“For the most part, the conditional limits of one-to-one,
with the exception of (natural) gas, we are not terribly
disappointed with that except with the one product,” CME
Executive Chairman Terrence Duffy said in an interview.
“For the most part, the conditional limits of one-to-one,
with the exception of (natural) gas, we are not terribly
disappointed with that except with the one product,” CME
Executive Chairman Terrence Duffy said in an interview.
“For the most part, the conditional limits of one-to-one,
with the exception of (natural) gas, we are not terribly
disappointed with that except with the one product,” CME
Executive Chairman Terrence Duffy said in an interview.
* Worker representative - restart possible soon at Dahra,
SamahBy Jessica DonatiTRIPOLI, Oct 18 (Reuters) - A strike at Waha Oil, a U.S.
joint venture in Libya, has resumed after an initial deal
between the workforce and the head of the state oil company to
remove the venture’s managers was overturned by the government,
a workers’ representative said.The joint venture with American firms ConocoPhillips
, Marathon and Amerada Hess produced
around a quarter of Libya’s oil, equivalent to around 400,000
barrels per day, before the country’s civil war.Around 80 key Waha Oil workers are refusing to return to the
venture’s fields until chairman Bashir Alashhab and other
directors, whom they accuse of cooperating with ousted leader
Muammar Gaddafi, are removed.Late last week workers and sources at the state National Oil
Corporation (NOC) said Alashhab and his deputy would be
replaced.”The prime minister Mahmoud Jibril stopped the agreement
because he said it was not the time for change,” Haithem
Etarhouni, a representative for the striking workers, said on
Tuesday.Waha Oil has suffered repeated disruptions during the
conflict. Its oilfields were used as bases by Gaddafi’s
fighters, bombed by NATO and then sabotaged by fleeing loyalist
militia.But Etarhouni said that two fields, Dahra and Samah, had
escaped the worst of the war damage and could be restarted
relatively rapidly, potentially producing around 180,000 barrels
per day (bpd) within weeks of the engineers returning..UNCERTAIN FUTUREThe future of the formerly all-powerful NOC is uncertain as
it is prepares to resume full control of the oil sector.Deputy oil minister Omar Shakmak said last week the industry
would be freed up allowing companies to be more autonomous. He
also said he did not expect a governmental body to take over any
of the responsibilities involving strategy and planning
currently held by the NOC.But in an interview with Reuters last week, oil and finance
minister Ali Tarhouni said it was too early to discuss the
changes needed in the oil sector, which provides Libya with most
of its wealth.The intervention by the prime minister over Waha Oil,
overruling the NOC, appears to cast fresh doubts over the state
corporation’s future authority.Waha Oil workers plan to protest against the prime
minister’s decision on Wednesday. Etarhouni also said they had
not received any pay since August.”We want to go back to bring money into our country, because
we don’t have money now,” Etarhouni said.
3 Italia was the only contender that failed to secure the
coveted 800 MHz band, feeding speculation this may lead to its
exit from the Italian market.”This looks to me more like somebody’s wish than the
reality,” Hutchison Managing Director Canning Fok was quoted
saying. “We had set a limit above which it was no longer
economical for us to bid for the 800 MHz.”He said Italy offered great growth opportunities especially
for an operator like 3 Italia that had bet on data traffic long
before the others, and could not take advantage of the growing
popularity of smartphones and tablet computers.”We have the most competitive offers on data traffic,” he
said, pointing to the fact that cash-strapped consumers paid
more attention to costs.If a consolidation in the Italian telecoms market were to
take place, 3 Italia would not be a target. “If there is one we
would be ‘consolidators’ and not ‘consolidated’. In terms of
financial resources, Hutchison Whampoa is more than ready,” he
said.3 Italia competes in Italy with former monopoly Telecom
Italia, the local unit of Britain’s Vodafone and Wind,
controlled by Russia’s Vimpelcom .
* Banker Arpe also eyes management control
(Releads, adds details, background)By Andrea MandalaMILAN, Oct 17 (Reuters) - The head of Italian private equity
fund Investindustrial said on Monday he is ready to invest up to
150 million euros ($206 million) in Banca Popolare di Milano
as the campaign to take charge of the co-operative
bank gathers pace.Investindustrial’s Andrea Bonomi is locked in a race with
Italian banker Matteo Arpe to get a grip on the bank’s new
management board, which will be appointed after a shareholder
meeting scheduled for Saturday.BPM is overhauling its governance at the behest of the Bank
of Italy to make management more independent from shareholders
and attract new investors.The new dual-board system of the bank, which also plans an
800-million euro cash call, envisages a supervisory board
representing its owners, and a management board with powers to
run the bank’s operations.”We are prepared to take part in the capital increase up to
the legal limit, which is 9.9 percent,” Bonomi said at a news
conference, presenting his own slate of candidates for the
supervisory board.The Investindustrial head and his representatives have the
backing of a slate supported by the bank’s controlling union
shareholder association, the Friends of Bipiemme, which with
less than 4 percent of the bank controls shareholder meetings
because of a one-head-one-vote rule.Bonomi, who pointed out investment was conditional on his
inclusion in the management board, said there was no pact
between his slate and that of the Friends association.He said Investindustrial had the resources to fund further
capital increases at the bank if needed.The Bank of Italy, which carried out an audit of BPM in
March, criticised it for opaque governance and the
disproportionate influence of the Friends association.A rival trade union shareholder group has asked banker
Matteo Arpe to join the bank’s management board.Arpe, head of the Sator fund, is known for his turnaround of
the Rome bank Capitalia, subsequently taken over by Italy’s
largest bank, UniCredit .($1 = 0.727 Euros)
Investors shrugged off concerns over a U.S. government review of the company’s sales into Iran and other countries to send its shares 16.0 percent above the $15 IPO price in afternoon trading on the Nasdaq. The shares were at $17.40 after going as high as $19.00, up 26.7 percent, earlier in the session.Ubiquiti makes wireless networking and video surveillance equipment. It priced 7.04 million shares at $15 on Thursday, the bottom of a lowered price range.Europe’s debt crisis and a weak economic recovery in the United States have made it difficult to price new issues. Most companies have opted to delay their IPOs until there is less volatility.”A lot of companies have walked away. It’s encouraging to see this deal work,” said Morningnotes.com founder and IPO analyst Ben Holmes.Holmes said the company’s revenue growth and gross margins are impressive, and that after it cut the share price — Ubiquiti sold shares for $6 below the midpoint of its original price range — investors probably felt they were getting a good deal.Ubiquiti’s revenue has risen sharply in each of the last five years. It was profitable in each of those years except 2010.In fiscal 2011, ended June 30, Ubiquiti posted net income attributable to common stockholders of $4.98 million on revenue of $197.87 million. Its gross margin during that period was 41 percent.Rising markets likely also helped the share sale. The S&P 500 index .INX.SPX is up 13 percent so far on Friday from an intraday low on October 4.SALES INTO IRANWhile Ubiquiti is getting applause for completing its IPO, sales of its products into countries including Iran are being reviewed by the U.S. government.Most of Ubiquiti’s revenue in fiscal 2011 — 70 percent — came from overseas, and one of the penalties it could face would be loss of its right to export.But analysts said the portion of its exports related to Iran appeared to be small and getting smaller.Ubiquiti said it had found two distributors selling its products into Iran. Over the past three years, one distributor accounted for 7, 6 and 4 percent of its revenue and the other’s sales into Iran were not a “material portion” of the distributor’s business with Ubiquiti, the company said.”It looks like they have dealt with this,” Morningnotes.com’s Holmes said.Ubiquiti said in its IPO prospectus that certain of its products were sold to Iran, Cuba, Syria, Sudan and North Korea and that some of its encryption components were sold without the appropriate export authorization.It said it did not mean to violate U.S. law but that violations occurred due to a “lean corporate infrastructure,” an inexperienced management team, and the fact that most of its manufacturing and sales are outside the United States.The company is headquartered in San Jose, California.It said it has since revised its distribution agreements, disabled software downloads in certain countries, and obtained appropriate paperwork for its encryption products.It said one U.S. government review of its sales into Iran resulted in a warning letter, and a second review is pending. The second review, by the U.S. Treasury’s Office of Foreign Assets Control, could result in Ubiquiti facing fines, losing its ability to export, and being referred for criminal prosecution, the company said in the risk factors section of its prospectus.In fiscal 2010, Ubiquiti recorded an expense of $1.6 million for export compliance, which it said is its best estimate of its exposure to fines.U.S. relations with Iran are particularly sensitive right now because of an alleged attempt by Iran to assassinate the Saudi Arabian ambassador in Washington.As of June 30, Ubiquiti had 92 full-time-equivalent employees in four offices globally. It has no direct sales force but instead relies on distributors, resellers and original equipment manufacturers. Ubiquiti Chief Executive Robert Pera is a former wireless engineer at Apple Inc. (AAPL.O)Underwriters on the IPO were led by UBS Investment Bank (UBSN.VX) (UBS.N), Deutsche Bank Securities (DBKGn.DE) and Raymond James.
* PCCW shares ease 0.34 pct vs market’s 1.04 pct gainBy Lee Chyen Yee and Alison LeungHONG KONG, Oct 12 (Reuters) - Hong Kong’s PCCW Ltd
got the green light from shareholders on Wednesday for its plan
to spin off and list its multi-billion dollar telecoms unit,
paving the way for owner Richard Li to create the media empire
he has long yearned for.But whether Li can become a media tycoon like Rupert Murdoch
remains unclear given the financial constraints of PCCW, stiff
competition in the media industry and regulations in Hong Kong
and China that could tie his hands, analysts and bankers say.Li, the younger son of Hong Kong tycoon Li Ka-shing, is
expected to expand his television business in Hong Kong and
China in what’s left of PCCW, which consists of pay-TV operator
now TV, an information technology solutions business and some
property assets.”As the market stabilises, we will go full steam ahead with
the spinoff and listing plans that will benefit our
shareholders,” Li said during a shareholders’ meeting on
Wednesday.”For ‘now TV’, we are trying to enhance our production
capabilities because we would like to pursue developments in
overseas markets.”He will be keen to delve into media-related business in
China and expand the company’s Hong Kong footprint after PCCW
obtains a free-to-air TV licence, which will help boost its TV
advertising revenue, analysts and bankers say.”Richard Li has always been more interested in media than
the telecoms business,” said a banker in Hong Kong .”In his mind, it’s a valuable business, but whether the
public will look at it the same way will depend on how much cash
he can generate for the business.” The banker declined to be
identified because he is not authorised to talk to the media.TOUGH TARGETThere is no guarantee PCCW will launch the spinoff in the
near future.It has said it will not move ahead with the plan unless it
can raise HK$6.8 billion to HK$10 billion, and fetch a minimum
market capitalisation of HK$28.6 billion ($3.68 billion) for the
trust.PCCW will retain control of the trust by keeping an interest
of 55-70 percent.Analysts say the market capitalisation target set for the
trust seems challenging under current market conditions.”What I think is a problem is the market cap restriction,
because the current share price of PCCW alone would indicate
that it’s not going to happen,” Macquarie analyst Lisa Soh said.PCCW shares ended down 0.34 percent on Wednesday,
taking the company’s market value to HK$21 billion,
substantially lower than the projected market value of its
telecoms asset. That means PCCW will likely wait before
launching the trust spinoff.PCCW has said that if it managed to raise more than HK$7.8
billion, it would use the proceeds to expand its business, apart
from paying down the telecoms unit’s mountain of debt
of more than HK$36 billion.”Li’s focus will be on mainland China because he already has
invested in PPstream, so I think Li is looking at the Hong Kong
and China markets,” said Daiwa Capital Markets analyst Alan Kam.
PPstream is China’s largest video online operator.PATCHY RECORDLi first ventured into the media business in the 1990s and
made a huge splash in one of his early deals.The crew-cut, bespectacled executive started the satellite
network Star TV in the mid-1980s which he sold to media mogul
Murdoch for $950 million in 1995, just before turning 30. He
used the money to set up a company that eventually became PCCW.In 2010, Li joined hands with China’s influential Caijing
magazine to launch a newswire service called Cai Business
Indepth (CBID). But that flopped within months of launching due
to poor market response and high operating costs.In 2000, Li beat Singapore Telecommunications Ltd
in a deal to buy Cable & Wireless HKT for more than $30 billion,
aiming to create a telecoms powerhouse.However, the highly-leveraged deal proved too big for Li
with the telecoms unit, leading to the decision to spin off and
list the unit in the form of trust.The telecoms business generates steady cash flow but its
growth potential is limited as the market is matured.In Hong Kong, Li owns the Chinese-language Hong
Kong Economic Journal and English website www.ejinsight.com,
although he will probably be unable to inject the assets into
PCCW due to local media regulations. Therefore TV will be Li’s
focus.PCCW is among the few TV operators that have already applied
for a licence to provide free-to-air television services in Hong
Kong, which will challenge the dominance of Television
Broadcasts Ltd (TVB) .”Now TV is still very small and the free TV market is about
HK$4 billion in terms of advertising revenue, and it’s dominated
by TVB,” said Standard Chartered analyst Steven Liu.”If three more operators get licences, competition will be
fierce.”There could be more acquisitions in store, although Li will
have to make a good sales pitch to convince PCCW shareholders,
such as China Unicom (Hong Kong) Ltd .In 2006, China Netcom, now owned by China Unicom, objected
to Li’s plan to sell PCCW’s core assets to U.S. buyout firm TPG
and Australia’s Macquarie Group Ltd. .
The bond sales left the company with no exposure to Greek,
Irish or Portuguese sovereign debt, seen as at risk of default
due to the issuing governments’ stretched finances, the company
said.European insurers’ shares have lost about a third of
their value in the last eight months on worries they could be
forced to take big writedowns on their holdings of bonds issued
by critically-indebted peripheral eurozone economies.Just Retirement, owned by buyout firm Permira , is
Britain’s biggest provider of so-called enhanced annuities,
retirement plans that offer higher payments to smokers and
others deemed likely to die early.The insurer, taken private by Permira in 2009 after three
years as a listed company, also offers equity release loans,
which allow mortgage-free customers to borrow against the value
of their properties.Just Retirement’s profits excluding the impact of bond sales
and other one-off items rose 1.6 percent on the year to 75.3
million pounds, with sales of annuities and equity release plans
up 11 percent and 22.7 percent respectively.
The bond sales left the company with no exposure to Greek,
Irish or Portuguese sovereign debt, seen as at risk of default
due to the issuing governments’ stretched finances, the company
said.European insurers’ shares have lost about a third of
their value in the last eight months on worries they could be
forced to take big writedowns on their holdings of bonds issued
by critically-indebted peripheral eurozone economies.Just Retirement, owned by buyout firm Permira , is
Britain’s biggest provider of so-called enhanced annuities,
retirement plans that offer higher payments to smokers and
others deemed likely to die early.The insurer, taken private by Permira in 2009 after three
years as a listed company, also offers equity release loans,
which allow mortgage-free customers to borrow against the value
of their properties.Just Retirement’s profits excluding the impact of bond sales
and other one-off items rose 1.6 percent on the year to 75.3
million pounds, with sales of annuities and equity release plans
up 11 percent and 22.7 percent respectively.
