Sun, Mar 01, 2009 - Page 11 News List

Business Quick Take

STAFF WRITER, WITH AGENCIES

■BANKING

Local lenders resolve cases

Taiwanese banks have reached settlements in more than 2,000 cases linked to investments in Lehman Brothers Holdings Inc-related securities, the financial regulator said on Friday. An average of 300 cases are being resolved per week with settlements already reached on investments worth NT$1.6 billion (US$46 million) as of Feb. 20, the Financial Supervisory Commission said in a statement. All cases related to investments made in Lehman-linked notes after Sept. 1 have been resolved, the statement said.

■ELECTRONICS

Micron to transfer patents

Micron Technology Inc will transfer more than 2,500 of its chip patents to local chipmakers in exchange for the government’s financial aid, the Chinese-language Economic Daily News reported yesterday, citing Michael Sadler, excutive vice president of Inotera Memories Inc (華亞科技), a DRAM joint venture between Micron and Nanya Technology Corp (南亞科技). The government is planning to form a new DRAM company to consolidate local memory chipmakers. Micron will invest more funds in this new company and start producing its most advanced 50-nanometer chip within a year at the earliest, the newspaper said.

■PETROLEUM

Pemex shows US$7bn loss

Mexican national oil company Pemex on Friday announced a loss of more than US$7 billion for last year, a sixfold increase over the previous year, a company spokesman said. The loss was attributed mainly to the drop in the peso’s value, the spokesman said. Pemex declared a loss of around US$1 billion in 2007. Mexico’s peso was on Friday trading at a record low of 15.22 to the US dollar, despite an injection of cash by the country’s Central Bank (Banxico).

■AVIATION

UK, China firms seal deals

A US$1.2 billion deal between British jet engine maker Rolls-Royce and Hainan Airlines of China was announced on Friday as British and Chinese firms signed deals worth up to US$1.9 billion. The announcements, sealed at a ceremony in London attended by China’s Trade Minister Chen Deming (陳德銘) and Britain’s Business Secretary Peter Mandelson, came on the last leg of a Chinese trade tour of Europe. The US$1.2 billion deal is for the purchase of Rolls-Royce jet engines and a service contract for Hong Kong Airlines planes, it was announced.

■BANKING

HSBC to sell shares

HSBC, Europe’s biggest bank, plans to raise more than £12 billion (US$17 billion) in a share sale aimed at propping up its capital base in order to cope with the economic crisis, the Financial Times reported yesterday. The FT said the share issue would likely be announced alongside its full-year results for last year due tomorrow. The newspaper quoted unidentified people involved in the discussions as saying the offer price for the sale had not been set and the deal could still be postponed.

■INVESTMENT

GE to cut dividend

For the first time since the Great Depression of the 1930s, General Electric Co (GE) is cutting its quarterly dividend, a move that allows the struggling conglomerate to save US$9 billion a year as it braces for a tough year. GE said on Friday it would pay shareholders a US$0.10-per-share dividend beginning in the third quarter, 68 percent lower than the company’s original plan of US$0.31. The dividend cut is the company’s first since 1938.

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