Steel

Commodity rally should scare bond buyers

9 Mar 2005

Commodity funds and ultralong bonds are two of the hottest asset classes around. But it will be hard for both to do well. Rising commodity prices are a prime raw material for bondkilling inflation. But bond prices are still in a nofear zone.

Arcelor deserves a re-rating

17 Feb 2005

The world s second steel producer has delivered a ninefold increase in earnings on the back of rising steel prices and a major restructuring Its expansion into emerging markets should sustain growth even if steel prices start to fall.

Usmanov cashes in on Corus stake

15 Dec 2004

The Russian tycoon has pocketed more than £200m by hedging twothirds of his stake in the AngloDutch steelmaker. Corus may be relieved to see a troublesome shareholder go. But Usmanov s exit may signal the group s shares are at the top of the market.

Mittal billions prove conventional wisdom wrong

26 Oct 2004

Lakshmi Mittal bought steel assets when no one wanted them. And then he ran them better than anyone thought possible. The results have been global market leadership and huge cash flow. The company now fits the standard definition of industry leader.

Mittal deals create steel behemoth

25 Oct 2004

The Mittal family is merging its two steel companies to absorb ISG of the US. The $21bn merger will produce the world's biggest steelmaker. The deal is complex and the synergies aren't huge. But the Mittals have a good record of creating value.

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.