October 2000
| Euromoney October 2000 The recent mergers of CSFB with DLJ and JP Morgan with Chase signal a new desperation among those near bulge bracket firms to amass the scale, capital strength and full product capability they consider crucial if they are ever to gain entry to the very top ranks of global investment banking. In recent years, Wall Street firms have busily allied with retail distributors and acquired specialist boutique firms. But such full-blown mergers of large investment banks are something quite new. For these deals to succeed, profound misgivings will have to be overcome among many senior managers at DLJ and JP Morgan: firms that have traditionally stayed aloof from Wall Street alliances and have strong cultures. Although it's not clear these mergers will help firms leap ahead, it's quite certain the merging firms' rivals will take advantage of any discontent. Antony Currie reports - Tears in the boardroom
Fiercely independent managers grew their research-oriented boutique from little Donaldson, Lufkin & Jenrette into one of the most successful Wall Street firms in the best businesses: equities, high-yield debt, private equity and online broking. For years, DLJ clung to its distinctive culture while owner Axa happily pocketed dividends. Now the French insurer has tossed it to CSFB and no-one knows if the two can work together. - Both sides’ second choice
Chase Manhattan has never made a secret of its desire to buy an equities franchise to complete the line-up of its wholesale and investment-banking operations. So the announcement on September 12 that it was buying JP Morgan for about $35 billion was no great surprise. But it is also well known that JP Morgan was far from being Chase’s first-choice partner. It would have preferred a deal with Merrill. Inside Morgan, too, there is lingering disappointment that the bank could not complete its transformation into global investment bank unaided. The two sides must put these disappointments aside quickly.
|
Euromoney October 2000
Guy Hands made his name at Nomura International buying pubs. However it was his move for the Millennium Dome, followed by his decision to drop the bid, that brought him into the public consciousness in the UK. With the Dome already fading into the distance, Hands’ Principal Finance Group is dusting itself off and looking for other business ventures to invest in. He tells Julian Marshall why his great white hope turned into a white elephant and what his plans are now
Euromoney October 2000
OM Gruppen’s takeover bid for the London Stock Exchange is a symbol of Scandinavia’s technological edge in financial services. Nigel Dudley reports
Euromoney October 2000
Germany Inc doesn’t like outsiders, especially those challenging the fundamental building blocks of German finance. Cobra, a group of opportunistic shareholders, took on Commerzbank and forced it to consider change. But things didn’t go as planned and both sides are licking their wounds. What’s next in the game of who gets what and who pairs off with whom? David Shirreff reports
Euromoney October 2000
Leading Dutch telecommunications provider KPN faces an uncertain future following the failure of its attempt to link up with Telefonica in Spain. Analysts see an obvious solution to its small home base: it must move into new markets and expand its subscriber numbers in order to survive. The company has been trying to do exactly this. But it has strained its finances and its credit rating in the attempt. Andrew Rosenbaum reports
Euromoney October 2000
A crucial prerequisite of Japanese economic rejuvenation looks to be a burst of merger and acquisitions activity Or so many of the investment banks that would arrange such deals say. With the notable exception of the auto industry, corporate Japan is more hesitant. Legal changes have made M&A easier, but corporate culture remains a stumbling block. Kevin Rafferty reports
Euromoney October 2000
With foreign exchange platforms popping up all over the internet, competition and consolidation are sure to separate the winners from the losers. But will the web’s power to disintermediate ever allow corporate users of forex services to trade currencies directly with each other? Rick Butler reports
Euromoney October 2000
Following a banner year for convertible bonds in 1999, bankers had hoped that the European corporate restructuring wave, capital gains tax changes in Germany, and benign economic conditions would spur the market to even greater heights in 2000. They have been disappointed by a light new issue calendar. However the market is hopeful of an upturn.
Chris Cockerill reports
Euromoney October 2000
An ever-increasing blizzard of broker research is making it difficult for equity analysts to deliver visionary advice. By altering their coverage, delivery mediums and client relationships, research departments at sell-side houses in Europe are working hard to stand out from the crowd. By Rick Butler
Euromoney October 2000
Investors responding to Global Investors’ poll voted the following brokers as the best in Europe. By Ben Wright
Euromoney October 2000
They throw 80% of research straight into the bin; regard sell-side analysts as reactive and herdlike; and suggest that brokers see small hedge funds as being more valuable clients than major asset managers. So is there anything about brokers’ research that fund managers actually like? A panel of investors give their views. By Graham Field.
Euromoney October 2000
Renegade Czech financier Viktor Kozeny is soon to face in court angry American investors who claim he bilked them in a fantastic scheme to acquire Azerbaijan’s state oil company. From his luxury Bahamas base, Kozeny has been telling any journalist who will listen that he has few assets left to seize, while issuing wild threats to expose his accusers and even to sue the president of Azerbaijan. The ending to this colourful tale of greed and double-dealing in a wild frontier market may yet come down to dense legal arguments over trading records. Ben Beasley-Murray reports
Euromoney October 2000
Not only western governments are worried by the oil price. Oil wealth has left Arabian Gulf countries ill-equipped to develop dynamic economies that can cope with the needs of growing populations. Abu Dhabi is aware of the dangers of this inertia but Saudi Arabia’s Crown Prince Abdullah is the man doing most to change attitudes and structures. Michael Field reports
Euromoney October 2000
Euromoney October 2000
Euromoney October 2000
Euromoney October 2000
Euromoney October 2000
Euromoney October 2000
Euromoney October 2000
Euromoney October 2000
Euromoney October 2000
Euromoney October 2000
Euromoney October 2000
Euromoney October 2000
Capital markets in the Gulf are rich with
potential. The markets are developing
rapidly, especially in the UAE, but
international investors will only get involved
once the requisite legal framework is in
place. By Nigel Page
Euromoney October 2000
Issuer: Telefónica
Amount: $6 billion equivalent
Type of issue: Global bond
Date of issue: September 15
Euromoney October 2000
Chairman, Barclays Bank, Germany
Euromoney October 2000
Head of fixed income, Aspect Capital.
Euromoney October 2000
Managing director, The Europe Company
