Construction

BPB shouldn’t increase its capital return

2 Oct 2005

The UK plasterboard group needs capital for investment, having trumpeted its future growth in its defence against SaintGobain s £3.6bn bid. Besides, there s little evidence to suggest that returning capital creates real value. Investors can see through the earnings enhancement.

BPB bases its case on valuation

14 Sep 2005

The UK plasterboard maker s wants to repel Saint Gobain s 720p per share offer. But not by offering more cash or higher profit forecasts. Instead, it is arguing that Saint Gobain's 720p a share bid is too little. Shareholders seem to agree.

Saint Gobain’s bid for BPB lacks muscle

31 Aug 2005

The French conglomerate s offer document neither scolds the current management nor promises added value. It just says that the 720p offer price for the UK plasterboard maker is generous. But it may take more cash to seduce BPB s shareholders.

Saint Gobain makes £3.7bn hostile bid for BPB

3 Aug 2005

The French conglomerate was given short shrift by the UK plasterboard maker, so it is taking its 720p a share bid direct to shareholders. This looks like an opening bid. Investors are likely to hold out for more.

Saint Gobain still has plans for BPB

2 Aug 2005

The French conglomerate would like a recommendation from the UK building products group. But not at any price. If the two sides can't agree, Saint Gobain could go direct to shareholders.

Saint Gobain mulls £3.5bn bid for BPB

22 Jul 2005

At 16 times forward earnings, that may not look cheap for a business at the top of its cycle. But BPB's growth could be worth even more. The French materials conglomerate is expected to offer a big premium for the British plasterboard maker. The British plasterboard leader called the Fench material conglomerate's offer "unwelcome". But a higher price might change its mind. A price of 16 times forward earnings may not look cheap for a business at the top of its cycle. But BPB's growth could be worth even more.

Investors force KKR to pay more

18 Feb 2005

Faced with defeat in its bid for Canadian doormaker Masonite, the buyout firm has reluctantly upped the price by 5% to C$2.8bn. This may be enough. But the wrangling demonstrates how suspicious investors are about being bought out cheaply in publictoprivate deals.

Holcim in talks to buy Aggregate for £2.4bn

12 Jan 2005

Holcim is highly indebted, yet its offer is a rich one a 33% premium, in cash. The Swiss concrete maker appears to be playing catchup in the concrete consolidation game, and paying for it too.

Honeywell trumps shell with £1.2bn Novar bid

13 Dec 2004

Melrose came up with a clever offer designed to turn round an ailing miniconglomerate without taking it private. The snag was that this highlighted the value of Novar's crown jewel its controls business. And that smoked out a cash rich trade buyer.

BBVA denies Sacyr board seat

3 Dec 2004

The Spanish bank argues that just because Sacyr says it will buy a 3.6% stake, that doesn t mean it should have a seat. That s quite right. Even if the interloper had a bigger stake, it wouldn't deserve a director. Its intentions are completely opaque.

Sacyr makes bizarre BBVA investment

30 Nov 2004

Why would a smallish Spanish construction company buy a small stake in a bank 14 times its size, increasing its capital by a third to do so? Some scent a plan to oust BBVA's chairman. Given the bank's good performance, that looks a reckless move. Why would a smallish Spanish construction company buy a tiny stake in a bank 14 times its size, increasing its capital by a third to do so? Some scent a plan to oust BBVA's chairman. Given the bank's good performance, that looks a reckless move.

Are private equity incentives justified in PLCs?

9 Nov 2004

This question has been brought into stark relief by Melrose s proposed £650m bid for Novar. The answer is a qualified yes. But this particular approach doesn t tick all the boxes.

Cemex to buy RMC for £3.2bn

27 Sep 2004

The Mexican cement producer has launched a knockout bid for the UK concrete business a 40% premium paid in cash. The industrial logic behind the deal is sound. Nevertheless, the synergy target provided to justify the premium looks ambitious.

Public-private partnerships prove troublesome

7 Sep 2004

The UK private sector hasn't been very good at providing government services. This part of the ThatcherBlair revolution has largely failed. Governments are inefficient builders and operators. But the combination of banks an the private sector is not necessarily better.

RWE sells Hochtief stake for E950m

25 Feb 2004

The German utility will sell its 56% holding in the construction company in a combined stock and convertible offering. By selling now, RWE fulfils its promise to simplify its structure and hedges its bets on continuing economic recovery.

Italian IPO finds new way to tempt buyers

21 Oct 2003

Like so many of the tiny companies that make up Italy s economy, Trevisan is illiquid and would find it hard to attract institutional money. So the current owners are offering some downside protection. If results disappoint, they will give new investors some of their own shares.

HeidelbergCement new plaything of hedge funds

12 Nov 2002

Shortsellers have divebombed the German cement group's bonds in anticipation of liquidity problems. The bonds may now tread water pending a planned asset sale. The odd thing is that the shares have held up.

HeidelbergCement new plaything of hedge funds

12 Nov 2002

Toxic shock syndrome

26 Jul 2002

Winning goal

19 Apr 2002