Resourcehouse may cut IPO
Australian miner Resourcehouse may cut the size of a Hong Kong share sale originally slated to raise US$3.6 billion, after the company postponed the deal several times in the past two years. The unprofitable Australian mining company, controlled by billionaire Clive Palmer, is considering shrinking the initial public offering (IPO) to US$2.54 billion, Dow Jones Newswires reported yesterday, citing a company term sheet. The miner still planned to sell about 5.71 billion shares, but was considering an IPO share price of HK$3.45, well below its previous range of HK$4.48 and HK$4.93 per share, Dow Jones said. The company was originally scheduled to price its shares yesterday and to list the stock on Hong Kong’s bourse on Friday.
Qantas seeks redundancies
Australian airline Qantas yesterday confirmed it was seeking up to 350 voluntary redundancies among its 7,000 crew members as it seeks to mitigate fluctuating fuel prices and the cost of natural disasters. In March, the carrier said it would slash capacity and management staff because of a series of calamities, including floods in Australia and earthquakes in Japan and New Zealand, which coincided with a spike in oil and jet fuel prices. The airline said it hoped that about 350 employees or 5 percent of its cabin crew would take up the offer of voluntary redundancy once staff had finalized their expressions of interest in the offer.
Nomura slashes execs’ pay
Nomura Holdings Inc cut pay for CEO Kenichi Watanabe and top executives by 38 percent last year after Japan’s biggest brokerage posted a profit drop, according to documents sent to shareholders. The securities firm reduced total compensation for its top 10 executives to ￥899 million (US$11 million) for the year ended March 31, from ￥1.45 billion a year earlier, the documents showed. Watanabe and chief operating officer Takumi Shibata oversaw a 58 percent profit decline to ￥28.7 billion for the year.
Rio signs profit-sharing deal
Mining giant Rio Tinto has signed a profit-sharing deal with the five indigenous groups that will allow the company to mine iron ore on lands the groups own in Western Australia. The agreements gives the Anglo-Australian company access to 71,000km2 in Pilbara. The remote region is rich in iron ore and other minerals. Rio Tinto said in a statement on Friday that the agreements set up trusts to be funded by mining revenue that will pay for health, education and anti-poverty projects. They will also set aside money for future generations.
Apple signs music deal
Apple Inc reached an agreement with Universal Music Group, the largest record label, setting the stage for its new service to let users access song libraries on multiple devices, two people with knowledge of the talks said. The new music service, enabling customers to store their music on Apple’s servers, will be previewed on Monday by CEO Steve Jobs at Apple’s annual developers conference in San Francisco, said the people, who declined to be identified because the deals aren’t public. Apple’s deal with Universal Music follows agreements with Sony Corp’s music unit, Warner Music Group Corp and EMI Group Ltd.