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World Business Quick Take

■ Communications
LG, Nortel in joint venture
South Korea's LG Electronics and Canada's Nortel Networks yesterday agreed to launch a US$295 million joint venture on telecom equipment and networking solutions in Seoul, LG Electronics said. Both firms signed the final contract to launch the venture in October with a paid-in capital of 300 billion won (US$295 million), LG Electronics said in a Stock Exchange report. LG Electronics paid US$145 million for a 50 percent stake minus one share in the joint venture while Nortel takes up the remaining stake. LG Electronics, the second largest mobile phone maker in South Korea, has teamed up with the Canadian company to develop next-generation and high-speed wireless communications services.

■ Technology
Taxes drag down HP's profit
US technology giant Hewlett-Packard said its net profit for the latest quarter fell to US$73 million, due to a hefty tax charge on repatriated profits under an incentive under US law. Although the profit was down sharply from US$586 million in the same period a year ago, the results were reduced by US$960 million in taxes as the company repatriated some US$14.5 billion from overseas. Excluding one-time items, the computer and technology services group earned US$1.1 billion, or US$0.36 a share, as revenue grew to US$20.8 billion. By that measure, the company beat the estimates of analysts surveyed by Thomson First Call, who forecast a profit of US$0.31 cents a share, on US$20.5 billion in revenue in the third fiscal quarter to July 31.

■ Securities
Watchdog takes on Kanebo
Japan's securities watchdog yesterday filed charges against troubled cosmetics maker Kanebo and three of its former executives for allegedly falsifying financial statements to hide massive losses. The Securities and Exchange Surveillance Commission filed a criminal complaint meaning a trial for the former bosses of Kanebo, which is being forced to restructure and is reportedly being courted by major global firms. Kanebo is accused of providing false statements for the past five financial years. In the fiscal year to March 2002, the three allegedly reported Kanebo's assets exceeded losses by ?900 million (US$8.3 million) even though its losses far surpassed assets by ?82 billion, the commission said. The three former executives -- former president Takashi Hoashi, 69, former vice president Takashi Miyahara, 63, and former executive Kenzaburo Shimada, 59 -- were arrested last month.

■ Telecoms
Qwest, union avert strike
Qwest Communications' largest union said it reached a contract agreement with the company, removing the threat of a strike by 25,000 telephone workers in 13 states. The late Tuesday agreement includes a 7.5 percent wage increase over three years, changes to health care to reduce overall costs for many employees and an eight-hour cap on mandatory overtime, union spokeswoman Candice Johnson said. Workers must still ratify the pact. "I think it's a good agreement for both sides," she said. "I think it reflects that Qwest recognized that the union work force is value-added and a critical party in helping the company." A spokesman for Qwest Communications International Inc, Bob Toevs, did not immediately return a telephone message seeking comment.

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