Companies News Headlines - Yahoo! News UK

Japan's Renesas eyes 14,000 job cuts, chip plant sale - Nikkei

Sat, 26 May 2012 05:34:07 +0100

TOKYO (Reuters) - Struggling Japanese chipmaker Renesas Electronics Corp is planning to slash as many as 14,000 jobs and sell a major semiconductor factory in Japan to Taiwan Semiconductor Manufacturing Co , the Nikkei newspaper reported. Renesas, the world's largest maker of microcontroller chips for cars, is also considering raising more than 100 billion yen ($1.3 billion) in a share issue to pay for restructuring and appease lenders concerned about it its finances, the paper said. ...

JPMorgan board to shake up risk committee -WSJ

Sat, 26 May 2012 01:33:08 +0100

(Reuters) - The board of JPMorgan Chase & Co is expected to make changes to its risk-policy committee after the bank's trading losses of more than $2 billion (1.27 billion pounds), The Wall Street Journal reported on Friday, citing anonymous sources. The board is expected to add either Timothy Flynn or James Bell to the committee, the Journal said. Flynn and Bell have backgrounds in risk and finance, the report said. It was not clear whether any of the current members of the committee would leave it, the Journal said. A JPMorgan spokesman declined to comment on the report. ...

DigitalGlobe, GeoEye jump on nod for imagery funding

Sat, 26 May 2012 01:07:32 +0100

WASHINGTON (Reuters) - DigitalGlobe Inc and GeoEye Inc on Friday welcomed a decision by the Senate Armed Services Committee to authorize continued funding for commercial imagery purchases, a move that sent the two companies' shares sharply higher. Shares of DigitalGlobe rose as much as 10 pct while those of GeoEye jumped 9 percent in response to the first positive news for the sector in quite a while. Both DigitalGlobe and GeoEye provide digital imagery services to U.S. military and intelligence agencies and are working on next-generation satellites to double their capacity. ...

SEC eyes Nasdaq compliance in Facebook debacle

Sat, 26 May 2012 00:36:44 +0100

WASHINGTON (Reuters) - U.S. securities regulators are looking into whether Nasdaq violated any technical exchange rules when it botched Facebook Inc's market debut last week, according to people familiar with the matter. The review of potential technical violations is part of the Securities and Exchange Commission's broader look at how Nasdaq handled its part of the initial public offering, including its decision to proceed with trading despite glitches, these people said. The SEC is also reviewing Nasdaq's communications with market participants, one of those people added. ...

Lotus Group CEO Bahar suspended

Sat, 26 May 2012 00:21:55 +0100

MONACO (Reuters) - Dany Bahar, the chief executive with ambitious plans for British-based sports car maker Lotus in Formula One and U.S.-based IndyCars, has been suspended by the new Malaysian owners of Group Lotus. Group Lotus said in a statement on Friday that the move followed an operational review with Bahar temporarily suspended from his role in order "to facilitate an investigation into a complaint about his conduct" made by DRB-Hicom Berhad. A DRB-Hicom spokesman said it was business as usual at the Lotus headquarters in eastern England, where more than 1,000 workers are employed. ...

Lotus Group CEO Bahar suspended

Sat, 26 May 2012 00:02:02 +0100

LCH.Clearnet left off U.S. "systemic" list

Fri, 25 May 2012 23:59:51 +0100

CHICAGO (Reuters) - LCH.Clearnet, the world's biggest clearer of interest-rate swaps, did not make an initial list of global clearinghouses labelled "systemically important" by a council of U.S. regulators earlier this week, three sources familiar with the decision said. LCH.Clearnet, a London-based firm set to be bought by the London Stock Exchange at the end of the year, had earlier said it fully expected to get the label. The label subjects clearers to tougher oversight but also potentially gives them access to valuable services, such as keeping funds at a Federal Reserve bank. ...

Exclusive - Merrill misstep may hurt battle vs. broker claims

Fri, 25 May 2012 23:25:03 +0100

NEW YORK (Reuters) - Merrill Lynch's battle to void a $10 million (6.38 million pounds) arbitration ruling suffered a setback this week after a new court filing raised questions about its claims that a panel member had not disclosed her potential conflicts. The brokerage giant, which Bank of America agreed to acquire in 2008, is challenging an April 3 arbitration ruling that awarded two brokers, Tamara Smolchek and Meri Ramazio, more than $10 million in damages stemming from unpaid compensation claims. ...

Facebook ripple on IPO market already felt

Fri, 25 May 2012 23:04:07 +0100

(Reuters) - The ripple effects of Facebook Inc's botched IPO appear to already be hitting the market for initial public offerings as two companies this week pushed back their market debuts. PC hardware components maker Corsair Components Inc postponed its $78 million (49.8 million pounds) IPO citing market conditions, as did laser hair removal products maker Tria Beauty Inc, which intended to raise $64 million. The delays may be just the first of many, say market observers, as volatile equity markets and fallout from the Facebook debacle create a challenging climate for new offerings. ...

Court OKs JPMorgan fee pact; Capital One talks fail

Fri, 25 May 2012 22:58:25 +0100

(Reuters) - JPMorgan Chase & Co won preliminary court approval of its agreement to pay $110 million (70.2 million pounds) to settle nationwide litigation accusing it of charging excessive overdraft fees. The settlement would resolve lawsuits brought on behalf of more than 1 million people over the fees, which are assessed when customers overdraw their checking accounts by using their debit cards. ...

Ex-General Re, AIG execs may settle criminal case

Fri, 25 May 2012 22:38:27 +0100

(Reuters) - Four former executives at Berkshire Hathaway Inc's General Re Corp and one at American International Group Inc are in talks to settle a long-running criminal case accusing them of engineering a reinsurance transaction that fraudulently boosted AIG's loss reserves. The talks were disclosed in a Thursday court filing, nearly 10 months after the 2nd U.S. Circuit Court of Appeals in New York overturned the defendants' convictions, citing errors by the judge handling their six-week trial in 2008. ...

Dell-Quest deal possible over weekend - sources

Fri, 25 May 2012 22:25:29 +0100

NEW YORK/SAN FRANCISCO (Reuters) - Dell Inc is expected to reach an agreement to buy network security software maker Quest Software Inc as soon as this weekend after a previous deal fell apart, several people familiar with the matter said. Dell is planning to offer between $23 (14.6 pounds) and $26 per share to buy the enterprise systems management software maker, two sources told Reuters on condition of anonymity because the discussions were not public. ...

Spain region, Greek exit warnings rattle euro zone

Fri, 25 May 2012 22:07:14 +0100

(Reuters) - Central banks and companies risk making a grave error if they do not brace for a possible Greek exit from the euro zone, Belgium's foreign minister said on Friday, rattling markets already alarmed by Spain's deteriorating finances. Greek elections are scheduled for June 17 and could hasten the country's departure from the currency club should a government intent on ripping up the country's bailout programme result. Contrasting findings of opinion polls on Friday showed the outcome is too tight to call. ...

Facebook IPO glitch prompts margin calls, headaches

Fri, 25 May 2012 22:04:05 +0100

BOSTON (Reuters) - Just hours before Facebook Inc made its stock market debut last Friday, Seuk Kim put in a limit order $4 above the initial public offering price. "I thought it was going to have that first day pop," Kim said. "I didn't think anyone would get in at the $38 (24.25 pounds) IPO price." Limit orders give investors a measure of protection because the stock is eligible to be purchased at or below the designated limit price, but never above it. ...

Judge says Enron's Skilling can seek new trial

Fri, 25 May 2012 21:52:00 +0100

HOUSTON (Reuters) - Former Enron Corp Chief Executive Jeffrey Skilling is reviving his quest for a new trial based on evidence his legal team received from prosecutors long after he was convicted of 19 counts of conspiracy, securities fraud, insider trading and lying to auditors. U.S. District Judge Sim Lake in Houston, who presided over Skilling's 2006 trial following the bankruptcy of the once high-flying energy company, on Friday gave the go-ahead to his legal team to seek a new trial. Enron crumbled in December 2001 after years of hidden debt and shaky finances fell apart. ...

Bankia, Catalonia pile on Spanish debt worries

Fri, 25 May 2012 21:19:34 +0100

MADRID (Reuters) - Financial troubles at a big Spanish bank and one of the country's richest regions, Catalonia, piled on problems on Friday for the Madrid government and for investors who question whether it can pay its debts without help from euro zone allies. Bankia SA, Spain's fourth biggest bank and newly nationalised, asked for a bailout of 19 billion euros (15.19 billion pounds) to repair losses from a property crash - the biggest Spanish bank rescue ever. ...

Facebook flop hurts small investors' trust in stocks

Fri, 25 May 2012 20:49:20 +0100

NEW YORK (Reuters) - Just when brokers thought Mom-and-Pop investors were getting excited about the stock market, along came Facebook. The 17 percent plunge in Facebook's shares since its ballyhooed debut last Friday, coupled with Nasdaq's mishandling of opening day trading, is spooking the very investors who had seemed the most intrigued by the offering, said Wall Street executives. ...

Factbox - Spain's Bankia asks for 19 billion euro bailout

Fri, 25 May 2012 20:40:59 +0100

MADRID (Reuters) - Troubled Spanish lender Bankia asked the government for a 19 billion euro (15.19 billion pounds) bailout on Friday, more than double what the government said would be the minimum needed earlier this week. The new management team at the partially nationalised bank presented a recapitalisation plan at a board meeting on Friday. Below are the details of the plan: THE MECHANISM: The state-backed restructuring fund, the FROB, will carry out a 19 billion euro capital hike at Bankia's parent company BFA. ...

Facebook options debut a wild card for volatility

Fri, 25 May 2012 20:26:14 +0100

(Reuters) - Investors can hope the debut of options on Facebook Inc goes more smoothly than the long-awaited debut of the social networking service's stock on May 18. While the stock's puts and calls are expected to be popular, the big wild card is volatility and ultimately, the options price. Traders will get a fresh start on options on the Internet giant when the contracts are offered on U.S. options exchanges on May 29. ...

Bankia reveals 3 billion euro loss for 2011

Fri, 25 May 2012 20:17:53 +0100

MADRID (Reuters) - Spain's troubled Bankia , which asked for a state bailout of 19 billion euros on Friday, also revealed a 2.979 billion euro (2.38 billion pounds) loss for 2011 after restating its accounts. The bank had stated in early May, before the state started a nationalisation process, that it had made a profit of just over 300 million euros for last year. Bankia has since reviewed its loan portfolios and capital needs to assess how much bailout money it needed. (Reporting by Sarah White; Editing by Fiona Ortiz)

JPMorgan's Dimon to testify before Congress in June

Fri, 25 May 2012 20:08:48 +0100

WASHINGTON (Reuters) - JPMorgan Chase Chief Executive Jamie Dimon has been invited to testify before the Senate Banking Committee on June 7 to give lawmakers insight into the bank's trading loss of at least $2 billion (1.27 billion pounds), Senator Tim Johnson said on Friday. Johnson, the Democratic chairman of that Senate panel, said the botched trading strategy at the nation's largest bank shows that Wall Street needs better risk management and stronger policing. "I expect Mr. ...

HP tries to stem Autonomy exodus after founder goes

Fri, 25 May 2012 19:11:26 +0100

LONDON (Reuters) - Hewlett Packard Co has told staff at Autonomy they have a bright future even after founder Mike Lynch was shown the door on Wednesday, joining a long line of top managers to leave the Cambridge-based software maker since HP bought it last year. HP Chief Executive Meg Whitman said the group was committed to the success of Autonomy, bought by the world's No. 1 personal computer maker for more than $11 billion. Autonomy has taken some of the blame for last quarter's disappointing performance at HP's software division, which fell short of HP's expectations. ...

HSBC sees "no big deals" as pay row fizzles

Fri, 25 May 2012 17:59:35 +0100

LONDON (Reuters) - HSBC said it had no appetite to take advantage of turmoil in the euro zone and make big acquisitions there or anywhere else where rivals are selling major assets. "We're good at running our own businesses, we're not so good at making acquisitions, so history suggests that we would do better to run our own firm and focus on that," said Stuart Gulliver, chief executive of Europe's biggest bank. Gulliver was speaking after the bank's AGM, where the bank sidestepped an investor backlash on pay on the scale seen by some rivals. It said 10. ...

Bankia set to ask Spain for more than 15 billion euros

Fri, 25 May 2012 17:50:48 +0100

MADRID (Reuters) - Spain's Bankia SA is set to ask the state for a more than 15 billion euros (12 billion pounds) bailout on Friday, marking another rise in the cost of a drawn-out rescue of the country's fourth-biggest bank. The capital shortfall at Bankia is key to a wider funding gap in Spain's banking system, which some investors believe could drive the euro zone's fourth-largest economy to seek international aid - a move that would create fresh uncertainty around the whole currency union. ...

Exclusive - F1 chairman puts brake on IPO talk

Fri, 25 May 2012 17:45:43 +0100

MONACO (Reuters) - Businessman Peter Brabeck, celebrating his appointment as Formula One chairman on Friday, said the motor racing series had not made a decision on whether to proceed with a much discussed $10 billion listing on the stock market in Singapore. Speaking to Reuters over a trackside lunch with Formula One commercial chief Bernie Ecclestone also in attendance, Brabeck said the business had a plan in hand to replace the octogenarian Ecclestone but hoped it would not be needed for a number of years yet. "He has a fantastic motivation. ...

Britain's FTSE ends flat as rebound loses momentum

Fri, 25 May 2012 17:29:27 +0100

LONDON (Reuters) - Britain's blue-chip index recorded its first weekly gain in a month on Friday but its recent rally lost momentum and the index closed flat on the day, capped by uncertainty about the euro zone crisis and an economic slowdown in China. The FTSE 100 ended up 1.48 points at 5,351.53 after a choppy trading session, with share price moves exacerbated by light volume at just 75 percent of its 90-day average. The index was up on the week after rebounding from a six-month low of 5,253. ...

Vatican bank president ousted; claims he is victim

Fri, 25 May 2012 16:50:05 +0100

VATICAN CITY (Reuters) - In the type of drama that rarely filters out of the Vatican, the president of its bank has been ousted by a board of external financial experts who voted no confidence in his leadership. Ettore Gotti Tedeschi, who was shown the door on Thursday night as president of the Vatican bank formally known as the Institute for Works of Religion (IOR), claimed he is a victim of his efforts to make the bank more open. Gotti Tedeschi told Reuters: "I have paid for my transparency". The Vatican denied this, saying he had been ineffective and divisive. ...

Grexit? Take more euros, German tourists told

Fri, 25 May 2012 16:39:37 +0100

FRANKFURT (Reuters) - Take more cash in euros. That's the advice a leading German tour operator would offer its customers should Greece leave the euro zone. "While tourists on all-inclusive holidays would have no need to worry, others should take more cash in euros with them in case the supply of drachma was not yet fully guaranteed throughout Greece," Markus Bruchmueller, a product manager for TUI Germany, said in an interview published on the group's website on Friday. ...

Putin tells Shtokman gas partners to hurry up

Fri, 25 May 2012 15:56:45 +0100

MOSCOW (Reuters) - Russian President Vladimir Putin urged partners in the Gazprom-led Shtokman project to make a final investment decision on its plan to extract gas from the Arctic seabed, delayed by years of talks over financing. Sources earlier on Friday said Royal Dutch Shell may join the initiative in an attempt to inject new life into the venture, while another source said the future participation of Norway's Statoil is in doubt. ...

Cameron defends role in Murdoch takeover deal

Fri, 25 May 2012 15:47:21 +0100

LONDON (Reuters) - Prime Minister David Cameron rejected calls to fire his Culture Minister on Friday after a public inquiry heard how the minister had ignored warnings from staff to lend his support to a major Rupert Murdoch takeover deal. Appearing on a morning television show more commonly known for light-hearted issues, Cameron was tackled on his judgment in appointing a minister to rule on News Corp's bid for BSkyB who he already knew supported the deal. ...

BP to invest $11 billion in Indonesia gas project - Yudhoyono

Fri, 25 May 2012 14:33:23 +0100

JAKARTA (Reuters) - Indonesia president Susilo Bambang Yudhoyono said on Friday oil major BP will invest 7 billion pounds ($11 billion) in the train 3 gas project in Indonesia and said he hoped it would help supply more gas to the domestic market. Yudhoyono said around 40 percent of the production from the project in eastern Indonesia will be distributed to the local market. "BP will add investment in the train 3 project. Its gas investment is $11 billion," said Yudhoyono. (Reporting by Jakarta Bureau; Writing by Janeman Latul; Editing by Matthew Bigg and Anthony Barker)

HSBC pay plan opposed by 10.2 pct of shareholders

Fri, 25 May 2012 14:24:47 +0100

LONDON (Reuters) - HSBC's pay plan for directors was opposed by 10.2 percent of shareholders at the bank's annual meeting on Friday, less than the previous year as Europe's biggest bank avoided the kind of shareholder backlash seen by competitors. HSBC said 86.3 percent of votes cast were in favour of the resolution on remuneration while 13.7 percent of shareholders either voted against the plan or withheld their votes. Last year, 18.7 percent of shareholders opposed the bank's pay plan. (Reporting by Matt Scuffham; Editing by Myles Neligan)

Lebanon PM's office says freed hostages on way to Beirut

Fri, 25 May 2012 14:14:02 +0100

BEIRUT (Reuters) - Lebanon's Prime Minister Najib Mikati has received confirmation from Turkey that Lebanese hostages who had been kidnapped in Syria have been released and were on their way to Beirut, his office said on Friday. "The prime minister received a call from (Turkish Foreign Minister Ahmet) Davutoglu (saying) the Lebanese hostages in Syria are well and are on their way to Beirut," an aide to Mikati said. (Reporting by Mariam Karouny)

Putin says Shtokman partners should speed up project

Fri, 25 May 2012 14:07:57 +0100

MOSCOW (Reuters) - Russian President Vladimir Putin on Friday urged partners in the Shtokman gas project, a Gazprom-led initiative to extract gas from the Arctic seabed, to speed up in making a final investment decision. "So far, there has been no final decision on Shtokman, but we have to move actively," he said. Putin also said that a decision could be taking during an international economic forum in St Petersburg in June. Earlier on Friday, sources told Reuters that Royal Dutch Shell may join the project, while Norway's Statoil may leave it. ...

European CEOs push back against investor activism

Fri, 25 May 2012 13:16:36 +0100

LONDON (Reuters) - Fighting back in defence of their lucrative pay deals, Europe's company executives are targeting the investor advisory groups they blame for inflaming shareholder activism. European CEOs are so angered by the rise of opposition to gold-plated executive payouts that they have taken the unusual step of pushing for more red tape, calling for regulation of the advisory groups who advise fund managers on how to vote on issues such as executive pay. ...

Parsons leaves Deutsche for Greenhill -sources

Fri, 25 May 2012 12:29:08 +0100

LONDON (Reuters) - Anthony Parsons, vice-chairman of British mergers and acquisitions at Deutsche Bank , has left to join boutique investment bank Greenhill & Co , two people familiar with the matter said. Parsons, one of the lead advisers to security firm G4S Plc on its failed $8.2 billion bid last year for Danish cleaning company ISS, joins a string of senior bankers leaving major banks for boutiques, a trend driven by generational change and smaller bonuses in the years since the financial crisis. ...

Ex-Aviva funds CEO to head Fidelity's UK retail ops

Fri, 25 May 2012 12:28:16 +0100

LONDON (Reuters) - Asset manager Fidelity Worldwide Investment has appointed former chief executive of rival Aviva Investors' UK funds business as the new head of its British retail operation. John Clougherty joins Fidelity on June 11 as Head of UK Retail having left Aviva Investors UK Funds earlier this year, Fidelity said in a statement on Friday. The appointment marks a return for Clougherty who started his career as a graduate with Fidelity in 1992 before moving through a series of senior sales roles at Fleming Asset Management, Merrill Lynch and Skandia. ...

Facebook fallout: Silicon Valley won't snub Morgan Stanley

Fri, 25 May 2012 12:22:26 +0100

SAN FRANCISCO/NEW YORK (Reuters) - Silicon Valley isn't quite ready to dump Morgan Stanley over the Facebook IPO fiasco. It could be said that playing a role in botching the world's biggest tech initial public offering would be enough to kick its lead banker out of the club, or at least to the curb, but a tarnished image hasn't necessarily dented Morgan Stanley's position as a go-to underwriter for Silicon Valley, according to bankers, venture capitalists and start-ups. ...

UK boardrooms home to more women

Fri, 25 May 2012 12:13:52 +0100

LONDON (Reuters) - Many more women are working in Britain's boardrooms since a government-sponsored report into the issue last year led chairmen and headhunters to look at a slightly less senior level for new talent, bringing more women into the mix. In February 2011, Mervyn Davies, a former chief executive of Standard Chartered and also a former British trade minister, issued a report calling for the number of women on boards to double to 25 percent by 2015. ...

Ex-Lloyds anti-fraud boss on false expenses charge

Fri, 25 May 2012 12:11:47 +0100

LONDON (Reuters) - The former head of digital banking fraud and security at state-backed Lloyds Banking Group has been charged with defrauding her employer by submitting close to 2.5 million pounds ($3.9 million) worth of false expense claims. In a statement on Friday, the Crown Prosecution Service (CPS) said it had authorised London's Metropolitan Police to charge Jessica Harper with one count of fraud by abuse of position. ...