Business
IN BRIEF (Page 17)
(China Daily)
Updated: 2009-12-02 08:05
Kraft 'still favorite'
Kraft Foods Inc is favorite to take over Cadbury Plc despite interest from Hershey Co and Ferrero, and talk of Nestle SA involvement, said analyst Andrew Wood at Sanford Bernstein.
"Kraft is still the favorite to get the deal done ... but not at the 'steal' it had originally hoped," said the top-rated analyst in a note on Tuesday, which still said the right price for Cadbury is 900 pence per share. Wood said he believes a Hershey/Ferrero bid would fall short but should force Kraft to pay a higher price, while Nestle's interest would only be on the coat-tails of a Hershey bid to try to get back its KitKat brand in the United States.
AIG deals cut NY Fed debt
Insurance giant American International Group Inc (AIG) said yesterday it had closed two transactions that reduce its debt with the Federal Reserve Bank of New York by $25 billion through two debt-for-equity swaps.
AIG said that under the agreement the NY Fed would receive preferred shares with a liquidation preference worth $16 billion in American Life Insurance Co (ALICO) and $9 billion in American International Assurance Co Ltd (AIA), which would be placed in special purpose vehicles (SPV). The insurer said that the SPVs readied the two subsidiaries for initial public offerings (IPO) or third party sale and in a separate statement said it was moving forward with the separation of ALICO.
Staples beats estimates
Top office-products retailer Staples Inc reported a higher-than-expected quarterly profit yesterday as cost cuts offset weak sales.
Net earnings rose to $269.4 million, or 37 cents a share, in the third quarter that ended on Oct 31, from $156.7 million, or 22 cents a share, a year earlier. Excluding items, it earned 39 cents a share, beating the analysts' average forecast of 38 cents a share, according to Thomson Reuters. Total sales fell 6 percent to $6.5 billion.
French court fines EBay
A French court fined eBay Inc 1.7 million euros ($2.6 million) for violating a 2008 injunction that prevents French users of the online auction site from buying or selling certain LVMH perfumes and cosmetics on any eBay website.
EBay Inc said that the Commercial Court of Paris' fine was too high and that the injunction blocking French eBay users from buying or selling designated LVMH cosmetics under the perfume brands Christian Dior, Guerlain, Givenchy and Kenzo, hurts consumers.
Reuters
(China Daily 12/02/2009 page17)
