Russian support has allowed Magna to rise above the rest May 31, 2009 OUTBIDDING rivals Fiat, Brussels-based IHJ International and Beijing Automotive Industry Corp (BAIC) to secure the acquisition of Opel and Vauxhall was a coup for Magna’s owner, Frank Stronach. It takes him back to his European roots, and gives the company the opportunity to milk the ever-expanding Russian car market. Stronach is an Austrian émigré who [...]
Mandelson is reassured on GM’s sell-off May 31, 2009 BUSINESS SECRETARY Lord Mandelson said yesterday he had been given further assurance from just-sold GM Europe that Vauxhall production would not leave the UK, as fears grow over job security at British car plants. As Canadian-Austrian Magna International buys up Opel and Vauxhall, the European arm of ailing carmaker GM, there are fears that sites [...]
Hopes dim for Weavering investors’ cash May 31, 2009 LIQUIDATORS of Weavering Capital’s main hedge fund, at the centre of the UK’s first ever hedge fund fraud probe, have said there is likely to be no money available to return to investors. Experts at accountancy giant PricewaterhouseCoopers (PwC) believe it now looks certain a massive fraud has taken place and the only way investors [...]
Labour faces disaster as voting looms May 31, 2009 THE LABOUR party’s European election hopes suffered another blow yesterday, as an opinion poll showed it lagging behind both the Tories and the Liberal Democrats for the first time in 22 years. According to the ICM poll, Prime Minister Gordon Brown’s party is set to suffer a significant defeat in the European elections on Thursday [...]
LCH.Clearnet bid talks continue May 31, 2009 LCH.Clearnet, Europe’s largest clearing house, will commence talks today with the consortium which has put forward a £727m bid for the business. The 13-strong consortium – made up of 11 banks, inter-dealer broker ICAP and existing shareholder the London Metal Exchange – outbid US clearer Depository Trust & Clearing Corporation earlier this year. But the [...]
RBS severs ties with brokers May 31, 2009 Royal Bank of Scotland (RBS) has dismissed its corporate brokers Merrill Lynch and Goldman Sachs, thereby distancing itself from the two key advisors of the Sir Fred Goodwin era. RBS has appointed Hoare Govett, the advisor owned by RBS’s ABN Amro unit, according to reports. Merrill Lynch was the advisor to RBS on the takeover [...]
WHAT THE OTHER PAPERS SAY THIS MORNING May 31, 2009 THE SUNDAYSTHE SUNDAY TIMES SKY SAYS NO TO SETANTASports organisations including the Scottish Premier League may be forced to stomach deeper-than-expected cuts to their TV income after shareholders in Setanta failed to stump up enough cash to keep the broadcaster alive. Setanta’s financial position was so parlous this weekend that it asked arch-rival BSkyB for [...]
Q & A : GENERAL MOTORS May 31, 2009 Q.HOW HAS THIS GIANT OF AMERICAN AUTOMOTIVE COMPANIES GONE TO THE WALL?A.General Motors (GM) was once the world’s largest company and has for years been seen as a bellwether of the US economy. But, like that other big Detroit car maker Chrysler, it has lost market share in the face of competition from US-based Japanese-owned [...]
Why the public rejects car firm bailouts May 31, 2009 WE are almost there. Barring a last minute hiccup, General Motors (GM) will enter into bankruptcy today. Like Chrysler, it will be using section 363 of the US code, which ought to allow it to reemerge in a few months having shed assets, liabilities and shareholders, and with the government owning the bulk of the [...]
GM to go bankrupt today May 31, 2009 OVER 50 per cent of General Motors’ (GM) bondholders agreed to a crucial debt-for-equity swap last night, as the moribund carmaker gears up to file for bankruptcy today. Bondholders cast their votes and agreed to the swap, which gives them up to 25 per cent ownership of a restructured GM in exchange for $27bn in [...]
