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Sunday, 24 November 2024
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European Business News (96-06-24)European Business News (EBN) Directory - Previous Article - Next ArticleFrom: The European Business News Server at <http://www.ebn.co.uk/>Page last updated June 24 10:55 CETCONTENTS
[01] Saab gets massive cash injectionSwedish car manufacturer Saab Automobile AB will get a capital injection totaling 3.48 billion kronor from its owners, Swedish investment company Investor AB and General Motors Corp. of the U.S., Investor said Monday.Each of the owners hold 50% in Saab Automobile and will contribute 1.74 billion kronor. The capital injection will take place during 1996 and 1997. General Motors Corp., together with its European subsidiary Adam Opel AG, will convert a loan to Saab Automobile of 1.143 million kronor to equity and at the same time Investor will pay GM/Opel 830 million kronor. As part of the deal, GM/Opel receives an option to buy Investor's 50% in Saab Automobile during the period 1999 to 2000. If GM/Opel doesn't exercise its right, then Investor has the right to sell half its 50% stake in Saab Automobile to GM/Opel in the year 2000. [02] Bertelsmann set to shelve pay-TV planBertelsmann AG is shelving plans for a pay-TV service in France that threatened its pay-TV partnership with Canal Plus SA in Germany, people close to the situation told Monday's Wall Street Journal Europe.The companies plan to issue a joint statement this week confirming their continued collaboration in the German pay-TV market, according to executives involved. Germany is the centerpiece of a 1994 agreement between Bertelsmann and Canal Plus to develop pay-TV services across Europe. The partnership faltered when Bertelsmann unveiled plans to merge its TV interests with Compagnie Luxembourgeoisie de Telediffusion SA (CLT), which had plans to enter the French pay-TV market. [03] Southern Water takes the high roadU.K. regional water and sewerage utility Southern Water PLC said Monday it will recommend to shareholders that they accept an increased and final takeover bid from Scottish Power PLC.Southern Water said in a statement the offer from ScottishPower of 1,050 pence per share represents a premium of 64 pence (at closing prices June 19, 1996) over the value of a previous offer from regional electricity company Southern Electric PLC. [04] Banks seen taking large chunk of equity in EurotunnelCreditor banks may take up as much as half of the equity of Eurotunnel PLC in a debt reconstruction package being negotiated by the Channel Tunnel operator.According to a report in the Sunday Times newspaper, the proposal now under consideration by the company's co-chairmen, Alastair Morton and Patrick Ponsolle and 225 creditor banks will be put to shareholders at an annual meeting in Paris this Thursday. The deal will include the banks swapping some of the company's 8.8 billion pounds of debt for equity, and lowering the interest rates and extending the repayment of the outstanding debt. [05] Sumitomo Pharmaceuticals recalls drug after contamination fearsSumitomo Pharmaceuticals Co. said Monday it is recalling an infusion agent it imported from Britain-based Wellcome Foundation Ltd. because an insect was found inside a container of the product.The pharmaceutical maker of the Sumitomo Chemical Co. group said the product is Zovirax, a chemotherapeutic agent used against viruses. It has been collecting the agent from medical institutions in Japan since last Friday. Sumitomo Pharmaceuticals said it imported six kinds of the product totaling around 190,000 containers in June and July last year, and distributed them to about 9,000 medical institutions. [06] UK and EU resolve beef disputeBritain and its European partners ended a three-month dispute Friday with a step-by-step plan to eradicate mad cow disease in Britain and gradually lift a global ban on British beef exports.The accord, announced on the first day of a two-day European Union summit meeting, should relieve some of the enormous domestic political pressure on British Prime Minister John Major and allow the EU to focus on important measures that had been put on the back burner. London had retaliated against the EU export ban with a policy of non- cooperation, systematically vetoing all EU legislative and policy measures requiring a unanimous vote. [07] Sumitomo considers suing copper traderSumitomo Corporation is considering a lawsuit against the former trader it blames for losing $1.8 billion in unauthorized copper trades, a company spokesman said today.The giant trading house is investigating the trades, which spanned a decade, and is looking into whether it can take legal action against Yasuo Hamanaka, Sumitomo spokesman Yoshinao Nemoto said. Kyodo News reported the company could sue Hamanaka for breach of trust, but Nemoto could not confirm that. He said there are no definite plans yet to pursue a case against Hamanaka. Sumitomo announced the massive losses last week, blaming them on Hamanaka and saying he acted alone. [08] PolyGram to launch film distribution division in GermanyThe Dutch entertainment company PolyGram NV said Friday it plans to launch its own film distribution operation in Germany next year.PolyGram said the launch, January 1, 1997, is part of the company's ongoing efforts to expand its film distribution activities. The division, to be based in Hamburg, will be headed by Haig Balian, currently joint managing director of PolyGram Filmed Entertainment Benelux. 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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