Malaysia's Maxis denies to buy RI's Indosat

Malaysia's Maxis denies to buy RI's Indosat

KUALA LUMPUR: Maxis Communications Bhd., Malaysia's biggest
cellular phone operator, has denied it is keen on a stake in
Indonesian Satellite Corp., or Indosat, New Straits Times
reports, quoting Maxis Chief Executive Jamaludin Ibrahim.

"As far as I know, we're not in discussion (for an Indosat
stake), even at shareholders' level," Jamaludin said.

But he didn't rule out acquiring a stake in the Indonesian
firm in future. "It's interesting, but we are not considering it
at this juncture," he said.

Reports from Jakarta had named Maxis as one of 15 parties
interested in a stake in Indosat. -- Dow Jones

Nissan Diesel unveils major debt reduction plan

TOKYO: Japanese truck maker Nissan Diesel Co. Ltd. on Tuesday
announced a plan to cut its mounting debt by 40 percent in about
four years by boosting business in China and possibly selling a
subsidiary.

The debt-ridden firm, controlled 22.5 percent each by Nissan
Motor Co. Ltd. and French automaker Renault SA, unveiled a mid-
term management policy plan from April 2003 to March 2006.

Nissan Diesel plans to cut its interest-bearing debts to 250
billion yen (two billion dollars) by March 2006 from 416.9
billion yen as of March 31 in 2002.

The company said it would try to expand operations in China by
enhancing ties with China's second-largest auto group, Dongfeng
Motor Corp., which already has a business tie-up with the
Japanese firm.

Nissan Diesel will try to reduce inventories and cut
production and sales costs. -- AFP

Nintendo sells Rare's stake to Microsoft

TOKYO: Japanese video game maker Nintendo Co. Ltd. said
Tuesday it had sold a 49 percent stake in UK game software
developer Rare Ltd. to U.S. computer software giant Microsoft for
an undisclosed sum.

"We have sold our total stakes in Rare to Microsoft," a
Nintendo spokesman said, adding that the Kyoto-based firm had no
plans to disclose how much money was involved.

Rare, which makes a series of games such as the classic
"Donkey Kong" for Nintendo's Gamecube home-use console and hand-
held Gameboy, has contributed less and less to Nintendo's sales
in recent years.

"In looking at the company's recent track-record, it became
clear its value to the future of Nintendo would be limited,"
Nintendo said in a statement.

Rare's software for Nintendo consoles declined to 1.5 percent
of Nintendo's total sales worldwide for the fiscal year to March
2002, from 9.5 percent for the previous fiscal year. -- AFP

Xerox admits new probe of its books

WASHINGTON: U.S. prosecutors are examining the accounts of
U.S. office equipment maker Xerox following a similar probe by
federal regulators, the company acknowledged.

"Xerox Corporation learned this evening that the U.S.
attorney's office in Bridgeport, Connecticut is conducting an
investigation into Xerox's past accounting issues, which had been
previously reviewed by the Securities and Exchange Commission,"
the company said in a statement released late Monday.

Citing people familiar with the inquiry, The Wall Street
Journal reported Tuesday that the SEC had informed Xerox
Treasurer Greg Tayler and other unnamed individuals that they
could face a civil charge in the case.

According to the paper, Federal Bureau of Investigation agents
recently questioned James Bingham, a former assistant treasurer
at Xerox, who had asserted that he was fired for trying to rein
in unethical accounting at the company. -- AFP

Salomon Smith Barney fined US$5 million

WASHINGTON: The U.S. securities industry's self-regulatory
body Monday fined Citigroup unit Salomon Smith Barney US$5
million for issuing misleading research reports on failed telecom
firm Winstar.

The National Association of Securities Dealers also said it
filed a complaint alleging similar actions by Jack Grubman,
formerly the top telecom analyst at the brokerage, and his
assistant, Christine Gochuico.

The NASD's disciplinary action found Salomon, Citigroup's
investment banking division, "failed adequately to disclose the
risks of investing in Winstar, including important risks relating
to funding and bankruptcy."

The NASD said the reports included a "buy" recommendation for
the broadband firm Winstar, which filed for bankruptcy last year.

Salomon in the settlement "agreed to findings that it did not
have a reasonable basis," for its recommendation.

Salomon's research reports strongly recommended Winstar as a
"buy" with a 12-18 month price target of $50 even as the stock
plummeted from approximately $20 on Jan. 25, 2001 to US 14 cents
on April 17 of the same year. -- AFP