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. 7/8, July/August

A Helping Hand for Emerging Market Companies
MICHIGAN'S WILLIAM DAVIDSON INSTITUTE ADVISES BUSINESSES FROM POLAND AND RUSSIA TO CHINA AND VIETNAM. Just about everybody knows about George Soros's network of foundations to further the transformation of former communist countries by promoting Karl...
Arrival of the Megapower Supplier
THE MOST ACTIVE BIDDERS FOR GLOBAL DEALS HAVE BEEN NORTH AMERICAN COMPANIES. As the world's electricity markets open up to competition, the pace f mergers and acquisitions in the sector is rocketing to unprecedented levels. And in their efforts to extend...
A Shuffled Deck
The United States has been the most active power market. Elsewhere financing is tight, but deals are getting done for stronger sponsors making long-term plays. 'The drivers of project financing are economic growth and deregulation. We are seeing both...
Back in the Game
Although the high-yield market is not expected to hit the record levels of the past two years, its recovery from last year's meltdown is impressive.The market is now characterized by larger deals and a wider variety of investors and issuers alike. High-yield...
Bank M&A Hits Asia - Finally
A boom in Asian bank M&A, much anticipated last year, is finally getting under way-and is likely to "hit with a vengeance" over the next two years. "A third to a half of Asia's banks will either acquire other banks or be acquired by them," say three...
Best Corporate Debt Issues
Olivetti continues to break records in the wake of its successful takeover of Telecom Italia. Olivetti subsidiary Tecnost launched the largest corporate debt issue of all time-a whopping EUR9.45 billion ($9.82 billion) five-year floating rate note that's...
Big Companies Lag in Millennium Preparedness
Some of the United States' largest corporations are slammed for their slow progress in preparing for the Year 2000 bug in a new study by Weiss Ratings on Y2K readiness that also warns of an " Ith-hour rush to catch up." Wal-Mart, Intel, and ConAgra are...
Braced for Disaster
While the price of catastrophes rise, the price of catastrophes rise, the price of insurance has fallen. Although there has been little economic incentive to use securitized products,their use is predicted to rise. Insurance is cheap at the moment, and...
Calpers Exposes Its Portfolio Dogs
America's biggest public pension fund has exposed the bum performers in its domestic stockholdings-and the portfolio dogs are not happy about it. "We are surprised, disappointed, and really quite resentful about our inclusion in Calpers's [the California...
Custody Moves
Custodians are facing a heightened awareness of risk among their clients, along with demands for more efficient information delivery and shorter settlement cycles. Leading custodians discuss custody's changes and challenges with Global Finance's Howard...
E-Dilemma
In an on-line world, competitors can emerge overnight and start eating your lunch tomorrow. Do you fight them or join them? And how? You certainly can't ignore them any longer. When Internet experts talk about the old days, they mean late 1997. Electronic...
Europe's Era of Corporate Aggression
WITH THE EURO'S LAUNCH, CORPORATE MANAGERS ARE DISCOVERING A NEW EMOTION: FEAR OF HOSTILE TAKEOVERS. The battle lines are drawn, and European companies are donning their armor. Consolidation in Europe is turning nasty. Hostile takeovers, once thought...
Europe's March toward a Takeover Code
As cross-border M&A activity mounts throughout Europe, shareholders seek a "universal" set of guidelines. Recent months have seen a dramatic upswing in European cross-border merger activity, but as more and more companies go beyond national boundaries...
Hottest Stories in Global Finance
Going down to the wire, Telecom Italia's shareholders agreed to give Olivetti a 51.02% stake in Italy's largest fixed-line and mobile telecommunications company. Olivetti, which will spend about $33 billion for its share in Telecom Italia, is expected...
How the IMF Failed Its Patients
The director of Harvard's Institute for International Development and one of the foremost critics of the International Monetary Fund here offers a withering view of the IMF's "utterly useless" remedies to cure economies that spike a fever. This passage...
Japan Inc Bears the Brunt
The rueful realization that efforts by the Japanese government to stimulate the economy through fiscal moves have failed puts the onus of lifting the economy out of its decade-long recession square on the shoulders of the country's corporations. That...
New Track to Russia
Russian companies are dropping off the radar screens of equity analysts, and as the task of valuing a Russian company with any accuracy becomes increasingly difficult, they're being booted out of most indices. For investors in index-tracking funds, finding...
On the Ground: In Asia
Cable & Wireless's plan to become the carrier of choice in Asia's telecommunications market is generating static between it and its targets. In two attempts to turn minority stakes held in local companies into full ownership, the company has run...
On the Ground: In New York
in New York Big global banks already are sniffing around the three Lazard firms to see what talent they might grab. Lazard bankers, unhappy with Michel David-Weill's plan to unite the three firms-in New York, Paris, and London-may decide to defect. Certainly,...
Pfandbrief Envy
The Germans have a long head start in Pfandbrief market savvy and institutional quality. The model works like charm, and soon it may be used throughout Euroland. Germany's rapidly expand ing Pfandbrief collaterized bond market (see roundtable starting...
Reaping the Rewards of Reform
Egypt's hard work to create an investor-friendly environment has paid off.The country's high growth and strong economic fundamentals have triumphed over a number of crises, and well-managed companies have reaped terrific rewards. 'This is an environment...
Salim Sticks Its Neck Out
In Asia's lethargic world of corporate restructuring where the most popular strategy is one of inaction, one company in Indonesia is breaking the mold. Rather than waiting for politicians to stimulate the economy or hanging back until the flow of foreign...
Site Right
US and European development experts discuss how the changes in technology, globalization, and business practices are influencing the corporate site selection process. Global Finance's Joseph Giarraputo moderated. GLOBAL FINANCE: How do US companies considering...
Tackling Y2K: How Your Competitors Do It
Millennia III, aY2K consultant in the United Kingdom, has revealed more than a little about how its customers are tackling the Year 2000 issue on their information technology systems. The company's three key recommendations to its clients are: * Carry...
The Brouhaha over Corporate Audit Committees
The US corporate governance movement, which has been preoccupied with executive compensation, is now shifting its attention to a rival topic: the responsibilities and effectiveness of audit committees, the main way that corporate boards ride herd on...
The Corporate: Norman R Sorensen, Principal International
At first blush, Norman R. Sorensen and Des Moines, Iowa-based Principal Financial seem as different in style as Parisian haute cuisine and a blue-plate special. Born and bred in Uruguay and for years the head of insurance giant AIG's Brazil operations,...
The Desktop Bank
As banks consolidate and companies evaluate their banking relationships more critically, treasury management systems are enabling are enabling in-house banking and integrating with ERP systems for more effective risk management. While the rapidly consolidating...
The Globalization of Beer
Cross-border M&A deals are transforming an industry of mostly local producers. Beer is going global as the pressure mounts for consolidation among the world's brewers. News from the brewing industry is gloomy: Profits are down, and competition is...
The Investor: Igor Kocmanek of Alpha Asset
BIO Name: Igor Kocmanek Position: Managing director, Alpha Asset Management, Moscow Career Highlights: 1994 set up Czech brokerage and investment bank for Austria's GiroCredit; 1996 joined ING Barings Capital Markets in Czech Republic as managing director...
The Regulator: Richard Pratt, Director General, Jesery Financial Services Commission
A third of the wealth of the world's richest individuals, or about $6 trillion, is held offshore. Some 5-10% of this, or 400 billion of assets, is thought to be stashed on the islands of Jersey, Guernsey, and the Isle of Man, where an estimated 100,000...
The Spin
"I am not going to express myself as being concerned or not concerned. . . I see more factors pointing to an appreciation than factors pointing to a depreciation. I am full of confidence." -European Central Bank president Wim Duisenberg on the continued...
The World's Most Daring Companies
You provide the photos," said William Randolph Hearst to photographers in Cuba in 1898, "and I'll provide the war." Sure it was rash, but it sold newspapers. A century later CEOs may still itch to start wars to lift profits, but their tactics in the...
Three Key Stages of Corporate Growth
Three McKinsey partners show how major corporations can outlive their maturing core businesses. Top corporate managers of every stripe will find much to ponder in a new book published in May. Entitled The Alchemy of Growth:Practical Insights for Building...
Top M&A Deals
Watch out, Paul Allen is hungry. Fanch Communications and Falcon Cable are just the latest companies to be acquired by Charter Communications, run by Microsoft founder Allen. Charter will pay $2 billion for Fanch and $3.6 billion for Falcon. Charter...
When the Going Gets Tough, in Storms Goldscheider
Peter Goldscheider is known as the banker to Central and Eastern Europe.Through privately owned investment bank European Privatization & Investment Corporation, Goldscheider has helped bankroll Eastern Europe's transformation from communism to capitalism...