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Nikko winds up Hong Kong operations: Japan's Nikko group has announced closing down its entire operations in Hong Kong with the loss of almost 100 jobs, media reports said. The decision by Japan's third-largest brokerage to end all securities and futures dealing in the Hong Kong special administrative region follows a series of sackings which reduced staff from about 180 to less than 100, spurring rumours of imminent closure, reports Hong Kong's South China Morning Post. Company insiders said the main reason behind the closure was a 12-billion dollar joint-venture share swap agreement between Nikko and financial giant Travelers Group of the United States in August. Travelers -- recently merged with Citibank -- owns Salomon Smith Barney, which has about 350 employees in Hong Kong, leading to considerable duplication in the securities and futures arms.
DBS completes S$1.6bn POSBank buyout: DBS Bank Ltd said on Monday it had completed the Singapore $1.6 billion acquisition of state-ownedPOSBank. "With the completion of the acquisition, POSBank is now a retail division of DBS," the bank said in a statement. The deal, to be paid for through a DBS share issue, was announced in July after months of speculation in Singapore financial circles. The POSBank purchase gives the enlarged DBS an asset base of S$93.4 billion and shareholders funds of S$9.4 billion, making it the largest retail bank in Singapore, with some 3.3 million customers, and one of the biggest in southeast Asia. DBS shares ended on Friday down S$0.05 At S$5.75.
Michael Jackson mulls $100m bond sale: Pop star Michael Jackson is considering raising $100 million or more by selling bonds that would be backed by future royalties on his and other music he owns, Newsweek reported. Jackson would follow in the footsteps of British rocker David Bowie, who raised $55 million in a lump sum last year by selling bonds backed by the income from earlier albums. Jackson could back the bonds with any music he owns, including his ownblockbuster hits, about 250 Beatles songs he has purchased through the years, and others, the November 23 issue of the magazine said. Former EMI Capitol Music executive Charles Koppelman, backed by Prudential, is the most likely to underwrite Jackson bonds, the report said. In an interview, Koppelman declined to comment on Jackson's plans, but did say he is poised to announce $250 million of music-royaly deals, the report said.
Britain plans aid for Rover: Britain could step in with a grant package worth nearly 200 million pounds to help save jobs at Rover's loss-making Longbridge plant in Birmingham, central England, according to reports. The reports said that the package would be conditional on Rover workers signing up to changes in working practices aimed at boosting productivity and cutting losses. Top executives of Rover Group briefed members of parliament on German parent company BMW AG's plans for the troubled carmaker and said difficult talks with trade unions on flexible working hours couldbe over soon. The reports also said that Rover was poised to sign a deal with workers which would cost 2,500 jobs from Rover's 38,000-39,000 staff and possible pay cuts for employees who stayed. BMW, which bought Rover in 1994, says the strong pound and low productivity mean Longbridge, Britain's largest car plant, is less competitive than similar plants in continental Europe.
Sears turns down 400m pound bid: British department store group Sears Plc turned down a 400 million pound takeover bid from home shopping retailer N. Brown Group Plc, according to media reports. Neither Sears nor N. Brown were immediately available for comment. The reports said Sears Chairman Bob Reid turned down an indicative offer around 10 days ago. The reports said N. Brown was willing to offer 255 pence per share for Sears but did not want to pursue a hostile bid. The reports further said N. Brown was interested in Sears'Freemans mail order business, valued at 150 million pounds, and would then have sold off the group'sproperty, card services and womenswear units for over 300 million pounds. It also said Reid believed Sears was worth 600 million pounds and refused to proceed with talks. Last month, Sears postponed the demerger of Freemans because of stock market turbulence and tough trading conditions. The reports added that Sears planned to sell its property portfolio and look at securitisation of debt at its financial services arm. Sears turned in half-year pre-tax profits of 8.5 million pounds last month, swinging from a loss in the comparable period a year ago of 98.3 milllion.
Rolls-Royce Aeroengines to source $50m in China: Britain's Rolls Royce Aeroengines said it planned to source more than $50 million in engine parts contracts to three Chinese companies over the next six years. The contracts for aircraft engine parts would be carried out by three companies under Aviation Industries of China (AVIC), said James Richards, head of Rolls-Royce Aeroengines' Northeast Asia operations. The three firms -- XianAeroengine Corp (XAE), Chengdu Engine Group Co Ltd and Beijing Changkong Machinery Corp -- would manufacture components including turbine rings, compressor cooling rings and compressor seals for the full range of Rolls-Royce aircraft engines, Richards said. "By the year 2000 we expect that the total annual value of work carried out in China on behalf of Rolls-Royce... will reach about $35 million," he told a news conference at the China International Aviation and Aerospace Exhibition. Richards also said that the British firm's $30 million joint venture with the XAE, Xian XR Aerocomponents, was expected to have turnover of more than $22 million by the year 2000 and would be the single supplier for some components in Rolls-Royce engines.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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This story was printed from Net Express located at http://www.expressindia.com. Net Express provides a portal to India, with news from The Indian Express and The Financial Express along with sites on travel and tourism, the entertainment industry, the power sector, the environment and much more.
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