Sun, Aug 15, 2010 page11

• Business Quick Take

  • AGENCIES
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  ■AUTOMOBILES

  Mazda to recall cars

  Mazda Taiwan Corp said on Friday it will recall approximately 13,250 vehicles to deal with potentially problematic power steering lines that could make steering difficult. The recall involves Mazda3 2.0, Mazda3 2.0 Sport and Mazda 5 series models produced from March 2007 to December 2008 in which the power steering lines may have been contaminated during the manufacturing process. Mazda said it will replace the steering pump and oil pipe in each of the recalled vehicles and clean the steering system for free. Drivers of these vehicles may experience poor driving performance or have difficulty steering, according to the company, or the steering system’s warning light may come on.

  ■BANKING

  AgBank breaks IPO record

  Agricultural Bank of China (AgBank, 中國農業銀行) has claimed the title of the world’s largest initial public offering (IPO) after fully exercising the over-allotment option of its Shanghai share offering, Dow Jones Newswires said. The lender raised an additional 9.11 billion yuan (US$1.34 billion) from the Shanghai portion of the IPO by selling an extra 3.4 billion shares at 2.68 yuan each, the report said, citing a person familiar with the deal late on Friday. The IPO has now raised a record US$22.1 billion , the report said. The previous record was set by Industrial and Commercial Bank of China (中國工商銀行), which raised US$21.9 billion in its 2006 IPO.

  ■PETROLEUM

  Brazil reports profit increase

  Brazil’s state-run oil company says its second-quarter net profit rose 1.7 percent from the same period a year earlier. Net profit for Petroleo Brasileiro SA totaled 8.3 billion reals (US$4.7 billion) in the April to June quarter, compared with a net profit of 8.2 billion reals in the same quarter last year. Revenue increased to 53.6 billion reals from 44.6 billion reals. The company’s statement on Friday said its modest gain in profit came in part from decreased operational costs.

  ■ECONOMY

  Sweden’s rating ‘resilient’

  Ratings agency Fitch on Friday affirmed Sweden’s long-term foreign currency debt rating at AAA, calling the Nordic country’s public finances “resilient.” “Sweden’s public finances have been resilient in the face of a 5 percent real contraction of the economy in 2009, and together with the high savings rate, reflected in the large current account surplus, are key strengths underpinning the sovereign ratings,” Eral Yilmaz, a director in Fitch’s sovereign group, said in a statement. The agency also praised Sweden’s large banking sector, saying it “has not had to turn to the sovereign for any notable capital support despite its significant exposure to the Baltic countries.”

  ■POWER

  Blackstone acquires Dynergy

  Blackstone Group LP agreed to acquire Dynegy Inc, the Texas power producer that lost 94 percent of its market value in the past three years, for more than US$540 million. Owners of Houston-based Dynegy will get US$4.50 in cash for each of their shares, the seller said on Friday in a statement. The agreement allows Dynegy to pursue a better offer. Blackstone, the world’s largest buyout firm, also agreed to assume Dynegy’s debt, bringing the acquisition’s total value to about US$4.7 billion. Power producer NRG Energy Inc said it agreed to pay Blackstone US$1.36 billion for Dynegy plants in California and Maine. Dynegy also has plants in the US Midwest and Northeast.
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