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;AFP;CD ANPAf..r.. Brief-CNAC-airline Air China takes majority stake in Hong Kong-listed CNAC JP/HONGKONG Air China gets top stake in CNAC

HONG KONG: China's flagship carrier Air China has been handed a controlling stake in Hong Kong-listed aviation services company China National Aviation Co Ltd (CNAC), the airline said on Monday.

The 69-percent slice of the company was transferred to the carrier as part of a deal to increase the attractiveness of Air China ahead of a planned international listing, reports said.

In exchange for the capital injection, CNAC's parent, CNAC Group, has been made a 22.5-percent shareholder in the airline, which is expected to be floated for around US$500 million to $600 million later this year, or early next year.

Air China is the principle airline in China, flying to 69 domestic and 34 international destinations. --AFP

;AFP; ANPAf..u.. Netherlands-food-retail Dutch food giant Ahold sells off Spanish operations JP/NETHERLANDS Ahold sells off Spanish operations

ZAANDAM, Netherlands: The Dutch food retailing giant Ahold said on Sunday it had sold its operations in Spain to the private equity investment firm Permira Funds for about 685 million euros (US$850 million).

Ahold, the third biggest company in the world in its sector, said last November it wanted to dispose of its Spanish operations, which include 600 supermarkets and hypermarkets in mainland Spain and the Canary Islands.

They had a turnover of two billion euros in 2003.

The deal, due to be finalized by the end of the year, is part of the review of the group's activities undertaken by its management after a financial scandal in 2003 which brought Ahold to the brink of bankruptcy.

Ahold also hopes to sell off its Bi-Lo chain of supermarkets in the United States by the end of the year. --AFP

;AFP; ANPAf..u.. SKorea-banking-Citigroup South Korea financial watchdog to probe Citigroup JP/SKOREA S. Korea watchdog to probe Citigroup

SEOUL: South Korea's financial watchdog said on Monday it would launch a regular inspection of U.S. financial giant Citigroup's private banking operations here by the end of this year.

Citigroup was ordered last month by Japanese regulators to close its private banking operations for violating banking laws. The bank was also banned from taking part in Japanese government bond auctions.

The Financial Supervisory Service, however, said its probe is not "directly linked" to Japanese sanctions.

Citigroup has expanded operations in South Korea since it acquired KorAm Bank, the country's sixth largest lender, in April.

The U.S. bank has also agreed to buy the non-memory division of South Korean microchip giant Hynix Semiconductor. --AFP