Balfour set for cash call September 16, 2009 Balfour Beatty, the engineering, construction and services group, is set to launch a surprise rights issue of around £350m within days, City A.M. can confirm. A team of bankers, including JP Morgan Cazenove and RBS Hoare Govett, have been appointed to work on the fundraising. Balfour, which last month reported a 14 per cent rise [...]
EU leaders in bonus threat September 16, 2009 EUROPEAN leaders are today set to agree plans for greater control over bankers’ pay ahead of next week’s G20 meeting in Pittsburgh. In a statement expected to be endorsed at an EU meeting in Brussels this evening, the leaders will call on G20 countries to stand by commitments “to encourage… a strong link between compensation [...]
Citi debt issue fuels concern September 16, 2009 CITIGROUP yesterday scuppered its own efforts to appear healthy enough to repay $45bn (£27bn) in Troubled Asset Relief Programme (Tarp) funding as it took advantage of a government guarantee to issue $5bn worth of bonds. The bank, led by chief executive Vikram Pandit, is keen to show that it can survive without state support, a [...]
Now we know the grim truth about cuts September 16, 2009 EVEN if you already suspected that Gordon Brown’s post-1997 public spending spree had been an unaffordable disaster, yesterday’s leaked Treasury forecasts made depressing reading. Everybody knows that there will have to be major spending cuts and that the current tax base cannot finance our bloated government; the Institute for Fiscal Studies had long since worked [...]
Ireland values bad loans September 16, 2009 THE Irish government will spend €54bn (£48bn) to buy risky real estate loans from the Republic’s banks, finance minister Brian Lenihan said yesterday. The loans are to be transferred into the government’s “bad bank”, the National Asset Management Agency (Nama), which will pay a 30 per cent discount on the book value of €77bn. “Nama [...]
WHAT THE OTHER PAPERS SAY THIS MORNING September 16, 2009 FINANCIAL TIMES BURBERRY LOOKS TO WIN OVER FRIENDS ONLINEBurberry, the fashion brand that has gone from classic to cutting edge, is to launch its own social networking site next month. The clothing group hopes the move will deepen its relationship with customers and attract new devotees. Called artofthetrench.com, the site will initially feature users sending [...]
Firms delay tax bills in downturn September 16, 2009 Thousands of UK firms are being forced to strike deals to delay tax bills as they struggle in the recession. More than 200,000 companies have signed up to an HM Revenue & Customs scheme, putting off payments of around £3.6bn in total. The so-called “time to pay” scheme was introduced in last year’s budget to [...]
Eastman Kodak in deal with KKR September 16, 2009 Photography company Eastman Kodak yesterday said it expects to raise up to $700m (£425m) through a series of debt sales, including a commitment from private equity firm Kohlberg Kravis Roberts, in an effort to shore up its balance sheet. KKR, which is to buy up to $400m of Kodak’s senior secured notes due 2017, said [...]
Barclays will dump 7.5bn in risky assets September 16, 2009 BARCLAYS yesterday announced the sale of $12.3bn (£7.5bn) of credit market assets to a newly-established fund called Protium Finance, managed by former Barclays Capital (BarCap) employees, in a bid to reduce its credit market exposure. The deal, a complex piece of financial engineering, was well received by investors but slammed by some analysts and media [...]
Q & A September 16, 2009 Q.WHY HAS BARCLAYS SPUN OFF THESE ASSETS?A.According to Barclays finance director Chris Lucas, the sale will reduce the bank’s exposure to potential deterioration of the assets and give it access to “stable risk-adjusted returns for shareholders over time”. Q.DOES THE SALE REDUCE THE BANK’S RISK PROFILE?A.Not really. Although the bank will be less exposed to [...]