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Sunday, 24 November 2024
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European Business News (96-06-28)European Business News (EBN) Directory - Previous Article - Next ArticleFrom: The European Business News Server at <http://www.ebn.co.uk/>Page last updated June 28 15:40 CETCONTENTS
[01] Lockheed Martin to cut £150m from Nimrod pact bidThe contract to replace the existing Nimrod airplane is heavily contested, with Lockheed Martin offering a new design incorporating GEC-Marconi electronics.British Aerospace has offered a lower-cost partial rebuild of the Nimrod. Lockheed Martin and GEC have asked the Ministry Of Defence for a 90-day grace period to prepare a lower bid in an effort to compete with British Aerospace's refurbishment cost. Lockheed Martin says it can offer a reduced bid because it will use an existing management team from its recently acquired Loral unit. Lockheed also said U.K. contractors have given their assurances to cut costs in an effort to secure the order. [02] Lonhro decides against spinoffU.K. conglomerate Lonrho PLC said Friday it has decided against a traditional spinoff of its mining and non-mining businesses because of 'significant tax and other commercial disadvantages.'Announcing a 15% rise in pretax profit for the six months through March, Lonrho said it is considering other options, including the flotation of its non-mining businesses. The company also announced plans to buy out the one-third stake in its U.K. Metropole Hotel chain held by Libyan Arab Foreign Investment Co. for $389 million. [03] Clinton and Hashimoto agree to work togetherAt the G7 meeting in Lyon, US president Bill Clinton and Japanese Prime Minister Ryutaro Hashimoto have agreed to work to settle trade disputes. But Japan will maintain its stance against a governmental accord in the semiconductor trade talks with the United States, a senior official of the Ministry of International Trade and Industry (MITI) said Friday.The official thus denied speculation that a political settlement will be made in the computer chip trade row. [04] German bundestag set to vote on reform packageThe German bundestag is today scheduled to vote on Chancellor Kohl's 50 billion Deutsche mark reform package aimed at meeting the Maastricht criteria for a single currency, and stimulating the economy. The package's spending cuts are highly controversial and have provoked widespread public opposition from the unions.[05] Spain's Cabinet Approves Privatization PlanThe Spanish cabinet approved Friday the method by which the Spanish government intends to privatize four groups of state-held businesses, according to national newswire EFE.The agreement fixes the method by which the privatizations will occur, grouping the businesses and sectors into four groups. In the first, 'immediately' privatizable group, as approved by the cabinet, will be energy company Repsol SA, natural gas company Gas Natural SDG S.A., Argentaria Corp. Bancaria de Espana S.A., telecommuncations company Telefonica de Espana S.A., and possibly tobacco company Tabacalera S.A.. Under current law, no shares of a public company can be privatized within a year of its last privatization. This means that the supposed 'immediate' privatization of Repsol and Argentaria shares at least are out - unless by decree or Parliamentary approval, the law is changed. Also, under current law state participation in a company being privatized cannot drop below 15%, unless a special law for its case is passed. This is how the state managed to drop its holding of Repsol down to 10%. Another law would be needed, under the current system, for the state's Repsol participation to be dropped any further. This means that, even under the new plan, only Gas Natural, Tabacalera and Telefonica could see privatizations in 1996; Repsol and Argentaria would have to wait until 1997. [06] Sumitomo pledge to help market manipulation probeJapanese trading house Sumitomo Corp. pledged full cooperation Friday in an international probe into whether its 1.8 billion dollar loss in copper trading resulted from a failed attempt to manipulate the international copper market.Sumitomo officials said the promise to cooperate was made by Executive Vice President Takehiko Yonezu during a meeting with investigators from the United States and Britain. But Yonezu said Sumitomo could not help the investigators contact Yasuo Hamanaka, the former head of Sumitomo's copper trading division, because he has been fired and the company has no authority to order him to appear. [07] Bundesbank says economic recovery possibleThe German economic slowdown has bottomed out and signs are increasing that there will be a recovery in the second half of 1996, the country's top monetary official said Thursday. Germany's central bank president Hans Tietmeyer said he is 'happy' with the Deutsche mark's depreciation from over-extended strength over the past year against the dollar and other European currencies.But the end to the correction has been reached, at least for now, he added. Speaking at a press conference, Tietmeyer said he is 'happy with the mark's normalization' and believes its correction has now been completed. The official discount and Lombard rates remain at their respective 2.50% and 4.50% in effect since April 19, when they fell a half percentage point. [08] Eurotunnel says sales have doubled but debt still a problemEurotunnel SA financial director Graham Cordett said on Thursday that the group's sales in the first five months of 1996 'were double those for the same period in 1995.' He was speaking at the company's annual meeting.Shareholders of Anglo-French Channel Tunnel operator Eurotunnel were planning a protest rally to oppose the company's debt restructuring plans at the annual general meeting. There will be a second shareholder meeting in London Friday, but the Paris one will draw the protests because it's first and most of the shareholders are in France. Page last updated June 28 15:40 CETNotwithstanding recent reports in the U.K. and French press, expectations are low that the company will announce that it has reached an agreement with creditor banks to restructure its 8.8-billion-pound debt. 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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