Marfin: Απόκτηση του 50,04% της Rosprombank
Η Marfin Popular Bank (MPB) ανακοινώνει την εξαγορά της ΟOΟ Rossisysky Promyishlenny Bank (Rosprombank). H Marfin Popular Bank, συμφώνησε την εξαγορά ποσοστού ελέγχου (50,04%), της OAO RPB- Holding στη οποία ανήκουν η ρωσική τράπεζα καθώς και η θυγατρική της OOO RPB – Leasing, έναντι 83 εκατ ευρώ.
Η Rosprombank είναι ταχύτατα αναπτυσσόμενη τράπεζα στη Ρωσία, με σημαντική δραστηριότητα στην χρηματοδότηση μικρομεσαίων επιχειρήσεων και δίκτυο καταστημάτων που καλύπτει τις μεγάλες πόλεις της χώρας, στις οποίες περιλαμβάνονται η Μόσχα, η Αγία Πετρούπολη και οι γύρω περιοχές. Διαθέτει 30 καταστήματα και απασχολεί 485 άτομα.
Σύμφωνα με τις ανέλεγκτες λογιστικές καταστάσεις του εννεαμήνου που έληξε στις 30 Σεπτεμβρίου 2007, το σύνολο του ενεργητικού της Rosprombank είναι 387 εκατ δολ., οι χορηγήσεις 235 εκατ δολ. και οι καταθέσεις 215 εκατ δολ. Τα κέρδη μετά από φόρους για το οικονομικό έτος που λήγει στις 31 Δεκεμβρίου 2007 αναμένεται να είναι περίπου 17 εκατ δολ. Η εξαγορά εκτιμάται ότι θα ολοκληρωθεί κατά το πρώτο εξάμηνο του 2008, στη διάρκεια του οποίου αναμένεται να εκδοθούν οι εγκρίσεις των εποπτικών αρχών στην Κύπρο και στη Ρωσική Ομοσπονδία.
Ο διευθύνων σύμβουλος της Marfin Popular Bank Ανδρέας Βγενόπουλος, έκανε το ακόλουθο σχόλιο:
«Η επέκταση της Τράπεζας στην ρωσική αγορά είναι ένα ακόμα βήμα στην ταχύτατη ανάπτυξη των διεθνών δραστηριοτήτων μας. Η τεχνογνωσία και η επάρκεια κεφαλαίων της Marfin Popular Bank με την υποστήριξη των τοπικών συνεργατών μας που έχουν βαθιά γνώση της ρωσικής αγοράς, θα επιταχύνουν την ανάπτυξη της Rosprombank, τόσο στη χρηματοδότηση επιχειρήσεων όσο και ιδιωτών. Πιστεύουμε ότι η επέκταση των δραστηριοτήτων του Ομίλου στην Νοτιοανατολική Ευρώπη καθώς και οι συνέργιες που δρομολογούνται θα δημιουργήσουν σημαντικές υπεραξίες για τους μετόχους μας».
STOCKWATCH.COM.CY
Economy | Business | Social | Leaked | Opinions
Thursday, December 20, 2007
GLOBAL INDEXES
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FTSE/CySE 20
1639.57 ( 2.24%)
ΓΕΝΙΚΟΣ ΔΕΙΚΤΗΣ
4784.21 ( 2.26%)
Όγκος: € 6,277,816
---
FTSE 100 INDEX 6,345.60 61.10 0.97%
CAC 40 INDEX 5,511.45 14.03 0.26%
DAX INDEX 7,869.19 31.87 0.41%
---
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NASDAQ COMPOSITE INDEX 2,640.86 39.85 1.53%
Δικαίωση Νόρας Δικαίου από Επαρχιακό Δικαστήριο
Δικαίωση Νόρας Δικαίου από Επαρχιακό Δικαστήριο
Το επαρχιακό δικαστήριο Λευκωσίας με σημερινή του απόφαση απέρριψε τις ενστάσεις της δημόσιας εταιρείας Άλκης Χατζήκυριακος (μπισκότα Φρου - Φρου), με τις οποίες επιδιωκόταν η απομάκρυνση της Νόρας Δικαίου από το ΔΣ της εταιρείας. Σύμφωνα με πληροφορίες της StockWatch, το δικαστήριο κατέστησε απόλυτο το προσωρινό διάταγμα που απαγορεύει την απομάκρυνση της κα Δικαίου, εκ των κυρίων μετόχων της εταιρείας, τόσο από το ΔΣ της εταιρείας, όσο και από τα ΔΣ των θυγατρικών εταιρειών και την παρεμπόδιση της να ασκεί τα καθήκοντα της ως μέλος του ΔΣ.
Το διάταγμα του δικαστηρίου εκδόθηκε στο πλαίσιο δικαστικής διαδικασίας στην οποία η κα Δίκαιου ζητούσε τη διάλυση της εταιρείας λόγω καταπάτησης των δικαιωμάτων της και αυταρχικής συμπεριφοράς ως προς τη διοίκηση της εταιρείας από τον πλειοψηφούντα μέτοχο και αδελφό της Άλκη Χατζήκυριακο.
Το δικαστήριο καταδίκασε την εταιρεία στην πληρωμή όλων των εξόδων, ενώ η περαιτέρω εκδίκαση της υπόθεσης ορίστηκε για τις 24 Ιανουαρίου του 2008.
Για την αιτήτρια Νόρα Δίκαιου εμφανίστηκαν οι δικηγόροι Μιχάλης Παπαπέτρου και Πάμπος Ιωαννίδης και για την εταιρεία ο Γεώργιος Τριανταφυλλίδης.
STOCKWATCH.COM.CY
Το επαρχιακό δικαστήριο Λευκωσίας με σημερινή του απόφαση απέρριψε τις ενστάσεις της δημόσιας εταιρείας Άλκης Χατζήκυριακος (μπισκότα Φρου - Φρου), με τις οποίες επιδιωκόταν η απομάκρυνση της Νόρας Δικαίου από το ΔΣ της εταιρείας. Σύμφωνα με πληροφορίες της StockWatch, το δικαστήριο κατέστησε απόλυτο το προσωρινό διάταγμα που απαγορεύει την απομάκρυνση της κα Δικαίου, εκ των κυρίων μετόχων της εταιρείας, τόσο από το ΔΣ της εταιρείας, όσο και από τα ΔΣ των θυγατρικών εταιρειών και την παρεμπόδιση της να ασκεί τα καθήκοντα της ως μέλος του ΔΣ.
Το διάταγμα του δικαστηρίου εκδόθηκε στο πλαίσιο δικαστικής διαδικασίας στην οποία η κα Δίκαιου ζητούσε τη διάλυση της εταιρείας λόγω καταπάτησης των δικαιωμάτων της και αυταρχικής συμπεριφοράς ως προς τη διοίκηση της εταιρείας από τον πλειοψηφούντα μέτοχο και αδελφό της Άλκη Χατζήκυριακο.
Το δικαστήριο καταδίκασε την εταιρεία στην πληρωμή όλων των εξόδων, ενώ η περαιτέρω εκδίκαση της υπόθεσης ορίστηκε για τις 24 Ιανουαρίου του 2008.
Για την αιτήτρια Νόρα Δίκαιου εμφανίστηκαν οι δικηγόροι Μιχάλης Παπαπέτρου και Πάμπος Ιωαννίδης και για την εταιρεία ο Γεώργιος Τριανταφυλλίδης.
STOCKWATCH.COM.CY
Vivendi's SFR to Offer $6.4 Billion for Neuf Cegetel
Vivendi's SFR to Offer $6.4 Billion for Neuf Cegetel
Dec. 20 (Bloomberg) -- Vivendi SA's SFR phone unit offered to buy the rest of Neuf Cegetel for 4.5 billion euros ($6.4 billion) to challenge France Telecom SA in the market for combined fixed-line, Internet and mobile services.
SFR, which owns 40.5 percent of Neuf, will pay 34.50 euros a share for the 29.5 percent stake held by Louis Dreyfus & Cie., the commodities firm that helped found Neuf a decade ago. SFR will bid 36.50 euros for the remaining shares in the market. The prices include the 2007 dividend.
The acquisition of Boulougne-Billancourt-based Neuf Cegetel, France's second-largest fixed-line phone company, adds 3.1 million high-speed Internet customers for SFR and more than 3 billion euros in annual revenue. SFR, Vivendi's largest business, has about 34 percent of the French mobile market, compared with France Telecom's 45 percent.
``This would create a more formidable competitor,'' Jerry Bellman, an analyst at Kepler Equities in Paris, said in a telephone interview. ``For SFR this is a defensive move, to be well-positioned for fixed-mobile convergence.''
SFR will borrow money from Vivendi at market rates to pay for the shares, Paris-based Vivendi said in an e-mailed statement today. Vivendi will seek 1 billion euros to 2 billion euros from its shareholders to finance the purchase, which will add to net adjusted income from 2009, according to the statement.
Shares Drop
Neuf shares fell 1.17 euros, or 3.2 percent, to 35.57 euros as of 11:23 a.m. in Paris trading. The stock had risen 42 percent in the past 12 months before today, in part on speculation of a bid by SFR. Trading was suspended yesterday and Dec. 18 pending an announcement.
Vivendi shares gained 10 cents, or 0.3 percent, to 31.20 euros, giving the company a market value of 36.3 billion euros.
The transaction is the biggest announced telecommunications deal since June 30, when investors led by the Ontario Teachers' Pension Plan and Providence Equity Partners Inc. agreed to buy BCE Inc., Canada's biggest phone company, for C$34.2 billion ($34.1 billion).
Vivendi owns 56 percent of SFR, which is France's second- largest provider of mobile-phone services, while Vodafone Group Plc holds the remaining 44 percent. Vodafone approves of the transaction, which ``supports fixed and mobile integration in mainland Europe, in line with our strategy,'' according to a statement from the Newbury, England-based company.
SFR, led by CEO Frank Esser, accounted for 43 percent of Vivendi's third-quarter sales and 53 percent of profit, making it bigger than Vivendi's Universal Music Group and pay-television unit Canal Plus.
Market Value
Based on the public offer price, the deal puts a value on Neuf Cegetel of 7.66 billion euros, less than the company's 7.7 billion-euro market capitalization when trading was halted Dec. 18. The transaction values Neuf Cegetel at 25.7 times this year's forecast earnings, versus an average price-earnings ratio of 14.7 for European telecommunications stocks, Bloomberg data shows.
``Neuf Cegetel in the past two, three years has demonstrated an operational excellence that justifies a good price,'' Alexandre Iatrides, an analyst at Richelieu Finance, said in an interview on Bloomberg Television. ``This is a highly strategic acquisition. The logic of the deal is clear.''
Neuf Cegetel's nine-month sales rose 14 percent to 2.44 billion euros, boosted by takeovers, the company said in November. The fixed-line operator bought Deutsche Telekom AG's T- Online France, operator of the Club Internet brand, in July for about 500 million euros.
The purchase of T-Online France vaulted Neuf Cegetel past Iliad SA as France's second-biggest provider of high-speed Internet via copper phone lines, known as asymmetric digital subscriber lines, or ADSL. Neuf bought Time Warner Inc.'s AOL France unit for 288 million euros in October last year.
Client Growth
Neuf Cegetel had 3.12 million broadband-Internet clients at the end of September, compared with 2 million a year earlier. France Telecom, the country's former phone monopoly, had 6.9 million ADSL clients at the end of September.
Dreyfus created telecommunications company LDCom in 1998 and changed the name to Neuf Telecom in 2004. Neuf merged with Vivendi's fixed-line and Internet division Cegetel in 2005.
Vivendi has stepped up the pace of acquisitions in the past year, buying French pay-TV rival Television Par Satellite in January, BMG Music Publishing Group in July and announcing the purchase of Activision Inc. this month.
SFR agreed to buy Tele2 AB's French fixed-line telephony and Internet unit this year for about 3.3 billion kronor ($501 million) in a first move to offer high-speed Web access as well as mobile-phone services.
BLOOMBERG
Dec. 20 (Bloomberg) -- Vivendi SA's SFR phone unit offered to buy the rest of Neuf Cegetel for 4.5 billion euros ($6.4 billion) to challenge France Telecom SA in the market for combined fixed-line, Internet and mobile services.
SFR, which owns 40.5 percent of Neuf, will pay 34.50 euros a share for the 29.5 percent stake held by Louis Dreyfus & Cie., the commodities firm that helped found Neuf a decade ago. SFR will bid 36.50 euros for the remaining shares in the market. The prices include the 2007 dividend.
The acquisition of Boulougne-Billancourt-based Neuf Cegetel, France's second-largest fixed-line phone company, adds 3.1 million high-speed Internet customers for SFR and more than 3 billion euros in annual revenue. SFR, Vivendi's largest business, has about 34 percent of the French mobile market, compared with France Telecom's 45 percent.
``This would create a more formidable competitor,'' Jerry Bellman, an analyst at Kepler Equities in Paris, said in a telephone interview. ``For SFR this is a defensive move, to be well-positioned for fixed-mobile convergence.''
SFR will borrow money from Vivendi at market rates to pay for the shares, Paris-based Vivendi said in an e-mailed statement today. Vivendi will seek 1 billion euros to 2 billion euros from its shareholders to finance the purchase, which will add to net adjusted income from 2009, according to the statement.
Shares Drop
Neuf shares fell 1.17 euros, or 3.2 percent, to 35.57 euros as of 11:23 a.m. in Paris trading. The stock had risen 42 percent in the past 12 months before today, in part on speculation of a bid by SFR. Trading was suspended yesterday and Dec. 18 pending an announcement.
Vivendi shares gained 10 cents, or 0.3 percent, to 31.20 euros, giving the company a market value of 36.3 billion euros.
The transaction is the biggest announced telecommunications deal since June 30, when investors led by the Ontario Teachers' Pension Plan and Providence Equity Partners Inc. agreed to buy BCE Inc., Canada's biggest phone company, for C$34.2 billion ($34.1 billion).
Vivendi owns 56 percent of SFR, which is France's second- largest provider of mobile-phone services, while Vodafone Group Plc holds the remaining 44 percent. Vodafone approves of the transaction, which ``supports fixed and mobile integration in mainland Europe, in line with our strategy,'' according to a statement from the Newbury, England-based company.
SFR, led by CEO Frank Esser, accounted for 43 percent of Vivendi's third-quarter sales and 53 percent of profit, making it bigger than Vivendi's Universal Music Group and pay-television unit Canal Plus.
Market Value
Based on the public offer price, the deal puts a value on Neuf Cegetel of 7.66 billion euros, less than the company's 7.7 billion-euro market capitalization when trading was halted Dec. 18. The transaction values Neuf Cegetel at 25.7 times this year's forecast earnings, versus an average price-earnings ratio of 14.7 for European telecommunications stocks, Bloomberg data shows.
``Neuf Cegetel in the past two, three years has demonstrated an operational excellence that justifies a good price,'' Alexandre Iatrides, an analyst at Richelieu Finance, said in an interview on Bloomberg Television. ``This is a highly strategic acquisition. The logic of the deal is clear.''
Neuf Cegetel's nine-month sales rose 14 percent to 2.44 billion euros, boosted by takeovers, the company said in November. The fixed-line operator bought Deutsche Telekom AG's T- Online France, operator of the Club Internet brand, in July for about 500 million euros.
The purchase of T-Online France vaulted Neuf Cegetel past Iliad SA as France's second-biggest provider of high-speed Internet via copper phone lines, known as asymmetric digital subscriber lines, or ADSL. Neuf bought Time Warner Inc.'s AOL France unit for 288 million euros in October last year.
Client Growth
Neuf Cegetel had 3.12 million broadband-Internet clients at the end of September, compared with 2 million a year earlier. France Telecom, the country's former phone monopoly, had 6.9 million ADSL clients at the end of September.
Dreyfus created telecommunications company LDCom in 1998 and changed the name to Neuf Telecom in 2004. Neuf merged with Vivendi's fixed-line and Internet division Cegetel in 2005.
Vivendi has stepped up the pace of acquisitions in the past year, buying French pay-TV rival Television Par Satellite in January, BMG Music Publishing Group in July and announcing the purchase of Activision Inc. this month.
SFR agreed to buy Tele2 AB's French fixed-line telephony and Internet unit this year for about 3.3 billion kronor ($501 million) in a first move to offer high-speed Web access as well as mobile-phone services.
BLOOMBERG
U.K. Economy Grows Faster Than Forecast on Spending
U.K. Economy Grows Faster Than Forecast on Spending
Dec. 20 (Bloomberg) -- The U.K. economy expanded faster than economists forecast in the third quarter, driven by the strongest consumer spending in more than a year.
Gross domestic product increased 3.3 percent in the three months through September from a year earlier, the Office for National Statistics said in London today. The reading was higher than the 3.2 percent previously estimated by the government, which was the median forecast of 26 economists in a Bloomberg News survey. On the quarter, the economy expanded 0.7 percent.
Economic growth may have peaked after a worldwide credit market slump swelled losses at banks and provoked a slowdown in the housing market. Bank of England policy makers made their first unanimous decision for a rate cut in six years this month, saying that financial market turmoil posed a greater threat to the economy than faster inflation.
``This was three months ago,'' said James Knightley, an economist at ING Financial Markets in London. ``Growth risks are toward the downside'' and ``if you add in the housing market worries, it does suggest we could get broad-based weakness in the coming months.''
The pound fell $0.0063 against the dollar to $1.9909 at 10:26 a.m. in London. The U.K. currency dropped below $2 for the first time in three months yesterday.
Consumer Spending
Consumer spending expanded 1.1 percent in the quarter from the previous three months, the most since the second quarter of 2006 and higher than the 1 percent previously estimated, the statistics office said. Fixed investment in the quarter was revised up to 2.4 percent from 1.6 percent measured last month.
Bank of England policy makers made their first unanimous decision for a rate cut since 2001 this month, lowering the rate to 5.5 percent. Prime Minister Gordon Brown said yesterday that Britain is prepared to withstand turmoil in financial markets because of decisions he made to keep a lid on inflation.
The central bank, Federal Reserve and European Central bank have all made short-term loans with looser conditions this week in an effort to bring down interbank credit costs and prevent a cash shortage from turning into a credit crunch.
Banks have developed a ``disturbing'' reluctance to lend to one another that may spark a self-reinforcing deterioration of credit conditions, Bank of England Governor Mervyn King said this week. ``A painful adjustment faces the global banking sector over the next few months.''
Bank Writedowns
HBOS Plc, based in Edinburgh and the nation's biggest mortgage lender, said Dec. 13 increased funding costs are offsetting higher rates on mortgage loans, and that writedowns will cut profit by 180 million pounds ($359 million). Banks worldwide have racked up more than $70 billion of losses from the collapse of the U.S. subprime mortgage market.
``We haven't seen a financial crisis like this in about 10 years, and we would be flirting with the risk of recession if they hadn't cut rates in December,'' said Alan Clarke, an economist at BNP Paribas SA in London, who yesterday predicted a rate reduction in January. ``They are really taking this very seriously.''
Services expanded 0.8 percent in the quarter, down from a previous estimate of 0.9 percent the statistics office said. Manufacturing growth stalled, as measured last month.
Housing Market
While a pool of pent-up demand will support property values next year, the credit squeeze will keep prices from rising, the Royal Institution of Chartered Surveyors said in a report today, the latest showing that the decade-long housing boom that supported consumer spending is coming to an end.
Inflation concerns prevented policy makers from cutting the rate by more than a quarter-point this month, minutes of the Dec. 6 meeting published yesterday show. Consumers' price expectations jumped to the highest in at least eight years in November as food and energy prices soared, a central bank survey showed Dec. 13. Crude oil reached a record $99.29 on Nov. 21.
The implied deflator fell to an annual 2.9 percent in the third quarter from 3.9 in the previous three months, the statistics office said today.
The current-account deficit widened to 20 billion pounds in the third quarter, the most since records began in 1948, the statistics office said today in a separate report.
BLOOMBERG
Dec. 20 (Bloomberg) -- The U.K. economy expanded faster than economists forecast in the third quarter, driven by the strongest consumer spending in more than a year.
Gross domestic product increased 3.3 percent in the three months through September from a year earlier, the Office for National Statistics said in London today. The reading was higher than the 3.2 percent previously estimated by the government, which was the median forecast of 26 economists in a Bloomberg News survey. On the quarter, the economy expanded 0.7 percent.
Economic growth may have peaked after a worldwide credit market slump swelled losses at banks and provoked a slowdown in the housing market. Bank of England policy makers made their first unanimous decision for a rate cut in six years this month, saying that financial market turmoil posed a greater threat to the economy than faster inflation.
``This was three months ago,'' said James Knightley, an economist at ING Financial Markets in London. ``Growth risks are toward the downside'' and ``if you add in the housing market worries, it does suggest we could get broad-based weakness in the coming months.''
The pound fell $0.0063 against the dollar to $1.9909 at 10:26 a.m. in London. The U.K. currency dropped below $2 for the first time in three months yesterday.
Consumer Spending
Consumer spending expanded 1.1 percent in the quarter from the previous three months, the most since the second quarter of 2006 and higher than the 1 percent previously estimated, the statistics office said. Fixed investment in the quarter was revised up to 2.4 percent from 1.6 percent measured last month.
Bank of England policy makers made their first unanimous decision for a rate cut since 2001 this month, lowering the rate to 5.5 percent. Prime Minister Gordon Brown said yesterday that Britain is prepared to withstand turmoil in financial markets because of decisions he made to keep a lid on inflation.
The central bank, Federal Reserve and European Central bank have all made short-term loans with looser conditions this week in an effort to bring down interbank credit costs and prevent a cash shortage from turning into a credit crunch.
Banks have developed a ``disturbing'' reluctance to lend to one another that may spark a self-reinforcing deterioration of credit conditions, Bank of England Governor Mervyn King said this week. ``A painful adjustment faces the global banking sector over the next few months.''
Bank Writedowns
HBOS Plc, based in Edinburgh and the nation's biggest mortgage lender, said Dec. 13 increased funding costs are offsetting higher rates on mortgage loans, and that writedowns will cut profit by 180 million pounds ($359 million). Banks worldwide have racked up more than $70 billion of losses from the collapse of the U.S. subprime mortgage market.
``We haven't seen a financial crisis like this in about 10 years, and we would be flirting with the risk of recession if they hadn't cut rates in December,'' said Alan Clarke, an economist at BNP Paribas SA in London, who yesterday predicted a rate reduction in January. ``They are really taking this very seriously.''
Services expanded 0.8 percent in the quarter, down from a previous estimate of 0.9 percent the statistics office said. Manufacturing growth stalled, as measured last month.
Housing Market
While a pool of pent-up demand will support property values next year, the credit squeeze will keep prices from rising, the Royal Institution of Chartered Surveyors said in a report today, the latest showing that the decade-long housing boom that supported consumer spending is coming to an end.
Inflation concerns prevented policy makers from cutting the rate by more than a quarter-point this month, minutes of the Dec. 6 meeting published yesterday show. Consumers' price expectations jumped to the highest in at least eight years in November as food and energy prices soared, a central bank survey showed Dec. 13. Crude oil reached a record $99.29 on Nov. 21.
The implied deflator fell to an annual 2.9 percent in the third quarter from 3.9 in the previous three months, the statistics office said today.
The current-account deficit widened to 20 billion pounds in the third quarter, the most since records began in 1948, the statistics office said today in a separate report.
BLOOMBERG
GM Nears Agreement to Sell Truck Unit to Navistar, People Say
GM Nears Agreement to Sell Truck Unit to Navistar, People Say
Dec. 20 (Bloomberg) -- General Motors Corp., the world's largest automaker, may announce an agreement to sell a medium- duty truck unit to Navistar International Corp. as soon as today, people familiar with the deal said.
Navistar, the fourth-biggest truckmaker, said in October that it was negotiating to buy the unit, which Bear Stearns Cos. analysts value at $500 million. GM has said it might sell the Flint, Michigan-based business to focus on making a profit from cars and light trucks.
A sale would add to the $21 billion in assets that GM has sold in the past three years to pay operating costs as it posted net losses of $50 billion, including a $39 billion charge last quarter for tax accounting changes. In August, GM sold Allison Transmission to buyout firms Carlyle Group and Onex Corp. for $5.6 billion.
``They might as well monetize one more non-strategic asset to fund the turnaround,'' said Pete Hastings, a fixed-income analyst at Morgan Keegan & Co. in Memphis, Tennessee. ``GM doesn't have a liquidity problem, but adding more coins to the coffers is never a bad thing.''
GM spokeswoman Melisa Tezanos wouldn't comment, and Navistar spokesman Roy Wiley declined to confirm the timing of any accord.
Navistar said in October that if it reached agreement on the GM unit, Navistar would sell Chevrolet and GMC medium-duty trucks through the automaker's dealer network in the U.S. and Canada.
GM fell 27 cents to $26.66 yesterday in New York Stock Exchange composite trading. Navistar gained $3.75, or 7.5 percent, to $53.80 in over-the-counter trading.
Dump Trucks, Delivery Vehicles
The medium-duty truck unit last year built about 40,800 Chevrolet Kodiak, GMC TopKick and Isuzu T-Series models, for uses such as dump trucks and delivery vehicles.
GM, based in Detroit, doesn't break out the unit's financial results. Bear Stearns analyst Peter Nesvold said in May that the business had annual revenue of about $2 billion and estimated its value at $450 million to $500 million.
The analyst also said then that if Navistar were the buyer, the increased production could add 50 cents to $1 a share to the Warrenville, Illinois-based company's earnings.
GM's asset sales included 51 percent of its finance unit to a group led by Cerberus Capital Management LP, raising $13 billion over three years, and stakes in Suzuki Motor Corp., Isuzu Motors Ltd. and Fuji Heavy Industries Ltd., raising $3 billion.
The automaker's cash, marketable securities and money available from a retiree health-care fund rose to $30 billion as of Sept. 30, from $27.2 billion at the end of June, with the gain from selling the Allison unit.
BLOOMBERG
Dec. 20 (Bloomberg) -- General Motors Corp., the world's largest automaker, may announce an agreement to sell a medium- duty truck unit to Navistar International Corp. as soon as today, people familiar with the deal said.
Navistar, the fourth-biggest truckmaker, said in October that it was negotiating to buy the unit, which Bear Stearns Cos. analysts value at $500 million. GM has said it might sell the Flint, Michigan-based business to focus on making a profit from cars and light trucks.
A sale would add to the $21 billion in assets that GM has sold in the past three years to pay operating costs as it posted net losses of $50 billion, including a $39 billion charge last quarter for tax accounting changes. In August, GM sold Allison Transmission to buyout firms Carlyle Group and Onex Corp. for $5.6 billion.
``They might as well monetize one more non-strategic asset to fund the turnaround,'' said Pete Hastings, a fixed-income analyst at Morgan Keegan & Co. in Memphis, Tennessee. ``GM doesn't have a liquidity problem, but adding more coins to the coffers is never a bad thing.''
GM spokeswoman Melisa Tezanos wouldn't comment, and Navistar spokesman Roy Wiley declined to confirm the timing of any accord.
Navistar said in October that if it reached agreement on the GM unit, Navistar would sell Chevrolet and GMC medium-duty trucks through the automaker's dealer network in the U.S. and Canada.
GM fell 27 cents to $26.66 yesterday in New York Stock Exchange composite trading. Navistar gained $3.75, or 7.5 percent, to $53.80 in over-the-counter trading.
Dump Trucks, Delivery Vehicles
The medium-duty truck unit last year built about 40,800 Chevrolet Kodiak, GMC TopKick and Isuzu T-Series models, for uses such as dump trucks and delivery vehicles.
GM, based in Detroit, doesn't break out the unit's financial results. Bear Stearns analyst Peter Nesvold said in May that the business had annual revenue of about $2 billion and estimated its value at $450 million to $500 million.
The analyst also said then that if Navistar were the buyer, the increased production could add 50 cents to $1 a share to the Warrenville, Illinois-based company's earnings.
GM's asset sales included 51 percent of its finance unit to a group led by Cerberus Capital Management LP, raising $13 billion over three years, and stakes in Suzuki Motor Corp., Isuzu Motors Ltd. and Fuji Heavy Industries Ltd., raising $3 billion.
The automaker's cash, marketable securities and money available from a retiree health-care fund rose to $30 billion as of Sept. 30, from $27.2 billion at the end of June, with the gain from selling the Allison unit.
BLOOMBERG
Fed to lend $20 billion to banks
Fed to lend $20 billion to banks
Central bank, in a bid to ease credit crunch, gets strong demand for short-term funding. Wall Street shrugs.
Fed Chairman Ben Bernanke and fellow central bankers said the Fed was lending $20 billion to banks.
NEW YORK (CNNMoney.com) -- The Federal Reserve announced Wednesday that it was lending $20 billion to banks in the first of four special auctions designed to help alleviate the credit crunch on Wall Street.
The Fed said that it received requests for $61.6 billion in loans from 93 bidders - illustrating strong demand by banks that need short-term funds. The winning bidders will receive their loans, which will mature in 28 days, on Thursday.
Stocks seesawed throughout the day Wednesday and finished mixed. The Dow and S&P 500 fell while the Nasdaq rose slightly.
Bonds rallied, pushing the yield on the benchmark 10-year U.S. Treasury note down to 4.07 percent. Bond yields and prices move in opposite directions.
One market expert said the auctions will do little to ease the pain in the financial markets.
"This is a crisis of confidence, not of liquidity or rates. The problem is that people made bad loans this year. There's nothing the Fed can do to fix this. All they can do is try and reduce anxiety," said Barry Ritholtz, director of equity research for Fusion IQ, an asset management firm based in New York.
The Fed last week announced the auction plan in conjunction with central banks in Canada and Europe. A senior Fed official said at the time that the central bank was hoping banks that needed funding would be less hesitant to ask for money through the new anonymous auction process than they were to borrow directly from the Fed.
Fed looks to end credit crunch
Many banks had been wary of borrowing money at the Fed's so-called discount rate of 4.75 percent because it is higher than the federal funds rate of 4.25 percent. The federal funds rate is what banks charge each other for overnight loans. The Fed lowered both rates last week by a quarter of a percentage point.
In addition, market observers feel that there is a stigma attached with borrowing at the discount rate because it may be a sign that banks are so desperate for short-term cash that they are willing to pay the higher interest rate for the funds.
But the Fed said last week that it expected the loans would be made at a lower rate than the discount rate and this bore out. The Fed said Wednesday that the the lowest rate for the loans was 4.65 percent.
One fund manager said that the auction may help banks somewhat but that the results were not that significant since the rate on the loans is still above the fed funds rate.
"The Fed is trying to do its job. This was a reasonable thing for them to do and it's ultimately good for banks that don't want to go to the discount window. But the rate is at the middle of the road," said Jamie Jackson, a portfolio manager with RiverSource Investments in Minneapolis.
The Fed said last week that the minimum rate offered in the auction would be 4.17 percent and that maximum loan amount to an institution would be $2 billion.
The second of the four auctions will take place on Thursday. The Fed has said it will offer up to $20 billion in this auction. The loans will mature in 35 days and banks will receive the money on Dec. 27.
The Fed's tightrope act
The results of the Fed auction come a day after the European Central Bank announced it would lend an unlimited amount of money to banks bidding at least 4.2 percent for loans.
Federal Reserve Chairman Ben Bernanke and other central bankers across the globe have been attempting to inject more liquidity into the financial system in order to make sure that banks don't run into even more difficulties resulting from the supbrime mortgage meltdown.
Many large banks in the United States and Europe have been forced to write down billions in assets because of bad bets on mortgage loans. And the concern is that without access to more capital, banks may tighten lending standards.
In turn, this could accelerate a slowdown in the economy and possibly even send the U.S. into a recession if banks are no longer interested in loaning as much money at attractive rates to consumers and businesses.
But Fusion IQ's Ritholtz was skeptical that the new loans would cause banks to loosen their credit standards.
"The problem that the Fed is facing is not an issue of rates being too high and an inadequate amount of liquidity. It's that banks have gone from being willing to lend to a corpse to lending to nobody," said Ritholtz.
Still, the Fed is in a tough spot. It is trying to make sure the woes in the financial services industry don't spill over into the broader economy.
The Fed said last week when it lowered interest rates that "economic growth is slowing, reflecting the intensification of the housing correction and some softening in business and consumer spending."
But at the same time, the Fed said it remained concerned about rising inflation pressures. That spooked Wall Street, which interpreted the Fed's inflation worries as a sign that the central bank may not lower interest rates as aggressively in 2008 as many had hoped.
These fears intensified later last week after the government reported that wholesale prices and retail prices both rose more than expected in November. And that has sparked fears on Wall Street of "stagflation," a period of rising inflation and slowing growth.
In a speech Wednesday, Federal Reserve Bank of Richmond President Jeffrey Lacker said he was "uncomfortable with the inflation picture" and that the Fed needed to be concerned not just with so-called "core" inflation - which excludes the effect of oil and food prices - but overall inflation.
"If energy prices fail to decline, monetary policy decisions will be that much more difficult in 2008," said Lacker, an avowed "inflation hawk" who voted for a quarter-point rate hike at the last four Fed meetings of 2006.
Lacker, who is not a voting member this year, was the only one to vote for a hike at those meetings, which all concluded with the Fed keeping rates steady.
But he is not alone in fearing inflation. Former Fed chairman Alan Greenspan used the term "stagflation" on an appearance on ABC's "This Week" on Sunday.
With all this in mind, one fund manager said the Fed should tread cautiously.
"The Fed has to maintain price stability and keep the economy moving forward without jeopardizing growth," said Ted Parrish, co-manager of the Henssler Equity fund, which owns shares of big financial firms Goldman Sachs (GS, Fortune 500), Bank of America (BAC, Fortune 500) and AIG (AIG, Fortune 500).
"Yes, the Fed has to give some help to banks," Parrish said. "But they are not here to just to appease and bail out Wall Street."
CNN
Central bank, in a bid to ease credit crunch, gets strong demand for short-term funding. Wall Street shrugs.
Fed Chairman Ben Bernanke and fellow central bankers said the Fed was lending $20 billion to banks.
NEW YORK (CNNMoney.com) -- The Federal Reserve announced Wednesday that it was lending $20 billion to banks in the first of four special auctions designed to help alleviate the credit crunch on Wall Street.
The Fed said that it received requests for $61.6 billion in loans from 93 bidders - illustrating strong demand by banks that need short-term funds. The winning bidders will receive their loans, which will mature in 28 days, on Thursday.
Stocks seesawed throughout the day Wednesday and finished mixed. The Dow and S&P 500 fell while the Nasdaq rose slightly.
Bonds rallied, pushing the yield on the benchmark 10-year U.S. Treasury note down to 4.07 percent. Bond yields and prices move in opposite directions.
One market expert said the auctions will do little to ease the pain in the financial markets.
"This is a crisis of confidence, not of liquidity or rates. The problem is that people made bad loans this year. There's nothing the Fed can do to fix this. All they can do is try and reduce anxiety," said Barry Ritholtz, director of equity research for Fusion IQ, an asset management firm based in New York.
The Fed last week announced the auction plan in conjunction with central banks in Canada and Europe. A senior Fed official said at the time that the central bank was hoping banks that needed funding would be less hesitant to ask for money through the new anonymous auction process than they were to borrow directly from the Fed.
Fed looks to end credit crunch
Many banks had been wary of borrowing money at the Fed's so-called discount rate of 4.75 percent because it is higher than the federal funds rate of 4.25 percent. The federal funds rate is what banks charge each other for overnight loans. The Fed lowered both rates last week by a quarter of a percentage point.
In addition, market observers feel that there is a stigma attached with borrowing at the discount rate because it may be a sign that banks are so desperate for short-term cash that they are willing to pay the higher interest rate for the funds.
But the Fed said last week that it expected the loans would be made at a lower rate than the discount rate and this bore out. The Fed said Wednesday that the the lowest rate for the loans was 4.65 percent.
One fund manager said that the auction may help banks somewhat but that the results were not that significant since the rate on the loans is still above the fed funds rate.
"The Fed is trying to do its job. This was a reasonable thing for them to do and it's ultimately good for banks that don't want to go to the discount window. But the rate is at the middle of the road," said Jamie Jackson, a portfolio manager with RiverSource Investments in Minneapolis.
The Fed said last week that the minimum rate offered in the auction would be 4.17 percent and that maximum loan amount to an institution would be $2 billion.
The second of the four auctions will take place on Thursday. The Fed has said it will offer up to $20 billion in this auction. The loans will mature in 35 days and banks will receive the money on Dec. 27.
The Fed's tightrope act
The results of the Fed auction come a day after the European Central Bank announced it would lend an unlimited amount of money to banks bidding at least 4.2 percent for loans.
Federal Reserve Chairman Ben Bernanke and other central bankers across the globe have been attempting to inject more liquidity into the financial system in order to make sure that banks don't run into even more difficulties resulting from the supbrime mortgage meltdown.
Many large banks in the United States and Europe have been forced to write down billions in assets because of bad bets on mortgage loans. And the concern is that without access to more capital, banks may tighten lending standards.
In turn, this could accelerate a slowdown in the economy and possibly even send the U.S. into a recession if banks are no longer interested in loaning as much money at attractive rates to consumers and businesses.
But Fusion IQ's Ritholtz was skeptical that the new loans would cause banks to loosen their credit standards.
"The problem that the Fed is facing is not an issue of rates being too high and an inadequate amount of liquidity. It's that banks have gone from being willing to lend to a corpse to lending to nobody," said Ritholtz.
Still, the Fed is in a tough spot. It is trying to make sure the woes in the financial services industry don't spill over into the broader economy.
The Fed said last week when it lowered interest rates that "economic growth is slowing, reflecting the intensification of the housing correction and some softening in business and consumer spending."
But at the same time, the Fed said it remained concerned about rising inflation pressures. That spooked Wall Street, which interpreted the Fed's inflation worries as a sign that the central bank may not lower interest rates as aggressively in 2008 as many had hoped.
These fears intensified later last week after the government reported that wholesale prices and retail prices both rose more than expected in November. And that has sparked fears on Wall Street of "stagflation," a period of rising inflation and slowing growth.
In a speech Wednesday, Federal Reserve Bank of Richmond President Jeffrey Lacker said he was "uncomfortable with the inflation picture" and that the Fed needed to be concerned not just with so-called "core" inflation - which excludes the effect of oil and food prices - but overall inflation.
"If energy prices fail to decline, monetary policy decisions will be that much more difficult in 2008," said Lacker, an avowed "inflation hawk" who voted for a quarter-point rate hike at the last four Fed meetings of 2006.
Lacker, who is not a voting member this year, was the only one to vote for a hike at those meetings, which all concluded with the Fed keeping rates steady.
But he is not alone in fearing inflation. Former Fed chairman Alan Greenspan used the term "stagflation" on an appearance on ABC's "This Week" on Sunday.
With all this in mind, one fund manager said the Fed should tread cautiously.
"The Fed has to maintain price stability and keep the economy moving forward without jeopardizing growth," said Ted Parrish, co-manager of the Henssler Equity fund, which owns shares of big financial firms Goldman Sachs (GS, Fortune 500), Bank of America (BAC, Fortune 500) and AIG (AIG, Fortune 500).
"Yes, the Fed has to give some help to banks," Parrish said. "But they are not here to just to appease and bail out Wall Street."
CNN
ΤΟ ΣΗΜΕΡΙΝΟ ΠΡΟΓΡΑΜΜΑ (ΑΜΕΡΙΚΗ)
8:30 AM
GDP (final)
Dept of Commerce
8:30 AM
Jobless Claims
Dept of Labor
GDP (final)
Dept of Commerce
8:30 AM
Jobless Claims
Dept of Labor
Oracle Profit Rises 35% on Software Demand, Support
Oracle Profit Rises 35% on Software Demand, Support (Update2)
By Rochelle Garner
Dec. 19 (Bloomberg) -- Oracle Corp., the world's largest maker of database software, reported second-quarter sales and profit that beat analysts' estimates, bolstered by orders for new programs and revenue from customer-support contracts.
Net income rose 35 percent to $1.3 billion, or 25 cents a share, from $967 million, or 18 cents, a year earlier, Redwood City, California-based Oracle said today in a statement. Revenue gained 28 percent to $5.31 billion in the period ended Nov. 30.
Sales advanced more than 20 percent for the seventh straight quarter after Chief Executive Officer Larry Ellison spent $25 billion buying rivals and companies in new markets over three years. Oracle, which competes with SAP AG and International Business Machines Corp., boosted earnings through customer-support sales, its most-profitable business.
``A solid result in a challenging environment has to give investors a reason to cheer,'' Morgan Stanley analyst Peter Kuper said in an interview from Boston. He rates the shares overweight and said he doesn't own them. ``Oracle even beat our expectations for top-line revenue growth.''
Sales that include maintenance fees from acquired companies were $5.36 billion, beating the $5.03 billion average estimate of analysts in a Bloomberg survey. Excluding stock-based compensation costs, profit was 31 cents a share, compared with the 27-cent estimate of analysts.
Oracle gained 85 cents, or 4 percent, to $21.61 in extended trading. The shares fell 49 cents to $20.76 at 4 p.m. New York time in Nasdaq Stock Market trading. The stock has advanced 21 percent this year.
New Licenses
Sales of new licenses, the key indicator of future growth among software companies, gained 38 percent to $1.67 billion. In September, Oracle forecast that sales of new licenses would rise as much as 25 percent, to $1.51 billion.
Oracle sells database products, so-called middleware software that helps different types of programs share information, and business-management applications for handling such tasks as accounting, merchandising and logistics.
The company used its $10.3 billion purchase of PeopleSoft Inc. in January 2005 to become the second-biggest maker of business applications, after SAP in Walldorf, Germany. Since then, Oracle has bought 35 more companies, primarily to add business-management applications.
``This acquisition strategy has not only worked but it's driving more revenue,'' said Brendan Barnicle, a Pacific Crest Securities analyst in Portland, Oregon. ``They are taking some share.''
Database Revenue
Sales of new database licenses, which include databases and middleware-server software, rose 29 percent to $1.12 billion. Application license sales advanced 63 percent to $553 million, Oracle said.
Customers buying new programs must also sign maintenance contracts, the only way they can receive software updates that fix bugs and add features. The agreements increase in price every year, said Sarah Friar, a Goldman, Sachs & Co. analyst in San Francisco.
Revenue from maintenance contracts gained 24 percent to $2.49 billion in the quarter, Oracle said.
Last quarter, the company failed in its $6.7 billion hostile bid for BEA Systems Inc. Buying BEA would help Oracle challenge Armonk, New York-based IBM for the lead in the middleware market.
Companies selling middleware and databases are more profitable than companies that only offer applications, Heather Bellini, an analyst with UBS AG in New York, said in an interview. She advises investors to buy Oracle shares and said she doesn't own them. ``Oracle's acquisitions help them sell more databases and middleware,'' she said.
BLOOMBERG
By Rochelle Garner
Dec. 19 (Bloomberg) -- Oracle Corp., the world's largest maker of database software, reported second-quarter sales and profit that beat analysts' estimates, bolstered by orders for new programs and revenue from customer-support contracts.
Net income rose 35 percent to $1.3 billion, or 25 cents a share, from $967 million, or 18 cents, a year earlier, Redwood City, California-based Oracle said today in a statement. Revenue gained 28 percent to $5.31 billion in the period ended Nov. 30.
Sales advanced more than 20 percent for the seventh straight quarter after Chief Executive Officer Larry Ellison spent $25 billion buying rivals and companies in new markets over three years. Oracle, which competes with SAP AG and International Business Machines Corp., boosted earnings through customer-support sales, its most-profitable business.
``A solid result in a challenging environment has to give investors a reason to cheer,'' Morgan Stanley analyst Peter Kuper said in an interview from Boston. He rates the shares overweight and said he doesn't own them. ``Oracle even beat our expectations for top-line revenue growth.''
Sales that include maintenance fees from acquired companies were $5.36 billion, beating the $5.03 billion average estimate of analysts in a Bloomberg survey. Excluding stock-based compensation costs, profit was 31 cents a share, compared with the 27-cent estimate of analysts.
Oracle gained 85 cents, or 4 percent, to $21.61 in extended trading. The shares fell 49 cents to $20.76 at 4 p.m. New York time in Nasdaq Stock Market trading. The stock has advanced 21 percent this year.
New Licenses
Sales of new licenses, the key indicator of future growth among software companies, gained 38 percent to $1.67 billion. In September, Oracle forecast that sales of new licenses would rise as much as 25 percent, to $1.51 billion.
Oracle sells database products, so-called middleware software that helps different types of programs share information, and business-management applications for handling such tasks as accounting, merchandising and logistics.
The company used its $10.3 billion purchase of PeopleSoft Inc. in January 2005 to become the second-biggest maker of business applications, after SAP in Walldorf, Germany. Since then, Oracle has bought 35 more companies, primarily to add business-management applications.
``This acquisition strategy has not only worked but it's driving more revenue,'' said Brendan Barnicle, a Pacific Crest Securities analyst in Portland, Oregon. ``They are taking some share.''
Database Revenue
Sales of new database licenses, which include databases and middleware-server software, rose 29 percent to $1.12 billion. Application license sales advanced 63 percent to $553 million, Oracle said.
Customers buying new programs must also sign maintenance contracts, the only way they can receive software updates that fix bugs and add features. The agreements increase in price every year, said Sarah Friar, a Goldman, Sachs & Co. analyst in San Francisco.
Revenue from maintenance contracts gained 24 percent to $2.49 billion in the quarter, Oracle said.
Last quarter, the company failed in its $6.7 billion hostile bid for BEA Systems Inc. Buying BEA would help Oracle challenge Armonk, New York-based IBM for the lead in the middleware market.
Companies selling middleware and databases are more profitable than companies that only offer applications, Heather Bellini, an analyst with UBS AG in New York, said in an interview. She advises investors to buy Oracle shares and said she doesn't own them. ``Oracle's acquisitions help them sell more databases and middleware,'' she said.
BLOOMBERG
GLOBAL INDEXES
FTSE/CySE 20
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ΓΕΝΙΚΟΣ ΔΕΙΚΤΗΣ
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Όγκος: € 11,059,775
---
FTSE 100 INDEX 6,284.50 5.20 0.08%
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---
DOW JONES INDUS. AVG 13,207.27 -25.20 -0.19%
S&P 500 INDEX 1,453.00 -1.98 -0.14%
NASDAQ COMPOSITE INDEX 2,601.01 4.98 0.19%
1603.70 ( 1.13%)
ΓΕΝΙΚΟΣ ΔΕΙΚΤΗΣ
4678.56 ( 1.14%)
Όγκος: € 11,059,775
---
FTSE 100 INDEX 6,284.50 5.20 0.08%
CAC 40 INDEX 5,497.42 -11.95 -0.22%
DAX INDEX 7,837.32 -13.42 -0.17%
---
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NASDAQ COMPOSITE INDEX 2,601.01 4.98 0.19%
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