Author Archives: christophe_evers_8xob7a0n

An outlaw story

We all like a good outlaw story, whether a western bandit, a gangster or a spy.  Fortunately, in finance, we also have outlaws.  One guise of them is insider traders. Unfortunately, most of them are neither very likeable, neither very … Continue reading

Posted in Asymetry of information, Corporate governance, Market operation | Leave a comment

What’s in a name ?

You probably all know EasyJet, the British low-cost airline.  What you probably don’t know, is that it doesn’t own its brand name.  Its founder, the young Greek-Cypriot businessman Stelios Haji-Ioannou (in the meantime Sir Stelios), has kept the name for … Continue reading

Posted in Corporate governance, Intangibles | Leave a comment

What do you do with $ 30 bn cash ?

On October 10th, it was revealed that Google is developing a self-driving car and that it had already tested it over 140,000 miles of public roads. I also learned, reading  that article, that Google is sponsoring a prize for landing … Continue reading

Posted in Choice Debt Equity, Corporate governance | Leave a comment

And another great graph on the pre-history of the financial crisis

As always, we are so much wiser after the event. The Economist(Oct 2nd, 2010 edition)  has again published a great graph on the impressive deviation from historical norms that preceded the financial crisis.  This time it’s about the Spanish banks … Continue reading

Posted in Financial crisis | Leave a comment

The limits of covenants

On October 5th 2010, the Flemish business paper De Tijd published a short article entitled “Banken blijven noodlijdend technologiebedrijf Option steunen” (Banks are obliged to go on supporting the technology company Option). Option is a Belgian company manufacturing mobile modems.  … Continue reading

Posted in Choice Debt Equity, Debt structure | Leave a comment

Conflict between shareholders and lenders: the perfect example

For years, I have been explaining to my students that there is a potential conflict of interest between the owners of a company and the people that lend money to it.  Indeed, shareholders have the chance to get an upside on … Continue reading

Posted in Choice Debt Equity, Equity | Leave a comment

Oops ! Michelin decides to launch a rights issue

On Tuesday Sept 28 2010, Michelin announced a surprise capital increase of € 1.2 bn … and the stock price immediately dropped by 10%, wiping out about the same amount from the pre-money market capitalization! What’s going on here? At … Continue reading

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