jueves, 19 de diciembre de 2013

Finance&Economics: Banesco of Venezuela in €1bn deal with Spain’s NCG Banco



Banesco of Venezuela in €1bn deal with Spain’s NCG Banco

By The FINANCIAL TIMES
The Spanish government has sold NCG Banco, one of three nationalised banks that was still in state hands, to Banesco of Venezuela in a €1bn deal that highlights growing investor appetite for the country’s resurgent banking sector.
Banesco’s bid trumped offers from the three largest Spanish banks as well as bids from JC Flowers, the US private equity house, and US investors Guggenheim Partners.
Under the rules of the auction, the winning offer must have been at least €200m higher than the next-closest bid – a gap that underlines the Venezuelan bank’s determination to gain a foothold in Spain.
Spain´s Fund for Orderly Bank Restructuring, which was running the auction, said 40 per cent of the €1bn bid would be paid on completion of the deal, with the remaining 60 per cent paid in instalments until 2018.
The deal marks the first successful sale of a nationalised Spanish bank to a foreign buyer since the start of the crisis and will come as a relief to the government after it failed to sell Catalunya Banc, another nationalised lender, in an auction this year.
Both Catalunya Banc and Bankia, the biggest of the lenders nationalised during last year’s banking crisis, remain in government hands.
The Spanish government has injected almost €9bn into NCG Banco, meaning in spite of the sale it will still be sitting on a heavy loss. However, unlike in previous privatisations, the state is not providing an asset protection regime to Banesco, meaning Madrid avoids any exposure to future losses at NCG.
Spanish banking stocks have risen sharply during the past six months, amid heightened investor confidence that the country’s financial sector is now on a sounder footing. The new sense of optimism stands in marked contrast to last year, when Madrid was forced to negotiate a €100bn European bailout package to rescue its undercapitalised banking sector.
The outcome of the auction defied the predictions of several Madrid-based bankers who argued throughout the process that only a domestic bank with an already large retail presence could produce sufficient cost savings to justify the takeover of NCG Banco.
Unlike its Spanish rivals, Banesco also stands to gain much less from the deferred tax assets currently sitting on NCG’s books, as it will probably have fewer taxable profits than Santander, BBVA and Caixabank in the years ahead. DTAs can be used to lower a company’s future tax burden.
In political terms, however, the Venezuelan bid is likely to have appeared the most attractive, thanks to Banesco’s promise to keep NCG Banco as a standalone group headquartered in the northern Spanish region of Galicia.
According to Spanish media reports, the prospect of maintaining a regional banking group – and the avoidance of branch closures – was enough to secure the political support of the government of Galicia, a traditional stronghold of Spain’s ruling Popular party.

viernes, 13 de diciembre de 2013

Merry Christmas and a Happy New Year ...

Merry Christmas and a Happy New Year ...


Business&Finance: Agatha Ruiz de la Prada: My love of colour bred success



Agatha Ruiz de la Prada: My love of colour bred success
BBC
You'd be hard put if you entered a Spanish home not to find at least one item designed by Agatha Ruiz de la Prada.
The fashion designer, who has no connection to Italian fashion label Prada, is known for her colourful and funky designs. She may have started out with clothing but her sprawling design empire now stretches from notepads to tiles, security doors and even gravestones.
Yet she started out wanting to be an artist, not a designer. The daughter of an aristocrat and an architect, Ms de la Prada was inspired by her father's extensive contemporary art collection.
She spent her childhood drawing, but eventually felt that as a profession it could be frustrating and slow. In contrast, fashion offered "immediate satisfaction".
She was drawn to it because of the teamwork involved and because she saw it as a "high energy", "quick" environment, and her artistic flair helped to inspire the unusual designs for which she is now renowned.
Distinctive image
Ms de la Prada secured her first job in the industry aged 19, in the midst of the cultural movement known as La Movida that emerged after the death of dictator General Franco in 1975 and saw Spain push boundaries in the arts.
Ms de la Prada's boss Pepe Rubio was a fashion designer central to La Movida, and she credits him with inspiring her. "I learned with him that you can do what you want."
Helped by contacts she made in this first job, Ms de la Prada held her first solo fashion show in Madrid in 1981 at the height of the artistic and cultural revolution.
It showcased the vibrant colours and shapes that were to become her trademark. "Colour is important, and has [always] been important for me. It's part of my personality," she says.
With such a distinctive image and through further fashion shows over the next decade she managed to achieve more and more recognition.
'Like a miracle'
But she was also struggling financially, with some of the stores she sold her collections to not paying her.
She realised she could not build the world famous brand she was aiming for without the backing of a big company.
Her big breakthrough came when she secured a deal to design her own-label women's clothing collection for Spanish department store chain El Corte Ingles, 11 years after her first show.
The deal catapulted her from selling in small quantities to having several best-selling collections.
"One year we were selling 100, the next year 500, the next year 12,000," she says. "It was like a miracle."
Collaborative efforts
She also branched out beyond women's fashion, expanding her line to include men's and children's fashion as well as ceramics, toys, linens and towels, make-up and more.
Ms de la Prada says partnering with well-known brands worked for her because it meant she did not have to invest financially, and could simply focus on the design.
She has since teamed up with partners on more than 300 collaborations, including designing a series of watches for Swiss watch company Swatch, as well as for more unusual things such as a collection of gravestones for a French show, and a range of security doors for an Italian firm.
While initially her deal with El Corte Ingles accounted for 90% of her revenues, it now accounts for only 2% to 5%.
She has also gradually built up a small chain of her own standalone stores.
Life lesson
She credits her early difficulties with getting paid by her customers for her current prudence.
"It was the best lesson in my life... because it's that which has helped me to not do silly things - for the rest of my life."
She says the experience taught her to keep a close eye on the numbers, and says the first thing she now does each morning is look at the figures for the business. "I spend what I have, not more than I have."
She recommends this type of slow and steady expansion to other would-be entrepreneurs, advising both patience and persistence, as well as self-belief: "Because if you don't believe in yourself who is going to believe?"

viernes, 6 de diciembre de 2013

Current Affairs: Obituary: Nelson Mandela



Obituary: Nelson Mandela


By BBC News
To those who observed him closely, Nelson Mandela always carried himself as one who was born to lead.
As his former cellmate and long time friend, Ahmed Kathrada, said recently: "He was born into a royal house and there was always that sense about him of someone who knew the meaning of leadership."
The Mandela who led the African National Congress into government displayed a conspicuous sense of his own dignity and a self-belief that nothing in 27 years of imprisonment had been capable of destroying.
Although Mr Mandela frequently described himself as simply part of the ANC's leadership, there was never any doubt that he was the most potent political figure of his generation in South Africa.
To the wider world he represented many things, not least an icon of freedom but also the most vivid example in modern times of the power of forgiveness and reconciliation. Back in the early 1990s, I remember then President, FW De Klerk, telling me he how he found Mandela's lack of bitterness "astonishing".
His fundamental creed was best expressed in his address to the sabotage trial in 1964. "I have fought against white domination, and I have fought against black domination," he said.
"I have cherished the ideal of a democratic and free society in which all persons live together in harmony and with equal opportunities. It is an ideal which I hope to live for and to achieve. But if needs be, it is an ideal for which I am prepared to die."
Born in 1918, Rolihlahla Dalibhunga Mandela was raised in the village of Mvezo in the Transkei in the Eastern Cape. He was one of 13 children from a family with close links to the royal house of the Thembu people.
Mr Mandela often recalled his boyhood in the green hills of the Transkei with fondness. This was a remote landscape of beehive-shaped huts and livestock grazing on poor land.
He was only nine when his father died of tuberculosis. Always closer emotionally to his mother, Mr Mandela described his father as a stern disciplinarian. But he credited his father with instilling the instincts that would help carry him to greatness.
Years later Mr Mandela would write that "my father possessed a proud rebelliousness, a stubborn sense of fairness…" His death changed the course of the boy's life.
The young Mandela was sent from his home village to live as a ward of the Thembu royal house, where he would be groomed for a leadership role.
This meant he must have a proper education. He was sent to a Methodist school, where he was given the name Nelson. He was a diligent student and in 1939 went to Fort Hare University, then a burgeoning centre of African nationalism.
It was at Fort Hare that Mr Mandela met the future ANC leader, Oliver Tambo, with whom he would establish the first black law practice in South Africa. Both were expelled from the university in 1940 for political activism.
First as a lawyer, then an activist and ultimately as a guerrilla leader, Mr Mandela moved towards the collision with state power that would change his own and his country's fate.
The late 1950s and early 1960s were a period of growing tumult in South Africa, as African nationalists allied with the South African Communist Party challenged the apartheid state.
When protest was met with brute force, the ANC launched an armed struggle with Mr Mandela at its head.
He was arrested and charged with treason in 1956. After a trial lasting five years, Mr Mandela was acquitted. But by now the ANC had been banned and his comrade Oliver Tambo had gone into exile.
Nelson Mandela went underground and embarked on a secret trip to seek help from other African nations emerging from colonial rule. He also visited London to meet Tambo.
But soon after his return he was arrested and sentenced to five years in jail. Further charges, of sabotage, led to a life sentence that would see him spend 27 years behind bars.
He worked in the lime quarry on Robben Island, the prison in Cape Town harbour where the glaring sun on the white stone caused permanent damage to his eyes; he contracted tuberculosis in Pollsmoor Prison outside Cape Town, and he held the first talks with government ministers while he was incarcerated at the Victor Verster prison farm.
In conversation, he would often say prison had given him time to think. It had also formed his habits in sometimes poignant ways.
I recall a breakfast with several other journalists, where Mr Mandela was briefing us on the latest political talks. The waiter approached with a bowl of porridge. Tasting it briefly, the ANC leader shook his head. "It is too hot," he said. The waiter went away and returned with another bowl. This too was sent back. The waiter was looking embarrassed as he approached for the third time.
Fortunately the temperature was now cool enough. The famous broad smile appeared. The waiter was heartily thanked and breakfast - and our questions - were able to continue.
"That was a bit fussy wasn't it," I remarked to a colleague afterwards.
My colleague pulled me up short with his reply. "Think about it. If you spent 27 years in jail, most of the time eating food that was either cold or at best lukewarm, you are going to end up struggling with hot food."
There it was, expressed in the most prosaic of realities, a reminder of the long vanished years of Nelson Mandela.
Prison had taken away the prime of his life. It had taken away his family life. Relations with some of his children were strained. His marriage to Winnie Mandela would end in divorce.
But as I followed him over the next three years, through embattled townships, tense negotiations, moments of despair and elation, I would understand that prison had never robbed his humanity.
I remember listening to him in a dusty township after a surge of violence which threatened to derail negotiations. Fighting between ANC supporters and the predominantly Zulu Inkatha movement had claimed thousands of lives, mainly in the townships around Johannesburg and in the hills of Natal.
In those circumstances another leader might have been tempted to blame the enemy alone. But when Mr Mandela spoke he surprised all of us who were listening: "There are members of the ANC who are killing our people… We must face the truth. Our people are just as involved as other organisations that are committing violence… We cannot climb to freedom on the corpses of innocent people."
He knew the crowd would not like his message but he also knew they would listen.
As an interviewee, he deflected personal questions with references to the suffering of all South Africans. One learned to read the expressions on his face for a truer guide to what Mr Mandela felt.
On the day that he separated from Winnie Mandela, I interviewed him at ANC headquarters. I have no recollection of what he said but the expression of pure loneliness on his face is one I will always remember.
But my final memory of Nelson Mandela is one of joy. On the night of 2 May 1994 I was crammed into a function room full of officials, activists, diplomats and journalists, struggling to hear each other as the music pulsed and the cheers rang out.
The ANC had won a comprehensive victory. On the stage, surrounded by his closest advisors, Nelson Mandela danced and waved to the crowd. He smiled the open, generous smile of a man who had lived to see his dream.


Nelson Mandela 1918 - 2013

1918 Born in the Eastern Cape
1943 Joined African National Congress
1956 Charged with high treason, but charges dropped after a four-year trial
1962 Arrested, convicted of incitement and leaving country without a passport, sentenced to five years in prison
1964 Charged with sabotage, sentenced to life
1990 Freed from prison
1993 Wins Nobel Peace Prize
1994 Elected first black president
1999 Steps down as leader
2001 Diagnosed with prostate cancer
2004 Retires from public life
2005 Announces his son has died of an HIV/Aids-related illness