Citi hires new equity strategy head in Australia

July 28, 2010 By Leave a Comment

July 27 (Reuters) – Citigroup (C.N) has hired Tony Brennan as its new head of equity market strategy in Australia, capping a year-long hiring spree that the group said will help it maintain market share.

Brennan, who was poached from Deutsche Bank (DBKGn.DE), was rated number two in Australia and number three in Asia in consultant Peter Lee & Associates’ ranking of equity strategists.

Citigroup said it needed to beef up in Australia after slashing jobs globally in 2008 as the global financial crisis hit, while rivals who were slower to cut jobs maintained their strong positions in Australia, which dodged a recession.

“So we found ourselves in the first half of 2009 at a competitive disadvantage — right strategy globally, wrong strategy in Australia,” Bruce Rolph, Citigroup’s head of investment research and analysis for Australia and New Zealand told Reuters.

The group launched a hiring spree a year ago focused on nabbing research analysts in metals & mining, energy, health care and real estate investment trusts (REITs) and financials.

Competitors such as CLSA and Nomura have also been snapping up analysts, but Rolph said Citi Australia was supported by its top five brokerage market share over 20 years, its capacity to invest in technology and global distribution platform.

“If you’re in that middle ground where you’ve got 3-5 percent market share, half a research team and you’ve got a bit of a technology spend, you are going to have difficulty,” he said.

“You’ve either got to really specialise or you’ve got to play the big global game.”

Citigroup ranked fourth behind Deutsche, UBS (UBSN.VX) and Macquarie (MQG.AX) in the first half of 2010, with a brokerage market share of 8.8 percent, handling A$124 billion ($112 billion) worth of trades.

That share is up slightly from 8.3 percent in the same period last year, when it ranked fifth, according to Australian Securities Exchange data.

CLSA’s market share in the first half of 2010 was 0.5 percent, while Nomura’s was 0.15 percent.

Citi did not have a specific market share target, but Rolph said its “natural” market share would be 9-11 percent.

Over the last year, Citigroup has snared JP Morgan’s (JPM.N) health care analyst, Alex Smith, and the REIT team from Credit Suisse.

More recently, in metals and mining, it hired David Haddad from RBC and a former strategist from top global miner BHP Billiton (BHP.AX)(BLT.L) Craig Sainsbury. It has also picked up analysts from fund managers, including Hugh Dive from Investors Mutual to cover building materials and chemicals. (Editing by Ed Davies)

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Indosat issues guidance on dlr bond-source

July 23, 2010 By Leave a Comment

July 22 (Reuters) – PT Indosat (ISAT.JK), Indonesia’s No. 2 telecommunications firm, plans to issue a 10-year dollar bond around 7.75 percent, a source close to the deal said on Thursday.

The deal may be priced later in the day, the source said.

Citigroup (C.N), DBS (DBSM.SI), HSBC (0005.HK) (HSBA.L), Deutsche Bank (DBKGn.DE) and Royal Bank of Scotland (RBS.L) have been hired for the offer.

(Editing by Ken Wills)

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Market Chatter — Corporate finance press digest

July 21, 2010 By Leave a Comment

July 20 (Reuters) – The following corporate finance-related stories were reported by media on Tuesday:

* Hoare Govett, the Royal Bank of Scotland’s (RBS.L) corporate brokering business, has won its first FTSE100 client since it was bought by RBS from ABN Amro three years ago, the Financial Times said on Tuesday. [ID:nLDE66J00H]

* AIA, the Asian life insurance unit of American International Group (AIG.N), is seeking backing from potential investors to cut ties with its U.S. parent by listing more than half its equity in the Hong Kong market, the Financial Times said. [ID:nLDE66J00D]

* Kumba Iron Ore (KIOJ.J) may look for other domestic buyers to take extra ore if ArcelorMittal’s South African unit (ISPA.AS) shuts down one of its plants, Business Report newspaper said. [ID:nLDE66I0NM]

* India’s Tata Steel (TISC.BO) has started talks with lenders including Citigroup (C.N) to refinance as much as 3.5 billion pounds ($5.4 billion ) in loans for its British unit, Bloomberg reported, citing six sources with knowledge of the matter. [ID:nSGE66I0LK] (Compiled by Tresa Sherin Morera)

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Israel’s Gazit-Globe raises $130 mln in bond issue

July 14, 2010 By Leave a Comment

July 13 (Reuters) – Israeli real estate investment company Gazit-Globe (GLOB.TA) raised 500 million shekels ($130 million) in a public offering of bonds which it will use to pay down debt, it said on Tuesday.

The company expanded its series 9 unsecured debentures, which bear interest of 5.30 percent, are adjusted to the consumer price index and mature in 2018. The offering was underwritten by a syndicate led by Leader Capital Markets.

The debentures carry a credit rating of “A+/A1″ with a stable outlook by Standard & Poor’s and Moody’s domestic subsidiaries — Maalot and Midroog, respectively.

Midroog upgraded Gazit-Globe’s rating outlook for the company’s bonds to “stable” from “negative” in April, saying there had been substantial improvement in the company’s liquidity and financial flexibility and that it had been successful in lowering its level of leveraging. [ID:nLDE63B0L4]

Net proceeds from the bonds will be used to pay down some of the company’s revolving credit facilities.

Gazit-Globe develops income-producing properties throughout the world, focusing on supermarket-anchored shopping centres.

It operates in the United States through Equity One (EQY.N) and in Canada through First Capital Reality Inc (FCR.TO). It is the largest shareholder in Finland’s Citycon (CTY1S.HE) and together with Citigroup (C.N) controls shopping mall developer Atrium European Real Estate ATRV.VI. (Reporting by Tova Cohen; Editing by Sharon Lindores) ($1 = 3.865 shekels)

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UPDATE 4-Banks win fund exemption in toughened Volcker rule

June 26, 2010 By Leave a Comment

WASHINGTON, June 24 (Reuters) – Banks would face stricter limits on risky trading and investing, but could make small investments in private equity and hedge funds under a modified “Volcker rule” backed by U.S. lawmakers on Thursday.

In a victory for banks that had lobbied for a limited loophole on fund investing to be included in landmark Wall Street reform legislation, a Senate-House of Representatives panel agreed to make changes to the controversial rule.

Senator Christopher Dodd proposed that up to 3 percent of a bank’s Tier 1 capital could be invested in private equity and hedge funds, and that a bank’s investment in any single fund not exceed 3 percent of the fund’s total ownership interest.

Those thresholds were backed by both the Senate and House delegations to the “conference committee” and will be included in the final bill if it is finally approved. It was still being debated into the wee hours on Friday morning by the panel.

Banks would have considerable time to sell off stakes in such funds that exceed the new caps, and to make other changes to adjust to the Volcker rule, which is named after White House economic adviser Paul Volcker and backed by the White House.

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For full coverage of U.S. Financial Regulation [nFINREG]

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Some of Wall Street’s largest financial institutions, such as Goldman Sachs (GS.N), JPMorgan Chase (JPM.N), Credit Suisse (CSGN.VX) and Citigroup (C.N) have been deeply involved in private equity deals and could face changes, analysts said.

“The Volcker rule could have been a lot worse for the banking sector than the version distributed this evening. This version will still hurt profitability and impact business decisions. But it is not the knock-out blow some had feared,” said Concept Capital policy analyst Jaret Seiberg.

Lobbyists for Bank of New York Mellon (BK.N), State Street Corp (STT.N) and Northern Trust Co (NTRS.O) were especially active in pressing for exemptions to let their asset management units continue to make small, or ‘de minimis,’ investments in private equity and hedge funds, congressional aides said.

COMPLETION TARGETED

Lawmakers hoped to finish the overall bill on Friday. If they can, the bill would need to pass both the Senate and the House before it could go to President Barack Obama to be signed into law. Democrats want that to happen before July 4.

Dodd’s proposal toughened the rule along lines suggested by Democratic senators Jeff Merkley and Carl Levin that would give regulators less leeway in implementing it and require non-bank firms that do risky trading to hold more capital.

The rule would bar banks from doing “proprietary trading” for their own accounts that is unrelated to the needs of their customers. Its aim is to insulate core banking operations from riskier trading operations at financial institutions that are backed by government deposit insurance and in other ways.

Democratic Senator Jack Reed said the rule would insulate the core bank from investments in private equity and hedge funds. “We’ve built in some strong protections,” Reed said.

A new interagency Financial Stability Oversight Council, also proposed as part of the overall legislation, would have to study the Volcker rule and regulators would have nine months after that to implement it. Financial services firms would have a year to comply with the new rules after they are issued.

“This proposal addresses the underlying concern of putting depository funds at risk. … It puts a stop to proprietary trading, but also recognizes that there are legitimate hedging activities that banks need to engage in,” Dodd said.

Dodd had said earlier in the negotiating session on Thursday that the cap on banks’ fund investments be 3 percent of tangible common equity. Later, he changed it to Tier 1 capital, a measure of a bank’s core capital strength. (Reporting by Kevin Drawbaugh, Andy Sullivan, Kim Dixon and Rachelle Younglai, editing by Jackie Frank)

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Goldman Sachs reclaims top spot in global M&A

June 26, 2010 By Leave a Comment

(Reuters) – Goldman Sachs reclaimed the top spot for mergers and acquisitions advice in the first half of 2010, underlining the Wall Street giant’s resilience even as it battles U.S. civil fraud charges.

Deals

With global dealmaking still subdued, Goldman’s (GS.N) advisory role on nearly $190 billion of transactions allowed it to retake the M&A crown from Morgan Stanley (MS.N), which last year bested its arch-rival for the first time since 1996.

Preliminary data from Thomson Reuters, released on Friday, showed global announced M&A hit $976 billion in the year to June 22, in line with last year’s subdued levels.

Goldman worked on five of the year’s 10 largest deals, more than any rival except Morgan Stanley, advising American International Group Inc’s (AIG.N) American Life Insurance Co Inc (ALICO), Coca-Cola Co (KO.N), Schlumberger Ltd (SLB.N), Novartis AG (NOVN.VX), and Allegheny Energy Inc (AYE.N).

M&A rankings are typically based on relationships built up over years, and deals that can take many months to craft.

Still, the recovery is welcome news for Goldman as it battles the worst blow to its reputation in decades: an April charge from the Securities and Exchange Commission of civil fraud over a subprime mortgage-linked security.

Goldman denies any wrongdoing, but the episode has led lawmakers and others to query its commitment to a long-cherished principle of putting clients’ interests first.

“A lot of people are surprised by Goldman’s resilience, particularly those of us in the boutique world whose marketing is based on the fact we give independent, unbiased advice,” said Philip Keevil, a senior partner at Compass Advisers.

“But what it comes down to is the strength of the brand — no board of directors, no CFO ever gets condemned for hiring Goldman Sachs,” said Keevil, a former head of international M&A at Salomon Brothers and head of European M&A at Citigroup (C.N)

Goldman has mounted an aggressive effort to retain clients who might be spooked by the SEC allegation that Goldman failed to inform a client about a short-seller’s role in packaging a subprime mortgage-linked security.

“Goldman would still like you to believe the firm is run by Gus Levy or John Whitehead, who was famous for saying, ‘Put the client first and the firm second.’ But now it seems like everybody is a (trading) counterparty,” Keevil said. “However, if you’re prepared to accept that, they do an incredible job.”

Goldman, whose M&A business has been led by London-based U.S. banker Gordon Dyal since 2004, declined to comment on its league-table standing.

A London-based head of M&A, who declined to be identified while discussing a rival, said Goldman’s legal difficulties simply reflected wider pressure on the industry and would not meaningfully hurt its advisory business.

“They are great professionals, they are a tough competitor and I don’t expect them to go anywhere,” this banker said.

MURDOCH

Among the other big Wall Street banks, advice to Rupert Murdoch’s News Corp (NWSA.O) on its $12 billion move to take full control of British satellite broadcaster BSkyB (BSY.L) helped JPMorgan Chase & Co (JPM.N) claim top spot for European announced M&A.

JPMorgan ranked third worldwide, as it did last year, while Bank of America Merrill Lynch stood sixth.

Germany’s Deutsche Bank (DBKGn.DE), whose M&A business is run from London by U.S. banker Brett Olsher and Norwegian Henrik Aslaksen, advanced to fourth place from eighth. It leaped to 4th from 18th place in U.S. M&A, helped by advice to telephone company CenturyTel (CTL.N) on its $22 billion takeover of peer Qwest (Q.N) and advice to MetLife Inc (MET.N) on the $15.5 billion takeover of ALICO.

Keefe, Bruyette and Woods analyst Matthew Clark said Deutsche Bank emerged from the financial crisis as a “relative winner” in reputational terms, and has made a sustained effort to boost market share in corporate finance.

Although bankers cautioned against drawing strong conclusions from a thin market in which a few key deals can lead to big swings in rankings, considerable movement was evident elsewhere in the league tables.

Despite a role in the year’s biggest deal — Mexican billionaire Carlos Slim’s consolidation of his telecoms empire via America Movil (AMXL.MX) — Citigroup fell to seventh place globally from fourth a year earlier.

Lazard (LAZ.N), which enjoyed a big role on Kraft-Cadbury last year, also dropped, to 10th from sixth, while UBS (UBSN.VX) and Barclays Capital (BARC.L) claimed top-10 spots after ranking 12th and 11th, respectively, for the first half of 2009.

(Reporting by Quentin Webb; editing by John Wallace)

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Citi names Rahul Shukla head of India corp banking

June 16, 2010 By Leave a Comment

June 15 (Reuters) – Citigroup (C.N) said on Tuesday Rahul Shukla will take over as head of India corporate banking, the unit that manages financing needs of the bank’s corporate clients.

Financials

Shukla, who had joined Citi in 1991 and was most recently heading the bank’s telecom, media and technology practice in the Asia Pacific, will report to Ravi Kapoor, Citi’s global banking head in India. (Reporting by Sumeet Chatterjee; Editing by Unnikrishnan Nair)

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UPDATE 1-China’s Goldwind pulls $1.2 bln Hong Kong IPO-source

June 14, 2010 By Leave a Comment

HONG KONG, June 13 (Reuters) – China’s second-largest wind turbine maker, Xinjiang Goldwind Science & Technology Co, pulled its up-to-$1.2 billion initial public offering, a source said on Sunday, the fifth Hong Kong IPO shelved since last month.

With around $3.8 billion in public offerings pulled from the Hong Kong Stock Exchange in the last few weeks, the dead deals reveal the impact of the sharp drop in China’s stock markets and the global fears surrounding the euro zone debt crisis.

The pile of discarded IPOs are crushing investor sentiment ahead of the Agricultural Bank of China’s mid-July deal, a deal that could exceed $22 billion and be the largest IPO ever.

The source, who was directly involved with the deal but unauthorised to speak publicly on the matter, said the retail portion of Goldwind’s IPO was under-subscribed.

Goldwind originally planned to offer 395.3 billion shares, or 15 percent of the company, with an indicative price range of HK$19.8 to HK$23 per share.

Last month, Russia’s Strikeforce Mining & Resources and China Tian Yuan Mining Ltd were among the deals yanked from the IPO process, with Swire Pacific’s (0019.HK) property arm shelving its $2.7 billion IPO plan on May 6.

Goldwind’s trading debut was originally set for June 22, under the symbol “2208″ (2208.HK). CICC, Citigroup (C.N) and Credit Suisse (CSGN.VX) were handling the deal.

China’s Shanghai benchmark stock index is one of the world’s worst performers this year, falling 22 percent since the government introduced measures to cool property prices in mid-April.

That, coupled with the euro sovereign debt crisis, has weighed on the initial public offering market in Hong Kong, which was home to the most IPOs globally last year.

The Agricultural Bank of China begins its premarketing period on Monday, at a time when the market is digesting yet another pulled IPO.

Goldwind could not immediately be reached for comment. (US$1=HK$7.75) (Reporting by Kennix Chim; Written by Michael Flaherty; Editing by Louise Heavens)

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GIC to launch $700 million logistics IPO: sources

June 11, 2010 By Leave a Comment

(Reuters) – Singapore’s biggest sovereign wealth fund GIC GIC.UL is looking to kick off an initial public offering of its logistics business around the fourth quarter to raise at least S$1 billion ($707 million), sources close to the deal told Reuters.

Deals

It is set be the biggest IPO in Singapore since CapitaMalls Asia (CMAL.SI) raised $2 billion late last year and will allow the world’s fourth-biggest sovereign fund to raise cash for further investments.

JPMorgan (JPM.N) and Citigroup (C.N) are advising GIC, the Government of Singapore Investment Corp, on the deal.

The IPO will be “in the ballpark of S$1 billion” or more, one of the sources said on Thursday. The IPO could be launched in either September or in the fourth quarter, two sources said.

The IPO will include assets in China and Japan that GIC’s real estate unit bought from ProLogis (PLD.N), one of the world’s biggest warehouse owners and developers, and some third party assets, one of the sources said.

The sources declined to be identified because the deal is not public. GIC, Citi and JPMorgan declined comment.

GIC, with $300 billion in assets, has been actively participating in deals in recent months after it reduced its exposure to equities at the start of the global credit crisis.

The logistics business is part of GIC Real Estate, or GIC RE, which ranks among the world’s top-10 real estate investment firms.

GIC RE, whose president Seek Ngee Huat was a former partner at Jones Lang LaSalle, manages a multi-billion dollar global portfolio of property assets, with over 200 investments in more than 30 countries. Real Estate is classified under alternatives and accounted for 12 percent of its assets as of March 2009.

Singapore, Asia’s third largest REIT market after Japan and Australia, is home to several large industrial REITs including Mapletree Logistics (MAPL.SI), Cache (CALT.SI) and Ascendas (AEMN.SI).

The real estate assets span multiple property sectors, including office, retail, residential, industrial and hospitality, according to its web site. (Editing by Anshuman Daga)

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Nomura hires Singh as Asia ex-Japan TMT head-sources

May 31, 2010 By Leave a Comment

May 31 (Reuters) – Japanese brokerage Nomura Holdings (8604.T) has hired Sandeep Singh as the head of its technology, media and telecommunications (TMT) banking head for Asia ex-Japan, sources with direct knowledge of the matter told Reuters on Monday.

Stocks | Global Markets

Singh, a former Citigroup (C.N) banker, will be a managing director at Nomura based in Hong Kong and is expected to start work in August.

Nomura and Citi declined to comment. (Reporting by Denny Thomas and Doug Young; Editing by Jacqueline Wong)

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Goldwind in $1.2 bln Hong Kong IPO -sources

May 31, 2010 By Leave a Comment

May 31 (Reuters) – Chinese wind power equipment supplier Xinjiang Goldwind Science & Technology Co Ltd plans to raise up to $1.2 billion in a Hong Kong initial public offering, sources close to the deal said on Monday.

Goldwind (002202.SZ), which is already listed on the mainland’s Shenzhen stock exchange, is selling 395 million shares, with an indicative price range between HK$19.8 ($2.54) and HK$23 per share, the sources said. There is a greenshoe option to increase the issue by an additional up to 59 million shares.

The sources had direct knowledge of the offering but were not authorised to speak on the record about the deal.

The H-share offering price range values Goldwind at 18.8 times to 21.8 times prospective 2010 earnings, said one of the sources close to the deal.

Chinese International Capital Corp (CICC), Citigroup (C.N), and Credit Suisse (CSGN.VX) are underwriting the deal.

(US$1=HK$7.75=6.826 Yuan)

(Reporting by Kennix Chim, Editing by Jonathan Hopfner)

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Wednesday’s Critical Alerts for Citigroup, Bank of America, Verizon, and Intel by Morning Star Research

April 16, 2010 By Leave a Comment

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UPDATE 2-Sheikh Hamed to run Abu Dhabi sovereign fund

April 16, 2010 By Leave a Comment

DUBAI, April 14 (Reuters) – The brother of the UAE’s ruler was named managing director of Abu Dhabi’s sovereign wealth fund on Wednesday, in an expected move keeping control of the world’s biggest fund in royal hands.

Sheikh Hamed Bin Zayed Al-Nahayan succeeds his brother Sheikh Ahmed who died in a glider crash in Morocco last month. [ID:nLDE62T1LH]

The Abu Dhabi Investment Authority (ADIA) has assets of between $500 billion and $700 billion.

State news agency WAM said on Wednesday the announcement was made in a decree by United Arab Emirates president and ADIA chairman Sheikh Khalifa bin Zayed Al-Nahayan, also ruler of Abu Dhabi.

Analysts and industry experts expected Sheikh Khalifa to appoint a member of the ruling family to run the fund.

“The announcement further emphasises the ruling family’s role in strategic entities in the emirate,” said Efraim Chalamish, a sovereign wealth fund expert and global fellow at New York University Law School.

“It is important to keep control not only to manage the fund but also to have a say in key issues impacting the emirate,” he said.

An ADIA spokesman confirmed the appointment but declined to give further details.

ADIA’s investments range from Citigroup (C.N) bonds to a stake in Britain’s Gatwick Airport.

State-owned ADIA invests funds generated by the emirate’s oil exports into overseas stocks and bonds.

ADIA’s new chief is expected to deliver consistent returns, while upholding the state-owned fund’s conservative values.

Sheikh Hamed is currently the chairman of Abu Dhabi Crown Prince Court and a chairman of General Holding Corp, the parent company of Emirates Steel.

“I do not expect any significant change to the fund with the appointment. The new person is well experienced and has been heading some important economic bodies in the region,” Chalamish said.

The sovereign fund, known for its secretive nature, provided a rare glimpse into its investment portfolio with its first annual review published last month. The fund had an allocation of up to 85 percent in developed markets. [ID:nLDE62D0F9]

In the 2009 review, ADIA said it began to “cautiously” lift exposure to growth markets as opportunities in developed markets slowed. The fund returned 6.5 percent on an annualised basis over a 20-year period.

Sheikh Ahmed, ranked No. 27 on Forbes list of the world’s most powerful people last year, also moved the firm’s investment strategy from that of an active fund to more of a passive one, focusing more on index-tracking funds. (Reporting by Dinesh Nair, editing by David Cowell)

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Wall Street-backed Chinese dairy firm collapses

April 15, 2010 By Leave a Comment

(Reuters) – Chinese dairy products maker Taizinai, which counts Goldman Sachs (GS.N) and Morgan Stanley (MS.N) among its investors and Citigroup (C.N) among its lenders, has collapsed, leaving around 3 billion yuan ($440 million) in unpaid debt, sources familiar with the matter said on Wednesday.

Morgan Stanley, Goldman and private equity firm Actis Capital had paid $73 million for a 31 percent stake in Cayman Islands-registered Taizinai in 2007, with Morgan Stanley providing $18 million, Goldman $15 million and Actis Capital $40 million, sources said.

The Grand Court of the Cayman Islands appointed Hong Kong accountant Borrelli Walsh as provisional liquidator of the former high flyer, the South China Morning Post reported on Wednesday, citing documents it had reviewed.

The paper was first to report the company’s collapse.

Citigroup is Taizinai’s biggest lender, while the company also owed money to Singapore’s DBS (DBSM.SI) and other banks, according to the sources.

Taizinai and Actis could not be reached for comment. The banks declined to comment. The sources have direct knowledge of the matter but are not authorized to speak publicly about the matter.

Once an IPO candidate, Taizinai, best known for its probiotic yoghurt drinks, expanded quickly, but was hit hard by China’s tainted milk scandal, which hurt dairy sales across the country.

Hunan-based Taizinai did not sell any contaminated products, but was hit by the industry downturn, one of the sources said.

With the tainted milk scandal and the over-expansion of its business, Taizinai was struggling, prompting the Hunan provincial government to take over the company in December 2008, according to a source familiar with the matter.

The local government had been managing and trying to stabilize the company since then, but was unable to make any real progress finding a solution, or a buyer.

The source said the liquidators have taken over the company, and will continue to try and seek a buyer.

As recently as the middle of last year, Taizinai was cited in Chinese media as a takeover target for Nestle SA (NESN.VX), the world’s biggest food group. A Nestle spokesman in China declined to comment about the matter at that time.

(Additional reporting by Denny Thomas and Doug Young)

(Editing by Michael Flaherty and Muralikumar Anantharaman)

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UPDATE 1-Wall St-backed Chinese dairy firm collapses

April 15, 2010 By Leave a Comment

HONG KONG, April 14 (Reuters) – Chinese dairy products maker Taizinai, which counts Goldman Sachs (GS.N) and Morgan Stanley (MS.N) among its investors and Citigroup (C.N) among its lenders, has collapsed, leaving around 3 billion yuan ($440 million) in unpaid debt, sources familiar with the matter said on Wednesday.

Morgan Stanley, Goldman and private equity firm Actis Capital had paid $73 million for a 31 percent stake in Cayman Islands-registered Taizinai in 2007, with Morgan Stanley providing $18 million, Goldman $15 million and Actis Capital $40 million, sources said.

The Grand Court of the Cayman Islands appointed Hong Kong accountant Borrelli Walsh as provisional liquidator of the former high flyer, the South China Morning Post reported on Wednesday, citing documents it had reviewed.

The paper was first to report the company’s collapse.

Citigroup is Taizinai’s biggest lender, while the company also owed money to Singapore’s DBS (DBSM.SI) and other banks, according to the sources.

Taizinai and Actis could not be reached for comment. The banks declined to comment. The sources have direct knowledge of the matter but are not authorised to speak publicly about the matter.

Once an IPO candidate, Taizinai, best known for its probiotic yoghurt drinks, expanded quickly, but was hit hard by China’s tainted milk scandal, which hurt dairy sales across the country.

Hunan-based Taizinai did not sell any contaminated products, but was hit by the industry downturn, one of the sources said.

With the tainted milk scandal and the over-expansion of its business, Taizinai was struggling, prompting the Hunan provincial government to take over the company in December 2008, according to a source familiar with the matter.

The local government had been managing and trying to stabilize the company since then, but was unable to make any real progress finding a solution, or a buyer.

The source said the liquidators have taken over the company, and will continue to try and seek a buyer.

As recently as the middle of last year, Taizinai was cited in Chinese media as a takeover target for Nestle SA (NESN.VX), the world’s biggest food group. A Nestle spokesman in China declined to comment about the matter at that time. (Additional reporting by Denny Thomas and Doug Young) (Editing by Michael Flaherty and Muralikumar Anantharaman)

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Dubai utility seen paying over 8% for $1 bln 5-year issue

April 15, 2010 By Leave a Comment

ABU DHABI, April 14 (Reuters) – State-owned utility Dubai Electricity and Water Authority (DEWA) could pay 8.5 percent for its five-year bond, bankers on the deal said on Wednesday, the high price reflecting how investors perceive the emirate’s credit risk.

Industrials

Dubai’s only utility will wrap up its investor roadshows in Boston on Wednesday, after meetings in the Middle East, Asia and Europe earlier in April, as a result of which more details of the issue have emerged.

The five-year issue will be a 144a transaction, open to U.S. institutional investors, and is expected to price this week. Bankers say the utility will settle at raising about $1 billion.

“DEWA is on course to raise $1 billion at the mid-8 percent coupon level. It’s high but Dubai is a different story now compared to Abu Dhabi,” a banker at one of the lead arrangers told Reuters.

Another banker also said DEWA was looking at raising $1 billion with a five-year tenor, as part of its $3 billion Medium-Term Notes (MTN) programme.

DEWA’s bond will be the first deal out of Dubai since the emirate’s debt troubles were laid bare when state-linked conglomerate Dubai World [DBWLD.UL] sought delay on repaying $26 billion in debt in November.

Bonds issued under the MTN programme will not carry a Dubai government guarantee, according to the prospectus, seen by Reuters.

Citigroup (C.N), Standard Chartered (STAN.L), the Royal Bank of Scotland (RBS.L) and Abu Dhabi-based NBAD NBAD.AD are mandated banks for the bond. (Reporting by Stanley Carvalho; Writing by Rachna Uppal; Editing by Mike Peacock)

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REFILE-Rescuers search Morocco lake for Abu Dhabi sheikh

March 29, 2010 By Leave a Comment

* Sheikh said to be regular visitor to family palace in area

* Police block roads leading to accident site

(Fixes typo in sheikh’s name in 2nd paragraph)

By Tom Pfeiffer and Stanley Carvalho

RABAT/ABU DHABI, March 28 (Reuters) – Rescuers on Sunday were searching a Moroccan hillside lake for the boss of the world’s largest sovereign fund, the Abu Dhabi Investment Authority (ADIA), two days after his plane crashed into it.

The aircraft of Sheikh Ahmed bin Zayed Al Nahayan, the younger brother of the ruler of Abu Dhabi, who is also president of the United Arab Emirates, crashed into a reservoir 10 km (6 miles) south of the Moroccan capital Rabat on Friday.

“The search is still going on, that is all that I can tell you,” Moroccan Communications Minister Khalid Naciri said.

Sheikh Ahmed is in his early 40s and was ranked No. 27 on Forbes list of the world’s most powerful people last year.

His sovereign wealth fund is believed to have assets of around $500 to $700 billion, ranging from Citigroup (C.N) bonds to a stake in Britain’s Gatwick airport to residential property in major cities.

Few details have emerged about the accident except that the pilot of the craft was rescued after it crashed near Sidi Mohamed Ben Abdallah Dam.

Residents of the area said the sheikh was a regular visitor and that the Abu Dhabi royal family had a palace overlooking the reservoir, which is swollen due to high rainfall and estimated to be about 60 meters deep.

Dozens of police on Sunday blocked roads leading to the lake, which is set in green, rolling hills. Several black Mercedes-Benz cars with diplomatic licence plates swept through a police blockade down the road leading to the royal family’s palace. Moroccan government vehicles followed.

UAE officials have made no comment since a statement on Friday reporting the crash. In the conservative Gulf region, health concerns about royal family members are treated with great deference and sensitivity and officials are rarely willing to comment before announcements from the ruling families.

“The suspense is unbearable, at least we should know whether he is found and about his condition,” said a senior Abu Dhabi businessman on condition of anonymity.

ADIA is viewed as the world’s largest state-run investor, funnelling funds from the emirate’s oil exports into stocks and bonds overseas from its headquarters in a gleaming skyscraper on the island city’s shoreline.

Sheikh Ahmed, like the organisation he leads, has shunned the media spotlight. He is the son of the founder of the seven member UAE federation, Sheikh Zayed bin Sultan al-Nahayan, and worked as a European equities analyst at ADIA for six years before becoming its boss.

The fund has rarely given details of its investment strategy or investments. In its first detailed report published in March, ADIA said it aimed to be more transparent. It also said it returned 6.5 percent on an annualised basis over a 20-year period as of Dec. 31, 2009 and 8 percent over a 30 year period.

The chairman of ADIA is Sheikh Khalifa Bin Zayed al-Nahayan, ruler of Abu Dhabi and President of the UAE.

An ADIA spokesman could not be immediately reached for comment. (Additional reporting by Dines Nair in Dubai, Writing by Thomas Atkins; Editing by Elizabeth Fullerton)

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InBev’s OB drew 3 private equity bidders- official

April 24, 2009 By Leave a Comment

SEOUL, April 21 (Reuters) – Three private equity houses — Affinity Equity Partners, Kohlberg Kravis Roberts and MBK Partners — have made final offers for South Korea’s Oriental Brewery (OB), an official of the beer maker said on Tuesday.

Anheuser-Busch InBev (INTB.BR), the world’s largest brewer and the owner of OB, had accepted the offers on Friday, which it has valued at more than $2 billion, as part of an effort to sell non-core assets and to repay debt.

“It was only the three private equity funds that participated in the sale,” the official with direct knowledge of the sale process told Reuters by telephone.

InBev is aiming to close the deal by later this week, he said, asking not to be named because he was not authorised to speak to media on that matter.

The three private equity firms are being advised by Goldman Sachs (GS.N), Citigroup (C.N) and Morgan Stanley (MS.N), and are scurrying to secure financial backers from global and South Korean banks, Reuters Basis Point reported.

South Korean retail giant Lotte Group confirmed on Monday it had not handed in a final offer for OB because of pricing and other reasons.

Lotte had been seen as a front-runner to buy OB, given its financial muscle and determination to start a beer business, but its original and revised bids were rejected by InBev as too low, sources had said.

But two private equity managers in Seoul said Lotte may come back with another offer, adding that the retail group’s absence from making a final offer was seen as a strategic move.

Lotte officials who had prepared for the acquisition could not immediately be reached for comment.

Separately, OB’s unionised workers, representing 80 percent of the total, entered its second day of a strike on Tuesday, demanding a 15 percent hike in wages.

They also urged InBev to give back 10 percent of any proceeds from the sale for investment and dividends, which InBev said should be negotiated with OB’s new buyer.

(Reporting by Kim Yeon-hee; Editing by Ken Wills)

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Seoul shares seen up helped by U.S. results

April 20, 2009 By Leave a Comment

SEOUL, April 20 (Reuters) – Seoul shares may rise on Monday
after gains on Wall Street, with banks likely to be helped by
better-than-expected results from Citigroup (C.N), but caution
before a batch of key South Korean earnings could limit rises.

“The rises in U.S. stocks and U.S. results will help
sentiment. But Seoul stocks snapped a five-week gaining streak
last Friday and it seems caution is setting in,” said Kim
Hyoung-ryoul, a market analyst at NH Investment and Securities.

The Korea Composite Stock Price Index (KOSPI)
finished down 0.58 percent at 1,329.00 points on Friday,
stumbling after five straight weekly gains.

“Investors will probably want to confirm a set of key
doemstic earnings this week, but since they are not expected to
be as bad as feared, we can hope for the return of weekly gains,”
Kim added.

Memory chip makers including Hynix Semiconductor (000660.KS)
may react to news that Taiwan’s Nanya Technology (2408.TW) would
cut its capital by 66.43 percent as it grapples with losses amid
a supply glut and falling demand. [ID:nTPU001299]

Lotte Group issues including Lotte Chilsung (005300.KS) may
be in the spotlight after a report that the retail-to-beverage
conglomerate would not submit a final offer for Oriental Brewery.
[ID:nHKG328220]
———————-MARKET SNAPSHOT @ 2246 GMT ————

INSTRUMENT LAST PCT CHG NET CHG
S and P 500 .SPX 869.6 0.5% 4.300
USD/JPY JPY 99.2 0.04% 0.040
10-YR US TSY YLD US10YT 2.9544 — 0.000
SPOT GOLD XAU 867.4 -0.06% -0.500
US CRUDE CLc1 50.2 -0.26% -0.130
DOW JONES .DJI 8131.33 0.07% 5.90
ASIA ADRS .BKAS 99.56 0.42% 0.42
————————————————————-

MARKETS SUMMARY
*Dow ends best 6 wks since 1938 on economy hopes [nN17358750]
*Oil rises to over $50 on consumer confidence boost [nSIN431763]
*Dollar gains vs most majors, euro slumps on ECB [nN17275408]
*Benchmark Treasuries lose a full point in price [nNYD000473]

STOCKS TO WATCH

KUMHO TIRE (073240.KS)

The tiremaker said late on Friday it would suspend production
for three days amid falling global demand.

LG HAUSYS (108670.KS)

LG Hausys, a manufacturer of industrial materials spun off
from LG Chem (051910.KS), will be re-listed and start trading on
Monday.

(Reporting by Jungyoun Park; Editing by Jonathan Hopfner)

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Nikkei edges up after earnings reassure Wall St

April 20, 2009 By Leave a Comment

TOKYO, April 20 (Reuters) – Japan’s Nikkei average inched up 0.1 percent on Monday, helped by exporters, after the U.S. Dow posted its biggest six-week gain since July 1938 on reassuring results from General Electric (GE.N) and Citigroup (C.N).

The benchmark Nikkei .N225 rose 4.46 points to 8,912.04, after opening slightly lower. It climbed 1.7 percent on Friday, while it lost 0.6 percent on the week, snapping a five-week rising streak.

The broader Topix .TOPIX added 0.3 percent to 847.97.

The Dow has risen 22.7 percent over the past six weeks, making advances each week for the largest six-week gain since July 29, 1938. (Reporting by Aiko Hayashi)

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