Other business news in brief

Fexco in South Pacific move

Irish financial services group Fexco has acquired a majority stake in Federal Pacific Group, a money and bureau de change business based in the South Pacific.

The value of the cash deal was not disclosed but is understood to be “relatively small” in the context of Fexco’s recent disposal of its money transfer business to

Western Union for $159.5 million.

Federal Pacific operates in 10 territories in the South Pacific and is also an agent for Western Union.

The company had been wholly owned by the Hutchison family and the existing management will remain in place.

Under the deal a new holding company for Federal Pacific Group, Fexco Pacific Ltd, has been set up.

A Fexco spokesman said the company was “actively exploring other potential acquisitions”.

Nestle to cut more than 40 Irish jobs

International food group Nestlé is cutting more than 40 jobs from its Irish operations as part of a restructuring that will centralise some support functions with the UK.

In a statement last night, Nestlé cited the “current challenging economic and market conditions” for the decision following a “comprehensive review” of the group’s Irish operations.

Nestlé expects to make 43 staff redundant at its head office in Citywest, Dublin, but said it would continue to employ 120 people in Ireland.

Eircom must cut network access fees

Eircom will face more competition for its high-speed internet service after the European Union endorsed a regulator’s decision to force the company to cut certain fees.

Eircom must remove a charge to its competitors when consumers change from one service to another while staying with the same company, the European Commission said in a statement yesterday in Brussels.

Eircom also must cut a fee paid by rival operators for accessing its network to provide high-speed Internet services, said the EU’s competition authority. – (Bloomberg)

Madoff business relaunched

The market-making portion of Bernard Madoff’s business, which he ran for years alongside the Ponzi scheme for which he has been convicted of fraud, has been relaunched under the name Surge Trading.

The business will be led by Frank Petrilli, former chief executive of TD Waterhouse, and will provide financial institutions, including broker-dealers, with access to trade execution services and exchanges.

It is envisaged that the company will become a market-maker in equities listed on Nasdaq and the New York Stock Exchange. The company has no intention of resurrecting the investment management side of Mr Madoff’s business, which was the Ponzi scheme.

Davy is biggest broker – survey

Dublin stockbroking house Davy has emerged as Ireland’s leading brokerage, based on commissions paid, in the annual Thompson Reuters Extel Pan-European Survey.

Davy was followed by Goodbody Stockbrokers, while Merrion slotted into third position.

According to the survey, the top three Irish investment analysts (also based on commissions) were Eamonn Hughes of Goodbody, Emer Lang of Davy and Dermot O’Leary of Goodbody.

Dragon to hire BKE Shelf’s Astra rig

Dragon Oil has signed a contract with BKE Shelf to hire the Astra jack-up rig for six months from November.

Dragon will use the rig to drill two wells during the contract term, the company said.

Purpose-built club wins drinks licence

What has been described as the first purpose-built club in Ireland was given the legal nod yesterday to sell drinks.

Carol O’Kennedy, SC, told the Circuit Licensing Court the €38 million Wright Venue, to be known as the WV Club, will open at Airside’s South Quarter, Swords, Co Dublin, next month.

WV will be home to a night club as well as a collection of licensed restaurants, wine bars and coffee shops. The club is the brainchild of Michael Wright jnr, a member of the Howth Wright family, and his partner Alan Clancy.

Judge Deery yesterday granted The WV a seven-day publican’s licence and restaurant certificate.