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Asset Stripping
Asset stripping refers to selling off a company's assets to improve returns for equity investors, often a financial investor, a "corporate raider", who takes over another company and then auctions off the acquired company's assets. The term is generally used in a pejorative sense as such activity is not considered helpful to the company. The proceeds of the sale of assets may be used to lower the company's net debt. Alternatively, they may be used to pay a dividend to equityholders, leaving the company with lower net worth – i.e. the same level of debt but fewer assets (and weaker earnings) to support that debt. With a lower level of assets, some argue that the business is rendered less financially stable or viable. For example, the sale-and-leaseback of a building would lead to an increased rental bill for the company. Asset stripping is a highly controversial topic within the financial world. The benefits of asset stripping generally go to the corporate raiders, who can sla ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Asset
In financial accounting, an asset is any resource owned or controlled by a business or an economic entity. It is anything (tangible or intangible) that can be used to produce positive economic value. Assets represent value of ownership that can be converted into cash (although cash itself is also considered an asset). The balance sheet of a firm records the monetaryThere are different methods of assessing the monetary value of the assets recorded on the Balance Sheet. In some cases, the ''Historical Cost'' is used; such that the value of the asset when it was bought in the past is used as the monetary value. In other instances, the present fair market value of the asset is used to determine the value shown on the balance sheet. value of the assets owned by that firm. It covers money and other valuables belonging to an individual or to a business. ''Total assets'' can also be called the ''balance sheet total''. Assets can be grouped into two major classes: Tangible property, tangib ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Phones 4u
Phones 4u was a large independent mobile phone retailer in the United Kingdom. It was part of the 4u Group based in Newcastle-under-Lyme, Staffordshire. Opening in 1996, it expanded to over 600 stores. On 14 September 2014, EE and Vodafone, the company's final remaining suppliers, ended their contracts. The company entered administration on 15 September 2014 with PricewaterhouseCoopers appointed as administrators. History In 1987, John Caudwell and his brother Brian founded ''Midlands Mobile Phones'', a wholesaler and distributor of mobile phones. The company became the Caudwell Group, whose high street retail arm was named Phones 4u. On 26 September 2006, The Caudwell Group was sold for a sum of £1.47 billion to private equity firms Providence Equity Partners and Doughty Hanson & Co. In February 2008, the group bought online retailer Dialaphone in a deal worth an estimated £9 million. In July 2010, Phones 4u partnered with electrical chain Dixons to place 49 concessi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Leveraged Buyout
A leveraged buyout (LBO) is the acquisition of a company using a significant proportion of borrowed money (Leverage (finance), leverage) to fund the acquisition with the remainder of the purchase price funded with private equity. The assets of the acquired company are often used as collateral for the financing, along with any equity contributed by the acquiror. While corporate acquisitions often employ leverage to finance the purchase of the target, the term "leveraged buyout" is typically only employed when the acquiror is a financial sponsor (a private equity investment firm). The use of debt, which normally has a lower cost of capital than Equity (finance), equity, serves to reduce the overall cost of financing for the acquisition and enhance returns for the private equity investor. The equity investor can increase their projected returns by employing more leverage, creating incentives to maximize the proportion of debt relative to equity (i.e., debt-to-equity ratio). Whi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Junk Bond
In finance, a high-yield bond (non-investment-grade bond, speculative-grade bond, or junk bond) is a bond that is rated below investment grade by credit rating agencies. These bonds have a higher risk of default or other adverse credit events but offer higher yields than investment-grade bonds to compensate for the increased risk. As of 2024, high-yield bonds have a higher yield than U.S. Treasury securities. Default risk As indicated by their lower credit ratings, high-yield debt entails more risk to the investor compared to investment grade bonds. Investors require a greater yield to compensate them for investing in the riskier securities. In the case of high-yield bonds, the risk is largely that of default: the possibility that the issuer will be unable to make scheduled interest and principal payments in a timely manner.:208 The default rate in the high-yield sector of the U.S. bond market has averaged about 5% over the long term. During the liquidity crisis of 1 ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Corporate Raid
In business, a corporate raid is the process of buying a large stake in a corporation and then using shareholder voting rights to require the company to undertake novel measures designed to increase the share value, generally in opposition to the desires and practices of the corporation's current management. The measures might include replacing top executives, downsizing operations, or liquidating the company. Corporate raids were particularly common between the 1970s and the 1990s in the United States. By the end of the 1980s, management of many large publicly traded corporations had adopted legal countermeasures designed to thwart potential hostile takeovers and corporate raids, including poison pills, golden parachutes, and increases in debt levels on the company's balance sheet. In later years, some corporate raiding practices have been used by " activist shareholders", who purchase equity stakes in a corporation to influence its board of directors and put public pre ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Financial Conduct Authority
The Financial Conduct Authority (FCA) is a financial regulatory body in the United Kingdom. It operates independently of the UK Government and is financed by charging fees to members of the financial services industry. The FCA regulates financial firms providing services to consumers, and maintains the integrity of the financial markets in the United Kingdom. It focuses on the regulation of conduct by both retail and wholesale financial services firms. Like its predecessor the FSA, the FCA is structured as a company limited by guarantee.Goldsworth, J., ''Lexicon of Trust & Foundation Practice'' ( Wendens Ambo: Mulberry House Press, 2016)p. 140 The FCA works alongside the Prudential Regulation Authority and the Financial Policy Committee to set regulatory requirements for the financial sector. The FCA is responsible for the conduct of around 58,000 businesses which employ 2.2 million people and contribute around £65.6 billion in annual tax revenue to the economy in the Unite ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Alternative Investment Fund Managers Directive
Alternative Investment Fund Managers Directive 20112011/61/EU is a directive (European Union), directive of the European Union on the financial regulation of hedge funds, private equity, real estate funds, and other "Alternative Investment Fund Managers" (AIFMs) in the European Union. The Directive requires all covered AIFMs to obtain authorisation, and make various disclosures as a condition of operation. It followed the 2008 financial crisis. Before, the alternative investment industry had not been regulated at the EU level. It was reported in May 2014 that only one-third of EU member states had successfully implemented the directive into law. As of 2014, the countries that had transposed Directive 2011/61/EU into law include Cyprus, the Czech Republic, the United Kingdom, Luxembourg, (Germany), France, Malta and Ireland. In December 2014, the European Commission issued a formal warning to countries including Spain, Latvia and Poland for not complying with implementation of Dir ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Financial Regulator
Financial regulation is a broad set of policies that apply to the financial sector in most jurisdictions, justified by two main features of finance: systemic risk, which implies that the failure of financial firms involves public interest considerations; and information asymmetry, which justifies curbs on freedom of contract in selected areas of financial services, particularly those that involve retail clients and/or principal–agent problems. An integral part of financial regulation is the supervision of designated financial firms and markets by specialized authorities such as securities commissions and bank supervisors. In some jurisdictions, certain aspects of financial supervision are delegated to self-regulatory organizations. Financial regulation forms one of three legal categories which constitutes the content of financial law, the other two being market practices and case law. History In the early modern period, the Dutch were the pioneers in financial regulation. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
London Evening Standard
The ''London Standard'', formerly the ''Evening Standard'' (1904–2024) and originally ''The Standard'' (1827–1904), is a long-established regional newspaper published weekly and distributed free of charge in London, England. It is printed in tabloid format, and also has an online edition. In October 2009, after being bought by Russian businessman Alexander Lebedev, the paper ended a 180-year history of paid circulation and multiple editions every day, and became a free newspaper publishing a single print edition every weekday, doubling its circulation as part of a change in its business plan. On 29 May 2024, the newspaper announced that it would reduce print publication to once weekly, after nearly 200 years of daily publication, as it had become unprofitable. Daily publication ended on 19 September 2024. The first weekly edition was published on 26 September 2024 under the new name of ''The London Standard''. History From 1827 to 2009 The newspaper was founded by ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Hutchison 3G
Hutchison 3G Enterprises S.A.R.L., commonly known as Hutchison 3G (acronym H3G) and trading as 3 (Three), is the owner of a brand name that operates several mobile phone networks and broadband Internet providers in Hong Kong, Macau, Austria, Denmark, Indonesia, Ireland, Italy, Sweden, and the United Kingdom. The brand was officially founded on 3 March 2003 in Hong Kong. , registered Three customers worldwide numbered over 110 million. All 3-branded network companies are wholly-owned subsidiaries of CK Hutchison Holdings (formerly Hutchison Whampoa) but the ownership structure varies. CK Hutchison Holdings owns direct majority interests of six networks through 3 Group Europe, including Austria, Denmark, Italy, Ireland, Sweden and the United Kingdom. Hutchison Telecommunications Hong Kong Holdings operates the networks in Hong Kong and Macau, while Hutchison Telecommunications International operates the network in Indonesia. All 3-branded networks provide 4G and 3G serv ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Vodafone UK
Vodafone Limited, trading as Vodafone UK (stylised as vodafone), is a British telecommunications company, owned since May 2025 by VodafoneThree, a joint venture between Vodafone Group (51%) and Three owner CK Hutchison Holdings (49%). The country's first cellular phone call was made on the Vodafone network in 1985, and the world's first SMS text message in 1992. Vodafone is the third-largest mobile network operator in the United Kingdom, with 18.3 million subscribers as of February 2025, followed by O2, EE and its network partner Three. In June 2023, it was announced that subject to regulatory approval Vodafone UK and Three UK will merge to create Britain's biggest mobile network. The merger was approved by the Competition and Markets Authority in December 2024, and completed in May 2025, with the company becoming part of VodafoneThree. Within six months of the merger, customers are expected to receive access to a shared Vodafone-Three network. History Mobile netw ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
O2 (United Kingdom)
Telefonica UK Limited, trading as O2 UK (stylised as O2), is a British List of telephone operating companies#United Kingdom, telecommunications services provider. It is the List of mobile network operators of Europe#United Kingdom, largest mobile network in the United Kingdom, with approximately 23.2million subscribers . The network was launched in 1985 as Cellnet, a joint venture between BT Group, British Telecom (60%) and Securicor (40%), and later rebranded BT Cellnet following BT's acquisition of Securicor's share. Cellnet was one of the two original cellular network operators in the UK, alongside Vodafone UK, Vodafone. In 2001, BT spun off its BT Wireless division as mmO2 plc (later O2 plc), with the UK network adopting the O2 (brand), O2 brand in 2002. O2 plc was acquired by Spanish telecommunications firm Telefónica in 2006. Since 2021, O2 UK has formed a subsidiary of Virgin Media O2, a 50:50 joint venture between Telefónica and Liberty Global formed through the merge ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
