Disney Sells Japanese Unit

Walt Disney Internet Group has announced that it has sold off Infoseek Japan to a Japanese e-commerce company called Rekuten. The sell off is reported to have fetched US$ 81 million.

According to the American company, although the Japanese unit represented a valued asset, it was not a core to its business. Infoseek Japan is said to be the fourth largest search portal in Japan.

Walt Disney said that the sale includes an ongoing strategic relationship whereby the company’s leading web content sites will be given preferred status for distribution on Infoseek Japan sites.

Power Price Hike in B’desh

Bangladesh has hiked electricity tariff for the second time this year, according to reports which also said that the move was undertaken under pressure from the World Bank.

As per official notification, while homes consuming below 300 units per months will be required to pay 2.15 takas (four cents) per unit, those using more than 700 units a months will pay 5.55 takas (10 cents). In contrast, previous rates stood at 2.10 takas and 5.50 takas respectively. The agriculture sector, however, will not have to bear the increase.

Newspaper reports claimed that the World Bank pressured the government to hike power prices for the second time in just nine months following a warning from the country’s donor agencies to the effect that they would cut financial support if the power sector failed to improve performance. The donor agencies are also reported to be demanding privatization of Bangladesh’s loss-making utility services.

Qantas to Buy 31 New Planes

Australia’s largest airline, Qantas Airways Ltd., has announced its decision to buy 31 new planes to replace existing planes and meet growing demands.

The airline has given preference to Airbus Industries over Boeing with 25 of its new planes to come from the European manufacturer and six from the Seattle-based Boeing Co. Twelve of the new aircraft ordered are reported to be Airbus’ AZXX, which is still under construction and is said to be the largest plane with seating capacity for 555 people and ability to fly nonstop for 14,500 km.

Qantas said that it expects to take delivery of the AZXX aircraft between 2006 and 2011 and the other Airbus planes between 2002 and 2005. Boeing is to deliver its planes between 2002 and 2006. The total cost including start-up expenses, infrastructure, engines and parts was put at US$ 4.6 billion over ten years.

Toyota, Mazda Post Losses

Toyota Motor Corporation of Japan has announced decline in net profits by almost 21 percent in the first half of the fiscal year.

The automaker revealed that its group net profits for the six months dropped to 159.6 billion Yen (US$ 1.5 b) from 201.7 billion yen in the same period last year. While interim revenue rose 3.2 percent from a year earlier to 6.4 trillion yen, pre-tax profit fell 2.6 percent to 393.9 billion yen, the company reported.

Meanwhile, another Japanese auto-builder, Mazda Motors Corporation, released figures showing 9.59 billion yen (US$ 88.2 m) group net loss in the first half of the year. The same period the proceeding year saw profit of US$ 121.4 million.

While Toyota blamed foreign exchange and arrangement of pension funds for its losses, Mazda said that stronger yen coupled with slowed exports contributed to its dismal showing.

Indian Govt to reduce Equity in Banks

The Indian cabinet has approved a proposed law allowing the government to reduce its equity-holding in state banks from 51 percent to 33 percent. It is opposed by state bank employees and unions that went on strike fearing that the legislation would pave way for privatization and consequent job loss.

Cabinet spokesman Pramod Mahajan pacified the rebellion stressing that important safeguards would remain in place. Mahajan said that the government would continue supervising banking operations and decide on appointment of bank chief executive officers and directors. He added that dilution of government stake would not be through strategic partnerships but though public offers alone and stressed that the bill has a provision preventing any one group or individual from taking more than one percent stake in any bank.

Banks in India had been nationalized in 1970. But the government, in 1994, had approved reduction of its equity from 100 percent to 51 percent, in line with liberal market reforms. However, six of the nineteen state banks are still owned 100 percent by the government.

Enron to Sell Business in India

US-based energy company Enron Corporation, that has shown interest to develop Karnali Hydro Power Project in Nepal, is reported to be preparing to sell its business interests in oil and gas operations in India.

Enron holds 40 percent share in a joint venture with India’s Reliance Group and the state-run Oil and Natural Gas Corporation.

Compiled by Business Age Reporters

Send your feedback to the editor: bizage@ecomail.com.np 1999 © Mercantile Communications Pvt. Ltd. P.O. Box 876, Durbar Marg, Kathmandu, NEPAL. Tel : 977 1 220 773, 243 566 . Fax: 977 1 225 407. Reproduction in any form is prohibited without prior permission. No part of the articles which appear in the internet version on BUSINESSAGE may be reproduced without the permission of Mercantile Communications Pvt. Ltd. For reprinting rights, please write to us. Send us your feedback:contact us . CLICK HERE FOR PAST ISSUE. This site is best viewed at : 800 X 600 resolution

Back to the top