A round-up of today's other business news in brief

'Memorable year' for diamond firm

Professor Richard Conroy, chairman of Karelian Diamond Resources, the AIM listed diamond exploration company focused on Finland, told its AGM yesterday that 2007-08 had been a "memorable" year, during which it conclusively proved that its Seitapera kimberlite pipe in the Kuhmo region is diamondiferous.

3.5m euro payout in share sale case

Three people have agreed to pay €3.5 million arising out of guaranteeing a share sale and purchase agreement for a company, the Commercial Court heard yesterday.

It was claimed Brian Madden, Rathfeigh, Tara, Co Meath; Gregory Coughlan, Fastnet House, Kinsale, Co Cork and Brendan Murtagh, Dunheeda, Cavan, had given guarantees over Maulbawn Holdings Ltd (formerly Haulbowline Industries Ltd) of The Dockyard, Passage West, Cork, in August 2006. David, Orlando and Roger Hill had sued the three over their alleged failure to pay all the monies outstanding under an agreement worth €5 million.

Elpida raises stake in UK pub chain

Mitchells Butlers, owner of O'Neill's pubs and Browns restaurants, said the investment fund of John Magnier and JP McManus raised its stake in the firm to 15.1 per cent.

The pair's Elpida Group lifted its shareholding to 61.04 million Mitchells shares, according to London-based Mitchells. - (Bloomberg)

German Industrial production falls sharply

German industrial production fell sharply in October, pointing to a weak reading for the euro zone and sparking fears Europe's biggest economys fourth quarter performance could be one of the worst since Germany reunified in 1990. Dragged down by an ongoing slump in manufacturing activity, output declined by a larger than expected 2.1 per cent on the month in October, preliminary economy ministry figures showed yesterday. This follows on another bad performance the previous month. - (Reuters)

Krugman warns of damage

Paul Krugman, winner of the 2008 Nobel economics prize, said policy makers would be unable to prevent the global economic crisis from inflicting serious damage.

Speaking in Stockholm where he will collect his prize, US economist Krugman praised the choice of Timothy Geithner to be treasury secretary in Barack Obamas administration but said he faced a tough task.

"The simple mechanics of producing a rescue for the world economy are very hard. The pace at which things are getting worse is so great that its difficult to see how rescue measures can come," said the economics professor at Princeton. - (Reuters)

Australia hands consumers €4.1bn

Australias government began to hand out more than A$8 billion (€4.1 billion) in cash to consumers ahead of Christmas, but some analysts say the money may not be enough to stop the country from sliding into recession.

The cash splurge comes after data showed the economy barely grew at all in the September quarter, when gross domestic product rose just 0.1 per cent, its lowest pace in eight years, and with unemployment set to rise due to the global slowdown.

The cash for families and pensioners is part of a stimulus package announced that is aimed at boosting confidence and retail sales. - (Reuters)