■ Insurance
Aviva to swallow AmerUS
Aviva PLC said yesterday it would take over US insurance company AmerUS Group Co in a US$2.9 billion deal that will expand the UK insurer's reach into the US market. Aviva said it will raise £900 million (US$1.7 billion) in new shares at £7 each to finance the cash purchase, with the remainder to be paid with debt and money it has on hand. It will pay US$69 in cash per AmerUs share, a 10 percent premium to AmerUs' closing price July 6 and representing 12.5 times the estimated earnings per share of AmerUs next year.
■ Debt
Eurotunnel seeks protection
Eurotunnel, the debt-ridden operators of the Channel Tunnel link between Britain and France, has applied for bankruptcy protection, a statement said yesterday. Eurotunnel faces financial collapse if it does not sort out its debts of £6.2 billion (US$11.1 billion). It applied for legal protection from its creditors after last-ditch talks aimed at averting its bankruptcy broke up without agreement. The British-French company, which jointly runs the train link through the Channel Tunnel, has asked a French court in Paris to freeze its debts to enable it to continue operating while a judge tries to mediate a solution.
■ Energy
Oil price hits new high
Oil prices hit a record yesterday as an escalation of violence in the Middle East triggered concerns about stability in the region. Light, sweet crude for August delivery rose US$0.93 to US$75.88 a barrel in electronic trading on the New York Mercantile Exchange, breaking the previous intraday high of US$75.78 set last Friday. The front-month August Brent contract on London's ICE Futures exchange also hit a high, climbing US$0.99 to US$75.38 a barrel, above its previous $75.09 per barrel record, also set on Friday.
■ Electronics
HD DVD recorder delayed
Toshiba Corp said yesterday it would postpone the sale of the world's first HD DVD recorder because of a production delay. The new recorder, the RD-A1, had been slated to go on sale today, but the release will be pushed back to July 27, the Tokyo-based electronics maker said in a release. The delay is due to problems in securing some parts for the recorder, and Toshiba will not have enough units ready for a nationwide release until the later date, according to company spokesman Keisuke Omori. Toshiba has said the recorder will carry a suggested price tag of ¥398,000 (US$3,470). The electronics maker hopes to sell 10,000 recorders by the end of this year, Omori said.
■ Mobile phones
Sony Ericsson profits
Mobile phone giant Sony Ericsson reported yesterday a strong increase in profits in the second quarter as the company sold 33 percent more phones than in the same period a year earlier. Net profit rose to 143 million euros (US$182 million) in the second three months of the year, compared with 109 million euros in the same quarter a year earlier. Pre-tax profit at 211 million euros, compared with 151 million euros a year earlier, outstripped market expectations which had centered on 159 million euros. Sales increased to 15.7 billion euros from 11.8 billion. Sony Ericsson launched new high-end phones carrying the Walkman brand, as well a Cybershot-branded camera phone, in the second quarter.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source