BHP exits diamond mining

THE world's largest diversified resources company BHP Billitonhas become less diverse after exiting the diamond mining business.
BHP confirmed speculation first airedseveral months ago that it would sell its EKATI diamond business in Canada toCanadian miner and jewellery retailer Harry Winston Diamond.
The sale price is$US500 million ($A481.58 million) but BHP said it wouldalso book a non-cashimpairment charge ofabout $US200 million($A192.63 million) onthe asset's carrying value.
The move is consistent with a desire by BHP under chief executive MariusKloppers to strip away and simplify thebusiness.
That involves disposing of its smaller or less-profitable divisions with challenging outlooks,including nickel and aluminium.
BHP chief executive non-ferrous Andrew Mackenzie said the sale was consistent with a focus on large,long-life, low-cost, expandable, upstreamassets.
"Together with the recent sale of our interests in Richards Bay Minerals (mineral sands) and Yeelirrie (uranium), (the sale) reflects our ongoing pursuit of a simpler business," he said in astatement.
It sees its future coreassets being iron ore,coal, copper, petroleum and potash, although some analysts warn the world can changequickly and its other assets hold hedging value.
The diamond mine is located in Canada's remote northwestern territories, 200km south of the Arctic Circle.

2.7 million cars worldwide to be recalled by Toyota

Toyota has said it will recall 2.7 million cars worldwide because of problems with the steering wheel and water pump system.
The recall affects nine models, including the ToyotaCorolla and the second-generation Prius.
It comes four weeks after thefirm recalled more than seven million vehicles worldwide, including some Corolla and Camry models, over faulty window switches.
Toyota is Japan's biggest carmaker.
Joichi Tachikawa, a spokesman for Toyota, told the BBC that the problem with the steering wheel was to do with "insufficient hardness of the steering shaft".
He explained that due to this, the splines which connect the extension shaft to the gearbox may deform ifthe steering wheel is"frequently and forcefully turned to the full lock position while driving at a very slow speed".
"This may create an increased backlash and the splines may eventually wear out over time, which could result in loss of steering ability," he added.

40% quota for women on boards' EU approve

The European Commission has approved proposals fromjustice commissioner Viviane Reding to have at least 40% of women on company boards by 2020.
The news came in a tweet byMrs Reding. Official confirmation is due later.
But there are reports the proposals have been watered down to exclude small and medium companies and only to applyto non-executive directors.
Mrs Reding postponed the launch of the policy last month, when EU lawyers warned quotas may not be enforceable.
Under the plans, member states will be allowed to decide for themselves what action to take against companies failing to reach the quota.
Draft versions of the proposals also said that the rules would not apply to countries that had already taken measures to improve the gender balance on boards.
The plans were opposed by nine EU member states, including the UK.
Mrs Reding said the measures were "a breakthrough initiative" and criticised those who said the plans had been watered down.
They will still need to be approved by the European Parliament and the Council of Ministers, but Mrs Reding said she was confident they had enough support to be passed.

Paper profit (loss)

Paper profit (loss) – An unrealized profit or loss on a security still held. Paper profits and losses become realized only when the security is sold.

Par

Par – In the case of a common share, par means a dollar amount assigned to the share by the company's charter. Par value may also be used to compute the dollar amount of common shares on the balance sheet. Par value has little relationship to the market value of common stock. Many companies issue no-par stock but give a stated per share value on thebalance sheet. In the case of preferred stocks it signifies the dollar value upon which dividends are figured. With bonds, par value is the face amount, usually $1,000.

Participating preferred

Participating preferred – A preferred stock that is entitled to its stated dividend and to additional dividends on a specified basis upon payment of dividends on the common stock.

Passed dividend

Passed dividend – Omission of a regular or scheduled dividend

Penny stocks

Penny stocks – Low-priced issues, often highly speculative, selling at less than $1 a share. Frequently used as a term of disparagement, although some penny stocks have developed into investment-caliber issues.

Portfolio

Portfolio – Holdings of securities by an individual orinstitution. A portfolio may contain bonds, preferred stocks, common stocks and other securities.

Preferred stock

Preferred stock – A class of stock with a claim on the company's earnings before payment may be made on the common stock and usually entitled to priority over common stock if the company liquidates. Usually entitled to dividends at a specified rate - when declared by the board of directors and before payment of a dividend on the common stock - depending upon the terms of the issue.