2004

Corporate Finance :Mergers & Acquisitions

ASIA Bidding War Erupts For Japanese Bank Sumitomo Mitsui Financial made a $29 billion hostile bid for UFJ Holdings, which already had plans to merge with Mitsubishi Tokyo Financial. Either suitor’s pairing with UFJ would create the world’s largest bank ...

Corporate Finance : Yen Tracking Nikkei’s Moves

Asia If weakness in the Japanese stock market continues, this could be troublesome for the yen’s prospects, says Bilal Hafeez, head of foreign exchange strategy at Deutsche Bank in London. The yen’s moves against the dollar have been highly correlated ...

Corporate Finance : Accounting Proposal Hits ‘coco’ Bonds

The Americas Proposed new accounting rules have put the damper on the issuance of a popular type of convertible corporate bond in the US market. The Financial Accounting Standards Board wants companies to treat so-called contingent convertible bonds, known as ...

Newsmakers : Going Middle-market In The Heartland

UNITED STATES Miillllerr:Diidn’’tt miissss aa ssttep Heidi Miller, the new CEO of JPMorgan Chase Treasury & Security Services, says her area of responsibility will be the nerve center of the number-two US bank following its merger with Chicagobased Bank One. ...

Corporate Finance : Ecb May Join Rate-hike Derby

Europe A horse race could be emerging between the Federal Reserve and the European Central Bank on the interest-rate front, says John Normand, global fixedincome and foreign exchange strategist at JPMorgan Chase in London. The dollar’s rate disadvantage versus the ...

Corporate Finance : Bank Mergers Announced On Both Sides of Atlantic

Europe/US Major acquisitions in the banking industry are continuing to keep investment bankers busy, with sizable transactions announced in Europe as well as the US. Santander Central Hispano, Spain’s biggest bank, agreed on July 26 to buy UK-based Abbey for ...

Corporate Finance : Citigroup Launches Indexes Focused On Liquid Drs

The Americas Citigroup introduced four regional indexes that track the world’s most-liquid depositary receipts. Known as the Citigroup Liquid DR Indices, they include only those companies that have US exchange-listed American depositary receipts or London-traded global depositary receipts that are ...

Newsmakers : S&p’s Puccia Says Risk Management Rates Highly

UNITED STATES Puccia: “We don’t want to get ahead of the industry” When analysts at New York-based ratings agency Standard & Poor’s sit down with a company’s management team, they want to know how well the executives understand and manage ...

Newsmakers : China Sets Course For A Gentle Touchdown

CHINA It looks like China might be able to pull off a feat that even the United States was unable to achieve after the stock market boom of the late 1990s. According to Stanley O’Neal, chairman and chief executive of ...

Features : Investment Banks Cash In On Hedge Fund Boom

Focus: Hedge Fund Services The hedge funds industry is growing rapidly, attracting both new investors and companies looking to service this dynamic market. As investments into hedge funds reach record levels of around $1 trillion worldwide, interest is growing in ...

Corporate Finance : Many Issuers Withdraw From High-Yield Market

CORPORATE BONDS Numerous companies with below investment-grade ratings have canceled or delayed proposed debt sales in recent weeks, as borrowing costs have increased. Other issuers, in the US as well as in Europe, have been forced to offer more-attractive terms ...

Milestones : What Keeps Cfos Awake At Night?

UNITED STATES Chief financial officers from US companies in a broad range of industries say the biggest risk to the US economy is domestic terrorism, not rising interest rates. According to North Carolina-based Duke University’s latest CFO Outlook Survey, conducted ...

Corporate Finance : Corporate Bonds

GLOBAL High-Yield Issuance Setting Fast Pace The improving global economy is spurring an increase in debt issues by lesser-rated companies, as the risk of default declines, analysts say. Worldwide issuance of high-yield corporate bonds is running well ahead of last ...

Corporate Finance : Global Depositary Receipts

THE AMERICAS Bank of New York Automates Conversion of ADRs, Shares Bank of New York has introduced a system that enables institutional investors to electronically trade ordinary shares in foreign markets and to automatically convert those shares to American depositary ...

Features : Best Investment Banks

Citigroup scored a remarkable triumph for a commercial and retail bank by outperforming the cream of the crop in the first annual Global Finance Investment Banks Awards. In a triumph that evokes images of a ‘blue-collar’ horse like Funny Cide ...

Corporate Finance : Foreign Exchange

THE AMERICAS Dollar Continues to Rally On Prospect of Rate Rise The US dollar was off to the races in May, climbing to its highest level in more than eight months against the Japanese yen and rising against the euro ...

Newsmakers : China Fever Sparks Interest In Index

UNITED STATES/CHINA Tim Halter Chinese companies that trade on US stock markets offer some comfort to investors seeking to catch a ride on the China boom without taking too much risk, says Tim Halter, founder and managing director of USX ...

Corporate Finance : Floating-Rate Issues Becoming Popular

THE AMERICAS When Calpine Generating, a subsidiary of California-based power producer Calpine, came to market in late February with a $2.3 billion offering of high-yield bonds and term loans, it met resistance from investors who already held large amounts of ...

Newsmakers : Fed Chief Finds He Can Move Markets Once Again

UNITED STATES Alan Greenspan No matter how careful he is with his words, Federal Reserve chairman Alan Greenspan is going to have a tough time shifting to a rising-interest-rate environment without messing things up. Segue is simply not in his ...

Features : The Best Emerging Market Banks 2004

Emerging markets are poised to post their strongest growth in 20 years. Global Finance has picked the banks in 73 emerging market countries and four regions that have best been able to help their clients benefit from the upturn. All ...

Milestones : Banking Associations Of The World Unite

GLOBAL The American Bankers Association and the European Banking Federation have joined with their counterparts in Canada and Australia to form the International Banking Federation, or IBFed. Although the leaders of the associations have met informally for a number of ...

Newsmakers : Booming Bolsa Bodes Well For Mexican Economy

MEXICO Guillermo Prieto Treviño, president of the Mexican Stock Exchange, picked a good time to come to New York to promote investment in Mexico, with the bolsa hitting record highs. He says the rising market reflects a “stability premium” as ...

Corporate Finance : Chinese Companies Lead Parade Of Asian Issuers

ASIA Semiconductor Manufacturing International, or SMIC, China’s biggest memory-chip maker, launched a sponsored American depositary receipt program in conjunction with its $1.8 billion global initial public offering.The ADRs are traded on the New York Stock Exchange. A host of Asian ...

Milestones : Traders Fear Seoul Will Devalue Its Way To Prosperity

SOUTH KOREA Lee Hun-Jae The South Korean won suffered its biggest decline since November on news that the progovernment Uri Party gained control of the National Assembly in last month’s general election. Foreign exchange traders blamed the drop in the ...

Features : World’s Best Treasury Providers

Global Finance selects the best in the world. The big international banks make it look easy, sweeping up dollars and euros and various other currencies from remote corners of the world and investing the resulting cash pile in the highestyielding ...

Corporate Finance : Weak US Jobs Data Trigger Bond Rally

THE AMERICAS Bond prices soared and yields slumped in early March, as the US employment data surprised market participants once again with a smaller-thanexpected rise in payrolls. “We probably need as many as six months of unequivocally solid labor data ...

Corporate Finance : Comcast’s Hostile Offer Puts Disney in Play

THE AMERICAS Comcast, the biggest cable-TV operator in the US, made an unsolicited offer to buy Walt Disney, the American entertainment icon, but was swiftly rebuffed by Disney’s board. The $67 billion hostile stock-swap transaction, if successful,would create the biggest ...

Corporate Finance : Companies With ADRs Gain Research Following

SOUTH AFRICA South African companies that find themselves ignored by analysts in developed countries can get noticed by issuing American depositary receipts, bankers say. US and European companies have significantly higher price-to-earnings ratios and a stronger research following than South ...

Newsmakers : Around The World

ALAN GREENSPAN INVENTS A NEW VERSION OF FEDSPEAK Federal Reserve chairman Alan Greenspan has turned the English language into an instrument of monetary policy, analysts say.What is the difference between being patient and waiting for a considerable period, they ask? ...

Corporate Finance : High-Yield Issuance May Keep Growing

THE AMERICAS While US corporate bondmarket participants expect overall issuance to decline in 2004 as interest rates go up, high-yield issuance likely will remain strong and could even increase slightly. A healthier economy will make it more attractive for companies ...

Newsmakers : Zhou Says China Will Review Its Yuan Policy This Year

CHINA Zhou Xiaochuan, governor of the People’s Bank of China, said in mid- February that China’s exchange-rate mechanism would be revised this year. Zhou indicated that the yuan’s level on currency markets would be made more flexible, ending its rigid ...

Newsmakers : United States

NANDAPURKAR SWITCHES SIDES AS EUREX STORMS WINDY CITY Satish S. Nandapurkar, a former military officer in the US Air Force, dropped a bombshell on January 21, when he resigned as managing director, products and services, of the Chicago Mercantile Exchange ...

Corporate Finance : ADRs Returning to Role As Takeover Currency

THE AMERICAS The use of American depositary receipts to pay for foreign takeovers of US companies likely will increase this year, market participants say. Many foreign issuers have reconciled their accounting to US Generally Accepted Accounting Principles, or GAAP, and ...

Milestones : United States

RECORD TRADE DEFICIT: A SIGN OF STRENGTH OR WEAKNESS? After two years of a slumping dollar, one could be tempted to look for signs of improvement in the gaping US trade deficit. Look again. While exports have increased, imports are ...

Corporate Finance : Group of 7’s Warning Fails To Support Dollar

THE AMERICAS In a move that came as a surprise to some analysts, the Group of 7 industrial nations warned against excessive volatility and disorderly foreign exchange movements in its communiqué following the group’s early-February meeting in Boca Raton, Florida. ...