Gajah Tunggal eyes

Gajah Tunggal eyes
debt swap deals

JAKARTA: PT Gajah Tunggal, Indonesia's biggest tiremaker, wants
its creditors to approve a US$73.3 million and Rp 164.9 billion
($18 million) debt swap plan that will allow the company to set
aside money for expansion.

Gajah Tunggal's holding in unit PT GT Petrochem would be
reduced to 28.36 percent from 50.01 percent under the proposed
debt-for-equity swap, Gajah Tunggal said in a statement to be
presented to investors in Jakarta on Thursday.

Refinancing its debt would allow Gajah Tunggal to focus on its
tire business and expand production of radial tires and
motorcycle tires, the Jakarta-based company said in the
statement.

Gajah Tunggal, 10 percent owned by Europe's largest tiremaker
Michelin & Cie, is benefiting from rising car sales in Indonesia.
-- Bloomberg

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Brief-India-air
India's largest private airline plans stock market flotation
JP/14/Brief

Jet Airways
plans IPO

NEW DELHI: India's largest private airline, Jet Airways, said
on Thursday it plans an initial public offering to fund a fleet
expansion amid a projected big rise in air travel in the country.

"Jet Airways will be floating an IPO. Maybe by the end of this
year or early next year," said Naresh Goyal, chairman and owner
of Jet Airways.

The airline, which has about 43 percent of the domestic
market, is looking to acquire more aircraft as the Indian
government considers changes to its aviation policy to allow
private carriers to fly to more destinations overseas.

Currently, private carriers are allowed to fly to a handful of
destinations abroad in the south Asia region. Only state-owned
domestic carrier Indian Airlines and international flag carrier
Air India can fly to other foreign destinations. -- AFP

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Brief-SKorea-Samsung
South Korean court rejects taxation plea from Samsung Group
JP/14/Brief

Samsung's taxation
plea rejected

SEOUL: A South Korean court on Thursday rejected a tax complaint
from the founding family of the Samsung Group, including an heir
to the country's richest business conglomerate, court officials
said.

The Seoul Administration Court ruled against Lee Jae-Yong, the
group chairman's eldest son, who rejected charges that he had
deliberately avoided a heavy tax on a special bond issue in 1999,
they said.

Tax authorities imposed a tax of 44.3 billion won (US$42
million) on Lee's family and two executives after they received
the bonds at below market prices from Samsung SDS, a computer
software affiliate of the parent group.

The authorities based the tax charge on the market value,
rather than the par or face value at which the bonds were issued
to the recipients. -- AFP

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Brief-Japan-auto
Mitsubishi Motors in talks with Peugeot over possible cooperation
JP/14/Brief

Mitsubishi may tie
up with Peugeot

TOKYO: Struggling Japanese auto-maker Mitsubishi Motors said
on Thursday it is in talks with France's PSA Peugeot Citroen
Group over a possible tie-up.

"We are considering the possibility of a tie-up but we are
still at an early stage of talks and therefore it's hard to say
in what areas we can cooperate," a spokesman for Japan's fourth-
largest auto-maker said.

Mitsubishi Motors Corp., hit by sagging sales after defect
cover-ups came to light, declined to disclose further details of
a possible business link with the French group in a revised
revival plan due Dec. 17.

The Nihon Keizai Shimbun newspaper reported on Thursday that
PSA Peugeot Citroen Group chairman Jean-Martin Folz is
considering a production tie-up with Mitsubishi Motors. -- AFP