GLENCORE POISED FOR TAX BILL SURGE
Glencore is facing a big increase in its tax bill following its $60bn initial public offering after paying almost no corporate taxes on its trading business for years in spite of bumper profits, according to the banks underwriting its $60bn listing. The pre-IPO research, by banks including Citigroup, Credit Suisse and Morgan Stanley, sheds new light on the low taxes paid by the Swiss-based privately owned trading house which dominates global commodity markets.
PARMALAT BID IN DOUBT AS ROME PONDERS OPTIONS
The struggle for control of Italy’s Parmalat remains in doubt, as Silvio Berlusconi’s centre-right government explores all possibilities to keep the food and dairy group out of French hands following the €3.4bn takeover bid announced by rival Lactalis. Parmalat was a central issue during a difficult summit between Berlusconi and France’s Nicolas Sarkozy in Rome on Tuesday.
BARRICK GOLD STANDS FIRM ON EQUINOX BID
Barrick Gold has mounted a vigorous defence of its $7.6bn cash bid for Equinox Minerals amid concern that the world’s biggest gold producer is taking on more risk by buying the Australian-Canadian copper miner. Peter Munk, Barrick’s chairman, told its annual meeting: “We’d be foolish, suicidal and totally wrong if we would ever contemplate letting go of our primacy in the gold industry.”
BOEING DISMISSES AIRBUS MOVE
Boeing yesterday dismissed the competitive threat posed by the decision of Airbus, its main rival, to put new fuel-efficient engines on its A320, as it attempts to woo customers away from the US manufacturer’s 737.
IS $400,000 A YEAR ENOUGH TO KEEP GLENCORE TRADERS KEEN?
Glencore could be forced to pay its multimillionaire traders even more after it floats next month, one of its own banks has warned. Bank of America Merrill Lynch identified Glencore’s compensation structure as a key issue for investors in a private research note given to only a small number of City institutions.
FERNANDES AIMS TO TAKE THE CATERHAM FROM THE BACK LANES TO THE TRACK
One of Asia’s most successful entrepreneurs has pledged to turn Caterham sports cars into a global brand to rival Jaguar and Aston Martin. Tony Fernandes, who owns the Lotus Formula One team, bought the boutique carmaker yesterday, saying that he would invest in new designs and boost exports.
The Daily Telegraph
PLAYSTATION HACK: SONY FACES WATCHDOG'S QUESTIONS
Sony will be questioned by Britain’s data protection watchdog after it admitted hackers stole huge volumes of personal information from the PlayStation Network. It follows Sony’s admission yesterday that hackers stole data on more than 70m users of the PlayStation Network and Qriocity, its music streaming service.
BARACK OBAMA RELEASES BIRTH CERTIFICATE IN EXTRAORDINARY BIRTHER INTERVENTION
President Barack Obama has made an extraordinary intervention to silence “birther” conspiracy theorists, releasing a copy of his original birth certificate which shows definitively that he was born in Hawaii. Obama condemned the long running row over his place of birth as “silliness” and a “sideshow”.
WALL STREET JOURNAL
NBCU LIKELY TO BUY BLACKSTONE'S UNIVERSAL ORLANDO STAKE
Comcast Corp.-controlled NBCUniversal is moving forward with discussions to acquire Blackstone Group LP’s stake in the Universal Orlando theme parks, according to people familiar with the matter. Two of the people familiar with the matter characterised a deal as “likely”. Another person familiar with the matter cautioned, however, that NBCU hasn’t made a decision yet.
WAL-MART EXPANDS GUN SALES
Wal-Mart Stores is quietly bringing back rifles, shotguns and ammunition to hundreds of US stores as the struggling retail giant seeks to increase one-stop shopping and lure more male customers. It stopped selling hunting rifles and bullets at all but a third of US stores five years ago.