Mandelson warns of GM ‘pain’ May 21, 2009 Business Secretary Lord Mandelson warned yesterday there will be “painful change” after the takeover of GM Europe. He said whichever bidder wins GM’s British arm, Vauxhall, will be forced to cut costs and consolidate. He added he was working hard to secure the future of Vauxhall’s plants. Italian carmaker Fiat and Canadian parts maker Magna [...]
Microsoft pulls hearing request May 21, 2009 Microsoft has withdrawn its request for an oral hearing into EU charges that it sought to thwart rivals by tying its Web browser to its Windows operating system. “We will now consider Microsoft’s reply to the statement of objections without a hearing,” the European Commission said. The Commission is tasked with ensuring that companies do [...]
Xerox announces new boss May 21, 2009 Xerox said yesterday that Anne Mulcahy, who has been credited with revitalising the world’s top supplier of digital printers and document management services, will retire as chief executive in July and be replaced by Ursula Burns. Burns will be one of the few women chief executives in America’s Fortune 500 group of companies.
Tough times not over yet, warns Close May 21, 2009 MERCHANT bank Close Brothers yesterday warned market conditions remain challenging as it published a third-quarter trading update, the first since Preben Prebensen started his tenure as chief executive at the beginning of April. Close said its asset management division had been hit by reduced management fees and lower margins on asset income in the low [...]
Higher oil prices push TNK-BP into black May 21, 2009 TNK-BP returned to profit in the first quarter, it said yesterday, while analysts predicted other Russian oil majors would follow as higher oil prices and a drop in export taxes reversed losses sustained last year. TNK-BP, half-owned by BP, posted a first-quarter net profit of $747m (£471m), down 58 per cent year-on-year, as lower crude [...]
BEST OF THE BROKERS May 21, 2009 DE LA RUEA softening order book prompted UBS to downgrade De La Rue to “sell”. The broker said that the state of the order book is key to the firm, and that it believes that 2011 could shape up to be a tough year. Given limited catalysts and a likely slowing in earnings momentum, UBS [...]
C&W execs defend 32m bonus plans May 21, 2009 MANAGEMENT at Cable & Wireless (C&W) yesterday defended its remuneration plans, which will see top management take a share of a £32m bonus pot later this month. “Ours is a bonus for performance, not under-performance,” C&W group finance director Tim Pennington told CityA.M., referring to Shell’s bonus scheme, which its shareholders have opposed due to [...]
Charging for online news will not save the media May 21, 2009 RUPERT Murdoch is a demigod in the media industry. Everything he says is treated as sacrosanct. That’s why his public ruminations on the free online newspaper, which he dubbed a “malfunctioning business” model, has whipped the media into a frenzy, and caused countless commentators and analysts to predict a new dawn, where consumers pay subscriptions [...]
General Motors thrashes out deal with workers’ union over healthcare debts May 21, 2009 GENERAL Motors (GM) and the United Auto Workers (UAW) yesterday reached an agreement on contract changes and restructuring $20bn (£12.6bn) in debt owed to a trust fund for retiree healthcare. The tentative agreement, which was reached after a round of intensive talks involving representatives of the US Treasury, will now go to a ratification vote [...]
MF Global shares fall on bigger quarterly loss May 21, 2009 FUTURES and options broker MF Global posted a wider quarterly loss yesterday, hurt by a 37 per cent drop in revenue, and claimed $30m (£18.9m) as due from its former parent company, sending its shares down 12 per cent. The company’s commodities businesses, including metals, energy, and agriculture, saw lower volumes and tighter spreads, chief [...]
