HNA cuts Deutsche stake
Deutsche Bank AG’s biggest shareholder cut its stake in the lender, it disclosed yesterday, after saying in February that another reduction was not planned. HNA Group Co (海航集團), a troubled Chinese conglomerate, reduced its holdings from 8.8 percent to 7.9 percent as it allowed portions of a complex derivatives arrangement, which it uses to finance its stake, to expire, according to a regulatory filing. The company is committed to remain a major investor in Deutsche Bank, an HNA spokesman said.
GE might sell old business
General Electric Co (GE) is in talks to sell its century-old locomotive business to rail-equipment maker Wabtec Corp, people familiar with the matter said. GE is considering combining its rail division with Wabtec, which has a market valuation of US$8 billion, the people said. The transportation unit could be worth as much as US$6.8 billion in a sale, Barclays PLC analyst Julian Mitchell wrote in a note on Tuesday. A deal has not been reached and talks might still fall apart, the people said.
Pipeline receives three bids
Petrobras, Brazil’s state-controlled oil company, has received three bids for a natural gas pipeline network as part of a wider push to raise cash through divestments, people with knowledge of the matter said. Dubai-based Mubadala Development Co and Sydney-based Macquarie Group Ltd each led separate groups that submitted bids on Thursday for Transportadora Associada de Gas, the people said. A third bid includes French utility Engie SA, the people said.
Fairfax bids for Toys ‘R’ Us
Canada’s Fairfax Financial Holding Ltd has placed a bid of US$300 million to buy Toys “R” Us’ Canadian operations in bankruptcy. The bidder is taking on a role of a “stalking horse” in a court-approved auction set for tomorrow in New York, according to court papers filed late on Thursday. That means it could be outbid in the auction if other buyers come in with a higher offer.
Wells Fargo to pay US$1bn
Wells Fargo & Co on Friday agreed to pay US$1 billion in fines over US allegations of bank misconduct that damaged clients — the largest such penalty so far under the administration of US President Donald Trump. The bank, which has been under fire in the wake of a 2016 fake accounts scandal, is to pay the fines to resolve alleged deficiencies in its mortgage and car loan businesses uncovered by the Office of the Comptroller of the Currency and the Bureau of Consumer Financial Protection.
Apple reveals battery fault
Apple Inc said a “limited number” of 13-inch MacBook Pro laptops sold between October 2016 and October last year have a potentially faulty component that causes the battery to expand. The company said this is not a safety issue and it would replace batteries in affected units at no charge. The company posted a page on its Web site where customers can check if their laptop is affected and begin the battery exchange process. The issue does not affect models with the Touch Bar.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into
O2O BICYCLE SHOW: The Taiwan Bicycle Show next year is to be online to offline, with forums, audio-visual conferences and livestreaming of the offline events Local bicycle makers expect demand to continue outpacing supply due to orders triggered by the COVID-19 pandemic, with some companies seeing orders back up through next year. “Next year is all full in terms of orders. Our lead time on components is one year,” Giant Manufacturing Co Ltd (巨大機械) chairwoman Bonnie Tu (杜綉珍) told a news conference in Taipei organized by the Taiwan External Trade Development Council (TAITRA) to announce next year’s Taipei Cycle Show. The pandemic has reduced bicycle supplies and increased demand around the world, Robert Wu (吳盈進), chairman of KMC (Kuei Meng) International Inc (桂盟國際), one of the world’s