On Dow Jones Investment Banker Today: BP, China's Port Firms

LONDON (Dow Jones Investment Banker)--The following columns have been published exclusively on Dow Jones Investment Banker in recent days. Many Dow Jones Investment Banker columns contain spreadsheets, video, PDFs and other supporting material. To arrange access to the best of Dow Jones news and opinion on companies, sectors and deals for investment bankers, please contact investmentbanker@dowjones.com. To see more, visit: http://www.dowjones.com/banker THE DRILL: Et Tu, Anadarko? NEW YORK--Anadarko Petroleum Corp.'s (APC) accusation that BP PLC (BP.LN) committed gross negligence or willful misconduct has consequences far beyond the division of liability between the two companies. If Anadarko eventually presses that position in court -- and its survival could depend on it -- other plaintiffs could piggy-back on a finding against BP, increasing its exposure and accelerating claims against it. Anadarko's charge also signals another potential risk for BP: With the rest of the oil industry publicly questioning BP's drilling and safety practices, it may become harder for BP to find exploration and development partners. (Includes downloadable PDF: Key clause in BP-Anadarko agreement.) Contact the columnists: ed.tan@dowjones.com; john.morris@dowjones.com THE REMEDY: Activism A Way In For Private Financiers LONDON--When times are hard you need to adapt and spread the risk. So says the life sciences investment group Abingworth Management Ltd., citing its championing of the concept of VIPE financing as one way of providing different vehicles relevant at different points in the cycle. Dow Jones Investment Banker caught up with Joseph Anderson, an Abingworth partner who heads up investments in public companies. He says the current environment for VIPEs (venture investments in public equity) is "extremely favorable." Contact the columnist: jacob.plieth@dowjones.com TIER ONE: Consolidation, Deconsolidation All Good News For Lightyear NEW YORK--Asset management, transaction processing and community banks are all promising investment areas as the financial system is restructured, Donald Marron, founder of the private equity firm Lightyear Capital, tells Dow Jones Investment Banker. Whatever the final landscape of the financial sector, this much is clear: There will be additional constraints on banks that will result in the separation of some of their businesses. The consolidation of Wall Street's top players should also generate opportunities, according to Marron, whose firm focuses on the financial industry. Contact the columnist: lisa.lee@dowjones.com HEAVY DUTY: Deal-Making In Chinese Ports HONG KONG--Listed Chinese port companies are low-hanging fruit for spinoffs, asset injections from unlisted parent companies, general M&A activity and capital-raising in some form as they seek to overhaul their asset base to cater to growing demand for capacity from China's economy. For sure, Chinese monetary tightening and the euro-zone implosion have thrown a monkey wrench into equity-raising, as macro factors are likely to weigh on port traffic/throughput and thus earnings. Nonetheless, even baking into forecasts a construction bust for China's developed eastern seaboard, it's hard to argue against long-term growth in demand for commodities and infrastructure from the less developed interior, which suggests continued project financing and asset injections for the likes of the big state-backed Chinese port plays like Dalian Port or China Merchants Holdings (International) Co. (Includes downloadable Excel spreadsheet of recent run of PYI Corp. deals.) Contact the columnist: jamie.miyazaki@dowjones.com TIER ONE: Yes, But What If New Bank Rules Actually Work? LONDON--Pause for thought; what if the Biblical flood of new regulations and proposals designed to curb investment banks' appetite and ability to take risk actually worked? The latest wave to break over bankers is the new U.K. government's decision to abolish the Financial Services Authority, hand power to the Bank of England and create a Banking Commission charged, in part, with gauging whether investment banks should be split up. This is in addition to the rising tide of regulation that includes banks being asked to reserve more capital against market-based activities, higher capital and liquidity levels, restrictions on proprietary trading, proposals for swap desks to be separated out and new rules for derivatives trading. Unsurprisingly, many banks' share prices have lower returns factored in. A question then: if the current raft of regulations work, why the need to break up banks? Contact the columnist: joe.ortiz@dowjones.com (END) Dow Jones Newswires June 21, 2010 17:27 ET (21:27 GMT)