Steel

Steel heading for different type of bust

6 Oct 2004

Soaring prices seen in recent months won't last as new supply comes on stream. But the bad old days of permanent malaise are finished. Demand growth in Asia means steel is better thought of as a growth cyclical, a bit like semiconductors.

ThyssenKrupp doesn’t need a steel deal

6 Oct 2004

The German engineering group says it plans to acquire a European steelmaker and has even floated the name of Corus. But this would be a risky and retrograde step. Thankfully, no deal looks imminent.

Corus reports maiden profit

16 Sep 2004

This should continue next year as Corus benefits from higher contract prices. But questions remain about the sustainability of its recovery. The AngloDutch steel group is seeing light at the end of the tunnel thanks to rising steel prices and cost cutting.

Thyssenkrupp rides steel cycle

12 Aug 2004

The engineering group's profits doubled thanks to booming steel demand. Thyssen benefits less than pure steel plays from rising prices. But if the cycle turns it is partly protected by longterm contracts. That justifies its premium rating.

Junk bonds the latest victim of rising rates

17 May 2004

That prices are finally falling is hardly surprising. A correction was long overdue. The correction will affect opportunistic refinancings and private equity deals.

Corus shareholders should back board

20 Apr 2004

The Russian oligarch circling the AngloDutch steel group has made some interesting arguments about why the board needs a new director. But they are not compelling. And there are still concerns about what game he is playing.

Russian oligarch clarifies Corus intentions

16 Apr 2004

Alisher Usmanov has ruled out commercial interest in the steelmaker. His demands for board representation now deserve a hearing. Usmanov must state openly what he can contribute to the company. Corus should then either accept him or rebuff his arguments.

Corus should resist the Russian oligarchs

18 Mar 2004

The minority investors pressing for a board seat at the UK steelmaker do not deserve one unless they make their intentions clear. But if they want control they should simply bid. Or, if they want a commercial deal, they should cut it before seeking a seat at the board.

Corus in curious equity issue

12 Nov 2003

The £307m issue by the AngloDutch steel group is to be offered to existing shareholders but they can't sell on their rights. That pretty much forces shareholders to stump up the cash. For good measure, the offer is also underwritten.

Trade war or loss of face?

11 Nov 2003

Bush s options following the WTO s ruling that US steel tariffs are unlawful are unappetising. But that s what happens when you pursue a trade policy without diplomacy.

Gold bugs on alert for new central bank pact

19 Sep 2003

The current arrangement that limits gold sales ends in a year. Central bankers may discuss renewing the pact at the IMF meeting. Some worry that European central bankers will massively step up sales next year to help fund budget deficits but that s unlikely.

Zaoui vs Zaoui: the verdict

15 Sep 2003

Michael Zaoui advised Alcan on its E4bn hostile bid for Pechiney. His brother, Yoel, advised the French group on its defence. Both clients did well during the period that they were advised by the brothers. But Michael s client did much better.

Pechiney to accept barely improved Alcan bid

12 Sep 2003

It looks like the French aluminium group has had to sue for peace. The new offer isn t much better than the one it rejected two weeks ago. Alcan could have paid more. But there was little reason to do so in the absence of a counterbid.

AngloGold clinches $1.3bn Ashanti deal

5 Aug 2003

The terms of the deal look designed to win over the Ghanaian government, which holds a golden share in Ashanti. This may explain why AngloGold is paying a premium that is a huge multiple of forecast synergies. It's unlikely anyone will offer more.

Corus lives to fight another day

1 Aug 2003

After months of talks, the AngloDutch steel group has managed to get a new E1.2bn credit line from its banks. This is good news for Corus, but not for some senior bondholders who hoped to force it to buy them out.

Pechiney, Alcan Q2 results an aside to bid battle

23 Jul 2003

It is clear why. The two aluminium firms' combined operating profit is less than estimated synergies from the mooted merger. To get there, though, two hurdles have to be jumped: the competition authorities, and the price at which Pechiney will sell.

Pechiney mulls partial break-up to foil Alcan bid

17 Jul 2003

Several firms are already reportedly interested in the French aluminium group s packaging unit. For this ploy to work, though, Pechiney would have to extract a really good premium for the business.

Pechiney pours scorn and poison on Alcan’s offer

11 Jul 2003

The French aluminium company can't deny the industrial logic behind Alcan's hostile bid. But it can deride the price. Chief executive JeanPierre Rodier says the phone is already ringing from other potential bidders. Unfortunately for Pechiney, some of its arguments for a richer valuation have already been kyboshed by one of its bankers.

Some pointers for Pechiney’s defence team

8 Jul 2003

Directors of the French aluminium firm should reach two conclusions after they meet late Tuesday to discuss Alcan s hostile bid. Both are good for investors. Pechiney can t remain independent for long. The board s job is to get the best price.

Alcan launches E3.4bn hostile bid for Pechiney

7 Jul 2003

The Canadian group has revived a threeyear old merger plan. It wants to overtake Alcoa to become the world s biggest aluminium firm. Alcan now says it s not worried either by the disposals regulators will probably require, or by Pechiney s sniffy resistance.