Other finance stories in brief
MA deals fall 45% in value
The value of mergers and acquisitions involving Irish companies fell by 45 per cent to €1.6 billion between the first and second quarters of the year, the latest research shows.
NCB's MA Tracker survey found that 51 deals were completed in the second quarter, down from 54 in the first three months.
The broker pointed out that the decline in deal value between the first and second quarter was linked largely to Scottish Southern Energy's €1.1 billion purchase of Airtricity at the start of the year. When the second quarter was compared to the same months of 2007, the value of deals was down by 25 per cent.
'Guardian' dispute with Dunnes
The UK publisher of the Guardian and Observer newspapers is in dispute with Dunnes Stores after the retailer sought a change the way sales of the newspapers were recorded and an increase in its profit margin.
Dunnes demanded a three percentage point increase in the 25 per cent margin it earns on sales of the titles. It also sought to change how it records the sales from the current method, where any unsold copies of the newspapers are returned, to a system where it would only pay for newspapers scanned and sold at its checkouts.
Growth of 1.2% forecast this year
An aggregate of economic forecasts suggests Irish economic growth of 1.2 per cent this year, according to survey by DKM economic consultants. In its Economy Watch, DKM said average GNP growth forecasts have been revised down by one percentage point since its spring issue and further downward adjustments were expected. DKM compiles its report by averaging the forecasts from 13 sources.
FBD Holdings shares fall sharply
Shares in insurance firm FBD Holdings fell sharply yesterday after it issued a statement saying that first-half pre-tax profits will be affected by weakness in financial and commercial property markets.
In the statement, the company said it had reduced its investment in equities because of the "uncertain outlook" and this would have a knock-on effect on longer-term investment returns.
BoI withdraws scrip dividend
Bank of Ireland has withdrawn the stock option for shareholders instead of a dividend due to volatile markets.
Last month, Bank of Ireland stated it would give shareholders the option to take stock priced at €8.10 instead of a cash dividend.
"Since then, continuing market volatility has resulted in a significant decline in the value of many financial stocks, including Bank of Ireland, which makes the stock alternative unattractive relative to current market prices," Bank of Ireland said in a statement.
The bank will now pay the 39.4 cent dividend in cash.
Bank of Ireland shares closed at €5.97 last night.
€5.4m investment by Dale Farm
Northern Ireland's Industry Minister, Arlene Foster, has announced a £4.3million (€5.4 million) investment in skills and training by Dale Farm Ltd.
The company employs more than 500 people.
Bond sale to raise €12bn reported
Ireland may need to raise up to €12 billion through the sale of bonds and short-term debt between now and the end of 2009, Market News International has reported.
The sales may include a 15-year euro-denominated bond, Market News reported. The National Treasury Management Agency has not ruled out a dollar-bond sale, it added. - (Bloomberg)
