Defence electronics firms merge

The US Justice Department approved a plan by electronics giant Raytheon to acquire the defense arm of Texas Instruments (TI) on condition that Raytheon sell a key TI unit. The $2.9 billion buyout by Raytheon was proposed in early January, a move it said would increase annual revenues to around $15 billion and bolster its stature in the defense electronics sector. Justice Department endorsement was conditional on a divestiture by Raytheon of The Texas Instrument unit that produces monolithic microwave integrated circuits, which enable radar to scan the airspace more efficiently with a lower probability of enemy detection. Joel Klein, acting assistant US attorney general said: "Our action shows we're not going to give carte blanche approval to mergers in the defense industry."

Without the stipulation that it sell off the TI unit, Raytheon could be tempted to take advantage of its radar competitors -- Northrup Gruman, Lockheed Martin and Hughes Aircraft, according to the Justice Department.pChina standardises its numbers

China has been accepted as a member to the InternationaL Accounting Standards Committee (IASC) and the International Federation of Account ants, an IASC official said.IASC Chairman Michael Sharpe said China was making a tremendous effort to be able to produce international accepted financial information in order to attract more foreign investment and help Chinese organisations being privatised to raise capital.

Companies which want to sell their shares to foreign investors already have to report internationally accepted financial information while a series of standards based on international norms would be issued over the next 12 months, he said. China is also moving to allow foreign chartered public accountants to practise in the country this year and to let foreign accounting firms set up member companies.

Vietnamese Union warns Nike

The vice-chairman of the Vietnam Labour Confederation, Hoang Thi Khanh, asked that Nike ensure its subcontractors toe the line on labour conditions in Vietnam.

Khanh also suggested that Nike could ensure better labour relations by setting up its own facilities here. "Nike can invest directly, not necessarily through subcontractors," she said. During a visit to the US in late June, Khanh told a conference sponsored by the "US and Indochina Reconciliation Program" that there were many questions concerning Nike's role in Vietnam.

Nike's subcontractors in Vietnam have been plagued with labour disputes in the past two years, including one last week in which a Taiwanese supervisor received a six month prison sentence for worker abuse. Nike subcontracts shoe production to five Korean and Taiwanese firms located in southern Vietnam employing about 35,000 workers. Though Nike has no investments of its own in Vietnam, the giant US shoe and apparel company closely supervises operations at its suppliers.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.