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. 5, May

Best Corporate Debt Issues
To give its hostile Eur52.6 billion bid for Telecom Italia more credibility, Olivetti lined up a Eur22.5 billion ($24.5 billion) syndicated bank loan-the biggest such borrowing ever. Four banks arranged the deal: Chase Manhattan, Lehman Brothers, Mediobanca,...
Best Corporate Equity Issues
Soft-drink maker PepsiCo spun off its bottling operations as Pepsi Bottling Group. (Archrival Coca-Cola did much the same thing a decade ago.) Though one of the five largest IPOs ever, the Pepsi deal had to be priced at the low end of its estimated range...
Browser Power
E-commerce is exploding, and financial sector players are leading the wave of growth in Internet-based business transactions. The rise of E-commerce is bringing fundamental change to to the way financial institutions operate. This Special Report examines...
Costs of Trouble in Emerging Markets
Multinational companies lost more than 15 billion ($24 billion) last year by ignoring or underestimating corruption, bureaucracy, organized crime, and other nonconventional risks in emerging markets. UK-based risk consultancy Merchant International Group...
From the Novice the Sophisticate
As investment choices proliferate and balances grow, plan sponsors are moving away from brand-name funds, education programs focus on goal-setting, and the Internet has become an integral tool. tool. Call it the Magellan syndrome. "Brand name mutual...
Hottest Stories in Global Finance
Financial repercussions of the war in Yugoslavia included weaker markets in Germane. Turkey, and Greece and the postponement of a major sovereign bond issue bv Hungary which shares a border with Serbia. Most interesting, a tit-for-tat deal appeared to...
In Europe
You have to pity Alex Krauer. This month the revered chairman of sparkling Swiss bioscience group Novartis takes over as chairman of struggling Swiss bank UBS. Last year was a cracker for Novartis, with pretax profits up 16%, to SFr6 billion ($4.15 billion)....
Latin America Leads the Pack
Doubts about Latin economies first began to ease when Brazil's January devaluation failed to bring down other Latin currencies.A month later investors were further heartened by the appointment of Arminio Fraga to head Brazil's central bank. Not only...
Merging Ledgers Easily
Finance departments with heavy analysis, budgeting, forecasting, and planning responsibilities need to spend a lot of their time on those activities. For a company in merger mode, that goes at least double. That's why Cynthia Swank, vice president and...
On the Future
The Internet and globalization of trading are having profound effects on the world's exchanges. In a roundtable moderated by Global Finance's Joseph Giarraputo, industry executives discuss how they and their members are adapting to a new environment....
Opening the Floodgates
Water has been called the next great infrastructure challenge. Privatization has barely begun and the opportunities are vast in developed and emerging markets alike. Global Finance's Howard Moore moderated a panel of leading participants in the sector....
Project Finance: The View from Europe
No doubt about it: Project finance is not the business it used to be. What then is it? Global Finance: Is there enough liquidity in the long term to finance new projects? Guy Spaull: In general, there is significant bank market liquidity for well structured...
The Best Emerging Markets Banks in the World
Citibank is the best international bank in the world in emerging markets.The bank is Global Finance's grand prize winner for the third year in a row, which is also the third year we've assessed banks, rather than banking teams, in emerging markets. How...
The Central Banker: Chatting with Chile's Carlos Massad
Last month Chile floated a $500 million global bond issue-its Frst sovereign issue in eight years-to set a benchmark interest rate for Chilean companies. Chile's model economy was staggered last year by the plunge in copper prices but relatively unaffected...
The Corporate: Raymund Breu, Novartis
Raymund Breu, chief financial offcer at Novartis, the Swiss life science company sits atop a remarkable organization: $15 billion in cash, pretax profits of $5.5 billion, and sales of almost $22 billion.You'd think he'd be laughing. Instead, Breu is...
The Economist: The Democratization of Finance
In a passage from his new book, The Lexus and the Olive Tree, the Pulitzer Prize-winning journalist tracks global ization's biggest revolution: how control of capital has been transferred from the few to the hands of the many. First of two parts. BY...
The Euro Luge
Behold the falling euro. As of this writing (April 20) the euro slipped to a lifetime low of $1.0589, helped along by the uncharacteristic nonchalance of European Central Bank governor Wim Duisenberg. On April 19 Duisenberg told European lawmakers at...
The IFC at a Crossroads
The International Finance Corporation was deep into implementing Beyond 2000," a new strategy meant to dramatically alter the way it invests in developing markets, when -bam!-the currency crisis flattened Thailand. As additional economies wilted in the...
The Investor: Andre Baladi
Andre Baladi is a man accustomed to living in hotels. In 1994 the founder and guiding light behind the ABF Euro Fund, the Continent's first to pick stocks using principles of corporate governance, sold his apartment, put his furniture in storage, and...
The Post Y2K Challenge
What's going to happen to companies specializing in updating systems for Y2K readiness once 2000 has come and gone? Will they just fade away? They may, if the companies focus only on financial code and software. But if the companies are in the business...
The Regulator: Wolfgang Ruttenstorfer
Bio Name: Wolfgang Ruttenstorfer Position: Secretary of State, Austrian Finance Ministry Responsibilities: Austria's capital markets, public services and its role in the EU. Background: Doctorate in economics Former CFO of European oil company, OMV In...
The Shareholder: Shareholders and the Japanese BAND-AID
A government bailout will make the government the largest shareholder in many of Japan's biggest banks. Bio Age: 28 Education: University of Rochester Background: Director of publications for Institutional Shareholder Services, an advisory firm in Rockville,...
The Spin
"We must create conditions in which keeping savings under the mattress or taking them out of the country would be inexpedient." Prime Minister Yevgeny Primakov commented as World Bank President James Wolfensohn arrived in Moscow for talks. Many Russians...
Top M&A Deals
The collision of telecom, entertainment, and E-commerce took on more force as US cable TV operator Comcast arranged to buy rival MediaOne for $60 billion-only days before US cable TV rates were deregulated. Following on the heels of AT&T's $55 billion...
Treasury Vendor Battle
Increasingly, companies are realizing that the cash and risk management capabilities of sophisticated, dedicated treasury packages can be crucial to their competitive positions. If vendor viability means anything to finance departments using this software-and...
Up Front
Last year it looked like Armageddon for banks in emerging markets. In Asia, Brazil, Russia, as the dominoes tumbled, bad loans soared and deposits dwindled. Even those operating far from the greatest turmoil were hit. Some, however, which had practiced...
Where Do You Want to Live?
As an executive of a global company, you probably expect to ive in far-flung locations at some time during your career. At the very least, you'll likely post subordinates overseas. While globe-trotting may be necessary for career advancement, is this...