Following an acrimonious and drawn-out takeover battle for Hungary’s MOL, Austrian oil and gas group OMV finally did as expected: it threw in the towel.

Yet according to OMV Chief Executive Wolfgang Ruttenstorfer, the consolidation pressures in central Europe — the strategic rationale which prompted him to launch the unsolicited offer in the first place — remain in place.

Analysts and investors have often pointed out that OMV could do better with the cash then parking it in a MOL stake. And while OMV sat tight and awaited the outcome of its unwanted approach, MOL busied itself stringing together a network of strategic allies, entering into ventures with Cez from the Czech Republic and Oman’s OOC.

Meanwhile, Ruttenstorfer says he is determined to keep his 20.2 percent stake in MOL, at least for the time being — but he did not rule out a sale in the mid or long-term.

With precious few takeover targets in the region in view, there is not much else Ruttenstorfer can do for now. 

For OMV, its MOL stake could be a lever to get,  for example, a share in MOL’s refining business. 

Ruttenstorfer cited Lukoil’s and Gazpromneft’s interest in the region as one example for increasing consolidation pressures. Though any big investor would likely await the outcome of the European Union ruling on MOL’s 10-percent voting cap, which poses a major obstacle to whoever would set their eyes on a takeover of  the Hungarian group. 

Once this issue has been cleared, OMV’s stake in MOL could prove a valuable card in the consolidation game — whether it would be in a match against one of eastern Europe’s energy majors, or even  a retake of the battle between OMV and MOL.

(Reuters photo: OMV Chief Executive Wolfgang Ruttenstorfer)

Mining stocks have lost a third of their value over the past three months on fears the commodity super-cycle is coming to end — but Xstrata’s Mick Davis reckons it’s still a good time to buy.

The acquisitive miner’s $10 billion cash bid for Lonmin, the world’s third-biggest platinum producer, is opportunistic and far from friendly.

But it has injected a badly needed buzz back into the sickly sector, lifting stocks across the board. And Lonmin investors are already betting on a sweetened offer.

Platinum traders, too, will be cheering Mick’s move. Spot metal prices rose more than 3 percent as traders saw the bid as a vote of confidence for the future of the market.

Winning Lonmin would help Xstrata diversify its business from industrial metals such as copper. It might also help the Swiss-based group retain its independence in the dog-eat-dog mining sector. 

Five months ago, Xstrata escaped being bought when a takeover attempt by Brazil’s Vale failed.

(Reuters photo:  Xstrata logo at the company’s headquaters in Zug)  

It doesn’t seem much to cheer about but Societe Generale investors breathed a sigh of relief when second-quarter net profit only fell 63 percent.

The investment banking unit may have taken a 1.2 billion euro hit but higher profits from its international retail banking and consumer credit businesses offset the damage and kept the group in the black.

In today’s doom-laden markets that was something to celebrate - and the shares jumped more than 6 percent.

It has been the year from hell for the venerable French bank, still in the shadow of the world’s worst rogue trader scandal and struggling - like its peers - with the global credit crunch.

In January, it revealed 4.9 billion euros of losses following rogue deals by junior trade Jerome Kerviel, forcing a 5.5 billion euros rights issue and making SocGen a takeover target in the eyes of many.

Magistrates are still studying what went wrong and who knew what about the Kerviel

affair. But SocGen may be back from the brink.

SocGen CEO Frederic Oudea, in any case, doesn’t favour a merger. ”In this environment, throwing yourselves into big deals is very risky,” he told reporters.

And echoing comments from HSBC this week, he argued the universal banking model remains viable and will emerge as the “winner” from the current credit crisis.

Attention turns next to BNP Paribas, France’s biggest listed bank, which reports second-quarter earnings on Aug. 6.

(Reuters photos: SocGen branch in Paris; Jerome Kerviel)

The last-minute collapse of the 12 billion pound sale of British Energy to EDF raises the question of how well banks behind the deal were plugged in with major shareholders, who ended up vetoing the acquisition.

Having worked on a sale for months, banks were told by private shareholders EDF’s bid of around 775 pence per share was too low. The news clearly left all the parties in disarray.

Such deals are always risky, but the withdrawal of major British Energy shareholders after months of haggling over the price suggests a full-blown row. After all, an indication of where the price was heading had been floating around for at least a week.

A source told Reuters that British Energy shareholder Invesco was involved in the decision. Prudential was another, according to media reports. Merrill Lynch advised EDF, while Rothschild advised British Energy and UBS the British government, a major shareholder in the nuclear generator.

If a deal cannot be revived, British Energy has said it will look for partnerships with other companies. Some even think Britain’s Centrica may now renew its plans to bid for British Energy, which is 35-percent owned by the British government.

A dramatic last-minute hitch to plans for France’s EDF to buy British Energy leaves managements, shareholders and especially the British government in a quandary.

It was a 12 billion pounds ($24 billion) deal that was supposed to relaunch Britain’s nuclear energy programme. Everyone had been told to expect it. In fact, the collapse of talks came too late for French newspapers, several of which had been briefed on the deal and splashed it prominently on their front pages on Friday.

In end, however, big insitutional investors persuaded British Energy to reject EDF’s offer as low-ball, despite the best endeavours of the British government, with a 35-percent stake. 

So what happens next? Talks are continuing and British business minister John Hutton says he remains convinced an EDF takeover makes sense; yet the gulf between the EDF and British Energy boards on price is clearly substantial. British Energy says there can be no certainty of any deal.

It is yet another headache to spoil Prime Minister Gordon Brown’s summer holiday, as his popularity slumps to a record low .

(Reuters photo: A sign is seen on the security fence of British Energy’s Heysham nuclear power station)   

The first lawsuits are flying but Roche’s experienced dealmakers are unlikely to put more cash on the table just yet.

While it seems clear $89 a share won’t do it – the market has already pushed Genentech stock to $95 and some analysts are talking well over $100 – the Basel-based drugs giant can afford to bide its time. With 56 percent of the biotech company already in his pocket, Chairman Franz Humer is ready to play a long game.

Genentech, which says Roche’s bid for the remaining 44 percent is “unsolicited and unexpected”, has formed a special committee of its three independent directors to assess the proposal. They will be engaging outside advisors, suggesting a lengthy process ahead. 

At the end of the day, most analysts believe a deal looks inevitable and Roche will end up sweetening its current $43.7 billion offer.

 The question is, by how much?

Diversification is the buzz word in pharmaceuticals as the feared 2010-2012 patent “cliff” looms nearer, when many of world’s top medicines lose patent protection.

New Glaxo CEO Andrew Witty, 43, is embracing the concept wholeheartedly via a bold deal with South Africa’s Aspen that takes the world’s second biggest drugmaker into generics in emerging markets and a strategy to broaden out the group.

But how long will Glaxo’s not-so-patient shareholders have to wait to reap the rewards?

Witty gave a confident performance during a two-hour meeting with analysts this week, but a sliding share price the day after suggests investors see little to cheer about just yet.

Investing for diversity to de-risk the business may make sense, but bulking up in non-prescription healthcare products, vaccines, biotech and emerging markets will take time – as well as money, as evidenced by the decision to delay completion of the company’s 12 billion pounds buyback programme.

“You can’t turn a supertanker on a dime,” says Deutsche Bank analyst Brian Bourdot.

Diversification is the buzz word in pharmaceuticals as the feared 2010-2012 patent "cliff" looms nearer, when many of world's top medicines lose patent protection.

New Glaxo CEO Andrew Witty, 43, is embracing the concept wholeheartedly via a bold deal with South Africa's Aspen that takes the world's second biggest drugmaker into generics in emerging markets and a strategy to broaden out the group.

But how long will Glaxo's not-so-patient shareholders have to wait to reap the rewards?

Witty gave a confident performance during a two-hour meeting with analysts this week, but a sliding share price the day after suggests investors see little to cheer about just yet.

Investing for diversity to de-risk the business may make sense, but bulking up in non-prescription healthcare products, vaccines, biotech and emerging markets will take time -- as well as money, as evidenced by the decision to delay completion of the company's 12 billion pounds buyback programme.

"You can't turn a supertanker on a dime," says Deutsche Bank analyst Brian Bourdot.

The problem with Anheuser Busch’s defence strategy is that it makes the Budweiser-maker an even more enticing target for InBev, for if the St Louis-based brewer can trim costs so easily how much more can the ruthless cost cutters at InBev take out?

Anheuser would have a stronger case if it had a stronger track record as a cost controller. But while top executives at InBev are said to travel the Atlantic in economy class, Anheuser has a fleet of Falcon executive jets and Bell helicopters.

So if Anheuser can cut $1 billion in costs by 2010 what can InBev do? The Brazilian-led management have been reported to be looking at $1.4 billion, and perhaps even more once the aircraft are put on the block.

Moreover, the St Louis management want to keep their SeaWorld theme parks and still make some of their beer packaging, while InBev sees vertical integration as a thing of past and would put these non-core assets up for sale for $4 billion plus.

InBev can probably afford to increase its cash bid to $70 per Anheuser share from the current $65 before the deal becomes less compelling, but until it makes a higher bid the market will fret it may turn to equity to bridge the $5 gap rather than raise more debt or promise to sell down Anheuser’s 50 percent stake in Mexican brewer Modelo.

It probably needs only a few dollars more per share for a winning bid, but InBev will be in no hurry with global markets tumbling, Anheuser’s defence plan unconvincing and a Delaware court case which may oust Anheuser directors still to be decided.        

European industry is suffering under soaring energy costs. Profit warnings are becoming more common and industry leaders predict plant closures and job losses may follow.

Companies say they are doing all they can to improve their game but want government help.

Britain’s Castle Cement, part of Germany’s Heidelberg Cement, is a case in point. Its cement furnace in Stamford, England, is replacing much of its coal with  alternatives  — tyres, bone meal, paper – as $140 a barrel oil sends all fuel costs skyrocketing.   

Industry says tax cuts and energy market reform is needed. Big energy users also want an easing in EU plans for tough CO2 emissions cuts, arguing the measures will simply put them out of business and shift production to places like China which have less efficient and more environmentally damaging production processes.

So, are governments doing enough to support the continent’s core industrial base?

Should certain sectors of the economy be singled out for special support?

Will planned European CO2 cuts, which are not matched by the U.S. and China, wreck the continent’s industrial core without helping the environment?