Print

Mail

wiki links

World Business Quick Take

■ Buyouts
Cerberus mulls Chrysler bid
Buyout experts from Cerberus Capital Management LP met with Chrysler Group executives to evaluate a possible bid for DaimlerChrysler AG's struggling US unit, according to a published report. The Detroit News, citing people close to the situation that it did not name, said Cerberus is the first Wall Street investor to visit Chrysler headquarters in Auburn Hills for an in-depth review of the automaker's finances and operations. Private equity firm Blackstone Group is scheduled to meet with Chrysler management later in the week, the newspaper said in its report, which was published late on Monday on its Web site.

■ Borrowing
S Korean debt hits high
South Korea's household debt hit a record high last year following a surge in mortgage lending, central bank data showed yesterday. Household debt totaled 581.9 trillion won (US$619 billion) last year, up 11.6 percent from a year earlier, the Bank of Korea said. At the end of last December, household loans from financial institutions stood at 550.4 trillion won, up 11.5 percent, with mortgages accounting for almost 55 percent of the total. Consumer credit, including unpaid credit card bills, rose 12.5 percent to 31.5 trillion won, mainly because of a jump in credit card spending abroad.

■ Securities
Citigroup goes after Nikko
Citigroup announced a tender offer yesterday to raise its stake in Nikko Cordial to more than 50 percent and make the scandal-tainted Japanese securities company a subsidiary. The purchase, valued at up to ¥1.253 trillion (US$10.8 billion), if realized, would be the biggest foreign acquisition of a Japanese brokerage. The US banking group said it will pay ¥1,350 for each Nikko Cordial share in the tender offer, which will start within one week. The announcement follows weeks of speculation that Citigroup Inc, the largest US financial services firm, which already owns 4.9 percent of Nikko, plans to raise its stake Japan's third-largest brokerage.

■ Energy
Toshiba mulling India move
Toshiba Corp said yesterday it was in talks with India's Larsen and Toubro Ltd to enter the coal-fired power plant business in the growing South Asian economy. The proposed venture would jointly produce and sell equipment for the plants. "We are in negotiations with Larsen and Toubro to form a joint venture to launch coal-fired power plant businesses in India," said Toshiba spokeswoman Hiroko Mochida. "If concluded, it will be our company's first step to begin such businesses in the country," Mochida said.

■ Aerospace
France could buy into EADS
French Prime Minister Dominique de Villepin said on Monday that the state would be prepared to participate in a capital increase of Airbus' parent company, the European Aeronautic Defense and Space company (EADS), together with other shareholders. Several French regional authorities are suggesting that they could become shareholders, injecting fresh funds, pointing to the recent entry of German regions into the company -- an idea backed by left-wing presidential candidate Segolene Royal. But increased state influence is anathema to EADS's management. "I would prefer a company without state involvement," EADS co-chief executive Thomas Enders said in an interview published on Monday.

This story has been viewed 1270 times.