Fri, May 27, 2011 - Page 10 News List

World Business Quick Take

Agencies

AUTOMOBILES

Tesla selling more shares

Tesla Motors announced plans on Wednesday to offer another 5.3 million shares in the US electric carmaker to the public to help fuel development of another model. The California-based Tesla, which was founded in 2003 by Elon Musk, a cofounder of PayPal and SpaceX, said it was also granting up to 795,000 shares of common stock to its underwriter at US$26 a share. Tesla also said chief executive Musk plans to buy 1.5 million shares directly from Tesla in a private placement and Blackstar Investco, an affiliate of Germany’s Daimler, plans to purchase up to 644,475 shares. Tesla hopes to raise US$214 million from the various operations and plans to use the money to fund development of a Model X crossover vehicle.

FASHION

Burberry invests in upgrades

Burberry is stepping up spending on new stores and upgrading existing ones to cash in on a boom in spending on luxury goods, it said yesterday, as it met forecasts with a 39 percent leap in annual profit. The British maker of raincoats and handbags, best known for its camel, red and black check pattern, said it would invest £180 million to £200 million (US$292 million to US$325 million) in the year to next March on new shops and refurbishments in major cities such as London, Paris, Chicago, Hong Kong, Shanghai and Sao Paulo. That is up from £108 million in the year just ended.

SOUTH KOREA

Four oil refiners fined

The Fair Trade Commission yesterday said it would fine four major oil refiners a total of 434.8 billion won (US$442.7 million) for operating a cartel to protect their market positions. The watchdog said SK Innovation, GS Caltex, Hyundai Oilbank and S-Oil colluded to restrict competition for new gas stations, thereby helping them retain their market share. It said SK, the country’s largest refiner, should pay 138 billion won in fines while GS Caltex, Hyundai Oilbank and S-Oil would be fined 177.2 billion won, 74.4 billion and 45.2 billion respectively.

INTERNET

Bartz reassures investors

Yahoo CEO Carol Bartz on Wednesday assured stock market analysts that the company was trying to repair the damage caused by a recent change in a key investment in China. Investors have been focused on a surprising May 10 disclosure that threatens to diminish the value of Yahoo’s 43 percent stake in Internet company Alibaba Group (阿里巴巴). Although she didn’t offer a timetable for reaching an agreement, Bartz said was confident Yahoo would be “appropriately compensated” for the Alipay spinoff.

ECONOMY

Portugal receives money

The EU raised 4.75 billion euros (US$6.7 billion) for Portugal in a new bond issue on Wednesday, while the IMF gave its first tranche of emergency funding as part of a joint 78 billion euro bailout. The EU funds will be delivered on Wednesday, the European Commission said, one day after a first bond issue raised 1.75 billion euros for Lisbon and 3 billion euros for Ireland. The Portuguese finance ministry said it had received 6.1 billion euros from the IMF, the first tranche of the lender’s portion of the bailout. The loans will “provide a comfortable liquidity situation in those member states in line with the country programme objectives,” the commission said. Both the 10-year bond issued on Tuesday and the five-year bond issued on Wednesday. Both attracted strong demand from Europe and Asia.

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