Industrials

Enel and Acciona trump E.on’s sweetened bid

26 Mar 2007

The Italian utility and Spanish builder are offering at least E1 a share more than the Germans, provided E.on s bid fails. But their bid still carries risks. As for E.on, it will have to do more than throw money at the problem if it wants to stay in the game.

Palm offers cautionary tale to tech titans

6 Mar 2007

The handset maker was a hot consumer tech company worth $92bn. Now its most attractive attributes are its cash and tax losses. Palm s shift from darling to alsoran illustrates the challenge of retaining a competitive advantage in consumer electronics.

Vista’s slow start could hit semi firms

19 Feb 2007

Semiconductor companies are geared up for a party. But the slow uptake of Microsoft s new operating system has intensified a chip glut. The chipmakers are likely to suffer. And their suppliers may get hit too.

Siemens telecoms unit stirs up trouble for Kleinfeld

23 Nov 2006

The German boss has been trying to sort out its underperforming Com telecoms unit to show he means business with his restructuring plan. But in doing so, he has stirred up a political ruckus and a fraud probe. These may cost Kleinfeld his job or turn him into a lame duck.

NBC is still GE’s albatross

13 Oct 2006

The industrial giant s entertainment business remains a drag on earnings and the company s weak link. Things may improve next quarter, but patience is wearing thin. Shareholders should support a spinoff of the business.

Has US anti-trust policy been relaxed?

30 Mar 2006

Given the Whirlpool/Maytag merger will have over 70% of the US washerdryer market its approval suggests a rethinking of antitrust policy. If regulators are making decisions by divining the future of a market, it opens many possibilities. Hey, why not a FordGM merger?

Alcatel should be wary of acquiring Lucent

24 Mar 2006

The last time the French and US telecom kit makers tried to merge in 2001, they failed because they couldn't agree who would run the group. This time it is more clear. It's easy to see why Lucent would sell itself. The question is should Alcatel buy a company that is still weak.

Blackberry addicts breathe easy

4 Mar 2006

The device s maker, RIM, is paying $613m to end its patent dispute with NTP. All things considered, this is not a big price. Sure, RIM might have won in court. But client concerns were getting serious enough to erode the addiction of the crackberry.

Utility consolidation catches RWE on the hop

1 Mar 2006

The German energy utility has been caught out by the sudden deal explosion. It's still cleaning itself up after its last burst of expansion. Sitting out a consolidation wave may dent RWE's pride. It wants to be among Europe's top players. But it may be a blessing for shareholders.

RadioShack head trips up on schooling

21 Feb 2006

David Edmondson was sacked as president because he made up two university degrees. It's easy to see the temptation in an MBAobsessed world. But he should have been proud to join the dropout tradition of Carnegie and Gates.

Maytag-Whirlpool trade looks treacherous

8 Feb 2006

Markets are already discounting the likelihood Whirlpool s $2.7bn offer will fail but not by nearly enough. If regulators scuttle the deal Maytag may sell for a lot less than the market seems to assume. Investors could be taken to the cleaners.

Philips takes welcome step toward chip division disposal

15 Dec 2005

The Dutch electronics conglomerate is exploring options for its E5bn chip division. Spinning off or selling the highly cyclical division would unlock value. Philips has a substantial conglomerate discount built in.

Smart card merger signals maturing industry

7 Dec 2005

Gemplus and Axalto, the two biggest smartcard makers, have agreed to a E2.4bn merger. The deal is financially and strategically clever. But it s also a recognition that smart cards are still a solution looking for a problem.

Blackberry maker may have to pay up or shut down

1 Dec 2005

RIM, the phone maker, could have ended its patent dispute with NTP for a negligible sum years ago. Instead, it has gratuitously and repeatedly insulted NTP. A $1bn bill for its behaviour may be on the way.

BPB right to settle for Saint Gobain’s £3.9bn offer

17 Nov 2005

The UK plasterboard maker was gunning for 800p a share. But with no other bid on the table, the 775p deal is pretty good. St Gobain, by contrast, will struggle to earn its cost of capital on the deal.

Infineon to lose its memory – at last

15 Nov 2005

The German chipmaker is close to selling or floating its troublesome E3.2bn memory chip business. Good riddance. Infineon is and will always be a highcost producer in this commodity market.

Siemens’ silence over strategy disappoints

10 Nov 2005

The German conglomerate s Q4 results were muted. And it stayed silent over its strategy for the communications and business services units. Guidance for 2006 is missing and a share buyback seems off the cards. A discount is justified.

Leica auction still carries risks

16 Aug 2005

The Swiss tech group s investors seem to be betting that a raised offer from Sweden s Hexagon will succeed. Either that, or that rival bidder Danaher will raise its lower allcash offer. But there s no assurance of either.

Nokia’s boss to step down

1 Aug 2005

Jorma Ollila turned a lossmaking conglomerate into a lucrative mobile phone giant. But Nokia's golden age is coming to an end. And its top managers may lack the stomach for another fight now that they are so fabulously wealthy.

Nokia shocks markets again

21 Jul 2005

The Finnish telecom group has warned that falling prices and increased competition will hit third quarter profits. Nokia s skyhigh margins depend on its market share. But to maintain that, it needs to keep cutting prices.