IN BRIEF (Page 16)

SAP takes loan

SAP AG, the world's largest business-management software maker, agreed to borrow 5 billion euros from Deutsche Bank AG to help finance its purchase of Business Objects SA.

SAP disclosed the October 1 agreement with Deutsche Bank in a filing to the US Securities Exchange Commission linked to the Walldorf, Germany-based company's Web site yesterday. The cash offer for Business Objects will amount to 4.68 billion euros, assuming the conversion of all convertible bonds, warrants and stock options, SAP said.

'State of fear'

Former Federal Reserve Chairman Alan Greenspan said credit markets are in a "state of fear", instead of a "state of euphoria" where investors are buying.

"We're now in a state of fear," Greenspan said in Chicago at the Midwest ACG Capital Connection conference, a gathering of investment bankers and private-equity companies. Greenspan was discussing commercial paper and structured investment vehicles.

Alfa down

Alfa SAB, the world's largest maker of engine heads and blocks, said third-quarter earnings fell 83 percent on costs related to debt used to buy 16 auto-parts plants this year.

Net income declined to 243 million pesos ($22 million), or 43 centavos a share, from 1.41 billion pesos, or 2.50 pesos, a year earlier, the Monterrey, Mexico-based company said yesterday in an e-mail.

Great expectations

Huber & Suhner AG expects demand from Ericsson AB to grow as the Swedish company orders more fiber-optical products, Finanz & Wirtschaft reported, citing Chief Executive Officer Urs Kaufmann.

Ericsson's "profit warning" doesn't have a "major impact" for Huber, Kaufmann was quoted as saying in an interview. Kaufmann reiterated that he expects full-year revenue of more than 700 million Swiss francs ($597 million).

Giving it back

Resolution Plc, the largest manager of closed life-insurance funds in the United Kingdom, plans to return about 2 billion pounds to shareholders after acquiring Friends Provident Plc.

The combined companies will return 1 billion pounds in 2008 from "existing and internally generated cash resources and where appropriate new debt", London-based Resolution and Dorking, England-based Friends Provident said in separate statements yesterday.

Russian expansion

Russia's economy expanded an annual 7.4 percent in the first nine months, Economy Minister Elvira Nabiullina said at a conference in Moscow yesterday.

The Economy Ministry forecasts economic growth of 7.3 percent this year, compared with 6.7 percent in 2006.

TomTom up

TomTom NV, the world's biggest maker of car navigation equipment, said third-quarter profit rose 36 percent on lower component costs and raised its full-year forecast for sales.

Net income climbed to 99 million euros from 73 million euros a year earlier, the Amsterdam-based company said in a statement yesterday. Sales rose 21 percent to 427 million euros. Analysts predicted TomTom would earn 87 million euros.

Airline removed

Air France-KLM Group, Europe's biggest airline, was removed from Goldman Sachs Group's "conviction buy" list because of an increase in the price of fuel and the possibility of an economic slowdown.

"As the cost of fuel has risen, there is a risk to earnings and with the macro outlook still uncertain, further revenue upgrades are hard to see," New York-based analyst Hugo Scott-Gall said in a note to investors yesterday.

Bloomberg News

(China Daily 10/25/2007 page16)