| Eurobonds issued by leading consumer goods companies '98 | ||||
| Company |
Market cap (£ bn1) |
Issue/maturity |
Spread at launch (bp) |
|
| Coca-Cola2 |
92 |
£150m / 08 |
65 |
|
| Procter & Gamble |
61 |
$500m / 03 |
30 |
|
| Diageo |
22 |
$500m / 03 |
44 |
|
| McDonald's |
20 |
Ffr2000m / 08 |
28 |
|
| Heinz |
11 |
$250 m / 03 |
46 |
|
| 1 November 1997 share prices and exchange rates | ||||
| 2 issuer is Coca-Cola Enterprises Great Britain | ||||
European corporates may enthusiastically be embracing the idea of shareholder value, but does this create value for bond investors? This was a question that investors were keen to ask Diageo - the new company created in last year's £9.75 billion ($16.25 billion) merger of Guinness and GrandMet - during its roadshows for a debut $500 million Eurobond. As the trend for European corporate M&A continues, debt investors will increasingly find that recognized names are absorbed into new companies with unfamiliar credit stories.