■BANKING
JPMorgan to buy Cazenove
US investment bank JPMorgan Chase was to unveil a £1 billion (US$1.67 billion) deal to buy 190-year-old London stockbroker Cazenove yesterday, the Financial Times (FT) said. The bank is to pay about £5.35 a share for the 50 percent stake of Cazenove, FT said. Under the deal, Cazenove chairman David Mayhew would stay on and was likely to receive a windfall of more than £19 million, the newspaper said, citing sources.
■BANKING
Deutsche buys more Huaxia
Deutsche Bank is set to become the largest shareholder in China’s Huaxia Bank (華夏銀行) after agreeing to increase its stake in the mid-sized lender to 17.12 percent, the Chinese bank said yesterday. Deutsche Bank will buy 171.2 million shares, or a 3.43 percent stake, from German private investment firm Sal Oppenheim Jr and Cie for 81.6 million euros (US$121.8 million), Huaxia said in a statement to the Shanghai Stock Exchange. Deutsche Bank currently owns 13.69 percent of Huaxia Bank.
■SEMICONDUCTORS
Infineon returns to profit
German chipmaker Infineon Technologies AG said yesterday its fourth-quarter net income rose sharply from huge losses a year ago as cost reductions boosted earnings. Infineon, based in Neubiberg, said net profit totaled 14 million euros in the quarter ending September, compared with a loss of 884 million euros in the same period last year. Revenue declined 18 percent to 855 million euros from 1.05 billion euros in the fourth quarter a year ago. Compared with the third quarter, however, revenue increased 12 percent. For the full fiscal year, Infineon still reported a net loss of 671 million euros compared with a net loss of nearly 4 billion euros in fiscal 2008.
■MINING
Baotou’s Centrex bid passes
Australia has approved a bid by China’s Baotou Iron and Steel (包鋼) to take a A$40 million (US$37 million) stake in a magnetite project run by Centrex, the mining firm said yesterday. Under the deal, given the nod without condition by the Australian Foreign Investments Review Board, Baotou will take up to 50 percent of Centrex’s deposit of magnetite, or iron oxide, in Bungalow, South Australia.
■METALS
Gold demand jumps 10%
Gold demand climbed 10 percent in the third quarter from the previous three months after investors bought the metal as a currency hedge and jewelry purchases picked up, the World Gold Council said. Global consumption increased to 800.3 tonnes as Chinese demand surged to 120.2 tonnes, the London-based industry group said in a report yesterday. Total demand was 34 percent lower compared with a year earlier, when investors sought refuge from the economic crisis amid lower gold prices.
■AVIATION
Air France-KLM posts loss
Air France-KLM, Europe’s biggest airline, on Wednesday reported a loss of 147 million euros in the second quarter of its fiscal year as the economic crisis hit air travel. Chief executive Pierre-Henri Gourgeon said the airline had reduced costs and capacity, but added: “Lack of visibility over the timing and strength of the economic recovery means we must pursue our efforts in terms of cost reduction.” The Franco-Dutch airline also announced cumulative losses over six months at 573 million euros.
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