RETAIL
Liquidation for hhgregg
Consumer electronics chain hhgregg Inc is going out of business and shutting down all its stores in the US. The Indianapolis-based company on Friday said that it is to liquidate its assets after failing to find a buyer for the business. It filed for bankruptcy protection last month. Founded in 1955, the retailer had 220 stores in 19 US states selling major appliances such as washers and TVs, as well as computers and home theater systems. As of May last year, it had about 5,000 employees.
RIDE-HAILING
Italy rules against Uber
An Italian court on Friday banned the use of smartphone apps for the ride-hailing group Uber Technologies Inc, saying that they contribute to traditional taxis facing unfair competition, local media outlets reported. In a ruling that is subject to appeal, a court in Rome upheld a complaint filed by taxi unions and gave Uber 10 days to end the use of various phone apps on Italian territory, along with the promotion and advertising of them. If Uber does not comply it could face a fine of 10,000 euros (US$10,592) for each day it remains in defiance of the court. Uber said it was shocked by the ruling and that it would appeal immediately, seeking suspension of the ruling.
PHARMACEUTICALS
Fresenius eyes Akorn
Fresenius SE, Europe’s biggest publicly traded healthcare provider, on Friday said that it is in talks to buy US generic drugmaker Akorn Inc. While discussions are under way, there is no certainty of a deal, said Fresenius, a maker of dialysis and medical products. The Bad Homburg, Germany-based company did not elaborate in a statement about the talks. A spokeswoman for Akorn declined to comment. Bloomberg reported on the discussions earlier on Friday. Following that report, Akorn shares closed up 18 percent, the biggest one-day gain since May last year, giving Akorn a market valuation of US$3.7 billion.
LAWSUITS
Reality TV stars in tax row
Jersey Shore star Michael Sorrentino and his brother have been hit with additional tax fraud charges. Federal prosecutors on Friday said that Michael Sorrentino was indicted on charges including tax evasion, structuring bank deposits to avoid reporting requirements and falsifying records. Marc Sorrentino was charged with falsifying records to obstruct a grand jury investigation. They previously pleaded not guilty to charges they filed bogus tax returns on nearly US$9 million and claimed millions in personal expenses as business expenses. They are to be arraigned on the new charges on April 17.
EXECUTIVE PAY
Kelleher receives US$19.5m
Morgan Stanley president Colm Kelleher, who runs the firm’s investment bank and retail brokerage, received US$19.5 million for his work last year, a 27 percent annual increase. Kelleher, 59, was paid US$1.67 million in salary, US$6.88 million in deferred cash and US$2.4 million in deferred stock, the New York-based bank said on Friday in a regulatory filing. He also got a US$4.06 million cash bonus and a US$4.49 million long-term incentive. His 2015 compensation totaled US$15.3 million.
INVESTOR RESILIENCE? An analyst said that despite near-term pressures, foreign investors tend to view NT dollar strength as a positive signal for valuation multiples Morgan Stanley has flagged a potential 10 percent revenue decline for Taiwan’s tech hardware sector this year, as a sharp appreciation of the New Taiwan dollar begins to dent the earnings power of major exporters. In what appears to be the first such warning from a major foreign brokerage, the US investment bank said the currency’s strength — fueled by foreign capital inflows and expectations of US interest rate cuts — is compressing profit margins for manufacturers with heavy exposure to US dollar-denominated revenues. The local currency has surged about 10 percent against the greenback over the past quarter and yesterday breached
MARKET FACTORS: Navitas Semiconductor Inc said that Powerchip is to take over from TSMC as its supplier of high-voltage gallium nitride chips Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday in a statement said that it would phase out its compound semiconductor gallium nitride (GaN) business over the next two years, citing market dynamics. The decision would not affect its financial targets announced previously, the world’s biggest contract chipmaker said. “We are working closely with our customers to ensure a smooth transition and remain committed to meeting their needs during this period,” it said. “Our focus continues to be on delivering sustained value to our partners and the market.” TSMC’s latest move came unexpectedly, as the chipmaker had said in its annual report that it has
Rick Cassidy, the chairman of Taiwan Semiconductor Manufacturing Co's (TSMC, 台積電) US subsidiary, TSMC Arizona Corp, plans to retire, but the company has yet to name a successor. After Cassidy made his intention to retire known, TSMC Arizona held a special general meeting and approved a resolution that Cassidy would not continue as chairman and would not remain as a director, TSMC said in a statement filed with the Taiwan Stock Exchange last night. The meeting also approved a plan to appoint TSMC Arizona president Rose Castanares as a director, the company said, adding that Cassidy has been named as an advisor
SECURITY WARNING: The company possesses key 3-nanometer technology, and Taiwan should prevent it from being transferred to China, a lawmaker said The Ministry of Economic Affairs yesterday said it would conduct a “strict review” of any proposed acquisition of Taiwanese tech company Source Photonics Co (索爾思光電), following media reports that a Chinese firm was planning to buy the company in the Hsinchu Science Park (新竹科學園區). Local media reported that Suzhou Dongshan Precision Manufacturing Co (東山精密), China’s largest printed circuit board manufacturer, had announced plans to acquire Source Photonics for 5.9 billion yuan (US$823.1 million). The ministry said it has not received an application from Source Photonics and has formally notified the company that any buyout would constitute a change in its ownership structure. The
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