The US Department of Justice has approved a $9bn merger between the NYSE Euronext and Deutsche Börse contingent on divestitures. For the deal to be fully permitted by the DOJ, Deutsche Börse will need to divest its 31.5 percent interest in stock exchange operator Direct Edge. It is also still awaiting the approval by the European Union. Deutsche Börse agreed to acquire NYSE Euronext in February, which will create the world’s biggest stock exchange operator....
The owner of British Airways, International Consolidated Airlines, on Thursday beat competitor Virgin Atlantic in the takeover battle for BMI, Deutsche Lufthansa’s loss-making airline. IAG agreed to buy BMI for €206.8m in cash, but may end up paying less if Lufthansa fails to sell its small regional subsidiaries before the completion date. CEO of IAG, Willie Walsh, said: “Buying BMI’s mainline business gives IAG a unique opportunity to grow at Heathrow, one of our key hub airports.” Walsh added there will be job cuts in an effort to stem losses at BMI. Reports suggest the sale will be completed in the first three months of 2012. ...
Japan has sold the yen in the market for the first time in six years, trying to stop the currency’s relentless climb from hurting exporters and threatening a fragile economic recovery. Fresh after a victory in party leadership contest, Japan’s Prime Minister Naoto Kan appeared to be stepping up efforts to wrench the country out of deflation by targeting yen strength, which has weighed on stock prices and corporate profits. Estimates vary on how much Japan has spent so far in its first intervention in the foreign exchange market since spending 35 trillion yen in 2003-2004. Dealers talk about 300-500 billion yen ($3.61-6.02bn) though some r...
Britain’s AAA credit rating could be at risk due to the crisis in the eurozone, Moody’s said in its UK end of year assessment late on Tuesday. In spite of a “stable” rating, Moody’s warned that Britain may face a downgrade if no policies are implemented to help stabilise markets. According to the agency, the current rating is based on its strong institutions, government finances and low susceptibility to external event. It cautioned, however, that the future of the ranking is dependent on whether or not a resolution is found for the sovereign debt crisis. “The significant increase in the government’s deficit and debt stocks sinc...
Indonesia and Australia have launched a A$30m project to fight deforestation in Sumatra as part of efforts to cut greenhouse gas emissions and boost a planned forest-carbon trading scheme. The project, to target Sumatra’s Jambi province that has suffered rapid deforestation, is the second joint venture between the neighbouring countries keen to learn how to save forests by giving local communities incentives to keep the trees standing. Indonesia, like Brazil, is on the front line of efforts to curb deforestation that is a major contributor to mankind’s greenhouse gas emissions that scientists blame for heating up the planet. Australia and...
After months of opposition from regulators and rivals, AT&T late on Monday dropped its controversial $39bn takeover bid for T-Mobile USA, the company said. The FCC, which was against the takeover since it was announced in March, said that the bid would reduce competition and choice, and increase prices for consumers. AT&T announced it will now have to take a $4bn charge for dropping the offer, of which a $3bn breakup fee will go to T-Mobile’s parent company Deutsche Telecom. In addition, AT&T said it plans to enter into a roaming agreement with T-Mobile....
The Securities and Exchange Commission late on Sunday filed securities fraud charges against six former Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) executives. The SEC court filing showed that executives had claimed that their company’s exposure from 2007 to 2008 was between $2bn and $6bn, when it was actually as high as $244bn. Those alleged of fraud include former Fannie Mae CEO Daniel Mudd, vice president of Single Family Mortgage, Thomas Lund, and chief risk officer Enrico Dallavecchia. The names for Freddie Mac executives include CEO Richard Syron, Vice President Patricia ...
Online games producer Zynga late on Thursday managed to raise $1bn in its initial public offering after it priced shares at the top end of a preliminary $8.50 to $10 market range. The creator of games including “FarmVille” and “CityVille” sold 100 million shares of Class A common stock at $10 a share in the IPO. The initial share price gives the group a valuation of an estimated $7bn. Zynga’s offering is the largest by a US internet company since Google’s IPO raised $1.9bn in 2004, Bloomberg data showed....
Brazilian federal prosecutors late on Wednesday sued US-based Chevron and rig operator Transocean for $10.6bn in damages following environmental harm alleged to have been caused by an oil leakage in early November. Prosecutors also asked the court to force the companies to shut down operations at the Frade field in Brazil until the case is resolved. The Frade field site, where the spill occurred, is Chevron’s biggest capital investment. “During an investigation, the attorney general’s office found that Chevron and Transocean were not capable of controlling the damage from a spill of 3,000 barrels of oil, proving a lack of environmental ...
Japanese optical equipment manufacturer Olympus has submitted long delayed earnings reports on Wednesday, only hours before a crucial deadline to avoid being removed from the Tokyo Stock Exchange. The TSE, the world’s second largest bourse, has now removed the company from its watch list for automatic ejection. However, Olympus continues to be at risk of being delisted pending results of an investigation into the group’s accounting practices. The camera maker reported net assets of ¥46bn as of the end of September, according to its surrendered financial report for the second quarter....