FINANCIAL PRINTING – A Bull Without Horns?

Donnelley Financial was not alone in reporting some market softness toward the end of the fiscal year. Carl Crosetto, executive vice president at Bowne & Co., notes that Bowne’s financial printing business experienced a slowdown as a result of fewer M&As and IPOs. Despite the slowing of the economy, however, Bowne continued to hold its number one rank with $777 million in segment sales.

“Our financial printing operations were impacted by the slowdown in domestic capital market activity that commenced in the middle of the second quarter and continued through the third quarter,” adds Crosetto. “The impact of the slowdown was felt in the volume of M&A and IPO work. We continue to maintain our leading market share notwithstanding this slowdown, having participated in significant deals such as the Berkshire Hathaway acquisition of Shaw Industries, the Citigroup acquisition of Associates, and the Lucent and Nextel spinoffs.”

While 2000 will not go down in history as one of the best years in the domestic financial printing segment, Crosetto reveals that Bowne’s international financial printing remains strong.

“The continuing strength of our international financial printing business, and in the international capital markets, is evidenced by our participation in the acquisitions of both Voice Stream Wireless and Powertel Inc. by Deutsche Telekom of Germany, the acquisitions of Paine Webber by the Union Bank of Switzerland, Seagrams by Vivendi of France and the merger of Terra Networks of Spain with Lycos.

“These transactions are indicative of the continuing, cross-border M&A work that is driving the growth of our international business. We continue to serve the growing debt and equity market in Europe, having printed the IPOs for New Skies, Satellite and Head N.V., as well as the bond issues for the Republic of Italy and Teva Pharmaceutical of Israel,” he explains.

“We are very encouraged by the strong third quarter in Asia where our Hong Kong office continues to operate at near maximum capacity on a number of large equity transactions, including China Mobile, the Asia Global Crossing IPO, as well as the restructuring of Guangdong Enterprises in China. Our Latin American operations also experienced strong business activity, handling significant transactions across the region including Groupo Televisa and Penmex,” states Crosetto.

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