has finally been sold, but only after emergency measures by the company and the lead managers. F1Os egregious chief executive Bernie Ecclestone was forced to draft in WestLB as joint lead managers when it...

Whitbread fends off rivals for Allied Domecq deal.
June 2, 1999... After a month of speculation, Allied Domecq has agreed to sell its pubs and restaurant businesses to Whitbread in an all-share [pound]2.36bn deal. This week both firms were consulting their institutional investors amid management confidence...

Italian bid battles end as Gucci evades LVMH.
June 2, 1999... After OlivettiOs recent victory in its bid battle with Telecom Italia, the past week has seen the end of another protracted struggle in Italy as Gucci successfully fended off the French group LVMH. The Italian luxury goods house, which is...

Bids, mergers, demergers and disposals; week ending 30/5/99.
June 2, 1999... Bidder Cannons Group UK listed health club operator FA: Close Brothers Corp Fin (John Llewellyn-Lloyd) Acc: PricewaterhouseCoopers LF: Herbert Smith Br: Hoare Govett PR: College Hill Target Pinnacle ...

FKI leaps on IT boom.
June 2, 1999... Engineering and machinery group FKI is creating a certain amount of fuss over its recent activities. The market has responded well to the groupOs two acquisitions this week. The purchases of Crisplant Industries for [pound]187m and Industry...

Private equity battle.
June 2, 1999... CandoverOs bid for Hillsdown Holdings this week sparked off a bidding war with US based rival private equity house Hicks Muse Tate & Furst. The Americans had bid 127p per share, valuing the food group at [pound]464m, but Candover has upped the...

JourdanOs food deal.
June 2, 1999... Household and consumer goods manufacturer Jourdan has made a bid to develop a food division, with this weekOs [pound]22.1m offer for Sims Food Group. Jourdan chairman David Abell said Owe want to expand.O. He added that OSims will be the basis...

McKechnieOs flying.
June 2, 1999... Engineering group McKechnie continued its drive towards concentration on aerospace this week, with the [pound]162.4m acquisition of US based Western Sky Industries. At the same time it announced its intention to sell its consumer products...

Health care merger.
June 2, 1999... Seton Scholl is set to create a truly global healthcare company, following this weekOs merger with London International Group. The enlarged company, which is to be called SSL, will have a market cap of [pound]1.5bn with turnover of [pound]642m....

Risky book deal.
June 2, 1999... WH Smith has surprised the market with a [pound]185m takeover offer for the UKOs third largest consumer publisher Hodder Headline. The offer represents a hefty 43% premium to the publisherOs share price, the main factor in the marketOs cold...

UK equity issues - week ending 30/5/99.
June 2, 1999... COMPANY Anglo American South Africa based mining group Sector: Mining Market: Official List Type: Admission via placing TERMS Amount ([pound]m): 402.1 Price (p): 31.8 No of shares: 12,643,700 ...

UK equity issues, domestic and international bond issues - week ending 30/5/99.
June 2, 1999... Alliance & Leicester Bank Market: Euro Currency: GBP Amount (m): 50 Rating: A- Coupon: See details Maturity: April 2003 Price: 100.0 Expenses: 0.17% Lead managers: Greenwich Natwest A floating...

Record high yield.
June 2, 1999... The biggest ever European junk bond was launched last week by KPNQwest. A joint venture run by the Dutch KPN and US-based Qwest Communications, the company launched a dual currency $450 million/E340 million euro offering. This could be the...

Bonds.
June 9, 1999... Currencies and interest rate fears again dominated international bond trading this week. US Treasuries edged lower as the market waits for the next FOMC meeting in late June. In Europe a rally in the Euro failed to boost bond prices under...

EQUITIES.
June 9, 1999... Equity markets shrugged off their recent pessimism as rising M&A activity and hopes for a peace deal in Kosovo produced modest rallies in leading share markets. The UK market was also helped by speculation of a further quarter point cut in...

M&A.
June 9, 1999... Following up last weekOs enormous level of activity was always going to be difficult, and thatOs just the way it turned out. In all, thirty deals were announced, the most substantial of which was Blue CircleOs twin acquisition in Greece for...

Discount securities clause withdrawn.
June 9, 1999... A poorly drafted clause in the upcoming Finance Bill has been amended after City groups warned of further disruption to LondonOs bond market and an unexpectedly punitive tax regime for investors. The clause was drawn up to prevent abuses of the...

Threat to share option schemes.
June 9, 1999... Lawyers are warning employers to check the terms of their senior employeesO job contracts following a landmark court ruling on share option schemes. The biotech company, Biotrace International, has been told it was wrong to cancel options over...

Basle rules to boost rating agencies.
June 9, 1999... Established credit rating agencies, such as MoodyOs, Standard & PoorOs and Fitch IBCA, are set to become increasingly influential in global credit assessment under far-reaching proposals on capital adequacy by the Basle Committee on Banking...

Index changes pose further threat to small caps.
June 9, 1999... FTSE International is planning another overhaul of its UK equity indices in a move described as a further sop to the growing breed of index tracking funds. In a consultation paper launched last week the UKOs official index compiler laid...

Chief executives envy life in the unquoted sector.
June 9, 1999... The higher quality of life enjoyed by chief executives in the unquoted sector is pushing many away from the high pressure environment of quoted companies , says 3i, commenting on a new report by Cranley University School of Management. The...

Hicks Muse wins private equity bid battle.
June 9, 1999... The market is well used to rival bids from private equity houses for subsidiaries of public companies, but last weekOs battle for Hillsdown Holdings broke new ground by pitting Dallas-based Hicks Muse Tate and Furst against Candover in the...

Prudential signals warning on public to private buyout prices.
June 9, 1999... House builder Wainhomes looks certain to succeed in its bid to go private, but it will be at the cost of incurring the disapproval of one of its largest shareholders, the Prudential. In a warning to other buyout teams the Pru has refused to...

Vivendi acquisition threatens MurdochOs hold on BSkyB.
June 9, 1999... An intriguing week in Europe has seen companies from a variety of sectors jockey for cross-border market position. The media sector in particular is beginning to look like a chess board following this weekOs new gambit from French group...

Hicking bows out.
June 9, 1999... Having seen its profits halved in the past year, troubled textile group Hicking Pentecost has succumbed to an offer from US based Ruddick Corporation. The [pound]58m offer represents a premium of 44%, and given that there is little sign of a...

TrustsO hostile battle.
June 9, 1999... Dartmoor Investment Trust has launched a rare hostile paper bid for Pictet British, a Jersey-based trust. Analysts feel that the bid, worth [pound]64.1m, underlines the popularity of split capital trusts - trusts which offer a choice of income...

US invests in CDT.
June 9, 1999... CDT, a Cambridge based technology company, has become the subject of a major investment by a group of New York venture capitalists. Kelso Investment and Hillman Capital are making the [pound]80m investment via a Delaware-incorporated newco....

Unigate expansion.
June 9, 1999... UnigateOs desire to lead the European convenience food market stepped up a gear this week, with its [pound]144m acquisition of Generale Traiteur and Marie Surgeles France from Danone. The deal follows the groupOs purchase of Terranova in March...

Yorkshire taps US.
June 9, 1999... Yorkshire Water is set to become the first UK water company to acquire a listed American equivalent this week, with its [pound]278m bid for Connecticut based Aquarion Company. The bid marks an unmistakeable change in strategy for the company,...

ApazOs Future profits.
June 9, 1999... Future Publishing has set a price range of 350p to 400p per share for its flotation later in the month, valuing the UK consumer magazine publisher at between [pound]525m to [pound]600m. The sale brings a hefty profit to Apax Partners who backed...

Kingston to float.
June 9, 1999... The UKOs last telephone monopoly is soon to join the stock market when Hull city council floats a partial stake in Kingston Communications in July. The flotation is expected to value Kingston at around [pound]650m. The float is being handled by...

Indian co joins Ofex.
June 9, 1999... A susidiary of the Indian conglomerate RPG Group will be the latest company to join Ofex if a proposed share issue goes ahead as planned. Saregama is hoping to raise [pound]3m from UK investors to begin marketing music from the sub-Continent in...

www.credittrade.com.
June 9, 1999... A new internet site which could revolutionise the secondary market in credit derivatives was launched this week by the private financial software company, Mutant Technology. Located at www.credittrade.com, the site will provide the first...

Bonds.
June 16, 1999... International bonds have rallied this week after losing ground in response to strong economic data from Germany and Japan a week earlier. A 0.3% fall in target inflation to 2.1% and a quarter point interest rate cut made UK gilts the market's...

Equities.
June 16, 1999... Wal-Mart's [pound]6.7bn bid for ASDA, base rates at their lowest level for 25 years, and a further fall in inflation all failed to have much impact on UK share prices this week, with prices rising modestly on their levels a week earlier. The...

M & A.
June 16, 1999... Activity was stepped up this week, with a healthy 44 transactions taking place worth [pound]2.7bn. Standing out is British Steel's [pound]1bn merger with Dutch steel group Hoogovens. Again, bids for public companies remained quiet, along with...

Tyco brings out antipathy to US paper bids.(Tyco International's bid for Williams Holdings)(Company Business and Marketing)
June 16, 1999... The acceptability of shares in US take-overs of UK companies was called into question this week when at least one institutional shareholder in Williams Holdings publicly complained about the terms offered by Tyco International in its...

Finns move on EU withholding tax.(European Union)
June 16, 1999... Finnish determination to produce an agreement on the European withholding tax directive during its Presidency of the EU could help the UK win an exemption for the wholesale bond markets, said newspaper reports this week. The Finnish government,...

Finance bill boost to VCTs.(Venture Capital Trusts)
June 16, 1999... Venture Capital Trusts have welcomed changes to regulations which will give them greater freedom to maintain stakes in companies which are floated on the stock exchange. Up to now VCTs have been restricted in the stakes they may hold in...

Employees vote on boss's bonus.(British Aerospace Chmn Sir Richard Evans)
June 16, 1999... An innovative management incentive scheme was revealed this week by British Aerospace chairman Sir Richard Evans writing in his new book Vertical Take-Off. His company has introduced a new system where bonuses will be partly based on the...

Allen & Overy merger talks.
June 16, 1999... Allen & Overy is yet to confirm speculation that it is negotiating a merger with Loeff Claeys Verbeke, the Dutch law firm with which it is part of an informal alliance. The talks are believed to have begun in May at the instigation of the Dutch...

Warning over foreign investment figures.(UK)
June 16, 1999... Figures showing the UK as America's favoured destination for foreign direct investment are misleading and misrepresent the relative attractiveness of the UK to foreign firms, concludes a leading think tank. Researchers for the Economic &...

Surprise as Wal-Mart bids for ASDA.
June 16, 1999... Imitation is the sincerest form of flattery. Wal-Mart's stunning [pound]6.7billion recommended take-over of Asda led to a display of mutual admiration this week as chairman Archie Norman and chief executive Allan Leighton professed their...

Meggitt turns to shareholders to fund major US acquisition.(Whittaker Corp)
June 16, 1999... After paying [pound]68 million, mostly in cash, on four acquisitions last year, engineering group Meggitt is now going for a more substantial aerospace target in the shape of US-listed Whittaker Corporation. It is launching a tender offer which...

Telecom company sell-offs lead European corporate activity.(Libertel)
June 16, 1999... Activity on the Continent this week has focused on the stock markets in general and the telecommunications sector in particular. And while UK new issue markets experience a lull in activity, European counterparts are experiencing something of a...

Giant steel merger.(British Steel, Hoogovens)
June 16, 1999... British Steel has announced that plans to merge with Dutch steel giant Hoogovens, creating a company with a market capitalisation of [pound]3bn. But if the company's had merged on present terms, British Steel would have controlled 75%. So to...

Electro's US deal.(Electrocomponents, Avnet)
June 16, 1999... Electronic parts distributor Electrocomponents has paid [pound]236m to snap up the distribution arm of its US based Avnet. This is the company's first move into the US market, having previously concentrated on continental Europe and Asia. The...

Arriva slims down.(sells its car leasing operation to GMAC)
June 16, 1999... Arriva reiterated its pledge to concentrate on its core public transport business this week, with the disposal of its car leasing arm to GMAC for [pound]226m. GMAC won a battle of interest in the company, which included other vehicle...

Diageo sells in Spain.(sells Cruzcampo to Heineken)
June 16, 1999... Diageo has sold Cruzcampo, Spain's largest brewer to Heineken for [pound]570m. The sale follows an auction process which also attracted the attentions of Spanish brewer Damm, and Denmark's Carlsberg. Heineken though, could not pass up the...

Meyer moves on US.(Meyer International acquires RentX Industries)
June 16, 1999... Builders merchant group Meyer International introduced itself to the US this week, with the [pound]61m acquisition of RentX Industries. The company feels that the US market is as fragmented as the UK was ten years ago, when it began to...

Index for Euro Stars.
June 16, 1999... A new stock market index was launched in Europe this week, FTSE International's Euro Stars. As its name suggests, Euro Stars is an index of the euro zone's top quoted companies. But despite the new benchmark's large pool of possible entrants,...

Rumours help HYB.
June 16, 1999... Another of the UK's telecom companies, Energis, kept the high yield bond market ticking over last week with two ten year issues raising a total of [pound]250m. The European high yield market is proving to be a valuable source of funds for...

Bonds.
June 23, 1999... UK and European government bonds fell sharply this week as the market reacted to bearish political statements. In the UK a reassess-ment of the government's support for the UK's early entry to EMU hit gilts, while continental bonds were...

Equities.
June 23, 1999... Bond market weakness took its toll on UK share prices this week, but not before the FTSE climbed close to its all time highs. A liquidity squeeze and last Friday's futures expiry lay partly behind the positive environment, though a rethink on...

M&A.
June 23, 1999... A moderate week for M&A was substantially boosted by the surprise bid for ASDA by Wal-Mart of the US. The [pound]6.7bn deal lifted this week's deal total to more than [pound]8.5bn in 28 transactions. On the private equity front CVC and NatWest...

BAe finds answer in exchangeable bonds.
June 23, 1999... British Aerospace revealed an innovative approach to fundraising this week as it launched a [pound]686m bond exchangeable into shares in Orange, the mobile telecoms company in which it holds a 5% stake. The issue was the largest ever...

Lawyers respond to dawn raid demand.
June 23, 1999... Dibb Lupton Alsop has launched what it claims is the country's first legal rapid response service for firms targeted for dawn raids by the police, Serious Fraud Office, and other powerful regulatory authorities. Spokesman Jonathan Fox said the...

Financier joins Berwin Leighton.
June 23, 1999... Solicitors Berwin Leighton have beefed up their finance department by appointing Ian Beith, previously managing director of structured finance at Charterhouse Bank. He will head a strengthened finance team at Berwin Leighton of nearly 50...

New hope for Limited Liability bill.
June 23, 1999... Department of Trade and Industry officials were optimistic this week that Parliamentary time will be found this session for the Limited Liability Partnership Bill. Senior partners in law firms, actuaries, architects and chartered surveyors have...

BoS expands structured finance unit.
June 23, 1999... Bank of Scotland has set up a structured finance unit based in Southampton and headed by Alan Butterfield, who moves from a similar position with the bank in Leeds. The southern counties unit covers an area from Dorset to Kent. Butterfield (35)...

Accountants call for branding of AIM.
June 23, 1999... AIM should take a pro-active role to encourage institutional investment in the market, with greater emphasis on attracting European investment, says a new survey on the market. It also says that AIM-quoted companies should should use media PR...

BG turns to index-linked funding.
June 23, 1999... Energy utility BG looks set to be the first UK firm to issue large numbers of long term, index-linked bonds. They will be issued by Transco in exchange for shares in BG and are expected to be worth between [pound]1billion and [pound]2 billion....

Added services the key to growth as Atkins bids for LSH.
June 23, 1999... Commercial property is a cyclical business marked in recent decades by huge highs and lows in activity. Currently, the sector is doing well with rising rents and capital values, particularly in the central London office market. But the trick...

Scandinavia sees launch of Norex trading system in slow week for deals.
June 23, 1999... Denmark and Sweden launched the world's first cross-border joint equities trading system on Monday to a mixed response. The Copenhagen bourse had been one of Europe's worst performing exchanges, and unsurprisingly much of the enthusiasm from...

Bowthorpe in USA.
June 23, 1999... Specialist electronic devices group Bowthorpe gave emphasis to its shift towards higher yield markets this week with its [pound]288m acquisition of Netcom, a US based telecoms testing company. The deal is the largest in Bowthorpe's history, and...

Tarmac demerger.
June 23, 1999... Tarmac has demerged its construction operations away from its buildling materials division in move which will see its dividend cut by a third. The construction business is to named Carillion, and will have an estimated market capitalisation of...

Biotech merger.
June 23, 1999... Celltech and Chiroscience, two of the UK's leading biotech/pharmaceuticals groups, have merged to create Europe's premier biotech group by market capitalisation. Each 62 Celltech shares will receive 100 Chiroscience shares in a deal which...

White knight for Sims.
June 23, 1999... Sims Food Group, the meat products supplier, has agreed a white knight offer from Global which values the former at [pound]22.4m. The 65p per share cash offer trumps last month's hostile offer from household goods group Jourdan by a premium of...

Double Channel sale.
June 23, 1999... Mini-conglomerate Channel Holdings this week announced the results of a strategic review of its business, selling two of its better performing subsidiaries. First on the block was Barnstaple based Basys Marine, a maker of hi-tech naval...

Kappa's junk issue.
June 23, 1999... Dutch packaging company Kappa is to launch an ambitious 10-year four-tranche junk bond, in a move which has been viewed as signalling the revival of the European high-yield issues. Kappa was bought by CVC Capital Partners and Cinven last year...

Langdons rights deal.
June 23, 1999... Food producer Langdons resolved to restructure and change its name to Coburg via a 6-for-2 rights issue this week. The group is currently operating at a loss, but the directors are confident that it will prove profitable. In order to make this...

Intermediate Equity.
June 23, 1999... Former Tory trade minister Sir Richard Needham took his own investment company to AIM this week with a [pound]0.75m placing. Intermediate Equity is an investment company specialising in small medical and high technology companies which find it...

Goldman leads deal tables at half way stage.
June 30, 1999... Goldman Sachs has replaced Morgan Stanley Dean Witter as the UKOs most prolific deal maker, taking first place at the half year stage in Corporate MoneyOs table of leading financial advisers. A clean sweep in the yearOs top four deals...

Stock Exchange comes before EU law.
June 30, 1999... Companies involved in mergers and acquisitions have an obligation to notify the Stock Exchange before consulting employees, an employment tribunal has decided. In the first test of EU legislation on collective redundancies, the tribunal upheld...

Minority shareholders left with little choice in low premium Newsquest bid.
June 30, 1999... After floating Newsquest in October 1997 for 250p a share, private equity houses Kohlberg Kravis Roberts and Cinven have decided to cash in their chips and sell the newspaper publisher to Gannett for 460p, valuing the company at [pound]904...

Europe continues on wave of cross-border banking deals.
June 30, 1999... Cross-border banking was the focus of European activity this week, with deals centred around Poland. Allied Irish Banks acquired an 80% stake in Bank Zachodni, one of the countryOs top banks, from the Polish government. The $582m deal...