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Home Blog Page 903

EU concerned by KLM move to buy out Moller-Maersk’s share of Martinair – report

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AMSTERDAM (Thomson Financial) – The European Commission is concerned over Dutch airline KLM-Air France’s intention to buy out co-owner Moeller-Maersk’s shares in Martinair — a move which Martinair says would see KLM become ‘too dominant’ on the Dutch market, according to financial daily Het Financieele Dagblad.

KLM-Air France wants to buy the remaining 50 pct from Danish transport group AP Moeller Marsk, which wants to sell its stake.

The paper says other companies have expressed an interest in the Moeller-Maersk stake and said they are also keen on buying a part of the KLM-Air France share to obtain a majority of the shares.

A spokesperson for KLM responded that it is not interested in selling part of its share.

The stalemate has existed for eight years; P&O; Nedlloyd, which held the shares at the time and subsequently sold them to Moeller Maersk, wanted to sell its stake to KLM.

KLM was interested in buying the share, but the EU prevented the deal from going ahead.

antonia.vandevelde@thomson.com

ava/bsd

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Copyright AFX News Limited 2007. All rights reserved.

The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.

Indonesia’s Pertamina, Russia’s Lukoil ink joint oil exploration/production MOU

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AKARTA (XFN-ASIA) – State oil and gas firm PT Pertamina said it has signed a memorandum of understanding (MOU) with Russia’s Lukoil Overseas to cooperate in oil exploration and production activities in Indonesia, Russia and other countries.

It added that the MOU also lays the groundwork for cooperation between the two in applying the so-called enhanced oil recovery (EOR) technology in depleted oil fields in Indonesia.

Pertamina added that as a follow-up to the MOU, the two firms will set up a steering committee to monitor the activities of their joint projects.

aloysius.bhui@xfn.com

ab/kmq

Pepperidge Farm helps fix grist mill

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NORWALK, Conn. (AP) – Pepperidge Farm Inc. is helping to repair a rare grist mill that inspired the company’s logo.

The upscale baked goods company in Norwalk is donating $15,000 to the 70-year-old Wayside Inn Grist Mill in Sudbury, Mass., to help with renovations that include installing a roof and painting the water wheel.

The mill was used to produce Pepperidge Farm’s flour from 1952 to 1967 and its image has been the company’s logo for 44 years.

The Wayside Inn Grist Mill opened in 1929, drawing attention to the inn, which dates to 1716.

Henry Wadsworth Longfellow’s visit to the inn in 1862 is credited with inspiring the poet to write ‘Paul Revere’s Ride,’ and one-time owner Henry Ford incorporated the inn as a nonprofit entity in 1944.

The grist mill is now a museum that provides the Wayside Inn with flour for its baked goods and for sale at its gift shop. It also serves as an educational resource for school children and other visitors.

Pepperidge Farm is owned by Campbell Soup Co.

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

UBS raises platinum, palladium forecast on expected ETF launches

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LONDON (Thomson Financial) – Recent strong interest for palladium and platinum Exchange Traded Funds (ETF) has prompted analysts at UBS Investment Bank to raise their price forecasts for the two metals.

Zurich Cantonal Bank’s announcement last Friday that platinum and palladium ETFs will be listed on the SWX market in Switzerland on May 10 have boosted prices of the two metals and raised speculation they could go higher still.

ETFs trade commodity futures and back up every ounce of stock bought on paper with the actual physical commodity. As a result, the launch of an ETF often squeezes the market as it eats up the amount of physical stock available.

The bank said it has ‘modest ambitions for the platinum and palladium ETFs’, expecting they will take only 70,000 ounces of platinum and 200,000 ounces of palladium off the market within a year.

‘We suspect this is too conservative,’ said UBS Investment Bank analyst John Reade. ‘Hedge funds and private investors have been historically active in the platinum group metals and we would not be surprised if the…ETFs attract considerable interest from these investors.’

UBS now expects both metals will surge going forward, with platinum hitting 1,350 usd an ounce and palladium reaching 420 usd over the next three months, an upgrade from previous estimates of 1,300 usd and 380 usd respectively.

anealla.safdar@thomson.com

ma

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The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.

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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The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.

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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The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.

AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited

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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The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.

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