INTERNET
Yahoo Japan nixes deal
Internet giant Yahoo Japan said yesterday that it had canceled plans to buy Japanese telecommunications company eAccess from its parent SoftBank Corp in a deal that was valued at about US$3.2 billion. In March, Yahoo’s Japanese unit — whose top shareholder is SoftBank — announced the deal which it said was aimed at growing the firm’s Internet services business through smartphones and tablets. However, yesterday Yahoo Japan said it had called off the merger after concluding it was more effective to operate the two firms independently. The deal had been scheduled to be completed in early June.
FINANCE
RBS reshapes offerings
Royal Bank of Scotland (RBS) said on Sunday it is winding down its interest-rate trading business as capital and operating costs increase. RBS cited “increasing level of capital, operating costs and investment that would be required for business to be globally competitive in a market with extremely thin margins,” as the reason for winding down its rates prime broking and rates OTC clearing businesses. RBS’ prime broking business provides clients with margin consolidation and credit efficiency services, while its rates OTC clearing unit aids customers in clearing interest rates contracts that relate to over-the-counter transactions.
BANKING
Deutsche Bank raises capital
Deutsche Bank says it is raising 8 billion euros (US$11 billion) in new capital from investors to strengthen its finances as it faces tighter regulation and seeks to invest in promising business areas. The bank says it plans to raise 6.3 billion euros in a rights offering and has already secured 1.75 billion euros by placing shares with a single investor from Qatar. Co-CEO Anshu Jain told analysts yesterday that the fresh capital would also help it meet “unforeseen challenges” that may be ahead. The move would increase the bank’s capital ratio, a key measure of financial strength, to 11.8 percent. That is well beyond the bank’s 10 percent goal.
REAL ESTATE
British bidding war for mall
Three British retail property groups are among bidders eyeing a stake in Bluewater Shopping Centre in Kent for a bid amount of ￡600 million (US$1 billion), The Times reported. British groups Land Securities Group PLC, British Land Company PLC in partnership with Norges Bank, and Hammerson PLC are understood to be the final bidders for the stake, the British daily said. Australia’s Westfield Group and the sovereign wealth fund of Norway are also thought to be finalists, the Times said.
MERGERS
Siemens readies energy bid
Germany’s Siemens AG is working on a formal asset-swap offer for Alstom SA’s power business that could come as early as this week and see France take a stake in a resulting rail-focused French group, sources close to the talks told Reuters. Alstom is already in talks with US conglomerate General Electric Co (GE) over a 12.35 billion euro bid for its power arm, which it is due to review by June 2. However, under strong political pressure, it has opened its books to Siemens so it can propose its own deal if it wants to. Moreover, a rival offer would give the French government more leverage with GE after it gave itself the power to block foreign takeovers in “strategic sectors.”
SEMICONDUCTORS: The German laser and plasma generator company will expand its local services as its specialized offerings support Taiwan’s semiconductor industries Trumpf SE + Co KG, a global leader in supplying laser technology and plasma generators used in chip production, is expanding its investments in Taiwan in an effort to deeply integrate into the global semiconductor supply chain in the pursuit of growth. The company, headquartered in Ditzingen, Germany, has invested significantly in a newly inaugurated regional technical center for plasma generators in Taoyuan, its latest expansion in Taiwan after being engaged in various industries for more than 25 years. The center, the first of its kind Trumpf built outside Germany, aims to serve customers from Taiwan, Japan, Southeast Asia and South Korea,
Gasoline and diesel prices at domestic fuel stations are to fall NT$0.2 per liter this week, down for a second consecutive week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) announced yesterday. Effective today, gasoline prices at CPC and Formosa stations are to drop to NT$26.4, NT$27.9 and NT$29.9 per liter for 92, 95 and 98-octane unleaded gasoline respectively, the companies said in separate statements. The price of premium diesel is to fall to NT$24.8 per liter at CPC stations and NT$24.6 at Formosa pumps, they said. The price adjustments came even as international crude oil prices rose last week, as traders
SIZE MATTERS: TSMC started phasing out 8-inch wafer production last year, while Samsung is more aggressively retiring 8-inch capacity, TrendForce said Chipmakers are expected to raise prices of 8-inch wafers by up to 20 percent this year on concern over supply constraints as major contract chipmakers Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and Samsung Electronics Co gradually retire less advanced wafer capacity, TrendForce Corp (集邦科技) said yesterday. It is the first significant across-the-board price hike since a global semiconductor correction in 2023, the Taipei-based market researcher said in a report. Global 8-inch wafer capacity slid 0.3 percent year-on-year last year, although 8-inch wafer prices still hovered at relatively stable levels throughout the year, TrendForce said. The downward trend is expected to continue this year,
POWERING UP: PSUs for AI servers made up about 50% of Delta’s total server PSU revenue during the first three quarters of last year, the company said Power supply and electronic components maker Delta Electronics Inc (台達電) reported record-high revenue of NT$161.61 billion (US$5.11 billion) for last quarter and said it remains positive about this quarter. Last quarter’s figure was up 7.6 percent from the previous quarter and 41.51 percent higher than a year earlier, and largely in line with Yuanta Securities Investment Consulting Co’s (元大投顧) forecast of NT$160 billion. Delta’s annual revenue last year rose 31.76 percent year-on-year to NT$554.89 billion, also a record high for the company. Its strong performance reflected continued demand for high-performance power solutions and advanced liquid-cooling products used in artificial intelligence (AI) data centers,
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