Global Finance

A monthly publication providing news and analysis of global market and economy. Focuses on corporate finance, capital markets, and more.

Articles from Vol. 13, No. 6, June

A Play for M&A
While last year's emerging markets crisis put many depositary receipt programs on hold, major cross-- border M&A deals have sent investment soaring. Recovery, a strong US market, and opportunities in Europe will fuel new issues. The emerging markets...
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Asia Bounces Back. but for How Long?
The share price of Asian companies is soaring. Companies are being restructured, banking systems are being reformed, and markets that closed shop after last year's crisis are slowly opening to foreign direct investment.At last microeconomic reforms are...
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AT&T's Daring End Run
With his bold strokes at AT&T, Mike Armstrong has a running start on dealmaker-of-the-year honors. The first outsider to run AT&T since the post-World War I era, he has turned the ailing US long-distance telephone company into a newmillennium...
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Banco Provincial Strengthens Leadership in Venezuelan Market
Since 1997, when Spain's BBV Group became the main shareholder in Banco Provincial, this Venezuelan financial institution has followed a strategy of growth to strengthen its leadership position in the market. This is being done with high standards of...
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Best Corporate Debt Issues
Ericsson has become Scandinavia's most interesting corporate borrower.The Swedish telecommunications equipment manufacturer launched a multicurrency two-tranche offering in May, issuing $500 million of 10-year bonds, alongside EUR650 million of fiveyear...
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Best Corporate Equity Issues
Deutsche Telekom, rarely out of the financial press since its planned merger with Telecom Italia was announced, has found a new reason to stay in the headlines with a ground-breaking plan for a secondary share offer.The German telecommunications utility...
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Best-Laid Plans
Acquisitions that have strategic merit and pass financial financial muster may be costly to integrate. Comprehensive operational due diligence exposes and quantifies the pitfalls, while a focus on risk management can overcome roadblocks to closing Broadening...
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Bourses without Borders
Renewed attention is being focused on Europe's historically unexciting bourses. The introduction of the euro has lead to a profound shake-up in the operations of the Continent's stock exchanges and financial institutions and has been the trigger for...
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Brazil Insight
Brazil has confounded the skeptics again, this time by bouncing back spectacularly from a crisis that less than three months ago threatened to send the economy into a tailspin. The turning point clearly came in March, just after President Fernando Henrique...
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Catastrophic Modeling
A major movie studio in California had a film archives building located half a mile from the Santa Monica fault. It called upon a Chicago company, Impact Forecasting, that gathered up a wealth of structural, soil, seismic, and other data about the building...
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China's Foreign Creditors in Catch-22
Just as foreign creditors are getting on top of their exposures to recession-racked countries such as South Korea and Thailand, China has started to send out signals that have some Western bankers quaking in their boots. In a series of decisions made...
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Hottest Stories
Up, up, and away! The Dow Jones Industrial Average skyrocketed above 11,000 in May, just five weeks after it broke the 10,000 mark, confounding market analysts who were erring on the side of caution.The Dow has now gained 20% this year. Investors responded...
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How Globalization Hit the High Street
Thanks to the democratization of finance, we have individuals, through pension funds and mutual funds, holding the sovereign debts of many countries. Part two of an excerpt from The Lexus and the Olive Tree, the Pulitzer prize winning columnist's new...
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Italy: Mad for Mergers
Italian banks and companies are drawing on their fabled entrepreneurial skills and talents for innovation to consolidate and face new competition in the coming Euroland market. The following report is an update on their progress. For Italian companies...
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M&A Benchmarks
April's volume of announced deals set a new record of 5363 billion. The month was chock-full of activin.; including the largest single bid ever for a target. What's more, the action was widespread as three sectors-telecommunications, media, and oil and...
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Moscow Licks Its Wounds
Far from bouncing back, Russia's capital market is without a pulse. Just ask Viktor Sakharov head of the Moscow Stock Exchange. Since his country plunged in to the global economic toilet last year, interest payments alone on Russia's foreign debt have...
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On-Line Billing Takes Off
On-line banking has never been as popular in the United States as in Europe, but the US craze over the Internet is changing that. No longer do consumers have to use special software to gain access to their bank accounts to pay their bills. All they need...
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On the Ground
Wall Street knows how to salute a departing hero. When word hit the trading rooms that Robert E. Rubin, the deeply respected US treasury secretary, would leave office, the US stock market plunged 200 points. It was a brief genuflection: Within hours...
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Pfandbrief Investor
Germany's Pfandbrief collateralized bond market has become, by any measure, a roaring success. So successful, with more than $1 trillion in issuance outstanding, that it has become Europe's largest fixed income security and is beginning to spawn pseudo-Pfandbrief...
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Risk Junkies Look for Fix in Asia
HONG KONG'S CENTRE RE SHOPS FOR DEALS IN `BASKET CASE' COUNTRIES. Known around the globe as a risk junkie, Centre Re, the Swiss insurance outfit, has opened shop in Asia, where a veritable smorgasbord of risk exists. But nearly a year after the firm...
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Scaling the Globe
It's a play for scale as telephone and cable companies converge and expand their networks to handle explosive demand for data delivery over the Internet. In emerging markets aggressive new entrants are extending their footprints also. To say the world...
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Snakes & Ladders
Careful! That Internet entrepreneur who just phoned may be an international man of mystery. If his name is Alexandre Konanykhine, you can count on it. The 35-year-old president of KMGI.com, a NewYork company that sells Web-based advertising to home pages...
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Spinning Webs
As companies adopt a customer service business model through E-commerce, systems integration presents a host of challenges as the ability to link the back office to the front becomes a critical strategic advantage. Companies don't want to be islands,"...
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The Battle Lines on Repricing
While companies are protesting a FASB proposal, shareholders are applauding. The US Financial Accounting Standards Board on March 31 sparked what could be the corporate governance issue of the year for shareholders with an exposure draft that would require...
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The Corporate: Joseph W. Sutton
Call it the dharma of Joseph Sutton. Within weeks of joining Enron in 1992, the former US Army career officer was on a plane to India to scout the site for a new power plant in Maharashtra state called Dabhol. The project has been a major part of his...
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The Great M&A Debate
As the mighty M&A express hurtles through the 1990s, the academics are sending out warning flares. Michael Porter of Harvard Business School says that less than half of purchases benefit shareholders and the acquiring company in the long run. Michael...
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The Growing Clout of Independent Directors
Independent outside directors are appearing on more and more boards of major US companies. Not only do they bring fresh perspectives on business policies and strategies, but institutional investors increasingly want to see independent viewpoints on a...
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The Investor: Carlos A. Mena, Vectormex
International investors tempted to pile back into Mexico and other emerging markets ought to consider the thoughtful caution of Carlos A. Mena, who heads Vectormex, a New York money manager specializing in cross-border investment in Mexican companies....
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The Real Bellwether
Brazil's currency, the real, is looking like the bellwether for emerging markets in general.The last currency to crack during the series of crises that began with the collapse of the Thai baht in July 1997, the real has been staging a surprisingly robust...
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The Regulator: Alec Tsui, Hong Kong Stock Exchange
Since the regional economic crisis broke in 1997, just after the end of British colonial rule in Hong Kong, stock exchange chairman Alec Tsui has been caught in the eye of a financial simoom. In May he squinted through the grit to give Asia editor Cherie...
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The Spin
"Is this rise in [US] productivity cyclical because the economy is strong, or is this a change in the trend? The evidence is mounting that it's a change in the trend." -US Fed Governor Roger W Ferguson, previously a skeptic, on the Federal Reserve Board's...
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The World's Juiciest Takeover Targets
So who's next? It's been the greatest takeover market ever in the longest bull market in the United States. In Europe the onset of the Economic and Monetary Union has led to spectacular merger dramas, the most prominent being Deutsche Telekom's $81.52...
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Top M&A Deals
The pace of consolidation in the cable industry seems to know no bounds. In May, AT&T announced its acquisition of US cable TV company MediaOne for about $58 billion, making AT&T the largest cable operator in the United States. Comcast, which...
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Trading Places: Europe's Challenge to NASDAQ
More than 900 non-American companies have listed on US exchange NASDAQ over the past five years. The reasons are obvious: For more than 10 years NASDAQ has been the world's most successful and liquid stock market for high-tech start-ups. At last there's...
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True or False: Corporate Governance Is an American Export
It's generally assumed by US fund managers and corporate executives that the pressure for transparency and shareholder rights overseas has been an outgrowth of practices developed in the United States. But is that so? The following panel of corporate...
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Van Miert's Swan Song
He may well be the man big companies love to hate. Belgian Karel van Miert, head of the Competition Directorate of the European Commission, has served as the European Union's chief antitrust regulator since the early 1990s. Confrontational and intrepid,...
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Vienna Jostles to Join the Big Boys
Vienna's bourse has big plans. It sees itself as the trading platform for Central and East European companies-a bridge between east and west.Just as Hong Kong is the financial center for China's red chips, Austria ought to be the gateway to Eastern Europe's...
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