Rio scraps its Chinalco deal June 4, 2009 FEARS of a massive shareholder revolt prompted mining giant Rio Tinto to dramatically call off a $19.5bn (£13.7bn) tie-up deal with Chinese shareholder Chinalco last night. The decision raises questions about the long-term future of chief executive Tom Albanese, the architect of the controversial Chinese deal. He has been criticised by shareholders for breaching pre-emption [...]
Amlin snaps up Fortis arm in expansion June 3, 2009 AMLIN, the insurer that trades on the Lloyd’s of London market, said yesterday it wants to raise £76m from markets to fund a buyout of a non-life insurance arm of part-nationalised Dutch bank Fortis. The group said it has struck a €350m (£303m) deal to buy Fortis Corporate Insurance (FCI) from the Dutch government, which [...]
WHAT THE OTHER PAPERS SAY THIS MORNING June 3, 2009 FINANCIAL TIMES BANKRUPTCIES SET TO RISEThe number of corporate bankruptcies is set to surge by 35 per cent this year, turning the world economy into a “burial ground” for businesses, according to a study by Euler Hermes, the credit insurer. In a study published today the Paris-based unit of Allianz, says the rate of corporate [...]
Premiership regains place as world’s most profitable league June 3, 2009 CHAMPIONS Manchester United yesterday set the trend for Premier League football clubs after announcing a lucrative shirt deal on the day when record-high revenue figures were announced. The Old Trafford club agreed to a four-year sponsorship deal with insurance giant Aon Corporation, replacing that of troubled AIG, which was bailed out by the US government. [...]
CITY MOVES WHO’S SWITCHING JOBS June 2, 2009 DeloitteThe business advisory firm has appointed Anne Hamilton to lead its insurance tax team. Hamilton was previously a tax partner at rival PricewaterhouseCoopers. “In light of Solvency II we anticipate that there will be considerable restructuring work to make sure that insurance companies’ balance sheets have capacity,” said Deloitte head of UK insurance Mark Fitzpatrick. [...]
Why the public rejects car firm bailouts May 31, 2009 WE are almost there. Barring a last minute hiccup, General Motors (GM) will enter into bankruptcy today. Like Chrysler, it will be using section 363 of the US code, which ought to allow it to reemerge in a few months having shed assets, liabilities and shareholders, and with the government owning the bulk of the [...]
CITY MOVES WHO’S SWITCHING JOBS May 31, 2009 Old Broad Street ResearchThe investment funds research and consultancy firm has appointed Gill Hutchinson as head of investment consultancy and Nick Whalley as head of investment research. Hutchinson has managed the firm’s key investment consultancy relationships for many years, while Whalley joined OBSR’s research team in 2005. In his new role, he will be assisted [...]
CITY MOVES WHO’S SWITCHING JOBS May 28, 2009 DeloitteThe business advisory firm has appointed Annette Olesen as an insurance partner. Olesen has previously led key aspects of the Solvency II debate throughout Europe in her role as chair of the actuarial profession’s Pillar 1 Solvency II working group, and has provided input directly to the European Union’s Committee of European Insurance and Occupational [...]
Ombudsman registers jump in insurance firm complaints May 27, 2009 COMPLAINTS about insurance companies rose by 84 per cent last year as firms tightened their belts during the economic crisis, sometimes at the expense of customer services. A Financial Ombudsman Service report, published yesterday, says it handled a record 127,471 new disputes about firms in all sectors over the last year and a staggering 789,877 [...]
Pearl rescuer close to deal May 26, 2009 THE potential new investors in Pearl Assurance, Hugh Osmond’s highly-indebted insurance group, could end up with 60 per cent of the equity as part of a refinancing deal currently being discussed, CityA.M. has learned. Liberty Acquisition Holdings, an Amsterdam-listed special purpose vehicle headed by two private equity investors, Nicholas Berggruen and Martin Franklin, is in [...]