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04/07/08

BCE buyers finalize funding

TORONTO (Reuters) - The buyers of telecoms company BCE Inc are sticking to the agreed C$34.8-billion ($34.1 billion) purchase price and have finalized the funding for the deal to go ahead, the company said on Friday. BCE expects the deal, the world's largest leveraged buyout, to close by December 11. Its shares jumped 12.4 percent to C$39.50 early on Friday, reflecting investor relief that the deal was not being repriced and would close at the original price of C$42.75 per share.

Weak resources take TSX down

TORONTO (Reuters) - The Toronto Stock Exchange's main index sagged on Friday morning, pulled lower by weak resource companies while commodity prices softened. But losses were partly offset by a big jump in shares of BCE Inc after the telecom company said its buyers had finalized funding and were sticking to the agreed purchase price of C$42.75 a share.

Ivey index rises more than expected

TORONTO (Reuters) - Canadian business purchasing activity increased more than expected in June and at a faster pace than the previous month, according to the Ivey Purchasing Managers Index released on Friday. The index, the joint project of the Purchasing Management Association of Canada and the Richard Ivey School of Business, rose to 69.6 in June from 62.5 in May. That was better than market expectations for a reading of 62.0.

European banks need to raise up to $141 billion: Goldman

(Reuters) - Goldman Sachs said the European banks sector needs to raise about 60 billion to 90 billion euros ($94 to $141 billion), or withhold one year of dividends, to reach an aggregate Tier I ratio of 9 percent -- a level achieved by European banks that have recapitalized recently. The bearish comment by the Goldman analysts weighed on European stocks, with the benchmark FTSEurofirst 300 index down 0.43 percent at 1,172.99 points by 5:40 a.m. EDT.

Oil falls below $145, awaits Iran response

LONDON (Reuters) - Oil dropped below $145 a barrel on Friday, but was still within sight of record highs reached in the previous session when traders bought into the market ahead of a holiday weekend in the United States. U.S. crude oil was down $1.40 at $143.89 a barrel by 6:47 a.m. EDT, below an all-time high of $145.85 hit on Thursday. The contract has risen more than 50 percent this year.

Canadian dollar higher in thin trade

TORONTO (Reuters) - The Canadian dollar was a touch higher versus the U.S. dollar on Friday as it recouped losses from the previous session, but its move was exaggerated in thin volume as U.S. markets are closed for Independence Day. Domestic bond prices added to gains recorded in the prior session as pared expectations for U.S. Federal Reserve rate hikes sparked demand for secure assets like government debt.

Tax credit to save UBS from hefty loss

ZURICH (Reuters) - Battered Swiss bank UBS said on Friday it should be saved from another hefty loss in the second quarter by a large tax credit, giving a much-needed though short-lived boost to its share price. UBS, which has written $37 billion off its assets as a result of the credit crisis, said it expected to break even or make a small loss in the second quarter, helped by the 3 billion Swiss franc ($2.96 billion) tax credit.

Euro zone rate rise signals ECB serious

FRANKFURT/SAN SEBASTIAN, Spain (Reuters) - The European Central Bank's interest rate rise sends a signal that it is serious about combating inflation, policymakers said as they staged a public relations offensive to justify Thursday's increase. A day after raising rates to a seven-year high of 4.25 percent, policymakers around the 15-nation region denied that the hike would choke economic growth and said soaring inflation was a bigger danger to consumers.

BSkyB mulls $4 billion bid for Digital Plus: report

LONDON/MADRID (Reuters) - British pay-TV firm BSkyB is considering a bid of more than 2.5 billion euros ($4 billion) for Spanish pay-TV platform Digital+, the Financial Times said on Friday. The newspaper quoted people familiar with the situation as saying there had been no decision to proceed, but that BSkyB's strong cash flow could allow it to finance an acquisitions.

Body of Taiwan securities firm chief found in sea

TAIPEI (Reuters) - The embattled chairman of a major Taiwan securities firm was found dead in waters close to the island on Friday morning, the firm said, startling the financial community and sending the company's shares tumbling. A fisherman in the outlying Penghu islands discovered Polaris Securities Co <2854.TW> Chairman Wayne Pai, 55, who was reported missing in the area from Wednesday, a company statement said.

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