Corporate Money articles from September 1999

Corporate Money archives from September 1999

Bonds.
September 1, 1999... The fear of a further rise in US interest rates before the end of the year set Treasury bond markets in decline on Tuesday, while UK gilts headed in the same direction sparked off by evidence of inflation in the property market. On the...

King's College first rated UK university.
September 1, 1999... King's College, London, has become the first UK university to be assigned a non-insured credit rating by Standard & Poor's. The expanding central London university has been given an AA- long-term and A-1+ short term. An AA rating means that it...

Techmark plan "in two weeks.
September 1, 1999... "A spokeswoman for the London Stock Exchange confirmed this week that the LSE will reveal plans to set up a separate market for high-technology stocks "in two weeks time". The new market is likely to be called Techmark and will have its own...

IFAs face insurance crunch in November.
September 1, 1999... The fall out from the pensions selling scandal is continuing to cast a pall over independent financial advisers. The Pensions Advisers Support System (PASS), sponsored by the Association of British Insurers and 30 Life offices, has launched a...

UK private equity in Continental drift.
September 1, 1999... The pricing of UK deals and the difficulty of exiting by flotation is continuing to spur UK venture capitalists to increase their levels of investment in Continental Europe, says Deloitte & Touche's private equity confidence survey for the...

French merger isolates UK supermarkets.
September 1, 1999... Another supermarket mega-merger, another blow to the much-vaunted UK retail sector. The marriage of French giants Carrefour and Permodes via a one-for-six share offer valuing the latter at around E13bn is based on simple safety-in-numbers...

Alexon double-deal.
September 1, 1999... Women's fashion group Alexon made two acquisitions in the unpredictable fashion retail sector this week. The company bought high street shoe retailer Dolcis for [pound]13.7m from Electra Investment Trust, and made a recommended cash and share...

BT buys Yellow Book.
September 1, 1999... British Telecommunications has acquired US-based Yellow Book for [pound]430m in a move which sees its yellow pages operation boost its revenue towards $1bn per annum. Growth in the market for independent yellow pages publishers in the US is...

Misys' IFA expansion.
September 1, 1999... The UK's largest software company, Misys, added to its portfolio of support networks for independent financial advisers this week, via the [pound]30m acquisition of Financial Options Group. The target company consists of three distinct...

SIG deal no gamble.
September 1, 1999... Sports Internet Group eagerly snapped up Surrey Group this week for [pound]19.7min shares, despite the fact that the latter has been loss-making for the past five years. Surrey operates eight betting shops and a golf course, but the real carrot...

Telewest buys Cable.
September 1, 1999... Telewest tried to take its mind off the loss of Cable & Wireless Communications by acquiring 50% of Cable London for [pound]428m. But analysts have expressed concern at the level of the consideration. Given that NTL bought the stake for up to...

Regus set to float.
September 1, 1999... UK-based offices services supplier Regus has confirmed that it is planning to float on the Official List in October which would give it a market capitalisation in the region of [pound]1bn. The offering, which is set to raise up to [pound]250m,...

Barings' Euro Fund.
September 1, 1999... Barings Asset Management has announced the launch of the Baring Euro Bond Fund, which is a sub-fund of the Dublin-based Baring International Umbrella Fund. The fund has been authorised in Ireland be the Central Bank of Ireland, and by the...

Domestic and international bond issues; week ending 29/8/99.
September 1, 1999... COMPANY Abbey National Treasury Services Subsidiary of listed banking group Market: US/UK Currency: GBP Amount (m): 75 Rating: AA2/AA TERMS Coupon: 5.25 Maturity: Jan 2004 Price: 96.50 ...

Bonds.
September 8, 1999... The relatively quiet period for domestic corporate issuance continued this week. Of the four bonds released, one of which was a small fungible note from the Coventry Building Society, with only the West Coast Train Finance issue really catching...

Equities.
September 8, 1999... By lunchtime Wednesday, the FTSE was down 60 points with investors reacting to the news of a 1/4% domestic interest rate increase. New York failed to ignite on Tuesday, with a quiet reaction to the return to work after the Labour Day weekend....

M & A.
September 8, 1999... National Westminster Bank's proposed merger with Legal & General, which weighed-in at a hefty [pound]10.75bn, boosted this week's 34-deal total to almost [pound]15bn. Meanwhile, private equity took a back-seat with three transactions taking...

Urge to merge sweeps German law firms.
September 8, 1999... Three of the top five "magic circle" UK-based international law firms have merged or about to merge with German firms, highlighting the fragmented nature of the German legal structure, and the country's status as the world's third largest...

NAPF not "too cautious" on venture capital.
September 8, 1999... The National Association of Pension Funds, whose assets total around [pound]760bn, has dismissed suggestions by the prime minister that funds are too cautious in providing venture capital and investing in early-stage companies. It says there is...

Digest.
September 8, 1999... Merger controlLawyers Allen & Overy have published a Bulletin summarising the key points in the Department of Trade & Industry's consultation document on proposed changes to the UK's merger control regime (Corporate Money, 11 August, page 2)....

NatWest's "vital, strategic move" with Legal & General.
September 8, 1999... With its [pound]10.75bn recommended offer for Legal & General, NatWest has jumped aboard the long term savings market train in the nick of time - just as it was leaving the station. The fact that the offer represents a hefty 20 per cent premium...

Murray's bid for Leek United heralds new raid on mutuals.
September 8, 1999... De-mutualisation has entered a new phase with the [pound]30.5m hostile offer by AIM-listed Murray Financial Corporation for Leek United Building Society, the 26th largest of the remaining 70-odd building societies. Founded in 1866, it has...

Frenetic French activity continues.
September 8, 1999... The unprecedented amount of large transactions involving French companies over the past month has led to the Paris Bourse enjoying its busiest August on record. The traditionally quiet period was rudely disrupted by the country's three-way...

C-S keeps its bottle.
September 8, 1999... UK confectionary and beverages group Cadbury-Schweppes has completed the acquisition of Dr Pepper Bottling Company for [pound]427m, in a move which creates the largest independent bottling company in the US. The deal is being backed by US...

Henlys US expansion.
September 8, 1999... Coachbuilder Henlys has acquired US schoolbus producer Blue Bird in a deal worth $665m. It completes a frantic move by UK transport companies to claim a stake in the lucrative and fragmented US schoolbus market. Stagecoach and National Express...

US insurance deal.
September 8, 1999... Royal & Sun Alliance has taken advantage of the wave of consolidation in the regional and mid-sized casualty insurance market in the US to expand its North American operations. The acquisition of Orion Capital Corporation makes the UK insurance...

Vodafone expansion.
September 8, 1999... UK mobile phone provider VodafoneAirTouch has purchased UniqueAir, an independent phone distribution group, for [pound]51m. The company will be integrated with Vodafone's existing distribution network. For UniqueAir the deal makes sense,...

Intermediate Equity.
September 8, 1999... Intermediate Equity, the AIM-listed investment company which specialises in small medical and high-technology company investments has announced a placing to coincide with its first investment. The company listed in June with a market...

Train Bond.
September 8, 1999... Angel Train contracts, the UK's largest passenger and freight train leasing company, has issued a [pound]480m 15-year asset backed bond to finance the acquistion of a 53-strong fleet of Advanced Tilting trains from Alstrom and Fiat Ferroviaria....

Equities.
September 15, 1999... Following the Generali bid in Italy, Norwich Union shares jumped 5% on renewed speculation that it may be the next target in the wave of insurance sector consolidation. But poor US results prompted speculation of a further interest rate...

ECNs reaping the rewards.
September 15, 1999... Electronic Communication Networks (ECNs) now account for about one fifth of transactions in NASDAQ securities and 3 per cent of transactions in securities listed on the New York Stock Exchange The shift in technology means that small order...

Price Improver softens blow.
September 15, 1999... With the London Stock Exchange's core market domestic hours lengthening from Monday 20 September to 08.00 - 16.30, Barclays Stockbrokers claims that its Price Improver will give private investors access to the more competetive prices enjoyed by...

Barclays' [pound]100m for RDA venture capital.
September 15, 1999... The DTI's idea of channelling venture capital for "viable but not bankable" small firms through the newly-formed Regional Development Agencies in England and Wales has moved on a step, courtesy of Barclays Bank. Barclays has pledged to provide...

Church and Prada a perfect fit as fashion targets luxury brands.
September 15, 1999... Imelda Marcos needed several rooms in the Philippines presidential palace to store her immense collection of shoes. She almost certainly had lots of swish Bally, but it's hard to imagine that Church's brogues, a classic example of traditional...

Prudential launches performance driven "Light Green" fund.
September 15, 1999... Prudential Portfolio Managers (PPM), which has [pound]137bn of assets, has become the latest major institution to launch an ethical fund. Its "Light Green Fund" aims to address the ethical concerns of members while remaining focused on...

Financial sector turmoil moves to Italy.
September 15, 1999... Battles in European financial sectors never seem too far from the news these days. Just when the messy three-way French banking debacle comes to a halt, it is rapidly followed by strife in the Italian insurance market. Assicurazioni...

Concentric buys ITG.
September 15, 1999... UK listed computer company Internet Technology Group agreed to a [pound]146m cash and share bid from US-based Concentric Network this week. The offer values ITG shares at 253p, a 62% premium above the share price before rumours of acquisition...

Grouse flies the list.
September 15, 1999... Listed Scottish whiskey company Highland Distillers has agreed to go private via a [pound]601.4m joint bid from Edrington and William Grant. The company, which operates The Famous Grouse brand of scotch, sees the move as a final bow to the...

Clondalkin MBO.
September 15, 1999... Clondalkin has become the first Irish public company to be bought out by management this week, with a IR[pound]303m Candover-backed deal. Management is set to hold 19% of the print and packaging group on completion of the transaction. The offer...

M&C in US hotel deal.
September 15, 1999... UK listed hotellier Millennium & Copthorne announced a [pound]447m deal to acquire a portfolio of 29 hotels in the US. The deal is set to be financed through a mixture of debt and equity, with the latter potentially coming via a rights issue...

Allied's French deal.
September 15, 1999... French carpet company Tapis Saint-Maclou was undeterred by the announcement that Allied Carpets is about to be investigated for fraud by the Department of Trade and Industry, bidding 93p in cash for the company. The offer trumps Wassall's...

African expands.
September 15, 1999... The ambitious internet company African Lakes announced plans to expand its Africa OnLine business, and put its money where its mouth is by looking to raise [pound]17.7m via a placing and open offer. The company has somehow managed to...

Domestic and international bond issues; week ending 12/9/99.
September 15, 1999... Lehman Brothers Holdings Financial services group Market: US/UK Currency: E Amount (m): 200 Rating: A3/A Coupon: 4.875 Maturity: Sept 2002 Price: 99.877 Yield: 4.920 Spread: +105 (May 02) Lead...

Bonds.
September 22, 1999... Corporate issuance staged a slight resurgence this week, led by Imperial Tobacco's first foray into the Eurobond market. On Tuesday, NatWest issued a three-tranche Euro, Sterling and Dollar bond as part of its financing of the acquisition of...

M&A.
September 22, 1999... Of the27 deals announced this week, only Scottish & Newcastle's bid for Greenalls really catches the eye in terms of value. Things were quiet on the private equity front with only two transactions announced worth a meagre total of almost...

NatWest sells Hawkpoint to employees.
September 22, 1999... NatWest is selling Hawkpoint Partners, its corporate advisory business, to its employees.as part of its strategy of focusing on core business.Chief executive Alton Irby said the transaction acknowledged Hawkpoint's progress in achieving its own...

Football bond market unlikely to be high scoring fixture.
September 22, 1999... Although Newcastle United's [pound]55m bond represents what is claimed by Schroders to the first time a ticket securitisation bond has been issued in the UK, the market for new football club bonds is likely to be small because of most clubs'...

"Lack of opportunity" hinders private equity investment.
September 22, 1999... In a new development in the row sparked by the Prime Minister on private equity investment by pension funds, three of the UK's top firms of pension fund consultants and actuaries have told the Treasury that private equity investment is limited...

Banking sector consolidation moves north.
September 22, 1999... The ferocious level of financial sector consolidation continued this week, with a real focus in Scandinavia. Finnish group MeritaNordbanken is attempting to tie-up the fragmented Nordic banking sector via a E2.96bn bid for Christiania Bank of...

BOS bid for Hill Hire.
September 22, 1999... Bank of Scotland has moved to increase its vehicle hire and leasing range business via a recommended offer for Hill Hire worth 240p per share in cash. The acquisition, which values Hill at [pound]74m, is designed to widen the Bank's customer...

BS' French rail deal.
September 22, 1999... British Steel has acquired Sogerail from French steel group Usinor for [pound]83m, in a deal which sees it become the world's largest supplier of rail products and services. The transaction also includes associated sales company, Materiel de...

CGU's Canadian deal.
September 22, 1999... Insurance group CGU has substantially increased its presence in Canada with the [pound]56m acquisition of GAN from French insurer Groupama. The transaction is being conducted through the group's Canadian subsidiary CGU Group Canada, and is...

Delancey bids.
September 22, 1999... The Ritblat-controlled Delancey Estates is waiting anxiously to see if its [pound]173.4m bid for Milner Estates is to be trumped by US-based investment fund JER International. John Ritblat controls British Land and is eager to consolidate his...

S&N for Greenalls.
September 22, 1999... Scottish & Newcastle, the UK's largest brewery group, has acquired rival brewer Greenalls in a deal worth [pound]1.135bn. The announcement of the bid lifted S&N's shares by 19p to 612p, while Greenalls dropped 7p to 361p. The target company is...

Henlys funds.
September 22, 1999... Henlys, the UK's largest supplier of bus and coach bodies, is looking to shareholders to fund the US$665m acquisition of US-based schoolbus manfacturer, Blue Bird. The company is launching a 2-for-5 rights issue set to raise up to...

Langley no more.
September 22, 1999... Building construction group Langley & Johnson this week disposed of its last remaining trading activity, a small fencing operation for [pound]11,000. This completes the company's remarkable restructuring process which has seen it shift its...

Imperial's euro issue.
September 22, 1999... Listed cigarette manufacturer Imperial Tobacco made its first forray into the Eurobond market this week, with an issue worth E650m. The group is looking to refinance its debt facilities in connection with recent brand acquisitions in Australia...

EQUITIES.
September 29, 1999... Profit-taking hit the FSTE on Tuesday, with the banking sector leading the way in a 72 point fall. Both Bank of Scotland and Royal Bank of Scotland registered sharp declines, as the previous two-day surge following the hostile offer for NatWest...

M&A.
September 29, 1999... Bank of Scotland's shock unsolicited bid for NatWest leaps forth from the M&A figures for this week. Valued at over [pound]20bn, it dominates the weekly total of [pound]21.35bn from 33 deals. Bids for public companies remained constant, with...

FSA promises regime of openess on rules rulesut some will.
September 29, 1999... With probably less than a year to go before the fundamental Financial Services and Markets Bill becomes law, the FSA has promised a regime of openess and says its supervisors will not work on the basis of unwritten rules or unpublished...

Techmark a "knee jerk".
September 29, 1999... Granville, the independent investment bank specialising in the technology sector, has cast doubt on the likely effectiveness of the London Stock Exchange's Techmark initiative, in its third annual survey of the UK IT sector. Its research shows...

Lovells merges with German lawyers.
September 29, 1999... Lovell White Durrant and German law firm Boesebeck Droste have voted to merge from next January. The combined firm, to be known as Lovells, will have more than 220 partners and 800 other lawyers and legal staff in 23 offices. Lovells said they...

Westport and Parallel join forces.
September 29, 1999... Parallel Ventures, founded by Paul Whitney in 1997, has taken a controlling interest in Westport Private Equity, founded by John McCrory in 1988. McCrory said their activities were distinctively separate, but highly complementary. The link...

Stronger laws in boardroom.
September 29, 1999... The Law Commission's proposals on directors' duties published this week mean that directors could soon be required to study a new codified, statutory list of obligations and duties of care. David Stevenson, of lawyers Eversheds, says the...

Funds using Internet "chat rooms".
September 29, 1999... Fund managers and analysts are using Internet "chat rooms" - on-line discussions with third parties - for sources of information on companies, claims a new research report. In the US and Europe 43 per cent of fund managers and analysts had...

Co-operative Bank launches web-based Smile as sector crosses threshold.
September 29, 1999... Co-operative Bank launches web-based Smile as sector crosses new threshold With NatWest's role turning from hunter to prey in a few short days, and with the major players in European banking and insurance eyeing each other up, the...

LSE warns firms to tighten risk control systems.
September 29, 1999... The London Stock Exchange has written to the company secretaries and finance directors of all quoted companies this week alerting them to the requirements of new guidance for directors aimed at tightening firms' internal risk control systems....

Bid for NatWest opens the door for Europe.
September 29, 1999... In a week which saw the European Ryder Cup team capitulate in a manner England's lower order batsmen would be proud of, thoughts of banking consolidation were again firmly on European minds. The shock [pound]20bn unsolicited offer from Bank...

BRIT insurance deal.
September 29, 1999... The consolidation in the insurance market continued this week, with BRIT Insurance Holdings acquiring the 70% of BRIT Insurance which it does not already own for [pound]44m. BRIT noted that the industry was such that certain benefits would...

Close Bros expands.
September 29, 1999... Close Brothers Group continued its recent expansive form this week with the [pound]20.5m acquisition of financial services company Warrior. The group had expanded its corporate finance advisory services towards the end of July last with the...

Rolls' bid for Vickers.
September 29, 1999... Rolls-Royce announced a [pound]576m recommended cash offer for marine power systems group Vickers. The bid, which values each Vickers share at 250p, represents a substantial 53% premium to the share price on September 17th, immediately before...

SVB looks for growth.
September 29, 1999... Insurance market consolidation continued this week with the announcement of a merger between SVB Holdings and CLM Insurance Fund. The merger, which is to be effected via an offer of 1,185 new SVB shares for every 1,000 CLM shares, values the...

Domestic and international bond issues; week ending 26/9/99.
September 29, 1999... Great Universal Stores UK listed retail group Market: Euro Currency: E Amount (m): 500 Coupon: 5.125 Maturity: Oct 2004 Price: 99.548 Yield: 5.230 Spread: +68bp (3.5%, 09) Lead managers: Barclays...

Easy being green?
September 29, 1999... The life of a football club chairman is never easy. And with fans as passionate as those at Glasgow Celtic matters become even more complicated. This week the club's recently departed chairman Fergus McCann fulfilled his pledge to supporters to...

Troubled bank issue.
September 29, 1999... To say the least, NatWest's jumbo issue last week was overshadowed by ensuing events. The banking group became Europe's largest issuer with notes worth [pound]2.25bn issued as part financing for its [pound]10.75bn proposed acquisition of Legal...