Biz people

Fiat boss warns on strong euro

Two of Italy's top executives said the strong euro threatens to curtail exports and economic growth, with Fiat Chairman Luca Cordero di Montezemolo (right) urging the European Central Bank to halt the currency's gain.

"The super euro worries us, we ask for the government and the ECB to do something," said Montezemolo, speaking in his capacity as head of Italy's employers' association, Confindustria. "We don't want to give anyone any lessons, but this could become a problem for exports."

The dollar fell yesterday to a record low against the euro on speculation reports on housing and consumer confidence will add to pressure on the US Federal Reserve to cut interest rates.

The dollar fell to $1.4130 against the euro at 7:02 am in London yesterday from $1.4091 late in New York on September 21. It traded at 115.03 yen from 115.50 last week.

"Such a strong euro is not helping the European economy or the timid recovery in Italy," Paulo Scaroni, chief executive officer of Eni SpA, Europe's fourth-biggest oil company, said in Mantua, Italy.

Smiths chief ready to quit

Smiths Group Plc Chief Executive Officer Keith Butler-Wheelhouse will this week announce his departure and may also start a review leading to the sale of some divisions, the Sunday Times reported, citing unidentified large shareholders.

Butler-Wheelhouse, after almost nine years as head of the London-based company, will name his successor when earnings are released this week, according to the article. The report did not identify the new CEO. A strategic review that may lead to a breakup of the company is partly in response to investor pressure for change after "a period of disappointing performance", the Sunday Times said.

Mittal may buy Hindustan stake

Lakshmi Mittal (right) may buy a stake in Prize Petroleum Ltd, a unit of India's Hindustan Petroleum Corp that is planning a rights offer, the Economic Times reported, citing officials it didn't identify.

ICICI Bank, which holds 45 percent of Prize Petroleum, is interested in selling its stake and is unwilling to participate in the rights offer, the report said.

Prize Petroleum, controlled 50 percent by Hindustan Petroleum, was set up to explore and produce hydrocarbons, according to the Hindustan Petroleum website.

Laksmi Mittal's group has a venture with India's Oil & Natural Gas Corp to look for oil and gas reserves overseas, the newspaper said.

(China Daily 09/25/2007 page16)