A round-up of today's other business news
Euro boost for property firm
The strong euro boosted the value of property investment vehicle, Real Estate Opportunities (REO) assets last year, the company said yesterday.
Treasury Holdings-backed REO reported that its properties in Ireland and Britain were valued at £1.9 billion (€2 billion) at December 31st 2008, an increase of 8 per cent on their value 12 months earlier. The company said that the increase was due to the significant strengthening of the euro against sterling in 2008, which offset a revaluation reduction, after costs, of 16 per cent.
Net asset value per share came in at 104.1p at December 31st.
This was a decline of 28 per cent on the 143.9p recorded 12 months earlier.
Elan bounce on Lundbeck takeover rumour
Shares in Elan rose as much as 12 per cent in Dublin trading on speculation of a takeover offer from Denmark's H Lundbeck A/S. In January, Elan appointed Citigroup as an adviser on strategic options, including a possible merger or sale. A month later, Elan said it was considering selling its stake in multiple sclerosis drug Tysabri, its only moneymaker, or a piece of the company to pay debt and fund research.
Niamh Lyons, a spokeswoman for Elan, and Anders Schroll, a spokesman for Copenhagen-based Lundbeck, declined to comment. – (Bloomberg)
GM to amend rescue plan for third time
General Motors is to prepare a third version of the plan that forms the basis of US government aid to the ailing carmaker in order to take account of unrelenting weakness in the market.
The revised plan, known as VP3, will be published early next week to coincide with the March 31st deadline for GM and its smaller Detroit rival Chrysler to prove they are meeting conditions set by the US government bailout.
More conservative assumptions could force the carmakers into further cost-cutting measures, such as plant closures. But people familiar with the plan said GM was not intending to ask for more aid in addition to the $13.4 billion (€9.9 billion) it has received and its earlier request for another $16.6 billion. – ( Financial Timesservice)
Ebay firm PayPal to create 35 jobs
Ebay subsidiary PayPal is to create 35 jobs at part of a new investment in Blanchardstown, Dublin.
The online payments firm said yesterday it will invest €15 million with support from IDA Ireland.
HM bucks trend with strong sales showing
HM, the low-cost Swedish fashion retailer, has reported a resilient performance in the first quarter with sales up 18 per cent compared with the same period last year to SKr23.3 billion (€2.2 billion).
But rising sales was neutralised by a decline in the krona's value, which contributed to a 12 per cent dip in after-tax profit to SKr2.6 billion. – ( Financial Timesservice)
