Indosat cancels Satelindo IPO

Indosat cancels Satelindo IPO JP/12/Brief

JAKARTA: PT Indonesian Satellite Corp., or Indosat, a state- owned telecommunications company, said Wednesday it canceled indefinitely, plans to launch an initial public offering of shares in unlisted unit Satelit Palapa Indonesia, or Satelindo.

"Following a series of preparation steps for an IPO, it was decided that it is not possible to proceed with the IPO during the current period," Indosat said without giving further details.

Indosat holds 77 percent of Satelindo, the country's second largest cell phone operator.

It planned to offer Satelindo's shares in May, but the government ordered Indosat to delay the IPO until after the state has sold its stake in Indosat, said people close to the talks.

Indonesia said last month it plans to raise Rp 1.7 trillion in June through selling a 14 percent-15 percent stake in Indosat, in which the government currently holds 65 percent.

The sale will form the first stage of a plan to sell 45 percent of the international call operator this year to help reduce a budget deficit. -- Dow Jones

Hitachi, IBM tie up in storage

TOKYO: IBM, the world's biggest computer maker, and Japan's Hitachi Ltd. said Wednesday they would form an alliance in technology storage and set up a joint venture for hard disk drives to boost competitiveness.

The pair will work together for a number of years to research and develop technologies for next-generation storage networks, systems and solutions.

Separately, they decided to combine various hard disk drive operations into a new joint venture, 70 percent owned by Hitachi which will pay International Business Machines for its hard disk drive assets.

The new firm will integrate Hitachi and IBM's research, development and manufacturing operations as well as sales and marketing teams.

"Strong hardwear is essential to our company-wide efforts to enhance solutions operations," said Yoshiro Kuwata, executive vice president and director at Hitachi. --AFP

Vietnam to set up Eximbank

HANOI: Vietnam's Finance Ministry is preparing to set up an Export-Import Bank to expand the country's trade activities, a ministry official said Wednesday.

The official said preparations for the Eximbank will be complete by September.

The new bank will provide exporters and importers with necessary support - including long-term trade credits - thereby helping increase Vietnam's trade volume, he said.

The official, who spoke on condition of anonymity, said details of the new bank have not been finalized.

Vietnam has set targets for attaining exports worth US$17.2 billion and imports of $17.6 billion this year. Both targets are 10 percent higher than last year. --AP

Jeep recalls over 1.1m SUVs

DETROIT : The Chrysler arm of DaimlerChrysler AG will recall more than 1.1 million Jeep sport utility vehicles to fix an engine problem that could result in a fire, the automaker said on Tuesday.

The latest recall comes amid several efforts by Chrysler to improve its quality and reputation among consumers.

It brings the total number of vehicles recalled by Chrysler in the past four months to about 3.3 million -- far more than the company will sell in the United States this year.

In a statement, Chrysler said the recall covers 2000-2002 Jeep Wranglers, 2000-2001 Jeep Cherokees and 1999-2002 Jeep Grand Cherokees, all with 4-liter inline six-cylinder engines. -- Reuters