A conservative valuation stance and a partly superstitious approach to pricing, even in the face of overwhelming demand, ensured the long-awaited US$21.8bn NYSE IPO of Alibaba Group was a mostly seamless exercise last week.
Institutional shareholders have humiliated AngloGold Ashanti by forcing the miner to abandon plans for a huge capital increase and a spin-off of its international assets.
Fresenius Medical Care has illustrated the flexibility of equity-linked products by removing any threat of dilution from its €400m convertible bond issue. By repurchasing the embedded option through a matching derivative from joint bookrunner Societe Generale, the dialysis product-maker secured 100% debt treatment and therefore did not require shareholder approval.
Banks took less than a quarter of the funds available to them in the first of the European Central Bank’s long-awaited targeted longer-term refinancing operations, raising concerns that the institution’s latest efforts to reinvigorate lending in countries mired in recession and deflation may underwhelm.
An analysis of the short-term funding of Europe’s 50 largest banks has shown how delicately the European Central Bank will need to tread over the next month as it completes its comprehensive assessment of the health of Europe’s banks.
The highly liquid global debt markets are in fine fettle and easily capable of financing another mammoth M&A deal of around US$100bn, bankers said at LPC’s 20th annual loan conference in New York.
Wall Street banks are expected to rein in reckless underwriting after the Federal Reserve appeared to single out Credit Suisse for flouting lending guidelines.
Lenders that provided a US$60m loan in August to Chinese Frankfurt-listed shoemaker Ultrasonic were left reeling after two of the borrower’s top executives disappeared after the company’s three-year loan had been drawn down in full.
The rebirth of the US$21trn credit default swap market will be delayed by two weeks, Markit and ISDA confirmed on Wednesday, in a sign that the industry is struggling to get ready for the most substantial overhaul to CDS in over five years.
Alcoa’s move to acquire Firth Rixson was widely applauded by the financial markets when it was agreed to in June. The acquisition, while expensive, marked a continued transition by the company toward higher, value-added precision parts and away from its roots as an aluminium producer and processor.