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European Business News (EBN), 97-02-04European Business News (EBN) Directory - Previous Article - Next ArticleFrom: The European Business News Server at <http://www.ebn.co.uk/>Page last updated February 4 1230 CETCONTENTS
[01] Gulf Canada sweetens takeover bid to $757 millionGulf Canada Resources stepped up its battle to gain control of Britain's Clyde Petroleum, raising its bid to 120 pence per share from 105 pence per share.The new offer is below the 125 pence level some analysts had been looking for. Gulf Canada said in a statement that the new bid valued Clyde at 494.6 million pounds ($793 million), up from 432 million pounds. Clyde has rejected the offer. Meanwhile J.P. Bryan, president and chief executive officer for Gulf Canada, announced at a press conferece that Gulf expects almost all of Clyde Petroleum's shareholders to accept the latest 120 pence per share takeover bid from the company. [02] Airbus confirms commitment to super-jumbo projectAirbus Industrie has confirmed that it would go ahead with preparations to develop a super-large airliner and that it expects initial statements of intent from some partners in the venture within a few months. 'I would be very surprised if we didn't have a number of announcements with risk- sharing partners in the next few months,' John Leahy, senior vice-president of the European aircraft-making consortium, told reporters.Leahy said manufacturing partners in the project might come from Japan, South Korea, Russia, the U.S. or elsewhere, although he declined to make any comment on specific prospects. Airbus is seeking partners to shoulder about 40% of the estimated $8 billion in development costs for the A3XX, which could carry over 800 people in a single-class configuration, making it the largest civil airliner. The consortium aims to launch the program in December 1998 and have the first aircraft in service in 2003. Archrival Boeing Co. of the U.S. last month abruptly canceled plans to build much larger versions of its 747 jumbo jet, which would have competed with the A3XX. Boeing cited spiralling development costs that could have topped $7 billion and insufficient interest in orders from airlines. Airbus executives stressed Tuesday that a final decision to proceed with the A3XX would depend on an evaluation that market demand was sufficient. Leahy said he wasn't yet sure how many orders for the plane would be necessary to launch the program. But the executives said potential airline customers were optimistic about the plane. They said Boeing had failed to win enough interest for its expanded 747 because it would be an enhanced version of an existing aircraft, rather than a sophisticated new model like the A3XX. Leahy described the A3XX project as an important part of Airbus' drive to win 50% of the global airliner market by early next decade. Cancelling Airbus's plans to round out its product line with a very large jet would preserve the status quo, and 'the status quo situation means Boeing maintains its monopoly on the 747,' he said. Airbus executives suggested Japanese heavy machinery makers, some of which make parts for Boeing planes, might expand their aerospace business by joining the A3XX project. 'These partners would be taking significant parts of the aircraft' to manufacture, Leahy said. [03] Veba offers to buy back Vebacom stake from C&WGerman diversified utility Veba has made an offer to buy back a 45 percent stake in its subsidiary Vebacom from Britain's Cable & Wireless, a source close to Veba said.If the offer, which was made a week ago, is accepted, Veba would have the stake held in trust in the hope of later transferring it to a new partner, the source said. Veba would retain its 10.4 percent stake in Cable & Wireless as an investment, he added. Earlier today Cable & Wireless Chief Executive Richard Brown said that the company will issue an imminent statement about its German telecommunications alliance with Veba and RWE. Brown confirmed he has led a re-evaluation of C&W's international strategy, but poured cold water on speculation that this would see the company abandon the German market to focus more intently on the Far East. In recent days, various media outlets have reported that C&W has decided to abandon its plans to attack the German market with Veba and RWE. The Veba source, giving further details of the plan, he said Veba had offered to hand over its stake in the joint venture firm C & W Europe to C & W. Although Veba would retain its stake in C & W, which has proved a sound financial investment, Veba's management board chairman Ulrich Hartmann would give up his seat on the British company's board, the source said. He said the seat was linked to the company's strategic alliance rather than its financial investment in the group. [04] KLM swings to a 7 million guilder loss ($3.8 million)KLM Royal Dutch Airlines swung to a loss of 7 million guilders ($3.8 million) in the third quarter of its 1997 fiscal year, compared with a net profit of 102 million guilders booked a year earlier.The flag carrier blamed higher fuel costs for the decline, saying it spent 83 million NLG more on fuel in this past third quarter than it did in the same period a year ago. KLM repeated its November prediction that full-year 1997 after-tax results would be 150 million NLG less than the 547 million NLG booked in 1996, not including a possible provision for restructuring. A restructuring charge could come from KLM's new Focus 2000 program, intended to cut unit costs by 20% and to raise KLM's operating results by 1.5 billion NLG over the next three years. KLM said Tuesday that its forecast for the fourth quarter doesn't include results from its stake in the U.S.'s Northwest Airlines Corp. In its last fiscal year, KLM's revaluation of its shares in Northwest amounted to 92 million NLG in the fourth quarter. The news was in the mid-range of analysts' expectations. Higher fuel costs and disappointing results from cargo activities had been expected to drag the company's results with projections for earnings in the fiscal third quarter, ranging from a net loss of 23 million NLG to a net profit of 12 million NLG. [05] BT and Viag win German mobile `phone licenceThe German government has awarded the country's fourth mobile telephone licence to a consortium owned by British Telecom and German utility Viag .German Post and Telecommunications Minister Wolfgang Boetsch said the E2 Mobilfunk GmbH consortium was the only group to apply for the licence but assured it was put through a rigorous technical examination before receiving a concession. 'In the interest of consumers current mobile phone operators Deutsche Telekom MobilNet, Mannesmann Mobilfunk and E-Plus Mobilfunk have to receive another competitor,' he said in a statement prepared for delivery at a news conference. E2 Mobilfunk can begin construction of the network immediately and it must make its services available to at least 75 percent of the population by the end of 2001. BT and Viag have said in the past that they intended to build the network in phases. In the first stages they would concentrate on key economic centres and only later expand the network to less populated areas. [06] Wim Duisenburg announces his challenge to head European central bankDutch central bank chief Wim Duisenberg has launched his official candidacy for the job of head of the European central bankDuisenberg, slated to become president of the European Monetary Institute this summer, declared his interest in two German newspaper interviews. 'I can make no secret of it, I am a candidate,' the Boersen Zeitung quoted Duisenberg as saying, adding that he would be available for an entire first term of eight years. The European Central Bank will evolve from the European Monetary Institute in 1999 after nations adopt the single currency, the euro. Germany's Bundesbank has already signalled its backing for Duisenberg in the job. The fact that the Dutch central banker comes from a stability oriented culture is seen reinforcing the European central bank's mandate to ensure price stability. France on the other hand has recently ruffled diplomatic feathers by intimating that Germany had already agreed to accept a Frenchman for the top job in return for getting the nod to locate the central bank in Frankfurt. [07] Unexpected rise for German industrial outputGerman industrial output rose unexpectedly in December from November, climbing a seasonally-adjusted 1.4%. On a year-on-year basis that is not adjusted for seasonal influences, December output was up 1.1%.Preliminary November data released last month were revised downward to show a seasonally-adjusted increase of 0.9% from October, instead of the 1.6% gain originally reported. According to the revised data, November output fell 2.4% from November 1995, rather than the 1.7% drop originally reported. The data are still designated as preliminary and could be adjusted further. The ministry offered no elaboration on the reasons for the gains, drops or revisions. It said however that due to the large number of holidays in December, that month's figures were full of ''uncertainties.'' [08] Cellular 'phone operator Mannesmann Mobilfunk announces first dividendMannesmann Mobilfunk, the digital cellular phone operator, has announced that it would pay its first dividend to shareholders Mannesmann and Airtouch Communications since its launch seven years ago.The company said in a statement it would pay a dividend totalling 376 million marks ($229 million) on 1996 earnings. It added that it now had 2.3 million subscribers in its D2 cellular phone network. Mannesmann is the largest shareholder with 65.2 percent and Airtouch Communications of the United States holds 34.8 percent. [09] Italian government favours holding a STET 'golden share'Italian Treasury Minister Carlo Azeglio Ciampi has said that the government is favourable to a 'golden share' stake in the privatization of giant telecommunications company Societa Finanziaria Telefonica per Azioni.A golden share is traditionally a relatively small stake, generally taken by governments when companies in key industries such as telecommunications or energy are privatized. Despite its small size, the golden share generally allows the government veto power over certain key changes to the company, such as a takeover by a foreign entity, among others. The golden share issue for STET is crucial, as the hardline left Rifondazione Comunista Party is against the privatisation of STET for fear of the job losses that might follow. The RCP isn't formally part of the Olive Tree coalition of parties that sustains the government, but Prime Minister Romano Prodi needs the leftist party's support in the lower house where it doesn't have a majority. In testimony to House of Deputies' committees, Ciampi added that there will be a 'stable core' of shareholders found for STET, most of them to be Italian companies. He later suggested that the stakes of this stable core would probably amount to 2%-3% each and that these companies wouldn't be close to the telecommunications industry. The Treasury's Privatization Committee would decide on the components of the stable core, he said. Ciampi added that the government isn't currently considering more spinoffs of STET business before the privatization, which is expected next autumn. Yellow pages publishers SEAT was spunoff recently from STET. The ministry is at work on deciding the share exchange ratio for STET- Telecom Italia, Ciampi said. Telecom Italia, a unit of STET, is to be folded into STET ahead of the privatization. [10] Degussa announces 20% profit increaseGerman chemicals and metals group Degussa, benefiting from a major restructuring and improved economic conditions, reported first quarter pre- tax profit up 20 percent to 115 million marks ($70.1 million).The group also said sales climbed 16 percent to 3.46 billion marks ($1.6 billion ) with the precious metal and bank unit posting the strongest single sales increase and with foreign sales outpacing domestic sales has announced it expected the positive trend seen in the first quarter to continue through the rest of the year, barring any global economic downturn. 'If there is no unforeseen worsening in the global economic climate, then we expect to see the positive trend continue,' the group said in a statement, echoing remarks made by management board chairman Uwe-Ernst Bufe two weeks ago. From the European Business News (EBN) Server at http://www.ebn.co.uk/European Business News (EBN) Directory - Previous Article - Next Article |
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