Bank Mandiri to issue $200m bond

Bank Mandiri to issue $200m bond

JAKARTA: Indonesia's largest lender Bank Mandiri will issue
around US$200 million of fixed-rate bonds in the first half of
this year to boost liquidity and repay offshore borrowings, the
bank's president E.C.W. Neloe said Tuesday.

He told reporters the bank has appointed Credit Suisse First
Boston and UBS Warburg joint lead managers and book runners for
the planned issue.

The bond will likely have a maturity of between three and five
years, he said, adding that other details weren't yet available.

Bank Mandiri has been tapping the offshore bond market over
the last two years. Since last year, bond offerings by local
blue-chip companies have received good response from Asian
investors .

Bank Mandiri posted net profit of 3.4 trillion rupiah in
2002, up 26 percent from Rp 2.7 trillion a year earlier. -- Dow
Jones

Sampoerna raises some cigarette prices

JAKARTA: Indonesia's second largest clove cigarette producer PT
HM Sampoerna raised the prices of several products Monday by
between 1.6 percent and 4.8 percent, the company said Tuesday.

Sampoerna didn't provide an explanation for the increase, but
analysts had expected it to raise its cigarette prices after the
government late last year increased cigarette excise taxes to
boost state revenues.

Sampoerna said it raised the price of its most popular hand-
rolled Dji Sam Soe cigarettes by 1.6 percent to Rp 5,580 per
pack, its Dji Sam Soe Marquee cigarettes 2.2 percent to Rp
12,636, and its machine rolled A-Mild 16 cigarettes 2.4 percent
to Rp 5,823.

The highest 4.8 percent increase was imposed on its S.T.
Dupont cigarettes. They now cost Rp 5,850 per pack versus the
previous Rp 5,580. -- Dow Jones

Qantas temporarily axes 1,000 workers

SYDNEY: Australian flag carrier Qantas announced Tuesday
temporary staff cuts affecting 1,000 employees because of the
downturn in the airline industry amid a looming conflict in Iraq.

The airline last month announced it would reduce staffing
levels by the equivalent of 1,500 full-time staff over three
months by asking staff to go on leave.

But in an internal memo to staff, Qantas Airways Ltd. chief
executive Geoff Dixon said the company now intends to expand the
accelerated leave program to 2,500 -- or 6.75 percent of its
37,000 strong workforce.

It is also considering permanent staff cuts if passenger
volumes fall more than expected. -- AFP

Thai Airways to suspend flights to Middle East if war

BANGKOK: Thai Airways said Tuesday that it will temporarily
suspend flights to some destinations in the Middle East if war
breaks out in Iraq.

"We will halt services on some of our routes to the region for
safety reasons if the United States takes military action against
Iraq," said a spokeswoman for the flag carrier.

The airline operates flights to five Gulf destinations -- Abu
Dhabi, Dubai, Bahrain, Kuwait and Muscat -- but she was not able
to say which routes would be affected.

The spokeswoman also said contingency plans had been drawn up
for flight operations to European destinations to avoid the
airspace over Iraq and its neighboring countries "to ensure
maximum safety for all passengers".

Thai Airways, in a statement, said it was working closely with
the Ministry of Foreign Affairs on plans to evacuate Thai
nationals working in the Middle East. The government says there
are around 20,000 Thais working in the region.

In a television address, U.S. President George W. Bush late
Monday gave the Iraqi president and his sons a 48-hour deadline
to leave the country or face war. -- AFP

Procter and Gamble launches 6.5b euro bid for Wella

FRANKFURT: U.S. group Procter and Gamble said Tuesday it was
launching a bid worth more than 6.5 billion euro (US$6.9 billion)
to buy the German haircare, cosmetics and perfumes maker Wella.

Procter and Gamble said in a statement it had agreed to buy
out Wella's family shareholders for 92.25 euro per share or a
total 3.158 billion euro.

That would give the U.S. giant the majority stake of 50.7
percent.

In addition, Procter and Gamble planned to launch a public
offer to buy the remaining shares at 92.25 euro per ordinary
share and 61.50 euro per preference shares.

Alternatively, holders of preference shares could choose to be
paid in Procter and Gamble shares rather than cash.

That part of the bid would be worth around 2.35 billion euro.

Finally, the U.S. group it would take over 1.1 billion euro in
Wella's debt, Procter and Gamble said. -- AFP