■ TELECOMS
Shopping network sold
Eastern Home Shopping Network (東森得意購), Taiwan's largest TV shopping service provider, was sold to a local company for NT$340 million (US$10.52 million), the Chinese-language Commercial Times reported yesterday, citing Jimmy Chang (張水江), former chairman of Era TV Group (年代影事集團). The report said Peak Profit BVI (尖端利潤) -- a company cofounded by Chang and several local businesses and foreign buyout firms -- signed an agreement with Eastern Home Shopping on Dec. 27 to acquire 100 percent of the TV shopping network. Chang is a vice chairman of Saga Unitek Ventures (國聯創投) and was previously CEO of Sanlih SET TV Ltd (三立電視).
■ JAPAN
Tokyo selling residence
Tokyo's city government is selling its governor's residence, which has been lying empty for years, hoping to raise tens of millions of dollars for local government coffers. The four-bedroom house, complete with meeting rooms and an emergency communications center, is set on more than 20,000m2 of land in an upmarket area of Shibuya in central Tokyo, the Yomiuri Shimbun said yesterday. Rebuilt at a cost of US$11.22 million in 1997, it was occupied by the then governor for less than two years. Later, Governor Shintaro Ishihara refused to move in when he was elected, saying he could not relax there, the paper said.
■ TELECOMS
Sprint cutting 4,000 jobs
US telecommunications firm Sprint Nextel announced on Friday it was cutting 4,000 jobs, saying it anticipated "downward pressure" on its profits in the coming year. The company, which is based in Reston, Virginia, said it would also close 125 company-owned retail stores in a bid to cut costs. Sprint Nextel said it was cutting jobs and closing 8 percent of its total company-owned outlets in a bid to "streamline" its business operations. The telecoms firm said it had signed up over 500,000 new subscribers during the fourth quarter of last year, but lost more than 600,000 existing subscribers.
■ ENERGY
Investors vie for share offer
India's biggest share offer by Reliance Power was oversubscribed 73 times as investors scrambled to apply for a slice of the nearly US$3 billion flotation, final figures showed yesterday. The initial public offering (IPO) made financial history in Indian capital markets, including the largest number of applications, bankers said. Investors submitted bids worth US$191 billion. Reliance Power, owned by tycoon Anil Ambani, offered 260 million shares, or 10.1 percent of its capital. The IPO received 4.7 million applications, beating the previous record of 1.95 million from an offering by Reliance Petroleum in 2006.
■ AVIATION
Air China bids for rival
Air China Ltd's parent made a bid for a stake in rival China Eastern Airlines Corp, after Singapore Airlines Ltd's HK$3.80 (US$0.49) a share offer was rejected. China National Aviation Holding Co proposed to become "alliance partners" with China Eastern, China National Aviation said in an announcement in the Shanghai Securities News yesterday. Details of the offer will be announced on Tuesday, it said. Air China, the world's largest airline by market value, and affiliate Cathay Pacific Airways Ltd are seeking a tie-up with Shanghai-based China Eastern. China National Aviation will offer at least HK$5 a share.
Merida Industry Co (美利達) has seen signs of recovery in the US and European markets this year, as customers are gradually depleting their inventories, the bicycle maker told shareholders yesterday. Given robust growth in new orders at its Taiwanese factory, coupled with its subsidiaries’ improving performance, Merida said it remains confident about the bicycle market’s prospects and expects steady growth in its core business this year. CAUTION ON CHINA However, the company must handle the Chinese market with great caution, as sales of road bikes there have declined significantly, affecting its revenue and profitability, Merida said in a statement, adding that it would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RISING: Strong exports, and life insurance companies’ efforts to manage currency risks indicates the NT dollar would eventually pass the 29 level, an expert said The New Taiwan dollar yesterday rallied to its strongest in three years amid inflows to the nation’s stock market and broad-based weakness in the US dollar. Exporter sales of the US currency and a repatriation of funds from local asset managers also played a role, said two traders, who asked not to be identified as they were not authorized to speak publicly. State-owned banks were seen buying the greenback yesterday, but only at a moderate scale, the traders said. The local currency gained 0.77 percent, outperforming almost all of its Asian peers, to close at NT$29.165 per US dollar in Taipei trading yesterday. The
RECORD LOW: Global firms’ increased inventories, tariff disputes not yet impacting Taiwan and new graduates not yet entering the market contributed to the decrease Taiwan’s unemployment rate last month dropped to 3.3 percent, the lowest for the month in 25 years, as strong exports and resilient domestic demand boosted hiring across various sectors, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said yesterday. After seasonal adjustments, the jobless rate eased to 3.34 percent, the best performance in 24 years, suggesting a stable labor market, although a mild increase is expected with the graduation season from this month through August, the statistics agency said. “Potential shocks from tariff disputes between the US and China have yet to affect Taiwan’s job market,” Census Department Deputy Director Tan Wen-ling
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