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World Business Quick Take

■ Electronics
Samsung warns of bid
South Korea's largest family-run conglomerate, the Samsung Group, has warned that its lucrative electronics arm could be the target for a hostile takeover by foreign investors, offi-cials said yesterday. The group is set to submit a report to the Fair Trade Commission (FTC) in which it says that Samsung Electronics, the world's largest microchip maker, is exposed to the risk of being taken over by foreign shareholders, an FTC spokesman said. According to the report, which was carried by the Maeil Business Daily yesterday, an unidentified foreign investor has even suggested that Samsung Electronics move its headquarters to the US. The report warned that a hostile takeover could become a reality given that foreign shareholders hold a combined stake of some 60 percent in the company.

■ Trade
China praises US decision
China yesterday applauded a US decision not to probe allegations of Chinese labor rights abuses and currency manipulation, saying it would "enhance" trade between the two countries. "We welcome and appre-ciate the decision," Foreign Ministry spokesman Kong Quan (孔泉) said at a regular news conference. "This shows that trade disputes among two sides can be solved through dialogue. In this way we can resolve and narrow our trade differ-ences and this will help enhance the trade relation-ship between the two coun-tries," Kong said. The Bush administration announced on Wednesday that it had rejected requests from organized labor and manu-facturers to take on China's labor and foreign exchange policies. US officials said diplomatic engagement would be a better method for easing America's record trade deficit with China -- rather than threats of punishing tariffs.

■ Automakers
Bailout for Mitsubishi
Mitsubishi Motors is likely to receive some ?200billion (US$1.8 billion) from Mitsu-bishi group companies for its restructuring after DaimlerChrysler decided not to inject more funds into the troubled Japanese carmaker, a report said yesterday. Mitsubishi Motors will use the funds from the group firms, including Japan's top heavy machinery maker Mitsubi-shi Heavy Industries and the Bank of Tokyo-Mitsubishi, to develop new models, the business daily Nihon Keizai Shimbun said. The deal will be announced as early as today when Mitsubishi holds a special shareholders meeting, the daily said, adding that the company is also seeking support from non-Mitsubishi group companies. Last week, DaimlerChrysler, the company's biggest share-holder, said it would not offer any new financial aid to support its restructuring.

■ Music
Apple comes up short
Apple Computer said on Wednesday that it had sold more than 70 million songs during the first year of its online iTunes music service. The company, which struck a landmark deal with record companies last year to permit iTunes users to download copyrighted music, had originally said it believed it would sell 100 million songs during the first year of the service. Apple's chief executive Steven Jobs said it is now selling 2.7 million songs a week, charging US$0.99 a song. "We feel we have lots of momentum," Jobs said. He also said the iTunes music service had generated a small profit during the most recent quarter.

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