Industrials

Downturn polarises telco techies

26 Jan 2009

The end of 2008 was grim for the telecoms technology sector. But the pain has been spread differently to the dotcom bust. Networkequipment groups are in decent shape, despite Nortel's collapse. But handset makers have hit the downturn with existing strategic problems unresolved.

Financial crisis brings dark days to India

7 Jan 2009

When the chairman of Satyam, India s fourthlargest software exporter, couldn t meet margin calls, he had to admit to fiddling the books for years. It s a dire revelation from a bellwether stock in a flagship industry and a big blow to confidence in Indian capitalism.

Toshiba throws Sandisk a $1bn lifeline

20 Oct 2008

The struggling flash memory maker looked vulnerable to Korean giant Samsung's $5.9bn bid. Now, Samsung s archrival Toshiba has weighed in. It will buy excess capacity from Sandisk for $1bn. This could let Sandisk wring a higher price out of Samsung.

Blockbuster seeks Circuit City organ transplant

14 Apr 2008

These are two of US retailing's sickest patients. The question is whether Blockbuster s proposed cure a $1.3bn bid for Circuit City will extend their survival rates. As with any experimental surgery, the odds aren t usually good.

Thomson chairman ouster may be too late

31 Mar 2008

The French digital media technology company has lost 70% of its value over the last year. The ouster of its chairman and CEO Frank Dangeard may be too little, too late. And the board's continuing support of his strategy is mindboggling.

Technology doesn’t make Sony Ericsson king

19 Mar 2008

These days having an edge on technology is typically a winning strategy. Yet a profitwarning from this handset maker proves that s not always the case. Weak highend sales are dragging it down. Consumer preferences are a problem, and a global economic slowdown won t help.

Best Buy’s warning may have silver lining

15 Feb 2008

The US electronics retailer has fared better than most during the recent funk. Its earnings warning for the year ahead is hardly welcome news for its shareholders. But its competitors have the most to fear.

Bang & Olufsen meltdown highlights consumer malaise

9 Jan 2008

While the Danish luxury electronics company s mostly European customers should be price insensitive, they have rushed to cut back spending. The UK represents the biggest problem. Other luxury companies could experience similar turbulence.

Credit crunch vindicates GE model

13 Dec 2007

Investors yawned at Jeff Immelt's forecast of 10% EPS growth in 2008. But with the prospect of recession ahead and continuing uncertainty in credit markets, that might be a pretty good performance. And it may vindicate GE's diversified portfolio.

Rexel gets second chance to make good with shareholders

12 Nov 2007

The French electricalparts distributor s bid for Hagemeyer has turned friendly after it sweetened its offer. With its own shares down 12% since its April IPO, Rexel should use the opportunity to focus on valuecreating growth.

Credit crunch may help some deals get done

22 Oct 2007

Look at Techem, the E1.9bn German metermaker in the midst of a yearlong tussle among management, hedge funds and wouldbe private buyers. The latest agreement with Macquarie might stick, if hedge fund shareholders decide tighter markets make a higher offer improbable.

Harman’s compromise is better than nothing

22 Oct 2007

KKR and Goldman will buy $400m in converts instead of taking the stereomaker private. It's better than paying a $225m break fee. Harman gets an infusion of cash and the consolation prize of a vote of confidence in its shares. Sallie Mae might want to take note.

Ericsson Q3 warning may not be so bad

16 Oct 2007

The telecom equipment maker has shocked the market by revealing that highmargin sales of network kit to existing customers have collapsed. Yet, as mobile traffic continues to grow, operators will eventually need to upgrade their systems. And Ericsson, as the market leader, should then benefit.

Sonepar signals readiness to pay more for Hagemeyer

16 Oct 2007

The secretive French electrical parts group has been buying shares in the market at a premium to its E4.25 a share indicative offer. Its Dutch target may be right in saying the offer substantially undervalues the group.

Sarko should drop Thales-Safran merger idea

12 Sep 2007

The French president reportedly has ideas for another national champion in the defence sector, with a merger of Thales and Safran. He should forget it. Neither the electronics group nor the plane engine maker want to merge. Making them invest in Eads would be even worse.

Sir Alan Sugar takes well-timed curtain call

31 Jul 2007

"The Apprentice" may be a hit, but Sugar s Amstrad empire isn t. He is selling it to James Murdoch s BSkyB for 10% of its stock market peak. Amstrad's new owner is a younger, more dynamic breed of entrepreneur. Maybe it s time "The Apprentice" had a new guy in the boss's seat.

Motorola forced into shrinking niche

12 Jul 2007

The US handset maker sold 30% fewer phones in the second quarter than it did last year. Nokia has won most emerging markets. Apple's iPhone and Blackberry are tough highend rivals. The shrivelling middle isn t a fun place to live.

eSpeed’s BGC deal unlikely to pacify its shareholders

30 May 2007

US electronic broker eSpeed is buying BGC, a fellow Cantor Fitzgerald unit, for $1.3bn a 7% discount to BGC s fair value, Cantor says. But the deal isn t as favourable as it looks. If eSpeed is valued on peer multiples, it is buying BGC for a hefty 17 times 2007 profits.

Icahn doesn’t deserve Motorola seat

4 May 2007

Activist investors can wake up sleepy companies. But yelling loudly isn t justification enough for a directorship. Icahn repudiated his one big idea for the tech company and he s too busy as is. Shareholders should vote his candidacy down.

Stub equity makes first grand US appearance

26 Apr 2007

KKR and Goldman are offering shareholders of hifi maker Harman a chance to take a ride alongside them in the $8bn buyout. In theory this approach should mitigate MBO conflict concerns and head off protracted negotiations on price. That may be wishful thinking.