JP/14/Brief2

JP/14/Brief2

Gajah Tunggal
clarifies

Tire maker PT Gajah Tunggal (GT) will manufacture a selected
range of Michelin Group's associated brands of car tires,
excluding the Michelin brand, including high-speed rated tires
for various markets served by the world's largest tire producer,
according to a statement from GT.

Gajah Tunggal clarified the previous report by The Jakarta
Post which erroneously stated that the Michelin brand was one of
the brands to be manufactured by the firm.

The statement also made it clear that there were two
agreements signed by the firms: a manufacturing agreement and a
distribution agreement.

Under the distribution agreement, GT will distribute in
Indonesia, through its extensive network, a selected range of
Michelin Group's passenger car and light truck tires, including
Michelin and BFGoodrich brands, for the replacement market. -- JP

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Brief-Indonesia-paper
Moody's withdraws ratings on hugely-indebted APP
JP/14/Brief

Moody's withdraws
ratings on APP

JAKARTA: Moody's Investors Service said on Friday it had
withdrawn its credit ratings on the hugely indebted Asia Pulp and
Paper group.

The statement noted that it had withdrawn the Ca debt rating
and C preferred stock rating "because Moody's believes it lacks
adequate information to maintain a rating."

APP, which is controlled by Indonesia's Widjaja family,
defaulted in March 2001 on about US$13.9 billion worth of debt --
the largest default in the history of emerging markets.

It is in dispute with several foreign creditors about its
plans to restructure the debt.

Moody said the ratings, which have now been withdrawn,
reflected its view "that creditor interests will be impaired by
the slow progress of the debt restructuring program." -- AFP

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Brief-SKorea-Singapore
Singapore's Temasek wins approval to buy into South Korean bank
JP/14/Brief

Temasek bid for
Hana approved

SEOUL: South Korea's financial watchdog said on Friday it had
approved a bid by Singapore's state investment arm to increase
its stake to nearly 10 percent in Hana Bank, South Korea's third-
largest lender.

The Financial Supervisory Commission said it had approved
Temasek Holdings' purchase of up to 6.39 percent in the bank, in
additional to the 3.6 percent stake it already holds.

The approval was granted on condition that Temasek limits its
shareholder voting rights to less than 4 percent, the commission
said.

German insurer Allianz AG has the largest stake in Hana with
5.83 percent, followed by South Korea's Dongwon Group with 5.11
percent, Singapore's Temasek Holdings with 3.60 percent and steel
giant POSCO with 3.37 percent. -- AFP

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Brief-Singapore-Valuair
Singapore's Valuair plans new fund-raising as route network grows
JP/14/Brief

Valuair plans to
raise more funds

SINGAPORE: Singapore's first budget airline, Valuair, is on
the lookout for new investors as it beefs up its fledgling route
network, a spokesman said on Friday.

The company is also hopeful it will soon be able to secure
landing rights in Jakarta, resolving an administrative dispute
with Indonesian aviation authorities, spokesman Nilesh Pritam
said.

"We will be going out for a second round of fund-raising soon
as we expand our operations," Pritam said. -- AP