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DaimlerChrysler consolidates arms
DaimlerChrysler AG on Wednesday announced moves to consolidate its interests in two subsidiaries -- transportation joint venture Adtranz and global services company Debis. In a joint statement DaimlerChrysler and Swiss-Swedish ABB Asea Brown Boveri, said Daimler Chrysler had agreed to buy from ABB its share of their 50-50 venture Adtranz in order to fully integrate the company into its strategic portfolio.
The companies said that DaimlerChrysler would pay $472 million in cash for industrial group ABB's stake. DaimlerChrysler also said it was bringing its worldwide service operations into a single company DaimlerChrysler Services (Debis) AG. It said its service group had an operating profit of 328 million marks in 1998, more than doubling the 1996 result.
Deutsche Telekom mulls raising 10.8 bln euro
Germany's Deutsche Telekom AG is considering raising up to 10.8 billion euros ($12.5 billion) to fund telecommunications acquisitions or mergers, theFinancial Times reported on Wednesday. "Although Deutsche Telekom said it had not yet taken a firm decision on the matter, analysts yesterday (Tuesday) said this was a clear signal that this year would see a stock market flotation," the British newspaper said.
Deutsche Telekom announced 1998 results on Tuesday, posting a 27 per cent increase in net profit to 2.15 billion euros.
Hoechst to charge most Rhone merger costs:Report
German chemical group Hoechst AG plans to charge most of the 3.3 billion mark ($1.96 billion) cash restructuring cost from its merger with France's Rhone-Poulenc SA in 1999 and the rest in 2000, the Financial Times reported on Wednesday.
In December, Hoechst and Rhone-Poulenc said they planned to merge their life-sciences operations to create the world's largest drugs and agrochemicals company and eventually lead to a full merger. The newspaper also reported that Hoechst chief financial officer Klaus-Juergen Schmieder confirmed an earlier profit warning for 1998 by chiefexecutive Juergen Dormann.
GM sees rebound in market share
General Motors Europe expects this year's roll-out of new car models by its German subsidiary, Adam Opel AG, to help it gain market share after last year's loss, GM's Europe chief said in a newspaper interview.
The Handelsblattf financial daily on Tuesday quoted GM Europe president Michael Burns as saying that the automotive group expected to increase its share of the European market by one percentage point this year. According to the European carmakers' association Acea, GM's share of the European market fell to 11.5 per cent in 1998 from 12.1 per cent in 1997.
Burns said the launch of the new Opel minivan Zafira, a new version of the Vectra mid-size model, should allow GM to more than recoup last year's losses in market share.
Babcock gets cartel nod:
Engineering group Deutsche Babcock AG said on Tuesday German cartel authorities had given it the go ahead to acquire a 74.9 per cent stake in power plant builder Steinmuellerfrom Philipp Holzmann AG. Construction group Holzmann, which formerly held the majority stake in Steinmueller, and Deutsche Babcock made the announcement in a joint statement.
Holzmann announced last year it wanted to withdraw from the energy and environmental technology sector and dispose of its Steinmueller stake.
Body Shop warns on profits after poor Xmas:
Toiletry retailer Body Shop International Plc said on Tuesday its full-year profits would be below current market estimates after poor British Christmas sales. It said its like-for-like sales in the 10 weeks to January 2 fell two per cent worldwide and six per cent in Britain. The company said it would make an announcement next week on its plans to reshape the business.
Heidelzement raises 1998 sales 6 pc:
German cement maker Heidelberger Zement AG on Tuesday reported that group sales rose six per cent in 1998 to 7.7 billion marks. Heidelberger Zement made its announcement at the "Bau '99"construction trade fair in Munich. Itsaid its cash flow position had improved in 1998 and that in 1999 it planned to improve its corporate structure and cut costs while entrenching its market share. Heidelberger Zement said it planned short-term investment in renovating its Union Bridge cement works in North America.
Sony, Nintendo lead Dec video-game sales: WSJ
Sony Corp is leading the video-game hardware industry, while Nintendo Co. Ltd is the king of video-game software sales, the Wall Street Journal said. Nintendo Co.'s "Legend of Zelda: the Ocarina of Time" had $150 million in sales in December, or 2.5 million units, according to a survey by NPD Group, the paper said. The survey said hardware and software video-game sales totalled $6.3 billion in 1998, up 24 per cent from $5.1 billion a year earlier, the paper reported.
Samsung lowers Hyundai
South Korea's Samsung Securities Co has downgraded shipping company Hyundai Merchant Marine Co. Samsung said in a report the downgrade was based on possible difficulties ingenerating cash flow for the next three years and limited margin expansion during an expected cyclical climb of share prices in the sector. The report said the company, a shipping unit of Hyundai Group, could experience some burden from the parent group's project to develop North Korea's Kumkang Mountains for tourism.
Aspo to split into two listed companies:
Finnish chemicals and electronics group Aspo said on Wednesday it planned to split into two listed companies from October 1, 1999. Aspo said in a statement it would split its electronics components unit Aspocomp into a separate company and the remainder of its operations -- chemicals and shipping -- into a new Aspo group.
Hitron plans one-to-10 stock split:
South Korea's Hitron Systems Inc, a producer of audio and video equipment, said on Wednesday it plans a one-to-10 stock split to increase the liquidity of its shares. "We are planning to split a share into 10 to boost trading of shares in the exchange," said a Hitron official.The official said further details would come out at a meeting of the board of directors in early February.
Copyright © 1999 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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