Mittal
stuns markets with US$23bn bid for Arcelor
London, UK: The world's largest steelmaker, Mittal
Steel Co, on Friday announced an unsolicited US$22.8 billion
offer for rival Arcelor SA. Luxembourg-based Arcelor called
it a hostile takeover attempt and said the company's directors
will meet shortly to take a position on the offer. In
a statement, Arcelor said that it ''
underlines the
hostile character of this move that takes place without
prior discussions or consultations between both companies.''
Before
Arcelor's reaction, Mittal CEO and chairman Lakshmi Mittal
had acknowledged at a news conference in London that Arcelor
CEO Guy Dolle had rejected the idea of a merger during
brief talks on January 14.
The
bid is part of Mittal's attempt to form a global powerhouse
capable of producing more than 100 million tonnes a year.
The steel industry has been consolidating rapidly in recent
years and Mittal has been openly looking for acquisitions
to increase its market share as demand from China and
India rises.
Mittal's
offer values Arcelor shares at US$24.50 each, a 27 per
cent premium to Thursday's close.
Interestingly,
if the deal should materialize, Mittal has said that it
will sell Canadian automotive-steel maker Dofasco Inc.
to German-based steelmaker ThyssenKrupp AG. Dofasco, just
earlier this week had agreed to a US$4.85bn takeover by
Arcelor.
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Boston
Scientific receives stern FDA warning
New
York: Boston Scientific's shares tumbled 7 per cent
on Friday after the Food and Drug Administration issued
a stern regulatory warning to the US heart devicemaker,
citing "serious violations" of processes to
report product problems and manufacturing quality. The
FDA said the deficiencies required changes on a "corporate-wide
basis", and it could withhold new product approvals
until it was satisfied with the changes.
The
warning has come even as Boston Scientific was yet to
get over the euphoria of having won the bidding battle
for Guidant for US$27bn, or US$80 per share.
Some
more bad news poured in for Boston on Friday as Guidant
reported a sharp fall in sales and profits in the fourth
quarter, because of a product recall. The recall had scuttled
its deal originally struck in December 2004 with J&J,
which negotiated a lower price, allowing Boston to counterbid.
On
Friday, Boston's shares fell US$1.52 to US$21.63, below
the collar threshold in the deal of US$22.62, implying
a significantly lower price for Guidant of about US$78.32
per share.
However,
the final price will be determined by a 20-day average
of Boston's share price before closing the deal. The falling
deal price once again raises the spectre of J&J returning
to the fray.
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Chevron
reports Q4 revenues of US$53bn
New York: Chevron Corp. on Friday reported US$53bn
in revenue in the fourth quarter, a 26% increase from
the year-ago period, on high oil, gas and refined-product
prices.
Chevron
said its net income was US$4.1bn compared with net income
of US$3.4bn, or US$1.63 a share, reported a year ago.
Revenue
in the fourth quarter was ahead of analysts expectations
of US $51.7bn. A year ago, Chevron's revenue was US $42
billion. For the full year, Chevron reported net income
of US$14.1 billion, or US $6.54 a share, compared with
earnings of US$13.3bn, or US$6.28 a share a year ago.
Sales
climbed to US$194bn from US$151bn.
"We
achieved these results despite an estimated $1.4 billion
negative impact on profits in the second half of the year,
the consequence of disruptions caused by third-quarter
hurricanes in the Gulf of Mexico," chairman and CEO
Dave O'Reilly said in a statement. "About half of
this adverse effect on earnings related to the fourth
quarter."
Chevron
received about US$52 a barrel for its oil in U.S. in the
fourth quarter, up from US$38 a year ago, and US$50 a
barrel internationally from US$37 a barrel. U.S. natural
gas sales prices increased 69% to top US$10 per thousand
cubic feet, and outside the U.S. prices rose 21% to US$3.50.
For
the year, Chevron replaced 175% of its oil-equivalent
production. It added, including sales and acquisitions,
more than 1.5 billion barrels. Oil-equivalent production
totaled 870 million barrels. The amounts exclude volumes
from the Canadian oil sands and an operating service agreement
in Venezuela.
The
company expects oil-equivalent production to increase
to 2.7 to 2.8 million barrels per day in 2006 from 2.5
million barrels per day in 2005 with help from Unocal's
properties - Chevron acquired Unocal last year - and new
project start-ups.
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FDA
clears release of first inhalable insulin
New
York: The Food and Drug Administration has given its
approval for the release of the first inhaled insulin,
Exubera, designed to reduce or eliminate the need for
diabetics to take injections to control their blood sugar.
The
approval of Exubera, a powder that is breathed into the
mouth and lungs through a six-inch inhaler, is expected
to be a blockbuster seller for drug maker Pfizer Inc.
Exubera
is scheduled to go on sale this summer. Exubera is short-acting
insulin that can be taken before meals. It would not replace
long-acting insulin shots that many must take before bedtime.
Safety
concerns delayed the FDA review of Exubera for three years
while additional clinical trials were conducted.
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