BP boss to say spill liabilities exceed $20bn July 21, 2010 embattled BP chief executive Tony Hayward is expected to tell shareholders that liabilities connected to the Gulf of Mexico spill have passed $20bn (£13.2bn) when he outlines a new business strategy alongside the oil major’s second quarter results next Tuesday. Hayward, who has recently been absent from the public eye, will tell shareholders that costs [...]
Business lashes out as Obama signs finance reforms into law July 21, 2010 AMERICAN business groups rounded on President Barack Obama as he signed the country’s historic finance reform bill into law last night. Sealing the most comprehensive overhaul of banking regulation since the 1930s, Obama acknowledged the importance of the financial industry. But he declared: “Because of this law, the American people will never again be asked [...]
Santander revives £3bn flotation plan for UK arm to fund growth July 21, 2010 SPANISH bank Santander is re-examining plans to list its UK operations to raise cash for the purchase of assets including 318 Royal Bank of Scotland branches, it is understood. Depending on economic conditions, the group could float 20 per cent of the division comprising Abbey, Alliance & Leicester and parts of Bradford & Bingley in [...]
Morgan Stanley continues down the road to recovery July 21, 2010 WALL Street lapped up a solid set of second-quarter results from Morgan Stanley yesterday, buoying market sentiment after a disappointing performance over the same period from some of the bank’s peers, notably Goldman Sachs. Morgan Stanley beat analyst expectations with post-tax profit of $1.4bn (£921m) for the three months to June, swinging back into the [...]
Reckitt agrees £2.5bn bid for Durex maker July 21, 2010 CONSUMER goods group Reckitt Benckiser yesterday agreed to buy Durex condoms and Scholl sandals maker SSL International for £2.5bn in cash to increase its presence in the health and personal care markets. The Anglo-Dutch maker of Nurofen painkillers, Strepsils and Lemsip cold remedies, said SSL stockholders would receive 1,171p a share. Regulators and investors are [...]
Reckitt Benckiser July 21, 2010 WHAT a difference a couple of years makes. Back then, SSL was trading at 400-500p and Reckitt was said to be sniffing around. Its shareholders will wish it made its move then: its hefty £1,171p per share offer – equivalent to 18 times forecast ebitda in the year to March 2011 – is going to [...]
Ocado shares tumble after its flotation July 21, 2010 OCADO’S share price tumbled yesterday as investors gave the thumbs down to its stock, even at its massively reduced valuation. Shares in the firm – which floated at 180p – were selling as low as 155p during its first morning of conditional trading. Analysts queued up to take a pop at the firm, with some [...]
Hedge funds perform well July 21, 2010 Hedge funds pulled in $9.5bn (£6.3bn) during the second quarter, with nervous investors preferring to send their money to the biggest and best established managers, according to industry tracker Hedge Fund Research (HFR). Hedge fund managers have seen flat returns on average as they have battled a volatile market so far this year, but that [...]
AAIA appoints banks for its upcoming flotation July 21, 2010 American International Group (AIG) is set to appoint Deutsche Bank, Goldman Sachs and Morgan Stanley as joint global coordinators for the planned initial public offering of its Asian life insurance business, AIA, sources with knowledge of the matter said yesterday. On Monday, AIG named Mark Tucker as the new chief executive of AIA and formally [...]
ANALYST VIEWS: HOW DO YOU RATE OCADO’S CHANCES NOW THE COMPANY HAS FLOATED? July 21, 2010 CLIVE BLACK | SHORE CAPITAL “We believe that a revised 180p issue price is still far too high for Ocado at this juncture, which has been reflected by the market. To our minds the reputation of the company and the stock can only be tarnished by recent events, which is a shame for all concerned. [...]