Only a few months ago there was constant chatter in the markets that the UK government was on the verge of disposing of sizeable stakes in Royal Bank of Scotland and Lloyds bank. However, over the last few weeks this chatter has subsided amid concerns regarding the short to medium term prospects for the UK banking industry and the economy as a whole. So when will the UK government dispose of stakes in Royal Bank of Scotland and Lloyds bank?
One of the mega rich investors from the Middle East who effectively bailed out Barclays bank in 2008 has sold his remaining stake in the operation via a complex hedging arrangement with Nomura bank. Sheikh Mansour bin Zayed al-Nahyan has in the process increased his cumulative profit on his original stake to £2.25 billion.
In a complicated financial transaction Abu Dhabi investors have reduced their stake in Barclays Bank after exercising various warrants available and then entering into a very complex hedging operation with Nomura. Effectively the Abu Dhabi investors have reduced their downside to Barclays Bank while still maintaining some upside with regards to their significant investment only a couple of years ago.
Thomas Cook and the Co-operative group have today announced the merger of their travel operations in a move which will see the formation of the second-largest retail travel operation in the UK, behind the post office. The combined company will be 70% owned by Thomas Cook and 30% owned by the Co-operative and become a massive force in the UK travel industry.
As the US dollar continues to flounder in the currency markets it has come to the attention of the wider masses that a further $10 billion in short positions was taken out in the week ended September 28 which brings the total value of short positions in the US currency to just over $26 billion. These are enormous figures and perfectly reflect the fact that speculators appear to be very active within currency markets and have taken a very negative attitude towards the dollar.
Goldman Sachs has this week fired up the controversy regarding bonuses for the UK financial sector with the revelation that 80 the company's most senior London bankers will receive millions of pounds worth of free shares. The company is suggesting these bonuses need to be made to ensure that the cream of the mergers and takeovers market remain with the company at this difficult juncture for the UK economy and the worldwide economy.
United Biscuits, the company behind KP nuts, Twiglets and Jaffa Cakes has today it is in talks regarding a possible £2 billion Chinese takeover. Chinese operation Bright Food has apparently approached the company's private equity owners, Blackstone and PAI, with regards to a potential purchase. The company was acquired for £1.6 billion back in 2006 although it is believed the operation has significant debt.
Research by the Royal Bank of Scotland has today highlighted the fact that many wealthy investors in UK, indeed 40% of those questioned, believe that their investment returns are being materially impacted upon by fees and other charges. This has long been a problem for the high net worth individual market were perhaps more time and more focus is given to tax efficient investing within the current taxation rules.
As we covered in one of our earlier articles today the FSA (Financial Services Authority) has today announced an investigation into the relationship between financial journalists and the corporate finance market. There is concern that information is being passed between the two areas of the financial arena, two areas which need to be sheltered from one another. But do investment leaks really affect the marketplace?
The new banking commission, set up by the coalition government, has this week prompted speculation that some of the larger banking operations in the UK could be split up between retail and investment banking. There has been speculation for some time that the government and the regulators were looking to split various banking groups in the UK but does this make sense?
