City Spy: Sainsbury’s wrong chess move

If you’ve ever wondered why bankers and PR people get paid so much on mergers, look no further than the six-page slideshow that Sainsbury’s put out yesterday, heralding its takeover of Argos.

Earning their fees, whoever drew up the demonstration of why the deal is a good thing got a bit overexcited with the Clipart options. In the “complementary products with strong competitive positions” bit, there’s a random chessboard.

The “limited integration risk” part has a colourful jigsaw, and the “multi-channel digital platform for future growth” section has a picture of a mobile phone — something Sainsbury’s doesn’t sell (it shut its phone business last year after failing to attract any customers).

The “halo effect” segment appears inside a crown of thorns.

Perhaps a “poisoned chalice” wasn’t available?

It appears 18 months in the slammer is no barrier to a career in banking.

Ex-UBS desk head Peter Ghavami — convicted in the US for rigging municipal bond investment deals — is joining Russian bank VTB Capital as head of its Asian operation.

The Belgian, who was released in December 2014, doesn’t show anything like contrition of course, telling Bloomberg: “I vigorously contested those charges at trial. I believed then, and continue to believe today, that my conduct at UBS was entirely appropriate”.

VTB, meanwhile, has other issues of its own. The former owner of Bulgaria’s largest telecoms company, Vivacom, complained to the Serious Fraud Office this week, accusing VTB of allegedly seizing its stake in Vivacom and selling it “in a very substantial commercial fraud”.

Vivacom’s main shareholder, Dmitry Kosarev, is also suing VTB for damages of more than €143 million for allegedly selling it far below its true value.

VTB says the claims “have absolutely no credibility or legal basis” and doesn’t expect them to go any further.

But maybe it will find Ghavami’s obvious courtroom expertise handy...

Spy is a little confused about one of the items being sold at Stelios Haji-Ioannou’s latest venture, easyFoodstore in north-west London.

What on earth are Carrots Hazelnut? A Greek Cypriot delicacy?

So what’s on the agenda for St Modwen’s Bill Oliver, who steps down as chief executive of the New Covent Garden Market developer in November after an impressive 13-year stint?

“Sailing in the Caribbean — because usually it’s the Solent,” he tells Spy. Unfortunately he doesn’t have a boat because he sold it a couple of years ago, although he’s planning to buy another — “but keep it quiet”.

Apparently Mrs Oliver doesn’t know yet. Sorry Bill…

Broker Cantor Fitzgerald told its clients a month ago that Home Retail Group was worth 260p a share. Sainsbury’s snapped up HRG yesterday for £1 a share less.

True, Cantor was citing HRG’s “break-up value”, rather than a takeover price, but what is the Sainsbury’s/Wesfarmers split if it isn’t a break-up?

Ah well, all that optimistic hype must have made for extra trading volumes in shares, CFDs and the like, a fair bit of which would have gone through, er, Cantor.