And there are people out there who think that capital markets are conservative. Here we are with an issue that talks about the Singaporean government pushing companies toward open, transparent behavior. We even mention one bank in the city state which has stunned journalists with an ‘avalanche of disclosure’. In Singapore terms, that sort of talk is little short of a revolution.
Turn over a few more pages and you will find an article which suggests that the cozy world of corporate South Africa might be changing as well. The search for capital has already prompted some key South African players to switch their primary listing from Johannesburg to London. We back up those moves with evidence that more and more South African companies are on the look-out for IR officers. They know that a couple of nods to friends in the right places will no longer suffice.
But get this: as we send this issue to press we are witnessing three potential deals in continental Europe that just would not have have seen the light of day a few years back. French luxury goods giant LVMH is trying to swallow up Italy’s Gucci; Telecom Italia is being threatened by an offer from a much smaller rival, Olivetti; and, to cap it all, three French banks – Societe Generale, Paribas and BNP – may just end up under the same roof.
It’s all good news for the healthy growth of the IR profession, of course. There’s nothing like a few hostile bids in a previously safe environment to push up the value of good shareholder communications.
Recognizing the need for better investor relations is just the start of a long learning curve which keeps getting steeper. In this issue we also provide a lot of pointers to help you on the way: a guide to strategic use of new media, a heads-up on some of the pitfalls of IR on the web, and an overview of how some companies go about structuring their IR reporting lines.
You will also be pleased to know that it’s not just IR folk facing renewed pressure. As detailed in this month’s cover story, questions over the integrity of sell-side analysis continue to be raised from all sides. Companies fret when analysts put out any negative vibes on their stock; buy-side institutions are suspicious of Chinese walls being broken. The push for the sell-side to become more open and transparent has never been stronger.
