New Model Adviser - For Professional Investors

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Wednesday Papers: Michael Dell orchestrates $24bn buyout deal

Wednesday Papers: Michael Dell orchestrates $24bn buyout deal

Top stories

  • Financial Times: Michael Dell has orchestrated a $24.4 billion leveraged buyout offer for the computer maker he founded nearly 30 years ago, joining forces with Microsoft and Silver Lake Partners in the largest take-private deal since the financial crisis.
  • Financial Times: BP is facing damages demands of more than $34 billion from US states and local government over the 2010 Deepwater Horizon disaster.
  • Financial Times: Business secretary Vince Cable will on Wednesday revived a radical plan to return Royal Bank of Scotland to private sector.
  • The Daily Telegraph: John Hourican, chief executive of markets and international banking at RBS, will leave the bank with a year’s basic salary of £700,000.
  • The Independent: Bank chiefs could be forced by the British government to name and shame branch managers who refuse to lend cash to struggling small businesses.
  • The Guardian: US regulators are considering a Boeing request to conduct test flights of its 787 Dreamliners, which were grounded nearly three weeks ago after a battery fire in one plane and a smoke problem in another.
  • Financial Times: Standard & Poor’s has been accused by the US justice department of defrauding investors in mortgage-related securities out of at least $5 billion by issuing inflated ratings to win hundreds of millions of dollars in fees.
  • The Independent: The subprime lender Cattles has taken its former auditor to court, claiming that PricewaterhouseCoopers failed to spot danger signs in its accounts during audits in 2006 and 2007.
  • Financial Times: In a move designed to appease regulators and investors, UBS has cut into its investment bankers’ bonuses to recoup a large part of its $1.5 billion Libor fine.
  • Financial Times: Barclays is to cut its bonus pool after a year of expensive scandals at the bank which is expected to cost it over £3 billion.
  • Financial Times: Barclays has sold the business loans portfolio of its shuttered Indian retail division to Kotak Mahindra Bank, a fast-growing private bank, for an undisclosed amount.
  • The Daily Telegraph: French utility giant EDF's chief executive said the group would walk away from building Britain's first new nuclear plants in a generation unless the government can guarantee profitability.
  • Financial Times: Amazon has underscored its desire to rival Apple’s App Store by launching a virtual currency through which it will in effect subsidise developers joining its own service.
  • Financial Times: Pictet and Lombard Odier, two of Switzerland’s oldest private banks, have broken with more than 200 years of history by calling time on their existence as unlimited liability partnerships.

Business and economics

  • Financial Times: François Hollande set France on course for a clash with Germany after calling for the eurozone to manage its exchange rate in the strongest warning yet by a senior European leader that the euro’s strength could damage the recovery.
  • Daily Mail: The chances of Britain dodging a triple-dip recession have improved dramatically after the all-important services sector returned to growth; the monthly services index rose to 51.5 in January, from 48.9 in December.
  • Financial Times: Foreign investors have started to leave Singapore to escape restrictions on the hiring of skilled foreign workers just as the government embarks on an ambitious plan to keep the island nation’s economic miracle on track.
  • Financial Times: The credit crunch that has engulfed the commodities trading industry for the past two years has eased with French banks regaining their appetite to lend to the sector after a large retrenchment in 2011 and 2012.
  • The Independent: Claims management firms last year pocketed £7.4 million of the compensation awarded to victims of the PPI mis-selling scandal who turned to the Financial Services Compensation Scheme because the firm they dealt with has gone bust.
  • The Daily Telegraph: Money set aside by the major banks to compensate victims mis-sold payment protection insurance will run out by December, according to Which?, the consumer group.
  • Financial Times: Jim O’Neill, chairman of Goldman Sachs’ struggling asset management arm who coined the acronym Brics, is to retire from the investment bank where he became famous for forecasting the growing power of emerging market economies.
  • Financial Times: BlackBerry’s new Z10 smartphone is proving popular with consumers in Canada and the United Arab Emirates and is selling out in some stores in the UK, according to mobile operators and industry analysts.
  • The Independent: Toyota has raised sales forecasts for 2013 from 8.75 million to 8.85 million vehicles, putting the rises down to demand in the US.
  • The Guardian: A flurry of complex deals struck by the Barclay brothers to gain a controlling stake in the £1 billion Mayfair hotel group behind Claridge's involved a "quite astonishing, even grotesque," attempt to freeze out major investor Paddy McKillen, three appeal court judges were told on Tuesday.
  • Financial Times: EADS is planning to bring an American on to its board for the first time, as the European aerospace and defence company seeks to bolster its credentials in the lucrative US market.
  • Financial Times: CME Group, the world’s largest futures exchange operator, reported earnings of $166.8 million, or 50 cents a share, in the fourth quarter compared with a split-adjusted $746.7 million, or $2.25 per share, during the same period last year.
  • Financial Times: Arm Holdings, the designer of chips for leading smartphones, beat analyst expectations with full-year profits up 20% to £277 million as it benefited from the growing number of devices – from water pipes to energy meters – connected to the internet.
  • The Daily Telegraph: BG Group reported a 12% fall in pre-tax profits for 2012 to $6.4 billion, in large part because of previously announced write-downs on the value of US shale gas assets.
  • Financial Times: The campaign to persuade drug companies to release all clinical trial data received a boost on Tuesday, when GlaxoSmithKline of the UK declared that it would disclose much more background information about its trials.
  • Financial Times: Walt Disney is “exploring an exit” of ESPN from the UK, after the sports network incurred losses and lost key sports rights contacts.
  • The Daily Telegraph: Hailo, the London-based taxi app which lets people hail taxis using their smartphones, has received a cash injection of $30 million to help it break into global markets.
  • The Independent: Marks and Spencer has revealed it is in talks to launch standalone Simply Food stores in France, buoyed by the performance of its two new shops across the Channel.

Share tips, comment and bids

  • Financial Times: John Malone’s Liberty Global has confirmed an agreed $23.3 billion cash and stock bid for Virgin Media, the UK cable operator, offering $47.87 per share in a move that will upend competition in the UK pay television, broadband and telecoms market.
  • The Daily Telegraph: Thomas Cook is merging its UK, German and Belgian airline businesses as part of efforts to turn around the loss-making tour operator.
  • Financial Times: SABMiller, the world’s second-largest brewer by sales, has agreed to pay $864 million in cash to acquire breweries from the state-owned Guangdong-based Kingway Brewery Holdings, as well as its Kingway lager brand.
  • The Daily Telegraph: Ryanair has offered loss-making Flybe €100 million in cash to persuade the regional airline to run more than 40 routes currently operated by Aer Lingus.
  • The Independent: UBM, which organises events and runs marketing, has sealed a £160 million deal to sell some of its data services businesses to the private equity firm Electra.
  • The Guardian (Comment): The US’ justice department is making headlines with high-profile suits against Wall Street firms, but singling out a few won't fix systemic wrongdoing.
  • The Guardian (Comment): By formalising workers' resistance, the Chinese government hopes to maintain productivity threatened by strikes.
  • The Daily Telegraph (Comment): The fact is, the richer you are, the happier you are.
  • The Daily Telegraph (Comment): Where's your positive contagion now, Mr Draghi?
  • Financial Times (Lex): Dell: US computer maker’s motto is “the power to do more”. The question raised by Michael Dell’s $24.4billion deal to take his namesake company private is: more of what, exactly?
  • Financial Times (Lex): Virgin Media/Liberty: US cable tycoon John Malone is considering an offer for the UK cable company, but two key questions remain for investors - can the sums be made to work on this deal and what implications a Liberty Global-VM deal might have for other players in the market.
  • Financial Times (Lex): UBS: Swiss bank’s 2012 results were good in parts, but the bank still has work to do if it is to become less of a curate’s egg.
  • Financial Times (Lex): BG Group: UK oil & gas company’s shares still suffering from autumn’s profit warning and will not be going anywhere before new chief executive’s strategy presentation in May.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Comment & analysis

Asset managers: 'There is going to be a distribution revolution'

1 Comment Play Asset managers: 'There is going to be a distribution revolution'

In footage not used in our original CEO tapes videos, five CEOs discuss how distribution will change in the future. Will 'distribution' be revolutionised by technology the same way that Spotify changed music or the Kindle changed publishing?