IN BRIEF (Page 16)

'Lacking ability'

Central banks may not have the tools to restore stability to credit markets amid the "Panic of '07", and instead should demand greater transparency from financial companies, Moody's Investors Service said yesterday.

Derivatives and the growth of hedge funds using unprecedented amounts of debt have magnified the impact of a rise in borrowing costs, New York-based Moody's said in a report.

Accredited accepts bid

Accredited Home Lenders Holding Co, the subprime mortgage lender that slashed its workforce and closed more than half its operations, ended a two-month dispute with suitor Lone Star Funds by agreeing to a lower bid.

The offer of $11.75 a share is worth $296 million based on San Diego-based Accredited's 25.2 million shares outstanding as of August 31. That's 22 percent less than the private-equity firm's initial bid in June.

Major gain

Toshiba Corp, Japan's largest maker of computer chips, will book a 130 billion yen ($1.12 billion) gain from the sale of a building in Tokyo's Ginza shopping district, where land prices jumped by a third last year.

The maker of Satellite and Tecra laptop computers will review its full-year earnings forecast after the 161 billion yen sale, Toshiba said in a statement to the exchange.

Costly expansion

ArmorGroup International Plc, a UK provider of security in war zones, said first-half profit fell 29 percent on costs to expand operations in Afghanistan and Nigeria.

Net income dropped to $1.85 million, or 3.36 cents a share, from $2.6 million, or 4.79 cents, a year earlier, the London-based company said yesterday. Revenue rose 2 percent to $137 million.

SME services

SAP AG, a German software company, will offer services to small- to medium-sized clients who use its Internet-based software being introduced today in New York City, the Wall Street Journal said, citing an interview with Chief Executive Henning Kagermann.

The Walldorf-based company will offer inexpensive and quick services for customers of its new simpler and cheaper business software, the newspaper said.

Staying on

Fabrice Bregier, chief operating officer at planemaker Airbus SAS, will keep his seat on the executive board of parent company European Aeronautic, Defence & Space Co, La Tribune reported, citing unidentified people.

Bregier (above) has secured his place in the face of opposition from Tom Enders, who took over as chief executive officer of Airbus last month, according to the report.

Pirelli's purchase

Pirelli & C SpA will use funds from the planned sale of its stake in Telecom Italia SpA to buy shares it doesn't already own in its tire unit and pay a special dividend, il Giornale reported.

Chairman Marco Tronchetti Provera will use one third of the 3.3 billion euros expected from the sale of the Telecom Italia stake to buy the 39 percent of the tire business sold to banks a year ago, il Giornale said.

Stake revealed

Credit Suisse Group disclosed it holds a 5.4 percent in Altadis SA, the cigarette maker being bought by Imperial Tobacco Group Plc.

Credit Suisse held 13.6 million Altadis shares as of last Friday, according to a regulatory filing made to Spanish regulators. Altadis is Europe's third-biggest publicly traded cigarette maker.

Bloomberg News

(China Daily 09/20/2007 page16)