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Danisco to pay Novozymes 15.3 mln usd following Spezyme ethyl patent case

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COPENHAGEN (Thomson Financial) – Danisco AS said it will pay competitor Novozymes AS a total of 15.3 mln usd, which includes patent infringement damages of 8.2 mln usd, following the settlement of a patent dispute over the enzyme Spezyme ethyl, which is used in the production of bioethanol.

The payment will not impact Danisco’s 2006/07 earnings expectations since a provision for the amount was previously made, Danisco said.

Novozymes AS said the total settlement amount, which is due for payment immediately, will have a positive net impact on its 2007 operating profit of 75-80 mln dkr.

The parties have concluded an agreement on reciprocal waiving of the right to appeal the court’s decision of first instance on the issue, it added.

Danisco announced on February 19 that a federal court in Delaware found it had infringed Novozymes’ patent for the enzyme.

The case began in March 2005, when Novozymes brought patent infringement litigation against Genencor International Inc, which was subsequently acquired by Danisco.

gustav.sandstrom@thomson.com

gs/jag

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ING Real Estate acquires 12,000-square metre retail park in Austria – UPDATE

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(Updating with acquisition price)

AMSTERDAM (Thomson Financial) – ING Real Estate has acquired a 12,000-square meter shopping centre in Austria, the company said.

A company spokesperson confirmed this afternoon that ING paid 25.5 mln eur for the property.

Shopping Centre 17 in Brunn am Gebirge, Austria, will form part of the ING Real Estate Property Fund Central and Eastern Europe, which the company launched last year.

The retail park, which opened in 1996, is currently being leased to 14 tenants.

ING said the property is ‘located in a very popular retail area comprising 325,000 square metres of retail space.’

The area is home to Shopping City Sud, one of the largest shopping centres in Europe.

Dave van Ginhoven, +31-6-14496797, dave.vanginhoven@thomson.com

dvg/ic/dvg/ic

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Hawaii has great energy potential

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HAWI, Hawaii (AP) – With its ocean breezes, ample sunlight, pounding waves and a continuously erupting volcano, Hawaii seems blessed with the means to produce clean electricity and achieve energy independence.
But that isn’t anywhere close to happening. For one thing, the technology isn’t quite ready.

The big drawback with wind and solar energy, for example, is that the flow of electricity stops when the breeze dies down and the sun sets. Since there is no good way to store the power for use later, homeowners need conventional electrical service — meaning fossil fuel-burning plants — as a backup.

‘Our community understands the time is now to think about these things, and yet we demand that they keep the lights on,’ Mike Gresham, vice president for UPC Hawaii Wind Partners, which runs the state’s largest wind farm, consisting of 20 turbines on Maui.

And so, despite rising prices, oil and coal are still the most reliable and convenient energy sources in Hawaii.

In fact, Hawaii relies on imported fossil fuels more than any other state, with about 90 percent of its energy coming from foreign countries and most of the rest coming from renewable resources in 2005, according to state data.

The United States as a whole imports 30 percent of its energy, with 6 percent from renewables, according to the Energy Information Administration.

The major reason Hawaii is so dependent on foreign oil is that it is way out in the middle of the Pacific, far from the pipelines, electrical transmission lines and coastal oil fields on the U.S. mainland. Fuel can be easily delivered aboard Asian tankers instead.

With world demand for electricity climbing ever higher, Hawaii passed a law last year that calls for one-fifth of the state’s energy to come from renewable sources by 2020.

Things are clearly moving in that direction. Among the renewable-energy projects under way is a $200 million Maui wind farm that will power 15,000 homes starting in 2008.

But solar and wind power still account for a very small percentage of the energy consumed in Hawaii.

The problem with solar power is that the sun sets just when electricity customers need electricity the most, between 5 p.m. and 9 p.m. So far, solar power has not proven feasible for producing electricity in Hawaii, but an estimated 80,000 homes and other facilities are served by solar water heaters.

As for wind, ‘you need a storage method that can come in and back that up’ whenever the breeze dies down, said Karl Stahlkopf, president of Renewable Hawaii, a subsidiary of Hawaiian Electric Co.

The Big Island, for example, has a wind farm in Hawi with 16 windmills turned by the tropical breeze. The 100-foot turbines can generate enough electricity for more than 1,200 homes.

During one recent afternoon, however, the tradewinds were so weak that only eight of the turbines were turning, forcing the local electric utility to compensate with other energy sources to avoid power shortages.

‘The potential is huge. We are not lacking the resources,’ said Maurice Kaya, chief technology officer for the Hawaii Department of Business, Economic Development and Tourism. ‘There may be technological solutions to this intermittence, but we are not there yet.’

One potentially more reliable source of clean power is geothermal energy. Geothermal equipment draws heat from the molten rock deep within the Earth’s crust to drive turbines. Hawaii, the home of Mount Kilauea, is a place of great volcanic activity.

The big advantage of geothermal energy is that it is an uninterrupted source of power.

‘Unlike wind, geothermal is just like fossil fuel — we keep on producing,’ said Barry Mizumo, a consultant for Puna Geothermal Venture, which contributes 15 percent of the Big Island’s peak power capacity.

Several businesses are also working on early efforts to take advantage of Hawaii’s world-famous waves and harness the power of the tides. And Hawaii’s electric utilities plan to convert plants to burn biofuels such as palm vegetable oil by 2009, Stahlkopf said.

Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Citigroup trying to lure Vikram Pandit via buyout of his hedge fund – report

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HONG KONG (XFN-ASIA) – Citigroup Inc is looking to bring on board veteran Wall Street executive and former Morgan Stanley official Vikram Pandit for a top job at the financial services group, the Wall Street Journal reported, citing people familiar with the matter.

It said that Citigroup is trying to lure Pandit by buying Old Lane LP, the hedge-fund firm that Pandit launched last year with other Morgan Stanley alumni, in a deal that could exceed 600 mln usd.

The talks are still in progress, and could fall apart without an agreement, the report said.

If the deal is completed, Pandit would become chief executive of Citigroup’s alternative-investments unit, bringing him into Citigroup Chief Executive Charles Prince’s top management team, it said.
Pandit also would join a small circle of Citigroup executives considered strong candidates to one day succeed Prince, the paper noted.

A Citigroup spokeswoman declined to comment, while Pandit and other Old Lane officials were not available for comment, it said.

rc/

China exempts locally incorporated foreign banks from certain taxes – Xinhua

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BEIJING (XFN-ASIA) – The Ministry of Finance and State Administration of Taxation have jointly issued a circular on taxation exempting locally-incorporated foreign banks from certain taxes, the official Xinhua news agency reported.Xinhua said the circular covers business tax, value-added tax, corporate income tax, stamp tax, and real estate transaction tax.The circular relates to the Regulations on Foreign-funded Banks issued in November 2006, which allow the incorporation in China of foreign banks and the transformation of their branches as wholly-owned foreign banks on the mainland.In the process of transformation, the circular says, the transfer of property rights and equities from a former bank branch to the transformed wholly-owned foreign bank is exempted from business and value-added taxes, according to Xinhua.A transformed wholly-owned foreign bank should continue to enjoy tax holidays which the former bank branch had enjoyed. If the tax holidays expire before the branch’s full transformation, the new wholly-owned foreign bank will cease to enjoy such benefits, according to the circular.

BAA’s Budapest Airport faces 2-day baggage handlers strike – report

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BUDAPEST (AFX) – Unions at Budapest Airport’s ground handling company Celebi have called a two-day strike from 3.30 pm today to 3.30 pm Saturday, Hungarian news wire MTI reported, citing Attila Csorba, head of air industry union LDFSZ.

Staff at Celebi, which took over ground handling last summer at Ferihegy International airport, which is operated by Grupo Ferrovial unit BAA, have called the strike because of a breakdown in wage talks.
Staff are pushing for a 10 pct wage hike with a further 5 pct performance related rise, while Celebi’s management are offering a 4 pct basic increase with a further 3 pct performance related.
Significant delays are expected but it is not known is flights will be cancelled.

The strike will not affect Malev or SkyEurope flights as the two companies have their own baggage handlers.

edward.krudy@thomson.com

ek1/jlw

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Merrill personnel to be retried on Enron

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HOUSTON (AP) – Three former Merrill Lynch & Co. executives whose 2004 fraud and conspiracy convictions connected to an Enron Corp. deal were overturned last year will be retried in January, a judge said Wednesday.
James A. Brown, Daniel Bayly and Robert S. Furst were convicted of conspiracy and wire fraud for helping push through Enron’s sham sale of three power barges moored off the coast of Nigeria to the brokerage in 1999.
Jurors also convicted William Fuhs, a fourth Merrill Lynch executive, as well as Dan Boyle, a former Enron finance executive. The jury acquitted in-house Enron accountant Sheila Kahanek.
A three-judge panel of the 5th U.S. Circuit Court of Appeals in New Orleans last year overturned most of the convictions against Brown, Bayly and Furst. The cases were sent back for prosecutors to decide how to proceed.
Fuhs had his convictions erased for lack of evidence and cannot be retried. Boyle did not appeal and is serving a three-year, 10-month prison term.
While federal prosecutors and defense attorneys for Bayly, Brown and Furst said they have been open to some sor24t of plea deal to avoid a second trial, both sides said such discussions have been unsuccessful.
‘We are planning on getting ready for trial,’ said Paul Coggins, Furst’s attorney. ‘Our clients don’t relish the thought of going through another trial. We had hoped it was over.’
Assistant U.S. Attorney Arnold Spencer said prosecutors were still open to some sort of plea deal.
‘But we are committed to going to trial,’ he said.
Dan Cogdell, Brown’s attorney, said he is hoping to resolve the case with a civil resolution through a settlement with the Securities and Exchange Commission.
‘There are going to be some pretty serious attacks on these charges,’ said Thomas Hagemann, an attorney for Bayly.
U.S. District Judge Ewing Werlein Jr. scheduled jury selection for the retrial to begin Jan. 28 in Houston federal court. The retrial was expected to last three to four weeks.
Bayly, Merrill Lynch’s former head of investment banking, and Furst, Merrill’s former Enron relationship manager, are free on bond. Bayly was serving a 2 1/2-year sentence. Furst was serving a sentence of three years and a month.
Brown, originally sentenced to a three-year, 10-month term, remains in prison. The appeals court upheld his convictions of perjury and obstruction of justice for lying to a grand jury about the nature of the deal. His attorneys are appealing that decision.
Bayly, Brown and Furst appealed their convictions on several grounds, including problems with jury instructions and the government’s arguments of criminal liability and deprivation of honest services.
In the first trial, prosecutors argued the sale of the three power barges was really a loan because Enron promised to resell or buy back Merrill’s $7 million interest within six months.
The appeals court said the scheme fell outside the limits of honest-services fraud because the executives acted to ensure that the company benefited and not themselves personally.
Spencer filed a motion Wednesday to remove all references to deprivation of honest services in the indictment, and he said this theory will not be part of the retrial.
‘It will be a much simpler trial than the first time around,’ Spencer said.
But defense attorneys disagreed.
‘I think it’s going to be far more complex than the government thinks,’ Coggins said.
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

FInmeccanica wins 80 mln eur German frigate orders

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MILAN (AFX) – Finmeccanica SpA said its unit Oto Melara has won two contracts for a total value of 80 mln eur from the German defence ministry to supply gun systems for German naval frigates.

The first contract worth 70 mln eur is for the supply of five lightweight naval guns, four of which are to be installed on new F125 frigates and the fifth used for training, it said.

The second 10 mln eur contract is for the supply of remote-controlled naval gun turrets, it said.

Final contracts are expected to be signed in the third quarter, it said.

nigel.tutt@thomson.com

nt/jsa

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Helsinki shares slightly higher at midday led by Nokia

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HELSINKI (AFX) – Helsinki shares were slightly higher in midday trade led by Nokia amid a lack of market-moving news, brokers said.

At 12.32 pm, the OMX Helsinki 25 was 0.25 pct firmer at 3,125.91 and the OMX Helsinki was up 0.31 pct at 10,425.27 on volume of 471 mln eur.

Nokia was 0.41 pct higher at 17.26 eur, being the most traded share, it led to the market into the black, traders said.

Among industrials, Outokumpu was little changed — down 0.04 pct to 26.13 eur, Wartsila was 0.43 pct lower at 46.45 eur, while Rautaruukki advanced 2.30 pct to 36.01 eur.

Of the paper issues, UPM-Kymmene climbed 0.26 pct to 19.29 eur after it said it has signed an agreement to sell its UPM-Asunnot Oy unit to Finnish-Danish company Waterhouse Real Estate Investment Oy, adding that it will book a 35 mln eur capital gain from the sale.

Peers were also firmer, with Stora Enso up 0.08 pct to 13.06 eur and M-real 0.85 pct lower at 5.83 eur.

Energy stocks were also in positive territories, with Fortum adding 0.32 pct to 22.09 eur and Neste Oil putting on 1.06 pct to 25.69 eur.

Metso — down 2.93 pct to 39.72 eur, Nokian Tyres — 1.31 pct lower at 20.40 eur and Kemira GrowHow — unchanged at 10.00 eur were all trading ex-dividend.

Metso said its Minerals unit has won an 8 mln eur contract to supply France’s GDE Group with a metal recycling plant.

azer.sawiris@thomson.com

afs/rfw

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ITV and ITN sign new six-year contract for ITV news worth over 250 mln stg

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LONDON (AFX) – ITN said that it has agreed a new contract worth over 250 mln stg with ITV for the production of ITV News until the end of 2012.

As part of the deal, ITV is investing more than 15 mln stg in a technological upgrade of ITN’s operations, said ITN.

newsdesk@afxnews.com

ro

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