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