US stocks tumble as banks, GE trail revenue estimates
US stocks slid on Friday, wiping out a weekly advance, as revenue at Bank of America Corp., Citigroup Inc. and General Electric Co. missed analyst estimates and a gauge of consumer confidence slid to the lowest in a year. The Standard & Poor’s 500 Index dropped 2.9% to 1,064.88 at 4 pm in New York, the biggest drop this month. It fell 1.2% this week, erasing its gain after the Thomson Reuters/University of Michigan index of consumer sentiment fell more than economists estimated. The Dow Jones Industrial Average lost 261.41 points, or 2.5%, to 10,097.90 on Friday. (Bloomberg)
Honam acquires Titan for RM2.9bn
Honam Petrochemical Corp, South Korea's second largest ethylene maker, will pay RM2.9bn or RM2.35 per share to buy a big chunk of Titan Chemicals Corp Bhd from three institutional investors in Malaysia. Stateowned investment fund Permodalan Nasional (PNB), AmanahRaya Trustees and The Chao Group yesterday signed an agreement with Honam to sell off their combined 72% interest in Titan. Honam said it will buy the remaining shares in Titan from the open market by November and effectively take full control of the company. The South Korean company said it wanted to expand capacity and overseas revenue. (BT)
At least 4 suitors for Time
UEM Group has received at least four bids or offers to purchase its stake in Time Engineering, with prices ranging from 20 sen to 40 sen a share, sources said. It is not clear how much of its 45.03% equity interest UEM is looking to part with, but a sale of more than 33.3% could trigger a mandatory offer, if a waiver is not obtained. The sources said the internal deadline for UEM to make a decision on the stake sale has been pushed back to the end of this month. UEM has denied an announcement about the sale of its stake in Time Engineering will be made this week after refuting news reports last week. (Financial Daily)
UEM-Bina Puri venture wins RM997m LCCT deal
UEM Construction SB (UEMC) has won a RM997.23m contract with Bina Puri Holdings to build the muchanticipated permanent low-cost carrier terminal (LCCT) at the KL International Airport (KLIA). Malaysia Airports Holdings (MAHB) told Bursa Malaysia yesterday that it had appointed the UEMC-Bina Puri joint venture (JV), a 60:40 JV that was established in February, as the main contractor for the construction of the new LCCT. (BT)
Naim bags USD300m Libyan contract
Sarawak-based builder Naim Holdings has bagged a US$300m (RM963m) contract to build a 50-storey tower block in Tripoli, Libya for Libya's Al-Waatasemu Charity Foundation. Group managing director Datuk Hasmi Hasnan said construction is expected to start September and is expected to be completed in 36 months. (BT)
F&N Dairies may raise product prices
F&N Dairies (M) may increase the price of its products due to the sugar and fuel price hike from today. Chief operating officer (Dairies Division) Tony Lee, however, said the group has not made a decision on when the upward price revision will take effect. "As condensed milk contains a lot of sugar, the increase in sugar price by 25 sen a kilogram will definitely bring a big impact to the production." Since the price rationalization announcement was only made yesterday, we have to make the assessment on the impact before we decide to raise the price. "Prices of dairy products may increase by 10 sen," he told reporters after launching the new look for the "Tea pot" brand yesterday.(BT)
Sapura Group eyes Pos Malaysia
Sapura Group, one of the country's largest and most established bumiputera companies, is said to be one of the parties interested in acquiring Khazanah Nasional's 32% stake in Pos Malaysia. (Edge Weekly)
Proton, Lotus to produce sub-brand car
National automaker Proton Holdings is looking at producing a sub-brand car, partnering with its wholly owned Lotus Group International, said a source. With Proton being a mass-market car, while Lotus is a high end, the sub-brand car will be something in between. (Edge Weekly)
Lafarge: Lafarge SA sold stake in LMCB. French parent, Lafarge S.A. has sold a 11.2% stake in Lafarge Malayan Cement by way of a placement. Lafarge S.A. retains the management control and remains the largest shareholder with a 51% stake. The stake was transacted with a net proceeds of EUR141m, at RM6.24 per share. (Source: Bursa Announcement)
MSC: To dispose of non-tin investments by year-end. Malaysia Smelting Corp Bhd (MSC), the world's largest integrated tin mining and smelting group is targeting to complete the disposal of its non-tin investments and assets abroad by year-end. The group is looking at divesting its gold business in Australia, nickel in Vietnam, coal in Indonesia as well as copper and zinc operations in the Philippines. (Source: The Star)
REIT: Managers seek cut in withholding tax. Managers of real estate investment trusts (REITs) are hoping for a reduction in withholding tax for REIT investors in next year's budget, to spur the industry growth and make it more competitive. REIT managers are also proposing for a relaxation on fund-raising restrictions. (Source: Business Times)
1MDB: Picks project partners. IMalaysia Development Bhd (1MDB), the agency tasked to develop most of the government land is identifying partners to draw up a masterplan for its Bandar Malaysia and Kuala Lumpur International Financial District (KLIFD) projects in the city. Separately, 1MDB is awaiting clarification on the Bakun undersea cable transmission to assess the impact of a potentially larger supply of hydropower for its projects in Sarawak. (Source: The Star)
Southern Steel: Mandatory takeover offer at RM2.05 a share. Southern Steel Bhd's (SSB) shareholder NatSteel Holding Pte Ltd has sold its 27.03% stake in the company to Signaland Sdn Bhd for RM232.4m. Signaland, Hume Industries (Malaysia) Bhd and Hong Bee Harware Company Sdn Bhd, now control 70.3% of SSB stock. Signaland is extending a mandatory takeover offer for the outstanding SSB shares at RM2.05 a share. (Source: Malaysian Reserve)
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