Qatar
Investment Authority may pick up 10 per cent in EADS
Doha: State-owned Qatar Investment Authority, a
$40 billion investment fund, may pick up as much as 10
per cent of European Aeronautic Defence & Space Co.,
Europe's largest aerospace company. According to the fund's
chief executive officer, Sheikh Hamad bin Jasim bin Jaber
al-Thani, the move is an attempt to diversify the emirate's
holdings.
According
to the CEO, the fund's interest arises from the fact that
EADS, the parent of Airbus SAS, is ``under pressure''
and its shares may be undervalued after falling 18 per
cent over the last year. The Sheikh made this information
available, in an interview on Saturday last week in the
capital city of Doha.
EADS
has said that it may sell shares sometime this year to
help fund development of its newest plane, the A350XWB.
Airbus
has already said that it will post its first-ever loss
for 2006 after a two-year delay in deliveries of its super
jumbo A380 has led to cost overruns. Airbus has also been
forced to pay penalties to customers.
Sheikh
Hamad said that the Investment Authority has held talks
with EADS officials. He however did not reveal details.
According
to market estimates, the Qatar Investment Authority has
assets of about $40 billion in mid-2006. The fund itself
doesn't publish information on its holdings, however.
Analysts
say that the Qatari government's picking up a stake could
provide a lifeline to the struggling A350 program. It
also makes eminent sense, since Qatar Airways is the biggest
customer for the type. State-owned Qatar Airways has four
A380s on order and has also pledged to buy 60 A350s. It
has however yet to confirm the order.
According
to EADS, the A380 delays could lead to total operating
losses through 2010 of 4.8 billion euros with the cost
of bringing the A380 into service shooting up to about
19 billion euros from an original projection of 12 billion
euros. Airbus' A350 is set to compete with Boeing's 787
Dreamliner.
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EMI
may sell off music division to prevent takeover
Venerable music company, EMI, may be considering selling
its recorded music division or refinancing its publishing
business, as a second profits warning in a month may have
left the company vulnerable to a takeover. Warner Music
Group, for instance, has been in off and on merger talks
with EMI for several years, and is believed to be working
on yet another bid for the firm.
EMI
set the cat among the pigeons last week, after it said
that sales at its recorded music division would likely
to be down by 15% when results were published for the
year to March. The forecast was much worse than the 6%
to 10% decline it had predicted last month.
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Nigerian
supply disruption and OPEC cuts edge up oil prices
London: Oil prices have edged up on fears that
supply from Nigeria may be disrupted with the US consulate
in Lagos issuing a statement that Nigerian militants may
have plans to broaden their attacks beyond the Niger Delta.
Price has also been impacted because of signs that OPEC
is making progress in implementing its recent production
cuts.
Nigeria
is Africa's leading oil producer and the fifth largest
supplier of foreign oil to the US.
Brent
North Sea crude contracts for April delivery were up $1
at $58.60 a barrel on Friday after gaining 17 cents to
close at $57.60 on Thursday. Meanwhile, New York light
sweet crude contracts for March delivery were up 96 cents
to $59.48 a barrel, after shedding one cent to close at
$57.99 on Thursday.
According
to analysts, tracking data reveals that the cartel's attempt
to restrict supply to the market, in a bid to raise prices,
has been relatively successful. Some analysts believe
OPEC may have managed to cut about 1 million barrels out
of the total 1.7-milllion barrels it had targeted.
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