The vagaries of financing Eurotunnel
Article Abstract:
The Channel Tunnel between France and England is described as one of history's grandest engineering projects, and one of the most risky as well. The approximately 31-mile tunnel is expected to cost over five billion pounds sterling once interest rates and inflation are taken into account. The founder shareholders are a mix of contractors and banks who invested 47 million pounds sterling in the first piece of equity financing. The second phase required 206 million pounds sterling from institutional and other investors. Response to the third financing phase, or Equity III, has been disappointing on both sides of the Channel. The project is said to be vulnerable to geologic difficulties, and once open it faces continued competition from ferries and airlines.
Publication Name: International Management
Subject: Business, international
ISSN: 0020-7888
Year: 1988
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At the mercy of the dithering dollar
Article Abstract:
The declining value of the US dollar relative to European currencies amounts to medium-term bad news for all European companies, forcing some analysts to revise profit forecasts downward. A continued decline of the dollar through 1988 could turn the most pessimistic economic forecasts into reality, contribute to reduced European industry capital investments, and cut into national growth rates. Companies that have hedged dollar receipts beyond the next few months must decide whether to hope for the dollar's recovery or take out cover at prevailing rates. Opinion varies about any possible upturn in the dollar or the extent of damage caused by its decline to date. The experiences of major European companies in facing the dollar's fall are described.
Publication Name: International Management
Subject: Business, international
ISSN: 0020-7888
Year: 1988
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Is this a banker's dream or nightmare?
Article Abstract:
The second banking directive of the European Commission (EC) outlines plans for banking among member nations in the 1990s. The directive would establish a single license for EC banks, permitting each to open subsidiaries or branches in other EC countries once it has obtained full authorization in its home country. It has been necessary until now to obtain approval from domestic authorities in each country, but a global deregulation trend and EC's move toward a single market have created pressures favoring 'harmonization'.
Publication Name: International Management
Subject: Business, international
ISSN: 0020-7888
Year: 1988
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