Nestle assumes full control
Philippine brewer San Miguel Corporation said it will sell its 45 per cent stake in Nestle Philippines Inc. to partner Nestle SA for about 2 9 billion pesos ($681.6 million), enabling the Swiss giant to take full control of the company.The San Miguel board approved the planned divestment and it will call a special stockholders' meeting next month to ratify the decision, company director Carlos Arellano said. The deal will give Nestle full ownership of Nestle Philippines. Arellano said beer-based San Miguel intends to sell its other businesses if the need arises ``to better the position of the company.'' ``Most of its debts will be wiped off; the other portion (of the proceeds) will be used for operating capital,'' he said. The feasibility study on the sale was undertaken by JP Morgan and Co., he said.San Miguel's net profit fell 51 per cent from a year earlier to three billion pesos ($70.25 million) in calendar 1997, partly due to 2.4 billion pesos in losses from itsoverseas operations.
Singapore bonds for sea project
Water-starved Singapore may issue bonds to finance the construction of the island's first desalination plant costing about one billion Singapore dollars (US $ 570,000), reports said. Tenders for the construction of the first of three such plants to convert sea water into potable water would be called next year.
Singapore now depends mostly on Malaysia for its water supply. Relations between the two neighbours have been stormy of late. Financing for the pilot desalination plant may come from the issuing of bonds, Public Utilities Board Chief executive Ong Ho Sim was quoted saying by local newspapers. He did not give further details.The Pilot plant will be capable of producing 136,000 cubic metres (4.76 million cubic feet) of water a day when it is ready between 2003 and 2005. It will meet about a tenth of Singapore's present daily water consumption.
Hyundai strike talks stagnate
South Korea's top car maker Hyundai Motor Company andits striking union resumed drawn-out talks on Friday amid fading hopes of winning a negotiated solution to a month-long dispute. The talks faltered early when the Union declared the failure of an overnight meeting and left the conference table after both sides rejected a compromise proposal from ruling party mediators on layoffs.Despite earlier signs of some progress, the two sides appeared miles apart over how many workers should be laid off.
Reports said the management reduced the number of workers to be laid off by 100 to 515 workers, but the Union said they would only agree 167 layoffs from the company cafeterias, operations of which are to be outsourced.
Sackings and forced retirements are the key bone of contention between the two sides. As the prospect of reaching a compromise grew dimmer, thousands of riot police continued standing by for an onslaught on the strikers in case the talks break down.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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