Lex points out an interesting aspect of the Roche-Genentech deal:
If the middleman won’t lend to you except at usurious rates of interest, just cut him out. That’s what Roche did. The Swiss drugmaker has raised $39bn of the $47bn it needs to fund its recently agreed acquisition of Genentech, the US biotechnology group, by tapping directly into the bond market. There was no bank finance to be seen.
Further to my column this morning, I am not in the camp of those thinking that Tim Geithner ought to step down as US Treasury secretary for failing to curb the AIG bonuses or coming up with a detailed plan to buy troubled assets.
The two sides of the case were put pretty well this morning by the FT and Gawker, the media and gossip blog – these days everyone has their opinion on credit default swaps and the Treasury secretary. Read more