Activity stripper Melrose seems to have learned nothing from the congestion it received during the battle for GKN. The company's main idea for governance reform is to promote Justin Dowley, who closed the outsized rewards for Chris Miller and the other top executives as chairman of the Paying Committee.
Undoubtedly he is a fine guy with a huge experience in high finances. But the idea that an insider from the company who has been on board since 2011 is to hold the surplus under control or to dismiss the chief executive if something goes wrong is stupid.
What Melrose desperately needs, as one of the largest companies in the aerospace industry in the UK, is a heavyweight technical chairman in the form of Rick Haythornwaite from Centrica or John Neill from Unipart.
Protest: What Melrose desperately needs, as one of the largest companies in the aerospace industry in the UK, is a heavyweight technical chairman
The decision to get the job done to the person who earned £ 170 million with potential payouts to the Melrose Big Four from Miller, David Roper, Simon Peckham and Geoffrey Martin is not credible.
Despite the fact that they enjoy the support of British large investors, such as Aviva, management does not look like that at the Mayfair headquarters.
There is a hectoring, how-great-we-are tone to the interim results. But the cost of acquisition and restructuring by GKN actually resulted in a pre-tax loss of £ 256 million during the period that Melrose was owned by GKN. One Melrose slide has a saving of 85 percent on the central costs, reduced by 57 million.
Approximately £ 20 million of it has been reallocated to operational units and another £ 9 million to Melrose HQ. None of this contributes to the well-being of the British English core areas in the Midlands.
The main advantage that Melrose proposes to sell is the spur of Powder Metallurgy. To be honest, this also had to be sacrificed by GKN in response to Melrose's agitation. It is described as "technological leadership and superior operations with a pipeline of innovative products & # 39; and superior margins. If it is such a great undertaking, why sell, do you risk intellectual property falling into the wrong hands, including some of its defense capabilities? It is a blatant example of short-term thinking, easy profit and the industrial consequences.
Melrose also trumps that at GKN there are no black holes & # 39; have been found as if this is a big surprise. Aerospace activities do indeed, like GKN, a roaring trade. It is increasingly important that the government and the takeover panel closely monitor sales to ensure that the commitments made in the last days of the bidding process are not broken.
Cap in hand
At first glance, the Tory price limit seems a good thing for Big Six energy companies. It puts money in the pockets of 11 million customers of utilities that are stuck to a standard variable rate.
But such interference in free markets rarely works. In the period that it has implemented the price limit, the wholesale prices have increased and the Big Six did not lose any time when passing on increases.
They give back what they have already taken. If Ofgem, the regulator, had been more determined, it could have asked the Big Six to automatically switch more compliant customers to the cheapest rates. Estimates suggest that the rate limit costs Centrica up to £ 250 million, money that could have been invested in greener technology. Moreover, the rise of challengers for the Big Six together with price comparison sites and easy switching should keep the big players fair.
The real concern for the equity markets is that the May government has set an exciting precedent to outperform labor prices on energy prices.
For example, a personnel administration would like to do the same for insurances and banks. That may seem like a good idea, but it can produce undesirable results. Wonga was a horrible company. But driving in the garden of the knacker was not the goal when the costs were capped.
Can the glory of Ocado shares come to a halt? The parent of the French partner Casino of the online grocery seems to be in big trouble.
Loans from 51.1 percent owner Jean-Charles Naouri of Rallye have risen to £ 3.2 billion and the price of credit insurance has increased dramatically, indicating a failure rate of 80 percent. Bonds with a coupon of 3.4 percent that expires in 2022 yield 26 percent.
Perhaps Ocado boss Tim Steiner comes to his aid.