Services

Art dealers may merit more UK help than bankers

5 Jul 2010

British art dealers are starting to whinge like bankers, warning that London's market will lose out to nonEU rivals unless the government blocks a European Union resale levy. Similar pleas from financiers were ignored. But the art market has a better case for special treatment.

Russia’s tech ambitions require more than concrete

2 Jun 2010

How to keep the next Sergei Brin in Russia? President Medvedev hopes a new Silicon Valleystyle science park will ensure that native tech entrepreneurs like the Google founder stay put. But it would be better to fix Russia's murky business and legal culture.

Amadeus shouldn’t push hard on IPO price

15 Apr 2010

The travel IT company has a hybrid business model that isn't easy to value, especially as its closest peers aren't listed. Choppy markets don't help. A wide suggested price range reflects the uncertainty. But towards the bottom of the range, the company looks a reasonable bet.

EBay spinoff of PayPal looks inevitable

17 Mar 2010

The Internet group s auctions business is a steady cash cow. But its online payments arm accounts for at least 40 percent of the company s market value. Separating the two would focus investor attention on this gem and increase PayPal s growth.

Synergies allow Tyco to pull a Brink’s Job

19 Jan 2010

The conglomerate has awakened from its scandalinduced slumber to buy Broadview Security a Brink s security spinoff for $1.9 bln. Investors seemed pleased, adding some $275 mln to Tyco s value. That s because the $150 mln of projected cost cuts make the deal a steal.

Reed moves to address bad succession planning

11 Nov 2009

The troubled UK publisher is replacing CEO Ian Smith nine months after he started. Reed s new chairman deserves credit for moving fast to ensure the group has the right leadership to drag it out of recession. But the episode reflects poorly on the wider board s decision making.

Satellite image duopoly needs Google effect

7 Oct 2009

The US government uses two public firms to produce images from on high. One new satellite is set for launch on Thursday. But launch pad explosions aren t the only risk. The companies need other clients in case peace breaks out. Deeper ties with the likes of Google should help.

The best play on a US car rebound is on the radio

29 Jun 2009

Even with a June bounce, car sales are unsustainably low. Yet the purest play on a US recovery may not be a car or parts maker. It's Sirius XM Radio the entertainment company with a chequered history that nearly went bust a few months ago.

Boomtime services glut behind consultants’ merger

29 Jun 2009

Towers Perrin and Watson Wyatt rode the credit wave, advising companies on hiring and integrating staff and justifying boardroom pay. Advice on regulatory compliance and pensions is still in demand. But the $3.5bn deal is about cutting costs in recessionhit service areas.

What does Wall Street have against porn?

6 Jan 2009

Despite a historic drought in the IPO business, no investment bank save the Cyprus unit of a Russian bank has put its hand up to handle the $460m offering of nudie magazine Penthouse s parent. Maybe that's because the business looks a little too sexy for bankers tastes.

Sorrell’s way to TNS looks clear

27 Aug 2008

GfK has withdrawn from a bidding war with the British advertising magnate s WPP. With its numerous ownership constraints, the German group was always going to struggle to beat Sorrell s already full £1.1bn offer for the market research group. No one else is likely to intervene.

Waste shareholders shouldn’t encourage trashy deal

12 Aug 2008

The largest US rubbish collector increased its bid for rival Republic Services by 9% to $37 a share, or $8.2bn. At least one large shareholder objects to the deal, which doesn't look compelling. Shareholders might want to encourage the board to back off.

TNS investors should side with WPP

4 Jun 2008

The UK market research firm has agreed an allshare deal with GfK. Yet its German rival comes with big execution risk and a potential poison pill. If WPP even marginally improves its offer to compensate for part payment in its own more volatile paper, TNS should change its tune.

First big European IPO braves choppy markets

11 Apr 2008

Itinere, the Spanish motorway business owned by Sacyr Vallehermoso, is going for a maximum E4.1bn price tag. That s a sharp discount to the company s valuation last year. But it still may not be an easy ride.

Student debt problems club Apollo

28 Mar 2008

The implosion of the student loan bubble is hitting forprofit education companies hard. Just look at Apollo Group. Despite spending more on attracting students, new enrolments disappointed investors, who marked the stock down sharply and with good reason.

Rentokil loses chairman, searches for future

28 Feb 2008

The UK services company has lost track of its City Link parcel delivery business, which will be lucky to break even in 2008. Chairman Brian McGowan will leave before the AGM in May. The once highflying company now looks totally lost. A splitup or takeover may be in order.

For-profit education bubble pops

27 Feb 2008

Few companies have grown as consistently fast as US forprofit colleges. Was it a mirage founded on a student debt bubble?

Zumwinkel tax scandal exposes Germany’s dark underbelly

18 Feb 2008

The Deutsche Post boss's resignation for evading taxes is the latest in a series of scandals that suggest something is rotten in the state of German corporatism. The country needs to modernise its business practices and lower personal tax rates. At least heads are rolling now.

Class-action lull faces subprime kick

10 Jan 2008

Actions by the plaintiff's bar have been plumbing historical lows. But litigation remains a significant burden on US companies. Thanks to the subprime mess, lawyers will still have plenty to keep themselves occupied.

BC Partners trumps Macquarie with E1.3bn Techem LBO bid

23 Nov 2006

The buyout firm's counterbid for Techem looks tough to beat. It's 18% higher than Macquarie's bid, and is agreed. But this is no straightforward LBO. Macquarie still has a 19% stake in Techem, and getting them out might be tricky.