Machinery

Chinese companies like difficult environments

8 Jan 2008

China s MCC beat three Western companies bidding for a $3bn copper project in Afghanistan. That fits a pattern: Chinese companies deal effectively with high risk environments. Their adventurousness in search of resources makes them welcome in unpleasant countries.

Vallourec is an unlikely target, for now

12 Nov 2007

Russian oligarch Alisher Usmanov is the latest rumoured buyer of the French seamless tube maker. Such a deal would probably hit a political wall. Also, the company may be past this cycle s prime. With margins under pressure, a bid could make more sense later at a lower price.

EU delivers expensive smack to lift cartel

23 Feb 2007

Brussels is certainly making errant lift makers pay for past crimes. The E992m penalty for bidrigging is part of a trend to higher fines. But that this wasn't even a very profitable cartel. Given the waferthin margins, consolidation or subtler cheating look the only options.

Bank of England walks a narrow line

10 Nov 2006

How much interest rate pain can highly geared UK consumers take? Rising insolvencies suggest many are already struggling. Yet inflation remains too high and further interest rate hikes may be on the cards. The Bank will be lucky to get through this unscathed.

KKR, Goldman pay top dollar for Linde forklift unit

6 Nov 2006

At E4bn, this is Germany s biggest buyout this year and is significantly more than anyone thought Linde would get for it. Yet the German industrial group might have got an even better price if it hadn t put a cap on the leverage the bidders could employ.

Deutsche Bank puts Buderus in play

2 Jan 2003

That looks like what will happen with Buderus. Its shareholders need cash and Bosch is circling. Germany s tax moratorium was supposed to work like this: Company A sells stake in Company B, exposing it to market forces.

Halloween in Turin

24 Oct 2002

Fiat debt reduction targets look a stretch

23 Oct 2002

Fiat debt reduction targets look a stretch

23 Oct 2002

With Fiat Auto burning cash and asset sales subject to big haircuts, it's hard to see Fiat cutting debt to E3.6bn. But don't expect Fiat s banks to jump in yet. Nothing scares them more than the prospect of a distressed breakup.

Thorny issue

19 Aug 2002

French fire sale

10 Oct 2001

Mogul mania

2 Oct 2001