Corporate Finance – Europe invades US.

– The corporate finance faculty of the ICAEW has voiced concerns over the Treasury’s proposals for ‘financial promotions’ – the communication of investment opportunities – because they will restrict firms’ ability to offer investment advice. The faculty was ‘deeply disappointed’ at the proposed changes under the Financial Services and Markets Act 2000 on the provision of services by professional firms not authorised by the FSA. It also said small businesses would face the cost of using an FSA-authorised firm.

– Europe’s corporate invasion of North America is at an all-time high, according to DealWatch, KPMG Corporate Finance’s review of cross-border mergers and acquisitions. During 2000, European companies spent more than $224bn (£152bn) acquiring targets in north America, including 10 of the top 30 deals such as BP Amoco’s acquisition of Atlantic Richfield for $25bn. Telecoms was the largest sector involved in global M&A, led by Vodafone’s $173bn acquisition of Mannesmann.

– Frustrated managers led an explosion of public to private transactions during 2000 according to figures by the Centre for Management Buy-Out Research. The Barclays Private Equity and Deloitte & Touche sponsored research revealed the total value of public to private MBOs had doubled reaching #9bn in 2000.

– The FSA has announced that rules restricting the listing of biotechnology companies and internet incubator funds on the Stock Exchange are to be relaxed. Biotech companies will no longer have to achieve at least one of four ‘commercial milestones’. The FSA also said incubators would not need a three-year trading record.

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