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World Business Quick Take

■ Semiconductors
Samsung plans new plant
Samsung Electronics Co, the world's second-largest semiconductor maker, said it plans to spend 391 billion won (US$388 million) for a plant to make experimental chips. The plant, located in Hwaseong, southwest of Seoul, will be used to develop products such as new types of memory chips, the Suwon, South Korea-based company said yesterday in a regulatory filing. The investment is part of the company's announced capital spending plan, spokesman Ken Noh said. Samsung plans to increase investments into chips by almost 10 percent to 6 trillion won this year, the company said in April. South Korean regulations require listed companies to publicly disclose investment plans of at least 100 billion won.

■ Banking
Former chairman in probe
One of China's biggest state-owned banks said yesterday that a former chairman is under investigation by the Communist Party, but didn't say what he was suspected of. Zhang Enzhao (張恩照), who resigned in March as chairman of the China Construction Bank (中國建設銀行), was involved in violations of discipline, the bank said in a statement. It didn't give any other details. It was the first formal confirmation that Zhang was under investigation. Earlier news reports said he was connected to possible unspecified irregularities. Bank of America agreed on Friday to buy a 9 percent stake in China Construction Bank for US$3 billion.

■ China
Beijing to sell stakes
The Chinese government plans to convert its stakes in 42 major state companies into shares that can be publicly traded and hopes to raise up to US$200 billion by selling blocks of stock, state media said yesterday. The step is meant to reduce the government's role in China's struggling stock markets and to make state firms more efficient by eventually selling off stakes to private investors. Hundreds of state firms have sold shares to investors on China's two stock exchanges. But the government retains a controlling stake, and such "nontradable shares" now account for two-thirds of market capitalization. According to Xinhua, companies covered by the latest move include some of China's best-known corporate giants -- Baoshan Iron & Steel, one of the world's biggest steel producers, electric company Yangtze Power and financial conglomerate Citic Securities.

■ Aviation
Air Canada cancels order
Air Canada canceled an order for 32 widebody Boeing Co jets after pilots rejected a contract deal that would have freed up funds for the new airplanes. Pilots voted on Saturday to reject terms that were tied to the aircraft order, which Air Canada announced on April 25. The deal was worth about US$6 billion at list prices, although airlines typically negotiate discounts, and was subject to employees accepting certain cost-cutting measures. Montreal-based Air Canada emerged from bankruptcy protection last year. "We cannot lose sight of the effort it took to get to where the airline is today," said Montie Brewer, Air Canada's president and CEO. "While the cancelation of this aircraft order will be disappointing to our employee group at large, including many of our pilots, it is the right decision given the circumstances." In a statement posted on its Web site, Boeing said it was disappointed with the decision.

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