| Investors may get lucky strike at BAT
Richemont and Remgro could spin off their combined 29.9 percent stake in British American Tobacco (BAT), paving the way for about $11.52 billion (R77 billion) worth of BAT shares to head directly to local shareholders, they said yesterday. This could see BAT initiating a secondary listing on the JSE, with local shareholders owning about 15 percent of the London-listed tobacco giant, which has a market value of more than R495 billion. The move would give investors a pure play in the owner of the Lucky Strike brand, with cigarette earnings considered to be defensive during economic downturns. It would also avoid higher taxes that will come into effect in Luxembourg in 2010, where the interest in BAT is held. Listing BAT on the JSE would be a way to avoid foreign exchange regulations that limit South African shareholders' overseas holdings, if Richemont and Remgro, controlled by the Rupert family, go ahead with the unbundling.
High stakes in the race for the Rock
As a fourth bidder emerges for the troubled Northern Rock, concerns continue over just what future role the bank will have in the North-East. With a Friday deadline fast approaching for would-be owners, Adrian Pearson looks at what each bidder's proposals would mean for the region's 5,700 employees. THIS time next week Northern Rock bosses will be mulling over four options for its future. Chairman Bryan Sanderson – along with Treasury officials – will have to consider the best deal for shareholders and staff as they consider who will own the bank by the time Government loans run out in February. Last night the Rock's share price was up 9.4% at 154.4, as the market waits to see what will happen. The four bidders currently offering to take over the bank all face the same massive financial hurdles if they want to run the UK's fifth largest mortgage lender.
(AFX UK Focus) 2007-11-15 14:10 GMT: US stock futures point to lower open
NEW YORK (AP) - Wall Street headed for a lower open Thursday after the Labor Department reported consumer price inflation increased for the second month in a row due to higher energy and food costs. The Labor Department's Consumer Price Index rose by 0.3 percent in October, the same as September's increase and analysts' forecast. Rising inflation could stifle growth and prevent the Federal Reserve from lowering interest rates further in the coming months. Analysts surveyed by Thomson/IFR expect a 0.3 percent increase in the CPI, on par with September's rise. Investors also reacted to a Barron's report late Wednesday that a General Electric Asset Management bond fund has suffered losses in mortgage-backed securities. The General Electric Co. unit is offering investors the option to redeem their holdings in the short-term institutional bond fund at 96 cents on the dollar.
Genpact Limited Reports Third Quarter 2007 Results
Genpact Limited (NYSE:G), which manages business processes for companies around the world, today announced financial results for the third quarter ended September 30, 2007. Key Third Quarter Financial Results -- Third quarter revenues were $214.6 million, up 32% from the third quarter of 2006, and up 7% from the second quarter of 2007, driven primarily by Global Client revenue growth -- Net income for the third quarter was $16.3 million, up 27% from the third quarter of 2006 and up 130% from the second quarter of 2007; net income margin for the third quarter decreased slightly to 7.6% from 7.9% in the third quarter of 2006, primarily due to certain tax charges and increased from 3.5% in the second quarter of 2007 -- Adjusted income from operations for the third quarter increased 42.1% to $36.7 million as compared to the third quarter of 2006 and 21.0% from the second quarter of 2007 -- Adjusted income from operations margin was 17.1% for the third quarter, up from 15.9% in the third quarter of 2006 and up from 15.1% in the second quarter of 2007 Global Client revenues grew 78.6% this quarter compared to the third quarter of 2006.
US Stock Futures Point to Lower Open
NEW YORK (AP) — Wall Street headed for a lower opening Thursday as investors reacted to news that a General Electric Asset Management bond fund has suffered losses in mortgage-backed securities — the latest sign of fallout from the ongoing credit turmoil. Barron's reported late Wednesday that the General Electric Co. unit is offering investors the option to redeem their holdings in the short-term institutional bond fund at 96 cents on the dollar. The losses in the bond fund raised concerns that the squeeze on credit markets could spread and hurt small investors. Meanwhile, Barclays Capital became the latest financial institution to record a writedown on losses stemming from turbulent credit markets. The unit of Barclays Group PLC took a $2.7 billion charge in the third quarter but the also said Thursday that its profit beat last year's strong performance.
Steelback won't stop race support
The restructuring of insolvent Steelback Breweries is raising questions on whether the company can meet some of its sponsorship commitments, but an organizer for a major car race here says there won't be any change at his event. Charlie Johnstone, president of the Grand Prix Association of Toronto, said yesterday Steelback's new management has assured the venerable July race that "it's business as usual" in maintaining the company's title sponsorship. Johnstone said he is set to meet next month with the Sherman family whose Wasanda Enterprises controls Steelback and D'Angelo Brands, a related insolvent beverage company. "I don't have any reason to expect that they won't go ahead with the sponsorship," Johnstone said, adding that the Shermans "love the event." Earlier this year, Steelback trumpeted a new four-year contract for naming and so-called pouring rights for the auto race, which was known as the Molson Indy for many years.
(AFX UK Focus) 2007-11-13 17:05 GMT: ROUNDUP Czech Unipetrol falls to net loss, shutdown impact continues to weigh
PRAGUE (Thomson Financial) - Czech refiner Unipetrol fell to a net loss in the third quarter as upgrade shutdowns at refineries and a 2.47 bln crown impairment charge dented earnings. Shares in Unipetrol dropped almost 3 pct in opening trade after the results were announced before bouncing back and ending at 326 crowns, or 0.15 pct lower. "The loss came from one-off items; the underlying business is doing well," one trader said. "Shares rebounded very quickly" on the back of buy support from domestic institutional investors, the trader added. Unipetrol, 63-pct owned by Polish refiner PKN Orlen, recorded a third-quarter net loss of 1.27 bln crowns, which was slightly below analysts' expectations, and down from a 722 mln crown profit a year ago. The shutdown for capacity upgrades at Unipetrol's main refineries cost the group 1.2 bln in earnings in the third quarter, and will slash 2.5 bln crowns from its full-year 2007 earnings before interest and taxes (EBIT), up from an estimated 2 bln crowns announced in August.
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