Text size [+][-] Friday May 16 2008GLOBAL EDITION
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The UK airline has achieved the holy grail of a 10% operating margin for 2007/8 and is restoring its dividend. But it’s all downhill from here, with soaring oil prices and a hairy economic outlook. In that context, cutting capacity looks like a wise choice.
The Danish brewer is lucky to get such good underwriting terms for its $6bn rights issue. Carlsberg is highly leveraged, the new shares carry virtually no votes, and the controlling shareholder can’t put in any cash of its own. The banks must really want the bragging rights.
The silver-haired execs at CBS, IAC and Comcast are trying hard to be hip by buying internet sites ranging from CNET to Plaxo. Sadly, the new outfits look a bit tired and overpriced. And the new clothing doesn’t really match their existing wardrobes.
The $52bn telecom buyout is being financed by the same banks that just renegotiated their Clear Channel commitments. But BCE is bigger, has an odd equity structure, and presents potentially different legal considerations. The deals may not follow the same path.
The private equity firm posted a net loss in the first quarter. Part of the problem was its minority investment in Deutsche Telekom. The trouble shows the risk of investing in public equities, which expose even long-term investors like Blackstone to market whims.
Contemporary art auctions are proving that the market remains frothy. But buyers' motivations may not be purely aesthetic.
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