2005

Emerging Markets : Ethanol and Sugar Giant Offers Shares

News Sao Paulo, Brazil-based Cosan, the world’s biggest sugar and ethanol producer, made an initial public offering on the Bovespa Stock Exchange last month. Brazilian-produced ethanol is expected to gain increased penetration in global markets as a result of efforts ...

Corporate Finance : Corporate Debt

Mexican Homebuilder Cuts Borrowing Costs Ford Motor Credit, the finance arm of number-two US automaker Ford Motor, sold $1 billion of debt in a two-part offering in late October that produced higher-than-expected yields. Ford Motor Credit offered yields of 4.375 ...

Milestones : Oil Company CEOs Defend Record Profits

United States Lee R. Raymond The Republican leadership of the Senate called the chief executives of the nation’s leading oil companies on the carpet last month to explain why they were making a lot of money at a time when ...

Corporate Finance : Global Equity/DRs

Electricité de France Offers Record ESOP The biggest leveraged ESOP, or employee stock-ownership plan, that Europe has ever seen was part of Electricité de France’s $8.5 billion initial public offering in November, the largest IPO in the world for the ...

Corporate Finance : Mergers & Acquisitions

Telecom Mergers Surge As Telefónica Buys O2 Global mergers and acquisitions in the telecommunications sector reached $303 billion in the first 10 months of 2005, the highest since 2000, according to Dealogic. Cross-border M&A; volume more than doubled in the ...

Features : Money Launderers Find Fewer Places to Hide

New regulations and unprecedented global cooperation have combined to put the squeeze on money launderers. In just a few short years, the global effort to clamp down on money laundering and terrorist financing has yielded dramatic results. Now there are ...

Emerging Markets : Dubai Exchange Lists First GDR

DR News Investcom, an international mobile-telephone services provider, has become the first company to list its global depositary receipts on the new Dubai International Financial Exchange. Investcom raised about $750 million in its initial public offering, which was also listed ...

Corporate Finance : Focus: Foreign Exchange

Dollar Will Remain Buoyant As Long as the Federal Reserve Keeps Raising Rates, Analysts Say Interest-rate rises are like vitamins for the dollar, which jumped to its highest level in two years in November and which will continue to flex ...

Features : Best Banks in Project Finance 2005

Global Finance selects the winners from among the leading banks that create and implement financing plans for major projects around the world. Project finance activity worldwide has cooled significantly from the fever pitch of 2004, with China largely absent from ...

Corporate Finance : Mergers & Acquisitions

Europe’s Gas Suppliers Make Explosive Bids Spain’s largest natural gas company, Gas Natural, has made a hostile bid for the country’s biggest electricity provider, Endesa, which is nearly double its size. Meanwhile, Russia’s largest gas producer, Gazprom, which supplies almost ...

Emerging Markets : Finance Offshoring Jobs Set to Double

News Financial services executives expect to double the number of jobs they send offshore in the next three years, according to a survey by PricewaterhouseCoopers. Cutting costs was the main reason for offshoring cited by 79% of the 156 executives ...

Milestones : M&A Set for a Record-Breaking Year

Europe/United States Merger and acquisitions bankers are already putting the Champagne on ice. With just a couple of months to go to the end of 2005, it looks set to be the best year for global activity since the technology, ...

Corporate Finance : Focus: Global Equity/DRs

Insurers and Reinsurers Flood Into Equity Capital Market In Wake of Hurricanes Since Hurricane Katrina plowed into the United States Gulf Coast at the end of August, insurers and reinsurance companies have been the biggest issuers of stock in the ...

Corporate Finance : Foreign Exchange

Fed Tightening Strangles Yen By all rights, these should have been the glory days for the Japanese yen. The Nikkei average is trading at the highest levels in four years as foreign money flows into Japanese stocks. The economy is ...

Milestones : The Chinese Battle for Latin America

China/Taiwan/Latin America The People’s Republic of China (PRC) and Taiwan are locked in head-to-head combat for Latin American allegiance. Beijing has promised billions of dollars in new investment and trade in the region’s largest markets, while Taiwan is focusing on ...

Emerging Markets : Mobile Operator Crosses Borders

Company to Watch: Turkcell/Turkey Istanbul-based Turkcell Iletisim Hizmetleri, the leading mobile-phone service provider in Turkey, with more than 26 million customers, operates in virtually every Turkish town with more than 3,000 people. The company’s revenue increased to more than $1 ...

Corporate Finance : Corporate Debt

Mexican Homebuilder Cuts Borrowing Costs Desarrolladora Homex, a leading Mexican homebuilder, lowered its borrowing costs and extended its debt maturity by placing $250 million of 10-year senior guaranteed notes with qualified buyers in the US market and hedging its resulting ...

Emerging Markets : Tenaris ADR Up 129% this Year

DR News Tenaris, a manufacturer of seamless steel pipes for drilling oil and gas wells, has been a gusher in the depositary-receipt market this year. The company’s revenue and earnings have spurted as demand for its seamless pipes has increased ...

Emerging Markets : Hong Kong Escapes From Deflation

News Khiem Do Hong Kong’s economy has emerged from a deflationary period, and property prices in the special administrative region are on the rise, says Khiem Do, head of Asia Pacific equities at Baring Asset Management, which has been part ...

Emerging Markets : Company to Watch: Teléfonos De México/Mexico

Hola, Colombia! Slim’s on the Line Already the largest telecommunications company in Latin America, Telmex, as Teléfonos de México is more commonly known, has made a bid for 50%-plus-one-share of Colombia Telecomunicaciones, Colombia’s state-run communications carrier, also known as Telecom. ...

Emerging Markets : Labor Union Fails to Stop Taiwan Privatization

DR News Three board members of Chunghwa Telecom alerted John Thain, CEO of the New York Stock Exchange, in August that a proposed secondary offering of the Taiwan-based company’s stock and the prospective listing of American depositary receipts on the ...

Newsmakers : Ellison Hungry for Deals Despite Choking on Share Sale

United States Oracle’s Larry Ellison September 12, 2005, was a red-letter day for Lawrence J. Ellison, who has been Oracle’s CEO since he co-founded the business-software company in 1977. Ellison was in the news twice that Monday morning. First, he ...

Cover Story: Central Banker Report Cards 2005

After enjoying a couple of relatively peaceful years, the world’s central bankers suddenly found themselves with a lot more work on their hands. Over the past year they’ve faced some unexpected challenges. Few central bankers would have predicted, for example, ...

Cover Story : 2005 World’s Best Banks

Annual Survey The biggest banks in the world have performed like well-oiled money-creating machines this year, generating billions of dollars of profits on a quarterly basis. The risks to the global economy from rising oil prices and interest rates, however, ...

Newsmakers : Make Trade, Not War!

Global India’s Manmohan Singh It makes a good bumper sticker, but does it really make sense? According to recent research, it does. Sort of. Iran, for example, offered to send the US 20 million barrels of crude oil in the ...

Corporate Finance : Corporate Debt

Growth in Credit Derivatives Begins Attracting the Attention Of Policymakers, Regulators The Federal Reserve Bank of New York invited 14 major participants in the credit-derivatives market, primarily investment banks, to a meeting on September 15 to discuss market practices in ...

Corporate Finance : Mergers & Acquisitions

Global Banks Place Their Bets in China International financial institutions and regional investors are shelling out billions of dollars for stakes in China’s largest banks. With a booming economy and an enticing $1.5 trillion in personal savings, China has become ...

Newsmakers : Bankers and Brokers Urge Streamlining of Cross-Border Trading

United States/Europe Damgard: Promoting harmonization Fed up with costly and often contradictory regulations governing the cross-border trading of stocks and equity derivatives, securities and banking associations in the US and the EU have joined together to urge action to improve ...

Corporate Finance : Foreign Exchange

High Oil Prices Tar Asian Currencies The rising price of oil sent ripples through Asian currency markets in late summer, as Indonesia’s rupiah found itself at the epicenter of a tempest of speculation against the currencies of regional oil importers. ...

Corporate Finance : Global Equity/DRs

Google Plans to Raise $4 Billion in New Offering Internet search company Google plans to offer another 14.2 million shares to raise about $4 billion, but the California-based company says it has no immediate plans to make any major acquisitions. ...

Milestones : Corporate Bond Credit Quality Threatens Derivatives

Global The bond market used to be a place that was safe for widows and orphans, but recent developments, including the fast growth of credit derivatives and hedge funds, are changing this formerly quiet corner of the capital markets. The ...

Emerging Markets : Argentina’s Bonds Attract Investors

News Nencioni: Peso is stable Argentina’s inflation-linked bonds have caught the eye of global investors seeking high returns, triggering a flood of foreign capital into the country and forcing the central bank to mop up huge inflows of cash to ...

Milestones : Will America’s China Bashers Harm the US Economy?

United States/China When China’s CNOOC withdrew its $18.5 billion all-cash offer to buy US oil company Unocal in early August, it cited “the political environment in the US” as the reason for not sweetening its bid to top a rival ...

Corporate Finance : Foreign Exchange

China’s Revaluation: Baby Step or Great Leap? China’s modest revaluation of slightly more than 2% in the value of the yuan against the dollar was either a baby step or a giant leap forward, analysts say. The adjustment in the ...

Corporate Finance : Corporate Debt

SunGard Sells $3 Billion In Biggest Deal in Years Software provider SunGard Data Systems sold $3 billion in notes on July 27 in a three-part offering that was the largest issue in the high-yield debt market in more than six ...

Corporate Finance : Corporate Financing Focus - Mergers & Acquisitions

Big Cross-Border Mergers May Remain Rare Occurrences In Europe’s Financial Sector When Abbey National, then the sixth-largest bank in the UK, agreed in July 2004 to a takeover bid of about $15.5 billion from Banco Santander, Spain’s biggest bank, analysts ...

Features : Terrorism Insurance / Holes in the Safety Net

Despite the lessons learned in recent terror attacks, companies are still unprotected against the catastrophic losses they could face in the event of another attack. Four years after the terrorist attacks on the World Trade Center in New York and ...

Newsmakers : US Company Sues European Central Bank Over Euro Notes

United States/European Union Pat White Just when currency traders thought the euro was about to get over its recent woes, the beleaguered single currency has fund itself in another crisis. This time, however, it’s an identity crisis. In a lawsuit ...

Emerging Markets : Company to Watch: Teva Pharmaceuticals/Israel

A Penny Saved is a Shekel Earned Jerusalem-based Teva Pharmaceutical Industries signed a definitive agreement on July 25 to acquire Miami, Florida-based IVAX for about $7.4 billion, creating the world’s largest generic-drug company. Assuming that the transaction is completed, Teva ...

Corporate Finance : Global Equity/DRs

Global IPO Volume Stronger Than Last Year The volume of initial public offerings worldwide this year is running ahead of last year’s pace, with Credit Suisse First Boston climbing to the top of the global IPO league tables, according to ...

Corporate Finance : Deal Helps Bank Austria Take Clear Lead In CEE

Mergers & Acquisitions Erich Hampel, CEO of Bank Austria Creditanstalt, writing in the bank’s 2004 annual report, said, “In Central and Eastern Europe, our goal is to become market leader.” Hampel and Bank Austria are on the verge of realizing ...

Emerging Markets : Fund Focuses On India’s Yuppies

NEWS S.V. Prasad Mumbai-based Birla Mutual Fund is launching the Birla India GenNext Fund, which will invest in equities of companies that are expected to gain from the free-spending habits of India’s young urban professionals, or Yuppies. The company says ...

Emerging Markets : Company To Watch: Hyundai Motor/south Korea

Shifting to Overdrive South Korea’s Hyundai Motor is stepping up its globalization campaign. In late June it revealed joint-venture plans with China’s Guangzhou Motor Group to produce trucks and buses in China. The two partners will build a plant in ...