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Ahmedinejad
takes over presidency in Iran
Teheran: Mahmoud Ahmadinejad became Iran's new
president on Wednesday, taking office amid a heightening
of international tensions over Tehran's nuclear ambitions
and allegations concerning his role in the hostage crisis
of the 1970s.
The
48-year-old conservative former mayor of Tehran, deeply
loyal to the values of Iran's 1979 Islamic revolution,
won a landslide election victory in June and was appointed
president by Supreme Leader Ayatollah Ali Khamenei.
The
president in Iran appoints ministers who manage the day-to-day
business of government. But the government's power is
checked by a number of unelected bodies answerable to
Khamenei, the most powerful figure in Iran who is appointed
for life. Ahmadinejad takes an oath of office at a further
ceremony on Saturday at which he is due to announce his
cabinet.
Ahmadinejad
assumes charge even as Iran edges closer to possible U.N.
Security Council sanctions over its nuclear program, which
Washington says is a smokescreen for building atomic bombs.
Tehran insists its ambitions are peaceful. In order to
break this impasse, EU diplomats have been trying to get
Iran to surrender its nuclear fuel work in return for
economic incentives.
But
Iran says such a compromise is unacceptable and a spokesman
said it hopes to resume nuclear fuel work on Wednesday,
a move that threatens to end EU mediation.
Ahmadinejad
also faces numerous accusations about his past. The United
States says he was a leader in the student movement behind
the storming of its embassy in Tehran after the revolution
and is trying to determine whether he was a hostage taker
himself, something that he and those who took part deny.
Austrian investigators are looking into whether he was
involved in the murder of Kurdish dissidents in Vienna
in 1989. Again, his aides deny the charges.
Ahmadinejad
also faces massive economic challenges in a country where
growth is slipping and oilfields, the country's lifeblood,
are losing capacity. The victory of the former Revolutionary
Guard sent shock waves through the investment community.
These fears were enhanced when he said he would clean
out corruption in the oil industry and give no preferential
treatment to foreign firms.
But
analysts are adopting a "wait and see" approach,
arguing that Ahmadinejad took a pragmatic line as mayor
of Tehran and could well do so again as president.
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Adidas
picks up Reebok for US$3.8bn
New York: Adidas has made a successful bid of US$3.8bn
for Reebok. The deal, announced Wednesday, will help Adidas
take on sporting-goods brand Nike as it will give Adidas
a stronger presence in North America, which accounts for
nearly half the $33 billion in sales for all sports footwear
and apparel and will also give Reebok a stronger presence
on the global stage.
The cash transaction will buy out Reebok's existing stock
at $59 a share, a 34% premium over Reebok's closing price
Tuesday. Reebok founder Paul Fireman, who created the
company in 1979, will sell his 17% stake as part of the
buyout.
The
combined entity, with sales of $12 billion ($8 billion
from Adidas and $4 billion from Reebok) will close the
gap on Nike, which posted $14 billion in sales during
its last fiscal year, ended May 31.
Each
brand is expected to maintain its own identity under the
acquisition, which is expected to close in the first quarter
of 2006, pending regulatory approval from the European
Union and the Federal Trade Commission.
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