AMERICAN private equity fund Apollo is believed to be planning to swoop on more debt owed by struggling high street retailer HMV.
The so-called “vulture fund”, which has raised a £2 billion warchest to buy European retailers, snapped up 10 per cent of HMV’s debt last month and is expected to launch offers for more of the firm’s lending.
Apollo is understood to need to hold the majority of the retailer’s debt before mounting a takeover bid for the company. HMV has warned that its future is in doubt, causing the music retailer’s stock market value to plunge to just £8 million.
Air France–KLM is eyeing Alitalia deal
AIRLINE operator Air France-KLM is in advanced talks to take control of Italy’s flagship carrier Alitalia by the summer, Rome’s Messaggero newspaper reported yesterday.
Alitalia is owned by CAI, a consortium of investors that bought the then-bankrupt airline in 2008. CAI is already partly owned by Air France-KLM.
In May, Air France said it would probably wait until at least 2014 before using its option to take control of Alitalia, which it has held 25 per cent of since January 2009. Air France declined to comment.
North–south divide for eurozone banks
Eurozone banks and insurers will face another difficult year in 2013, according to a report by Ernst & Young.
The north-south divide will become more entrenched, with the outlook for lending in northern markets slowly improving, but the outlook for southern markets remaining bleak as banks contend with loans turning bad.
Andy Baldwin, financial services leader for Europe at Ernst & Young, said: “Financial services firms, in particular banks, will be hit by the cumulative effect of five years of poor economic performance.”
First insolvenices fall for four years
THE number of companies going bust in Scotland fell last year for the first time since 2008, data compiled by accountancy practice KPMG reveals.
The firm noted a 6 per cent fall in corporate insolvencies over the past 12 months as companies adjust to the post-banking crisis economy.
Blair Nimmo, head of restructuring at KPMG in Scotland, said: “We are finding that most companies now accept that things have changed post-2008 and there is unlikely to be a material upturn within the next couple of years.”