Mexico shuts failing power plant October 11, 2009 The Mexican government yesterday announced the closure of the inefficient state-owned company that supplies electricity to Mexico City and its surrounding area , a move that could trigger labour strife. President Felipe Calderon has singled out Luz y Fuerza del Centro in recent weeks as a prime example of what is wrong in Mexico’s public [...]
UKsecurity firm to float in New York October 11, 2009 SOPHOS, the security software business founded in Britain, is expected to float in New York next year. When the company goes on to the Nasdaq stock market it is likely to achieve a valuation of about $1bn (£626m). This figure is based on the highly valued growth prospects which companies such as Sophos, as well [...]
Currency markets like an Agatha Christie thriller October 11, 2009 Watching the developments in the currency markets feels very similar to reading Agatha Christie’s “Murder on the Orient Express”. Penned in the 1930s in Istanbul, Christie’s thriller has you on the edge of your seat with every twist and turn of the plot. It was therefore appropriate that last week’s meeting of the World Bank [...]
BEST OF THE BROKERS October 11, 2009 VEDANTA RESOURCESGoldman Sachs cut its 2010 earnings estimates for Vedanta to $1.75 per share following the miner’s second-quarter production release and an investor conference call. The broker retains a “neutral” stance on the stock, with a lower price target of 2,426p, to reflect the lower estimates and higher March 2010 net debt. HALFORDSKBC Peel Hunt [...]
Small investors to launch RBS claim October 11, 2009 A GROUP of small shareholders is planning to sue Royal Bank of Scotland, claiming it misled investors in its May 2008 prospectus for a rights issue to pay for its acquisition of Dutch bank ABN AMRO. The Royal Bank of Scotland Shareholders’ Action Group said yesterday it had hired forensic accountant Paul Klumpes and was [...]
J Sainsbury set to ramp up banking arm by luring customers in with points October 11, 2009 J Sainsbury, Britain’s third biggest supermarket, is ramping up its banking arm, by launching a new scheme that will see shoppers rewarded for buying its financial services products. Sainsbury’s Finance will allow customers to earn double Nectar points for taking out home insurance, or opening an account, but it will also give Sainsbury’s account holders [...]
Profits crumble at United Biscuits October 11, 2009 Weak sterling drove up the cost of raw materials for United Biscuits, the makers of Jacob’s Crackers and McVitie’s Digestives, hurting profit margins. Profits did rise by three per cent to £196m, but failed to match sales growth of five per cent at £1.2bn. Pre-tax losses were £16.6m after debt interest payments.
New M&Ahead at miner ENR October 11, 2009 Former head of investment banking at Commerzbank, Mehmet Dalman, will lead a M&A committee at Eurasian Natural Resources, the Kazakh miner. It is the company’s clearest indication yet that it intends to continue buying global mining assets, after buying Central African Mining & Exploration Company for £584m.
BGGroup set to sell off power arm October 11, 2009 BG Group is set to announce that it has accepted a bid for part of its £1.5bn power generation business, after it received an unsolicited offer. Goldman Sachs has been appointed to advise on the bid, which is not thought to cover all of the company’s operations, which span Europe, Asia and America.
Li & Fung eyes up US acquisitions October 11, 2009 Li & Fung, the biggest supplier of clothes and toys to US groups Wal-Mart Stores and Target, said it is considering acquisitions of several US companies with hundreds of millions of dollars in annual sales. The company has a $1bn (£631m) acquisition fund, and is eyeing “multi-hundred-million-dollar-sales companies,” in the US.
