Companies in the news...and how they were assessed

Eruption disruption: who pays?
I "If this continues, there won't be any more airlines left in J Europe, apart from Aeroflot," declared Russian Prime I Minister Vladimir Putin. He's not the only one warning of I bankruptcy, noted Sarah Arnott in The Independent. With J the number of airlines in distress already running some 40% higher than a year ago, insolvency specialist Bcgbics Traynor warns that the volcano could claim several victims. Big players, including BA and Lufthansa (which is reporting losses of €25m a day), appear to want it both ways. While keen to stress the resilience of their cash reserves to prevent a share-price rout, they're clubbing together to demand government help. "Eruption disruption" has sent passengers, tourists and the companies that carry them rushing to the small print of insurance policies and EU legislation, said Andrew Hill in the FT. Who will pay? The widely held assumption that "acts of God" invalidate claims is a myth, and many insurers will honour claims from individuals. But package tour operators and airlines arc largely uninsured for the cost of getting passengers home and putting them up in the meantime. Hence the campaign for Government subsidies. Whether it means higher insurance premiums or higher taxes, ultimately "the bill for EyjafjallajokulPs burst of bad temper will land in the lap of the hapless European consumer".


Tesco: trolley dash
"The grocer that goes on growing" is obsessed with finding out what its customers want and then giving it to them, observed Neil Collins on Reuters Breakingviews.com. And how. From dominance in groceries, Tesco has marched into elcctricals, clothes, toys and banking - and this week reported annual profits of £3.4bn. Tesco says it takes £ 1,700 a year from the average British household. But Sir Terry Leahy's world domination plans aren't doing too badly either, said Nils Pratley in The Guardian. Not all of their overseas adventures are unqualified successes: there are still hefty trading losses at Tesco's US Fresh &c Easy stores. But it's the "big-picture" Asian story that should get investors salivating. "In 10 years in Korea we've done what took 60 years in the UK," noted Leahy. Expect more of the same in China next. If Leahy is right about the world coming strongly into recovery, the next couple of years "could see an acceleration". Investors - homing in on slowing growth in the UK - made Tesco shares the biggest loser in the FTSE 100 on Tuesday. "They won't be on a one-, five- or ten-year view."



Royal Bank of Scotland: God's gift?
They'll be cheering on the US Securities &c Exchange Commission (SEC) on The Mound in Edinburgh. If the SEC makes its charges against Goldman Sachs stick, RBS - one of the biggest losers in the affair - stands a chance of recouping some of the £550m it forfeited, said Martin Flanagan in The Scotsman. No wonder RBS shares piled on healthy gains while those of other banks rumbled last week. Analysts suggested the Goldman debacle could be a "gift of God". Taxpayers should be cheering, too. Having risen above the 49.9p per share that the Government paid when it took an 84% stake, the stock is now "above break-even" mark. It is reckoned the taxpayer gains just over £900m for every penny gained above 49.9p. Analysts seem agreed that RBS is no longer a basket case - and is indeed "rather well capitalised", observed Dominic Rushe in The Sunday Times. No doubt politicians will be wondering "how long it will be before the state can realise some of its investment". They should hold their horses. With so much uncertainty in the banking world, "it's too early to start cashing in just yet".


Metro-Goldwyn-Mayer: Dr No
He might be one of Hollywood's "most bankable franchises", bur that hasn't protected James Bond from the ructions in the movie industry, said Matthew Garrahan in the FT. Continuing uncertainty over the future of MGM has forced producers to suspend making the 23rd movie in the series. It's the usual plot, said Richard Beales on Reuters Breakingviews.com. "MGM's woes stem from a 2005 leveraged buyout that saddled the company with too much debt." Its owners - a private equity-led consortium - have been trying to sell it since November, to no avail. MGM's lenders were unimpressed by a Sl.5bn offer from Time Warner, and a second proposal, led by film-making brothers Tony and Sir Ridley Scott, is now being considered. But it looks like MGM will be forced to sell off other prize assets, including its 4,000-title film library and even its signature "roaring lion", said The Daily Telegraph. Presciently, the villain in the 2006 update of Casino Royale was a rogue trader who shed tears of blood, noted Beales. Bond's recent brushes with the moneymen should supply plenty more inspiration.