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