CHT investing in Global
Chunghwa Telecom Co (CHT, 中華電信) will purchase an 11 percent stake in Global Mobile Corp (全球一動), one of the WiMAX license holders in Taiwan, for NT$120 million (US$3.6 million), after the nation’s telecommunications regulator reversed a March ruling to allow CHT to tap into the emerging WiMAX market, the Chinese-language Commercial Times reported yesterday, citing unnamed sources. CHT may further increase its investment in Global Mobile when the latter seeks recapitalization in future, the paper said.
China to extend railway
China will invest US$292 billion in its overburdened rail system as a stimulus measure aimed at blunting the impact of the global financial crisis, state media said yesterday. The investment is part of plans to extend the nation’s railway network from roughly 125,500km now to 160,000km by 2010, Shanghai’s Oriental Morning Post reported. Beijing News quoted a rail official as saying that while the network needed extending, the investment was also intended to help lift the local economy as it suffers amid the global woes.
Yahoo to invest US$100m
Yahoo Inc says it will invest at least US$100 million in a new data center and a new service center in Nebraska, creating at least 100 jobs. The announcement on Friday from the Internet company and Nebraska officials comes just days after Yahoo said it would lay off 10 percent of its employees, or 1,500 people, citing a 64 percent drop in its third-quarter profit. Asked about the creation of new jobs while company employees were being let go, Kevin Timmons, Yahoo’s vice president of operations, said the company’s infrastructure needs continue to grow.
Chrysler to slash staff
As talks over the potential sale of Chrysler LLC continued, the struggling automaker told workers on Friday that it would slash 25 percent of its salaried work force and make further cuts to deal with a continued downward spiral in US auto sales. Chrysler, which has about 18,500 white-collar workers, will get rid of about 5,000 salaried workers and contract employees — those who work for other companies under contract with the automaker. Chief executive Bob Nardelli, in a memo to employees, warned that more restructuring was coming at a pace faster than before.
Authorities seize Alpha Bank
US authorities said on Friday they had seized troubled regional bank Alpha Bank, the 16th bank failure this year. The Georgia-based Alpha Bank & Trust was officially closed on Friday, the Federal Deposit Insurance Corp (FDIC), which insures up to US$250,000 in individual banking deposits, said in a statement. The FDIC said it would continue to insure Alpha’s deposits and that another regional bank, Stearns Bank in Minnesota, would take over the failed bank’s two branches.
Unibanco wants AIG unit
Brazilian bank Unibanco says it has made an offer to the Federal Reserve to acquire the local insurance operations of financially troubled American International Group. A spokeswoman for Uniao de Bancos Brasileiros SA says the bank is waiting for the Fed to respond to its offer. She said on Friday that the bank has a 52 percent stake in local insurance company Unibanco AIG, while AIG has a 48 percent stake.
Facing the rapidly evolving global COVID-19 pandemic, Citibank Taiwan Ltd (台灣花旗) has proactively taken precautionary measures. “The health and safety of our colleagues and their families, as well as our clients and the communities we serve, are of the utmost importance. We continue to take proactive measures to preserve their well-being while we maintain our ability to serve our clients,” Citibank Taiwan chairman Paulus Mok (莫兆鴻) said in a statement yesterday. “We have local and regional contingency plans in place, and we have well-established business continuity plans for the firm. We are monitoring the situation closely, adjusting our operations accordingly,
UPGRADE AND TRANSFORM: Although the cross-strait trade deal might remain, the Ministry of Economic Affairs said businesses should prepare for any disruptions Taiwan might face a decline in foreign trade with China if the cross-strait Economic Cooperation Framework Agreement (ECFA) ends this year, Minister of Economic Affairs Shen Jong-chin (沈榮津) said yesterday. The agreement, which was signed and put into effect in 2010 to reduce trade barriers across the Taiwan Strait, is expected to end this year, despite not having an exact termination date. “We have not received notification [from China] that it wishes to terminate ECFA,” Shen told reporters prior to attending a meeting at the Legislative Yuan. “Even if we are notified, the agreement would only cease after six months.” While acknowledging the
GoShare, an electric scooter sharing service provider with Gogoro Inc (睿能創意), plans to expand to Tainan next quarter in a strategic alliance with Aeon Motor Co (宏佳騰). The company currently offers its services in Taipei and Taoyuan. “Tainan is very popular among tourists. The city receives an average of 22.94 million tourists every year,” GoShare head Henry Chiang (姜家煒) told a news conference yesterday in Taipei, citing Tourism Bureau statistics. “Besides, the city has a long history of riding scooters,” he said. Each household owns an average of 2.5 scooters, he added. “Expanding presence” is one of four strategies GoShare is adopting for this
Three major hotel chains yesterday launched a joint campaign to aid their coronavirus-affected businesses by giving employees NT$100 million (US$3.31 million) of hotel vouchers. L’Hotel de Chine Group (LDC, 雲朗觀光), Hotel Royal Group (老爺大酒店集團) and Caesar Park Hotels and Resorts (凱撒飯店) teamed up to prevent a further decline in business as foreign tourist arrivals have come to a virtual standstill amid travel restrictions and health worries. “We decided to set aside competition and join forces to prop up the industry is bearing the brunt of diminished economic activity,” LDC president Emile Sheng (盛治仁) told a news conference at Caesar Metro Taipei Hotel