Vive le take over

Building the Business Bridge
Net Gains for Venture Capitalists.
Place Your Bets for the Merger

It's become a dirty word in the last few months but even though we're half way through 2000 the word 'millennium' can still strike fear into the sternest business hearts.

Grape growers in the Champagne region of France are the latest to feel the pinch.

There is a lot ridding on this year's harvest for the wine. An estimated 300 million bottles can be produced each year but 1999 saw demand exceeding supply to the tune of 30 million.

All of which means there is increasing pressure for a good crop this time, otherwise prices will be rising.

France's 35 hour working week regulations aren't helping to ease the situation and Spain and Australia seem keen to burst the Gaelic bubble with their own alternatives.

But if the wine is good then the French will have plenty to celebrate.

The last few weeks have seen a mega deal between Vivendi which has bought Seagram, owners of Universal Studios, so watch out Hollywood.

The deal marks the latest in a line of mergers with French companies which is turning the country into one of the key players this year.

France also holds the European Union presidency for the next six months. Although rocky times could be ahead with talk of a two-tier membership as this is not a winner with countries that aren't 100 percent behind the euro. However the continuing strength of the currency may change minds and with all that to celebrate it is time to get your orders of the sparkling drink in.

Building the Business Bridge

With all the excitement concerning euro lovers and haters no-one seems to have paid much attention to a rather significant construction which is likely to transform the business world. Denmark and Sweden have just been linked with the new Oeresundsforbindelsen road/rail bridge which opened on July 1. Copenhagen is now connected to the Swedish port of Malmo courtesy of ten concrete miles and more than 2 billion euros worth of metal.

Competitiveness and job creation are two of the predicted outcomes from the new link which is the first between the two countries since the ice age.

About 12-14,000 vehicles are expected to cross the bridge daily, double those now transported by ferry.

Net Gains for Venture Capitalists.

After millions and millions invested and some great ideas it comes to this: business sense.

It is the one thing, according to recent reports, which has been lacking from a large number of new hi-tech e-commerce companies.

Now the suits are sniffing around again hoping to bag some bargains as the shares of even the top rated firms start to look shaky.

Not everyone is keen on the big boys making another killing and the word 'merger' is the one that most often springs up in conversations these days.

If you're working for an internet company in Europe be warned.

Place Your Bets for the Merger

It's what punters would dream of at the races - tight odds on the winner.

At the moment nobody is being too forthcoming about whether the merger between the London Stock Exchange(LSE) and Germany's Frankfurt exchange will go ahead.

Shares in the London exchange are shortly due to be put on sale and with the Ł20 price tag also comes the opportunity to have a say in the merger meeting in September.

But not everyone is backing Don Cruickshank, the chairman of the merged exchange. Some spread betting firms in London are

predicting a narrow defeat for the merger plans.

Even Old Mutual, the country's biggest private client stockbrokers, is being a bit coy saying it hasn't decided either way yet.

But there is something in the merger's favour: the big banks can take up to 4.9 percent each in the LSE. Their financial muscle could yet win the day although this will leave the smaller players in a somewhat difficult position.

Do they jump on board and back the big boys or try and go their own way? Of course with that word all big corporations love, centralisation, there's going to be some losers even if the merger gets full support. So why not spin the wheel and place your bets.

By Mark English

© Copyright 2001. Galt Western Personnel Ltd. Unless otherwise specified, you may reprint this article, quote from it, use it in research or projects, duplicate it or distribute it. Credit of authorship and source MUST be given to galtglobalreview.com. Ownership of Copyright remains with Galt Western Personnel Ltd.

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