Priceline.com Inc., the most valuable online-travel agency, has agreed to buy Kayak Software Corp. for US$1.8-billion in cash and stock to expand its Web-based travel services.
Kayak shareholders will receive US$40 a share, the companies said in a statement. That price represents a 29% premiumover Kayak’s closing price of US$31.04 in New York today, and it includes about US$500-million in cash as well as US$1.3-billion in equity and assumed stock options.
Priceline has been using acquisitions to add customers as it works to grow sales and fend off competition in a sluggish economy. Kayak, which raised US$91-million in an initial public offering in July, lets travelers compareprices and make reservations for hotels, flights, cars and vacations.
Thursday, 8 November 2012
Galaxy S3 world best selling smartphone
Galaxy S3 became the world's best-selling smartphone model last quarter, pushing aside Apple Inc's iPhone, which has dominated the chart for more than two years, research firm Strategy Analytics said on Thursday.
Strategy Analytics estimated Samsung sold 18 million S3 models in the third quarter, compared with iPhone 4S sales of 16.2 million.
Strong sales of the flagship Galaxy S3 - which comes with a large 4.8 inch touchscreen - helped Samsung post a record $7.3 billion operating profit in theJuly-September quarter.
"Samsung's Galaxy S3 has proven wildly popular with consumers and operators across North America, Europe and Asia," said analyst Neil Mawston, adding the new iPhone 5 would likely reclaim the top spot for Apple in the currentquarter
Strategy Analytics estimated Samsung sold 18 million S3 models in the third quarter, compared with iPhone 4S sales of 16.2 million.
Strong sales of the flagship Galaxy S3 - which comes with a large 4.8 inch touchscreen - helped Samsung post a record $7.3 billion operating profit in theJuly-September quarter.
"Samsung's Galaxy S3 has proven wildly popular with consumers and operators across North America, Europe and Asia," said analyst Neil Mawston, adding the new iPhone 5 would likely reclaim the top spot for Apple in the currentquarter
French government offers €20bn tax boost for businesses
France's president, François Hollande , sought to shrug off his business-bashing reputation on Tuesday with a€20bn-a-year (£16bn) package of tax credits and other pro-industry measures.
The prime minister, Jean-Marc Ayrault, surprisedmany by announcing that the government would accept much of the recommendations of a reportby Louis Gallois, the former EADS boss, on making the French economy more competitive.
"France is not condemned tothe spiral of decline. But we need a jolt at a national levelto regain control of our destiny," Ayrault said. "This is about giving our companies room to manoeuvre."
Firms will be offered tax credits worth up to €10bn next year, rising to €20bn by2015, to be financed by an increase in VAT and €10bn in public spending cuts, as yet unspecified. That was lessthan the €30bn-a-year cut inpayroll taxes that Gallois demanded, but far more than many analysts expected. The rebates will be proportionate to the size of a company's payroll, up toa maximum of two-and-a-half times the minimum wage, in an attempt to support jobs.
Amid rising concern about France's global competitiveness, Hollande is keen to show that despite implementing a 75% top rateof income tax on the super-rich, he is on the side of business. Fabrice Montagne, of Barclays, said the announcement would"improve sentiment vis-a-vis the government's economic policy, which will be welcomed by the president as approval rates are at significantly low levels".
The International Monetary Fund said in its annual report on the French economy, published on Monday, that without radical reform France could slip behind Spain and Italy, which have been hobbled by lack of competitiveness against the mighty German economy.
The prime minister, Jean-Marc Ayrault, surprisedmany by announcing that the government would accept much of the recommendations of a reportby Louis Gallois, the former EADS boss, on making the French economy more competitive.
"France is not condemned tothe spiral of decline. But we need a jolt at a national levelto regain control of our destiny," Ayrault said. "This is about giving our companies room to manoeuvre."
Firms will be offered tax credits worth up to €10bn next year, rising to €20bn by2015, to be financed by an increase in VAT and €10bn in public spending cuts, as yet unspecified. That was lessthan the €30bn-a-year cut inpayroll taxes that Gallois demanded, but far more than many analysts expected. The rebates will be proportionate to the size of a company's payroll, up toa maximum of two-and-a-half times the minimum wage, in an attempt to support jobs.
Amid rising concern about France's global competitiveness, Hollande is keen to show that despite implementing a 75% top rateof income tax on the super-rich, he is on the side of business. Fabrice Montagne, of Barclays, said the announcement would"improve sentiment vis-a-vis the government's economic policy, which will be welcomed by the president as approval rates are at significantly low levels".
The International Monetary Fund said in its annual report on the French economy, published on Monday, that without radical reform France could slip behind Spain and Italy, which have been hobbled by lack of competitiveness against the mighty German economy.
Austerity cuts passed by Greece lawmakers
The austerity package aimed at securing the next round of bailout funds was passed with the support of 153 MPs in the 300-member parliament.
The 13.5bn-euro ($17.3bn; £10.5bn) bill includes tax rises and pension cuts.
Earlier, riot police fired tear gas towards protesters when they were attacked with petrol bombs in Athens.
Prime Minister Antonis Samaras warned before the vote late on Wednesday that without the bailout Greece would run out of money thismonth and face"catastrophe".
Many of these measures are fair and should have been taken years ago, without anyone asking us to”
Antonis Samaras
Greek PM
The austerity package - Greece's fourth in three years - is meant to close the nation's budget deficit, lower its huge debt burden and make its economy more competitive.
MPs must now pass a revisedbudget on Sunday before eurozone finance ministers meet next week to approve 31.5bn euros in fresh loans from the European Union (EU) and the International Monetary Fund (IMF) that Greece needs to avoid imminent bankruptcy.
The 13.5bn-euro ($17.3bn; £10.5bn) bill includes tax rises and pension cuts.
Earlier, riot police fired tear gas towards protesters when they were attacked with petrol bombs in Athens.
Prime Minister Antonis Samaras warned before the vote late on Wednesday that without the bailout Greece would run out of money thismonth and face"catastrophe".
Many of these measures are fair and should have been taken years ago, without anyone asking us to”
Antonis Samaras
Greek PM
The austerity package - Greece's fourth in three years - is meant to close the nation's budget deficit, lower its huge debt burden and make its economy more competitive.
MPs must now pass a revisedbudget on Sunday before eurozone finance ministers meet next week to approve 31.5bn euros in fresh loans from the European Union (EU) and the International Monetary Fund (IMF) that Greece needs to avoid imminent bankruptcy.
Wednesday, 7 November 2012
$775 million lawsuit over false fuel economy claims . Hyundai is facing.
A U.S. lawsuit has been filed againstHyundai Motor Co ( 005380.KS ) and affiliate Kia Motors Corp ( 000270.KS ), seeking $775 million in damages in one of the biggest known actions against the automakers since they admitted overstating the fuel economy of some their vehicles.
The South Korea carmakers conceded on Friday that they had overstated the fuel efficiency ratings on more than 1 million recently sold vehicles in the United States and Canada, and agreed to compensate owners for the additional fuel costs.
The lawsuit, which seeks class-action status, was filed in the U.S. District Court for Central California on behalf of 23 Hyundai and Kia car owners and challenges the automakers' compensation plan.
Under the plan, customers will receive a debit card that will reimburse them for the difference in fuel economy, and an extra 15 percent to the amount will be added toacknowledge the inconvenience.
The lawsuit, which like a separate one filed in the Southern District of Ohio this week, is seeking further compensation for the reduced value of their vehicles.
Hyundai Motor was also sued in July by public interest group Consumer Watchdog for allegedly misleading consumers sensitive to high gas prices that its popular 2011 and 2012 Elantra model is more fuel efficient than it actually is.
A Hyundai Motor spokesmandeclined to comment on the lawsuits.
Moody's Investors Service has estimated that the automakers' compensation plan for fuel costs will cost them $100 million a year until the cars are scrapped but has not estimated potential legal costs.
The South Korea carmakers conceded on Friday that they had overstated the fuel efficiency ratings on more than 1 million recently sold vehicles in the United States and Canada, and agreed to compensate owners for the additional fuel costs.
The lawsuit, which seeks class-action status, was filed in the U.S. District Court for Central California on behalf of 23 Hyundai and Kia car owners and challenges the automakers' compensation plan.
Under the plan, customers will receive a debit card that will reimburse them for the difference in fuel economy, and an extra 15 percent to the amount will be added toacknowledge the inconvenience.
The lawsuit, which like a separate one filed in the Southern District of Ohio this week, is seeking further compensation for the reduced value of their vehicles.
Hyundai Motor was also sued in July by public interest group Consumer Watchdog for allegedly misleading consumers sensitive to high gas prices that its popular 2011 and 2012 Elantra model is more fuel efficient than it actually is.
A Hyundai Motor spokesmandeclined to comment on the lawsuits.
Moody's Investors Service has estimated that the automakers' compensation plan for fuel costs will cost them $100 million a year until the cars are scrapped but has not estimated potential legal costs.
Moody's Investors Service has assigned stable outlook on Kenya government for in issuing debt in local and foreign currency.
Rating agency Moody's Investors Service has assigned stable outlook on Kenya government for in issuing debt in local and foreign currency.
The rating comes against Kenya’s intention to issue a sovereign bond in 2013 andcontinued domestic borrowing.
Rating Kenya B1, the agencysaid it reflected the resilience of the Kenyan economy, structural and institutional reforms that would reduce political risks.
But the high debt levels and vulnerability to a varietyof political, external and security risks moderated theoutlook.
“The first key factor underpinning Moody's assignment of a B1 rating to Kenya is the country's demonstrated economic resilience in the face of multiple shocks in recent years,” said Moody’s in its report released yesterday.
It added that the “resilienceis driven by ongoing structural changes involvingeconomic diversification, the rapid adoption of communications technology and improvements in infrastructure.”
But it noted that “Kenya's economic resilience is challenged by factors such as the country's low GDP per capita on a purchasing power parity basis of $1,718,and the moderate size of its economy, with a nominal GDP of $34 billion in 2011.”
Moody's would upgrade Kenya's ratings in the event of a significant improvement in the country's institutional strength as a result of successful implementation ofthe new constitution.
Further progress on economic diversification, with particular emphasis on export growth through the development of its newly discovered oil fields, would also positively impact Kenya's ratings
The rating comes against Kenya’s intention to issue a sovereign bond in 2013 andcontinued domestic borrowing.
Rating Kenya B1, the agencysaid it reflected the resilience of the Kenyan economy, structural and institutional reforms that would reduce political risks.
But the high debt levels and vulnerability to a varietyof political, external and security risks moderated theoutlook.
“The first key factor underpinning Moody's assignment of a B1 rating to Kenya is the country's demonstrated economic resilience in the face of multiple shocks in recent years,” said Moody’s in its report released yesterday.
It added that the “resilienceis driven by ongoing structural changes involvingeconomic diversification, the rapid adoption of communications technology and improvements in infrastructure.”
But it noted that “Kenya's economic resilience is challenged by factors such as the country's low GDP per capita on a purchasing power parity basis of $1,718,and the moderate size of its economy, with a nominal GDP of $34 billion in 2011.”
Moody's would upgrade Kenya's ratings in the event of a significant improvement in the country's institutional strength as a result of successful implementation ofthe new constitution.
Further progress on economic diversification, with particular emphasis on export growth through the development of its newly discovered oil fields, would also positively impact Kenya's ratings
The Central Bank of Kenya has cut the base lending rate by 200 basis points to 11 per cent from 13 per cent
The monetary policy committee said the drop in inflation from 6.09 per cent in August, to 5.32 per cent in September and further to4.14 per cent in October, together with stability in exchange rates and high level of foreign exchange reserves provided space for gradual easing of monetary policy stance.
Exchange rates ranged between 84.91 to the US dollar in September to 85.28 in October while reserves rose to Sh448 billion ($5247.9m) or 4.14 months of import cover.
“Given the considerations above the committee decided to reduce the central bank rate by 200 basis points to 11 per cent,” central bank said.
However volatile fuel prices,a large current account deficit and spillover effects of the global economic slowdown portends risks, the central bank said.
Exchange rates ranged between 84.91 to the US dollar in September to 85.28 in October while reserves rose to Sh448 billion ($5247.9m) or 4.14 months of import cover.
“Given the considerations above the committee decided to reduce the central bank rate by 200 basis points to 11 per cent,” central bank said.
However volatile fuel prices,a large current account deficit and spillover effects of the global economic slowdown portends risks, the central bank said.
The 17-nation euro economy will expand 0.1 percent in 2013, down from a May forecast of 1 percent, the commission said today.
The European Commission said the euro-zone economy will virtually grind to a halt next year as the debt crisis ravages southern Europe and gnaws at theeconomic performance ofexport-driven Germany .
The 17-nation euro economy will expand 0.1 percent in 2013, down from a May forecast of 1 percent, the commission said today. It cut the forecast for Germany, Europe’s largest economy,to 0.8 percent from 1.7 percent.
“Europe is going through a difficult process of macroeconomic rebalancing and adjustment which will last for some time still,” European Union Economicand Monetary Commissioner Olli Rehn told reporters in Brussels. The economy is “sailing forward through rough waters.”
The economic falloff may make it harder for European governments to pull Greece back from the brink and deal with a possible aid program for Spain, leaving the debt crisis to fester for a fourth year.
Technically, the euro area will avert a recession, defined as two consecutive quarters of contraction, though the overall economy will still shrink 0.4 percent in 2012, ending a two-year expansion, the commissionsaid
The 17-nation euro economy will expand 0.1 percent in 2013, down from a May forecast of 1 percent, the commission said today. It cut the forecast for Germany, Europe’s largest economy,to 0.8 percent from 1.7 percent.
“Europe is going through a difficult process of macroeconomic rebalancing and adjustment which will last for some time still,” European Union Economicand Monetary Commissioner Olli Rehn told reporters in Brussels. The economy is “sailing forward through rough waters.”
The economic falloff may make it harder for European governments to pull Greece back from the brink and deal with a possible aid program for Spain, leaving the debt crisis to fester for a fourth year.
Technically, the euro area will avert a recession, defined as two consecutive quarters of contraction, though the overall economy will still shrink 0.4 percent in 2012, ending a two-year expansion, the commissionsaid
Africa eyes Islamic finance and Banking
The inaugural Islamic Banking Summit Africa, which opened yesterday in Djibouti, saw more than 200 leaders in theinternational Islamic bankingand finance industry engagein critical discussions that focused on capturing the Africa opportunity in Islamic finance.
The two-day event at the Djibouti Palace Kempinski, held under the official support of the Central Bank of Djibouti, kicked off with a keynote session which featured a special presidential address by Republic of Djibouti President Ismail Omar Guelleh and a keynote address by central bank governor Djama M Haid.
"Africa is becoming an increasingly attractive destination for investments that are Sharia-compliant," said summit organiser and managing director David McLean.
"Africa has now been re-positioned as the third fastest growing region in theworld, after the Middle East and Asia.
"Over the last decade, trade between African countries and the rest of the world hasgrown significantly, with economic linkages with the Middle East, in particular, strengthening further," he said.
"However, the Islamic finance industry is still in its infancy on the continent."
Mukhtar Ablyazov to face court over $5bn alleged fraud
Kazakh tycoon Mukhtar Ablyazov, the central character in a multi-billion pound fraud trial at the High Court, has been branded “cynical” and “devious” in a ruling ahead of his long-awaited trial.
The former chairman of BTABank, who fled the UK after being found in contempt of court, will face trial on Wednesday over a $2bn (£1.25bn) alleged fraud, part of larger $6bn claim the bank is pursuing againsthim.
The case will begin after a judge upheld the contemptof court finding that led a 22-month sentence being handed down against Mr Abylazov.
In his ruling on Tuesday, Lord Justice Maurice Kay branded Mr Ablayoz “cynical” and “devious”.
“Mr Ablyazov’s contemptuous disregard for court orders has not been limited to disclosure obligations,” said Lord Justice Kay.
“It is difficult to imagine a party to commercial litigation who has acted withmore cynicism, opportunism and deviousness towards court orders than Mr Ablyazov.”
Although lawyers for Mr Ablyazov said they would appeal the decision to the Supreme Court, the ruling means the central case against their client can now go ahead.
If successful it would mean BTA Bank could seize billions of pounds alleged to have been moved through the UK and held offshore by Mr Ablyazov.
The case has been going through the UK courts for three years, since Mr Ablyazov fled Kazakhstan claiming he was being persecuted by the Government
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