News Desk | Page 859 Of 893

Finmeccanica to win govt order for 14 trainer aircraft – junior minister UPDATE

News

Sam Allcock

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28 May 2007

MILAN (Thomson Financial) – Italy’s armed forces intend to acquire 14 M-346 advanced fighter trainer aircraft from Finmeccanica SpA unit Alenia Aermacchi, said defence under-secretary Lorenzo Forcieri.

Speaking in the margins of a conference, Forcieri said: ‘The defence ministry has written in the last few days to the economic development minister about the request for 14 planes.’

An Aermacchi official said the Italian air force recently carried out tests on the M-346, adding he believed the outcome was positive.

The M-346 two-engine jet trainer exists in the form of two prototypes, while production of the first production model has started, he said.

The range of configurations for the plane make it difficult to give a price, he said, noting previous basic jet trainer planes cost 10 mln eur.

nigel.tutt@thomson.com

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Oil rig count rises by 16

News

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25 May 2007

0

HOUSTON (AP) – The number of rigs actively exploring for oil and natural gas in the United States increased by 16 this week to 1,760.
Of the rigs running nationwide, 1,471 were exploring for natural gas and 287 for oil, Houston-based Baker Hughes Inc. reported Friday. Two were listed as miscellaneous.

A year ago, the rig count stood at 1,649.

Of the major oil- and gas-producing states, Oklahoma gained 12 rigs, Texas gained five, Wyoming gained four and Alaska and New Mexico each gained one. Colorado lost nine rigs and Louisiana lost one. California was unchanged.

Baker Hughes has tracked rig counts since 1944. The tally peaked at 4,530 in 1981, during the height of the oil boom. The industry posted several record lows in 1999, bottoming out at 488.

National Bank of Greece CEO sees more local M&A; developments in banking system

Finance

ABC Staff

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25 May 2007

0

ATHENS (Thomson Financial) – National Bank of Greece CEO, Takis Arapoglou, said that as the Greek economy matures we should expect more mergers and acquisitions with the aim of achieving economies of scale and exploiting synergies.
Speaking at National’s AGM, the CEO said that in the local banking system we can expect the emergence of even larger banks which will become even more competitive on a European level.
‘Overseas three large banks control 80 pct of the banking system, I expect similar developments here if we don’t become an exception to the rule,’ Arapoglou added.
Source: Euro2day.gr NewsWire
nick.skrekas@thomson.com
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Danone denies JV with India’s Britannia; to proceed with solo plans – report

News

Sam Allcock

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25 May 2007

0

MUMBAI (Thomson Financial) – Food producer Groupe Danone has defended its investment in an Indian food ingredient intermediaries manufacturer by denying it has joint venture status with another Indian company in a similar market, something that would make the investment illegal under Indian regulations, the Economic Times reported.

Danone told the Indian government that it is not a joint venture partner with Britannia Industries and its 25 pct shareholding in the Indian snack food maker is through a joint venture with the Wadia Group in the UK, and not in India.

The clarification was in response to a set of government queries, prompted by a complaint from Wadia’s chairman Nusli Wadia, who told the ministry of commerce and industry that Group Danone’s investment in Bangalore-based Avesthagen was in violation of the government’s Press Note 1, 2005.

In a letter dated May 10, the French food giant clarified that it does not have a formal technology transfer or trademark agreement with the Indian company, supporting its argument that it does not need any permission either from Britannia or the Wadias for making investments in India.

The note requires a foreign company to obtain the consent of its Indian joint venture partner before pursuing an independent business in a similar area, and also applies to a joint venture based purely on technical collaboration.

Danone said its 25 pct holding in Britannia is only indirect in nature and does not apply to Press Note 1, and informed the government that it was going ahead with its independent plans for India.

TFN.newsdesk@thomson.com

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Jones Soda chases down Qwest Field deal

News

Sam Allcock

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24 May 2007

0

SEATTLE (AP) – Cola, diet cola or … grass-stain flavored soda?

That’s a choice Seattle Seahawks fans might be making at home-field concession stands starting in August, thanks to a five-year deal announced Wednesday between Qwest Field and local soft-drink maker Jones Soda Co.

Jones Soda, with annual revenue of $39 million in 2006, unseated The Coca-Cola Co., which sold $24 billion in goods last year, as the sole provider of nonalcoholic beverages at the NFL team’s stadium.

At Qwest Field, fans will be able to buy Jones Soda as a fountain drink, in cans and in plastic bottles the company is developing for the venue.

Jones Soda is known for kooky limited-edition flavors (turkey and gravy — and antacid — from a holiday 2006 collection), bright colors (blue bubble gum) and labels with striking photographs, some submitted by consumers. The company’s soda line started with six flavors in 1996.

Fans will still be able to order a cola at Qwest Field, said Jones Soda’s chief executive officer, Peter van Stolk, but unlike Coke, it will be sweetened with sugar instead of high-fructose corn syrup.

The CEO said he’s also playing around with ideas — including ‘grass stain’ — for a signature Seahawks flavor. (Actually, Qwest Field is covered by FieldTurf, an artificial surface.)

As part of the deal, Jones Soda will be an official sponsor of the Seahawks; van Stolk said the company plans to print photos of team members and fans on plastic bottles sold at the stadium and on glass bottles sold at stores. The ability to customize bottles with photos was a key selling point during negotiations with the stadium and the team, van Stolk said.

‘We want to give the fans a really cool experience. Jones Soda is not Coca-Cola, and we will do things differently,’ van Stolk said in an interview. ‘The Seattle Seahawks are our football team. That’s reality. I care about if they go to the playoffs. I care about what the score is.’

The agreement is set to expire Feb. 28, 2012, and Jones Soda has first right to renew or extend the deal, according to a Securities and Exchange Commission filing.

Qwest Field and the Seahawks did not return calls seeking comment.

Shares of the soda company jumped $1.65, or 8.3 percent, to $21.64 on Wednesday.

Forex – Dollar firm after Lacker comments

News

Sam Allcock

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23 May 2007

0

ONDON (Thomson Financial) – The dollar remained relatively firm against its major rivals as the market scaled back its expectations for an imminent interest rate cut from the US Federal Reserve.

Those expectations were diminished overnight when Jeffrey Lacker, a non-voting Fed official, said upside risks to inflation remain and that he is comfortable with interest rates at 5.25 pct at the moment.

‘US bond yields have moved higher inspired by hawkish comments by Lacker,’ said Ian Stannard, currency strategist at BNP Paribas.

With no major US economic data until tomorrow’s durable goods news, analysts said the dollar is likely to retain a solid tone through the day.

‘Although we don’t see a sustainable dollar rally for now, the dollar may be able to defend its position today,’ said Gavin Friend, currency strategist at Commerzbank Corporates & Markets.

Elsewhere, attention will focus on the US/China talks in Washington and what tone US Treasury Secretary Hank Paulson takes with regard to last week’s recent move to widen the yuan’s fluctuation band against the dollar.

Any comments from the Chinese on the pace of yuan reform will be crucial and whether they manage to stave off rising protectionist sentiment in the US.

Before then, the pound is likely to be in focus with the publication of the minutes to the last rate-setting meeting at the Bank of England.

The vote is expected to have been 8-1 in favour of the quarter point rise in the base rate to 5.50 pct, with David Blanchflower voting to keep rates unchanged.

However, sterling markets will be interested to see if there was much or any discussion on the possibility of raising rates 50 basis points to 5.75 pct, and whether any of the nine members voted for this.

The quarterly Inflation Report, released since the rate rise, indicated that interest rates are likely to have to reach 5.75 pct if inflation is to be brought down to the bank’s 2.0 pct target.

London 0822 BST Sydney 1:56 pm (0356 GMT)

US dollar

yen 121.71 up from 121.69

sfr 1.2280 down from 1.2294

Euro

usd 1.3445 down from 1.3454

yen 163.65 down from 163.73

sfr 1.6511 down from 1.6541

stg 0.6808 down from 0.6813

Sterling

usd 1.9753 up from 1.9745

yen 240.34 up from 240.30

sfr 2.4245 down from 2.4276

Australian dollar

usd 0.8213 up from 0.8207

stg 0.4157 up from 0.4152

yen 99.95 up from 99.850

pan.pylas@thomson.com

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Australian shares close lower on profit taking – UPDATE

News

Sam Allcock

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22 May 2007

0

SYDNEY (XFN-ASIA) – Share prices ended down as investors locked in profits following yesterday’s run into record territory, dealers said.

They said selling was focused on the banks while resource and energy stocks gained after metal and oil prices rose in overnight trading, cushioning the market from a greater retreat.

The S&P;/ASX 200 closed down 30.2 points or 0.47 pct at 6,338.8, falling from yesterday’s record finish of 6,369.0.

The All Ordinaries index lost 22.3 points to close at 6,350.2, also down from its previous record close of 6,372.4 set yesterday.

AWB retreated again after the federal government announced the company would not continue marketing Australian wheat in offshore markets from March 2008. Yesterday, further class action was filed against the AWB in the US alleging violations of anti-trust and racketeering laws.

AWB shares slumped 0.37 aud or 10.00 pct to finish at 3.33 aud.

However, Queensland Cotton Holdings surged after the company received a 149.8 mln aud takeover offer from France’s Louis Dreyfus Commodities, countering a 134 mln aud offer from Singapore-based agricultural products supplier Olam International.

Queensland Cotton shares jumped 0.36 or 7.05 pct to close at 5.47.

AIM Resources soared after reporting positive first drilling results on its Mumbwa copper-gold joint venture with BHP Billiton in Zambia. AIM Resources’ shares surged 0.095 or 45.24 pct to end at 0.135.

A total of 1.96 bln shares worth 5.99 bln aud was traded, with falls outnumbering rises 654 to 606 while 374 stocks were unchanged.

The S&P;/ASX200 June futures contract was up 1.0 point at 6,371.0.

The 10-year bond yield fell 0.0055 to 5.972 pct while 90-day bills were up 0.007 at 6.357 pct.

Aequs Securities head of institutional trading Ric Klusmam said profit-taking set in during afternoon trading.

‘There has been a bit of a sell-off, particularly in the banks, but that’s only after a very strong run,’ Klusman said.

He said overnight rises in oil, gold and base metal prices saw support for the resources sector which meant the market’s overall losses were limited.

‘It was a fairly ordinary day with a few highlights – ABC Learning jumped after its earnings upgrade and Leighton was strong again, hitting another record high,’ Klusman said.

He said merger and acquisition talk continued, with Foster’s again being talked about as a potential target even though the brewing and wine group’s share price fell today.

Klusman said Qantas defied gravity, making further gains even though the airline company’s chairman Margaret Jackson warned yesterday that the share price could fall if hedge funds, which bought the stock during a failed takeover attempt by the Airline Partners Australia consortium, exit the stock.

He said investors were buying on expectations that Qantas could to return up to 2.2 bln aud to investors.

‘They are talking about a capital return but on the other hand, Qantas has a big capex program ahead of it – they are buying a lot of planes,’ Klusman said.

National Australia Bank fell 0.31 to close at 42.78, Commonwealth Bank dropped 0.48 to 54.95, ANZ retreated 0.31 to 29.62 and Westpac shed 0.27 to 26.70.

Macquarie Bank was down 2.30 at 94.70.

QBE lost 0.13 to 32.32, AMP also fell 0.13 to 10.27, IAG shed 0.12 to 6.04 and Suncorp was down 0.16 at 21.68.

News Corp regained 0.13 to 28.98 and its non-voting stock rose 0.19 to 27.04.

Telstra eased 0.05 to 4.80, its T3 receipts were also down 0.05 at 3.34 while SingTel slipped 0.03 to 2.77.

BHP climbed 0.19 to 31.37 and Rio Tinto advanced 0.31 to 92.60.

Alumina added 0.04 to 7.62, Jubilee Mines rose 0.20 to 18.88, Kagara Zinc jumped 0.57 to 6.75 but Zinifex fell 0.10 to 17.60.

Newcrest was up 0.10 at 22.34 but Lihir Gold fell 0.06 to 3.17 and Oxiana eased 0.03 to 3.27.

Paladin advanced 0.49 to 9.25, Summit gained 0.30 to 5.55 and ERA rose 0.32 to 25.06.

Woodside climbed 0.40 to 43.70, Santos rose 0.21 to 12.95, Oil Search added 0.02 to 4.02 and Roc Oil gained 0.05 to 3.53.

James Hardie lost 0.19 to 8.90 while Rinker added 0.04 to 19.36.

Qantas gained 0.05 to 5.32, Virgin Blue rose 0.04 to 2.59 and Air New Zealand added 0.03 to 2.49.

Woolworths dropped 0.21 to 28.50, Coles fell 0.10 to 17.60 and Wesfarmers lost 0.39 to 38.27.

Foster’s retreated 0.08 to 6.34 but Lion Nathan rose 0.09 to 9.17.

CSL climbed 0.21 to 96.14 while Cochlear shed 0.94 to 61.96.

APN added 0.02 to 5.80, PBL was up 0.01 at 20.93 but Seven Network slipped 0.11 to 11.40.

ABC Learning jumped 0.47 or 6.66 pct to 7.53 after an earnings outlook upgrade.

(1 usd = 1.22 aud)

paul.daniel@xfn.com

BA orders 8 Airbus A320 aircraft for delivery between 2008 and 2010

News

Sam Allcock

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18 May 2007

0

LONDON (Thomson Financial) – British Airways has ordered 8 new Airbus A320 aircraft for delivery between 2008 and 2010.

The airline said the order is the first step towards a single short-haul fleet across its network.

BA also said it will upgrade its Gatwick short-haul fleet by replacing the oldest 14 Boeing 737s with Airbus A319 aircraft.

‘We have made considerable progress at Gatwick, particularly on costs,’ said chief executive Willie Walsh. ‘Gatwick is an important part of our short-haul strategy and replacing the older Boeing 737 fleet with Airbus aircraft will give us flexibility across both airports This is the first step towards a single short-haul fleet.’

paul.sandle@thomson.com

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Sprint Nextel pays $57M to settle

News

ABC Staff

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18 May 2007

0

KANSAS CITY, Mo. (AP) – Sprint Nextel will pay $57 million to settle a class-action lawsuit claiming it targeted older workers during layoffs, the wireless company said Friday.
The settlement, included in a motion filed in U.S. District Court in Kansas, would cover 1,697 former employees who were laid off between Oct. 1, 2001, and March 31, 2003.
Sprint Nextel Corp., based in Reston, Va., with operational headquarters in Overland Park, Kan., acknowledges no wrongdoing in the settlement.
‘We elected to settle this case so that we can continue to focus on the business,’ said company spokesman Matt Sullivan.
It’s the company’s second settlement on age discrimination claims in a year. Sprint agreed last May to pay $5.5 million to 462 former employees in a lawsuit filed in federal court in Atlanta.
Under the newest agreement, 11 people who have served as lead plaintiffs in the case would receive an average of $155,000 each.
The plaintiff’s attorneys would receive $19.4 million in fees, plus an additional $1.65 million to cover the process of confirming the settlement.
The remaining 1,686 plaintiffs would split the leftover $34.3 million, or an average of $20,332 apiece.
‘Because of the risks involved, this is a way to allow the folks we represent to resolve this and move forward with their careers,’ said Dennis Egan, an attorney for the plaintiffs.
U.S. District Judge John Lungstrum still must decide if the agreement is reasonable. If so, notices of the proposed settlement would go to plaintiffs and a final hearing would be scheduled to hear concerns from plaintiffs and potentially approve the agreement.
The suit, filed in 2003, claims then-Sprint Corp. illegally moved employees 40 and over to positions that were then eliminated as part of the company’s downsizing efforts.
Federal age discrimination laws forbid employers from targeting older workers disproportionately during layoffs.
In the settlement, both sides said the case has been a paperwork nightmare, generating more than 1.5 million pages of documents and 20 discs of computerized records and 500 depositions.
Shares of Sprint Nextel were up 26 cents at $20.78 in afternoon trading Friday on the New York Stock Exchange, where they have traded in a 52-week range of $15.92 to $23.21.
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Alcatel-Lucent loses employee data

News

Sam Allcock

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17 May 2007

0

MURRAY HILL, N.J. (AP) – Telecom and networking equipment maker Alcatel-Lucent said Thursday that a computer disk containing personal information about Lucent employees, retirees and their dependents was lost.

The disk was prepared by Hewitt Associates for delivery by UPS to Aon Corp., another vendor, and was lost or stolen some time between April 5 and May 3.

The disk included Lucent employees’ names, addresses, Social Security numbers, birth dates and salary information.

The company said the disk did not include customer information.

‘We recognize that we have a responsibility to carefully protect this type of information and deeply regret this loss,’ said Frank D’Amelio, chief administrative officer for Alcatel-Lucent.

Shares of Alcatel-Lucent were trading at $13.31 in the after-hours session, up a penny from Thursday’s closing price of $13.30.

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