A roundup of today's other business news in brief:
BNP decides against bid for Société Générale
French bank BNP Paribas has walked away from a possible bid for rival Société Générale, which is fighting to remain independent after suffering the world's biggest rogue trading scandal.
"Given the persistent rumours, BNP Paribas clarifies that it has ceased to consider a potential tie-up with Société Générale," France's biggest listed bank said yesterday. The news punctured bid rumours that have swirled in the wake of €4.9 billion of trading losses that the bank blames on a lone junior trader, Jérome Kerviel. "If a French bank that knows the market doesn't want it, then it's unlikely that anyone else will," said Ion-Marc Valahu, head of trading at Amas Bank in Switzerland.
- (Reuters)
Second-half drop in Clarins profit
Clarins, the French skin-cream company that also makes Thierry Mugler perfumes, had a 70 per cent drop in second-half profit because US department stores reduced inventories and the cost of developing new products increased.
Net income declined to €54 million in the six months through December from €181.4 million a year earlier.
- (Bloomberg)
Merrill Lynch sues XL Capital
Merrill Lynch is suing XL Capital Assurance over default protection on $3 billion of collateralised debt obligations that the bond-insurance unit of Security Capital Assurance is seeking to void. "We filed suit to make clear that XL Capital Assurance Inc. is required to meet its contractual obligations for credit default swaps it agreed to," Mark Herr, a Merrill Lynch spokesman, said. Doonbeg golf club shows loss of €2.9m
The latest accounts for Doonbeg golf club show an operating loss of €2.9 million for the end of 2006.
This resulted in an accumulated loss of €21.7 million, while the accounts show that the company has received a capital contribution from its US parent of €66 million.
The company said yesterday that 65 individuals have purchased suites at the €150 million golf resort in west Clare.
The total value of the sales was €68.8 million
Bechtel earnings surge by 32%
Global engineering construction company Bechtel said yesterday that its 2007 revenue surged 32 per cent to a record $27 billion (€17.28 billion) and it booked $34.1 billion in new work.
That 38 per cent increase in new contracts brought its total work under contract to about $75 billion, said chief financial officer Peter Dawson. Mr Dawson said the company had not seen a slowing of orders because of the weakening US economy - (Reuters)
$20.4m reward for Bank of America chief Bank of America, the second-largest US bank, said yesterday that chairman and chief executive Kenneth Lewis was awarded about $20.4 million (€13.04 million) of compensation in 2007, an 11 per cent decline from a year earlier, as mortgage-related writedowns caused profit to fall.
Mr Lewis (60) was awarded a $1.5 million salary, $11.07 million of restricted stock, $3.38 million worth of stock options, $4.25 million of non-equity incentives and $212,211 of other compensation.
- (Reuters)
