JAKARTA: Indonesia expects to announce the winning bid for a

JAKARTA: Indonesia expects to announce the winning bid for a
majority stake in PT Bank Niaga in the fourth week of October,
the Indonesian Bank Restructuring Agency said Friday.

Investors interested in buying the 51 percent stake in the
nationalized bank must register with IBRA next week, and submit
their final binding bind by Sept. 12, IBRA said in an
announcement published in local newspapers. IBRA will then decide
on the winner in the fourth week of October.

This will be the second attempt by IBRA to sell a majority
stake in Bank Niaga. In May, IBRA canceled a tender offer for a
51 percent stake sale after it said the bids from two shortlisted
investors were well below the market price at the time.

Unlike previously when the government had the discretion to
reject tender bids it deemed too low, the highest bidder will get
the 51 percent stake in Bank Niaga in next week's auction.

The sale of Bank Niaga and other asset sales are crucial to
raise money to reduce the huge debt the government built up
trying to stave off financial collapse after the Asian crisis. --
Dow Jones

Siemens weighing further job cuts

FRANKFURT: The German electronics giant Siemens is weighing
further job cuts in its fixed telephone equipment and mobile
phone divisions, a company spokeswoman said Friday.

But she added that a final decision had not yet been taken.

Siemens was reacting to press reports that it was planning to
cut a further 5,000 jobs. The company to date has announced plans
to eliminate 21,500 jobs in its fixed telephone equipment and
mobile phone units by the end of next year.

Hard hit by the current crisis in the global telecoms sector,
the two loss-making divisions are undergoing a restructuring. --
AFP

AOL, PurchasePro deals probed by SEC

WASHINGTON: America Online's dealings with a Las Vegas
software company called PurchasePro.com Incorporated are being
investigated by the U.S. Securities and Exchange Commission, the
Wall Street Journal reported Friday, citing people familiar with
the matter.

The SEC has already questioned AOL executives Myer Berlow and
David Colburn about America Online's business dealings with
PurchasePro, a once-hot seller of business-purchasing software
that has fallen on tough times, the daily said.

A PurchasePro spokesman said the SEC had asked for documents
relating to America Online and the company had complied with the
request.

The probe centers on whether America Online improperly booked
revenue from partners such as PurchasePro. America Online booked
as advertising revenue US$27 million that it received from
cashing in PurchasePro stock warrants -- something that
accountants call a gray area of accounting, the Journal said. --
AFP

HSBC H1 earnings seen falling

HONG KONG: The economic crisis in South America is expected to
drive down first half profit for global banking giant HSBC
Holdings plc by 10 to 20 percent, analysts said.

HSBC is tipped to announce a net profit on Monday of between
US$2.9 and $3.3 billion for the six months to June, down from
$3.67 billion a year earlier.

Little growth in revenue is expected and one of the key
factors will be how much the British-based giant sets aside to
cover its exposure to financial market turmoil in Brazil, after
it took a $1.1 billion hit on its Argentina exposure in the
second half of last year.

Deutsche Bank analyst Todd Martin expects HSBC to report a net
profit of $3.3 billion for the first half.

Martin said provisions are likely to be higher than the same
period last year but would unlikely any large additional charges
for Argentina.

The bigger concern is Brazil, where HSBC has loan exposure of
some $7.0 billion, with half of that relating to government debt.
-- AFP

WTO asked to interfere in plane deal

TAIPEI: France, fearing Taiwan's China Airlines (CAL) will buy
16 Boeing aircraft instead of Airbus jets, plans to ask the World
Trade Organization (WTO) to interfere in the deal, a Taipei
newspaper said Thursday.

"Airbus has written to Taiwan's Economics Ministry, Foreign
Ministry and Transport Ministry, threatening to file a suit with
WTO accusing the United States of using politics to interfere in
the commercial purchase, with Taiwan being the accomplice,"
United Daily News reported.

"MATRA company of France will also scrap the contract to
supply key components to Taiwan's second satellite and to help
Taiwan launch the satellite," the mass-circulation paper said.

CAL, Taiwan's largest airline, plans to buy 16 aircraft to
replace its aged Airbus A300-600Rs.

CAL has considered both the Airbus A300 and Boeing B777, but
was leaning towards purchasing the cheaper A300 until the U.S.,
citing Washington and Taipei's close political and military ties,
put pressure on the government of Taiwan. -- DPA