But SCOR has not yet regained balance foolproof comfort

Each sees noon to his door. Those who believe that Euronext sold too quickly and too cheap to his soul to the New York Stock Exchange will be in its half-year results of the reasons to continue to hope, one finally credible outbidding of Deutsche Börse, the other a substantial upgrading of the American offer. These results, which are indeed excellent, confirms especially what was known: the markets regained in volatility that they had lost altitude in the spring. It is any benefit for a company to market such as Euronext, who plays both volumes of transactions on the shares and the increased use of investors derivatives in a period of strong uncertainty. From there that these favourable circumstances disrupt the valorisation of Euronext, there is a margin that the stock market clearly reluctant to cross. Since the merger agreement was formalized early June, two variables, the course of the Nyse and the exchange rate of the dollar, slightly eroded the paper component, which weighs two thirds of the offer. In the meantime, the course of Euronext is roughly adapted and this return to calm contradicts the anticipation of a recovery of the stock market battle that some call their greeting. After a gain on investment of 120 over a year, capital gain and dividend combined, is the opposite that would be surprising.

Premature enthusiasm

If SCOR is no longer under negative supervision of credit rating agencies, it remains under that of its shareholders. The half-year results of the reinsurer confirmed his return to the "controlled growth" dear to its President, Denis Kessler. But SCOR has not yet regained balance foolproof comfort. Even modest, the decrease of its own funds in the period, due to changes in exchange rates and writedowns, demonstrates its sensitivity to variables on which it has little decision-making. It is also in retrospect appear premature the increase of 30 of the dividend this year and which was specifically designed to reassure investors: barely returned positive these past six months, the operating cash flow does not excess of generosity. The reaction of the Fellows was even more negative that they had welcomed the announcement of the repurchase, early July, the German reinsurer-life Revios. This last will have the merit of reducing exposure of SCOR to risk damage, in particular to natural disasters, for which he is not strong enough kidneys. But SCOR has yet to fund half of the invoice by capital increase. This is not the time to tense those who must provide the necessary money.

A difficult demonstration

The choice of external growth has broken so many paths that it was surprised that it even motivates leaders. Once he borrowed this way, Martin Read, the intrepid Director General of LogicaCMG, can be expected for several years, to be punished for the slightest incident of course. He took the risk to the acquisition of Swedish WM-data before even produced the benefits of the integration of the Unilog French was already passed to an excess of recklessness. The title of the British computer services company in had been very heckled. Ten days later, the first revenues of Unilog synergies and progress in Germany are legible in the half-year results. But they are not of a magnitude such that it is sufficient to investors and to convince them that the price paid for this continental breakthrough was justified. With the United Kingdom and the Netherlands, bastions of origin of LogicaCMG, both markets are yet to exist at European level and claim the biggest contracts of the profession. So with a WM-data that will not open as much cost synergies that Unilog in France and the right-of-way is on much more fragmented Scandinavian markets, the demonstration will be even more difficult to do.