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February 11, 1999atimes.com
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Business in Asia Today


BOJ to sell $2.61bn worth of financing bills
TOKYO - The Bank of Japan notified money market participants Wednesday morning it would sell 300 billion yen ($2.61 billion) in financing bills with repurchase agreements on Monday. It will be the first time the central bank has sold financing bills since November 1997.There are two theories on the reason for the move. The first is that the BOJ is simply trying to drain liquidity from the market on a day on which a surplus is expected. Another is that the bank is preparing for the auctioning of financing bills slated to start for April.

New Delhi clears $200m LNG proposal
NEW DELHI - The Indian government has cleared a Rs8.5 billion ($200.2 million) proposal for a joint venture between state-owned Shipping Corporation of India (SCI), Enron Power Corporation and Mitsui Shipping Lines of Japan to transport liquefied natural gas. Business Standard, an Indian daily, reported that Mitsui had consented to give SCI an equity stake of 20 percent, on par with U.S. power major Enron Power. This had been done by diluting Mitsui's stake from 70 percent to 60 percent.

Commonwealth Bank reports 18% rise in interim net profit
SYDNEY - The Commonwealth Bank of Australia Ltd. (CBA) hasposted an 18 percent rise in interim net profit to A$713 million (U.S.$458.60 million), and revealed a A$650 million (U.S.$418.08 million) off-market share buyback. CBA managing director David Murray said trading conditions in the first half had been better than expected. However the bank expects its rate of earnings growth to moderate in the second half.

Kia Motors workers walk out over bonuses, job security
SEOUL - About 10,000 employees of Kia Motors Corp. (KSE:00270) started a four-hour walkout at 10:30 a.m. Wednesday, demanding the payment of overdue bonuses and guarantees of job security. The workers are demanding the payment of a 600 percent bonus for the year 1997, a 9 percent pay raise for 1998 and job security after Hyundai Motor (KSE:05380) acquired the bankrupt carmaker late last year. Hyundai sources said the Kia workers' demands are "inconceivable for a bankrupt company."

Australia's Multiplex joins U.S.$700m magnesium project
PERTH - Construction group Multiplex Constructions Pty Ltd has entered into a heads of agreement to construct Crest Magnesium's (ASX:CSA) A$1.084 billion (U.S.$700 million) magnesium project. Crest announced Multiplex would become a 60 percent equity partner once funding had been secured for the Tasmanian project. Under the deal, Multiplex is responsible for funding all costs associated with the project until financial close, scheduled for January 2000.

Samsung Heavy delivers world's biggest oil drilling ship
SEOUL - Samsung Heavy Industries (KSE:10140) says it has completed the construction of the world's largest oil drilling ship and delivered it to the owner. The ship, weighing 103,000 tons, was sold to Conoco Co. and R&B consortium for $240 million. Samsung Heavy is undertaking construction of four additional oil drilling vessels worth $1 billion at its yard in Koje Island, Korea.

Japan's R&I downgrades Nissan,Mitsubishi, Mazda
TOKYO - Japan Rating and Investment Information Inc. (R&I) downgraded the long-term debt and commercial paper ratings of Nissan Motor Co. (TSE:7201), Mitsubishi Motors Corp. (TSE:7211) and Mazda Motor Corp. (TSE:7261). The rating agency explained the action as part of "an overall review of the automobile industry in the wake of progress in international realignment." R&I cut Nissan Motor's long-term debt rating to triple-B from single-A-minus and its commercial paper rating to A-2 from A-1.

Indonesian airlines free to hike fares, says govt.
JAKARTA - Indonesian Communications Minister Giri Suseno Hadihardjono said that the government would allow domestic airlines to raise tariffs following a recent increase in aviation gas prices. "The government will leave it entirely to INACA (Indonesian National Air Carriers Association) to set the tariff policy in the country. The government will not intervene in the market," he said. Giri, however, added that INACA could not raise the tariff higher than the limit of 11 U.S. cents/seat/km/passenger.

PT Indosat suffers $12.5m loss as Canadian subsidiary falls
JAKARTA - State international telecommunications operator PT Indosat (JSX:ISAT) has suffered a financial loss of Rp106 billion ($12.5 million) following the closure of its Canada-based subsidiary, Alphanet Telecommunications Corporation.Indosat president Tjahjono Soerjodibroto said that Alphanet management had sought to get fresh money to rescue the Canadian telecommunications company, including looking for strategic partners, but failed.

MCI WorldCom extends OzEmail takeover deadline
SYDNEY - U.S. telecommunications giant MCI WorldCom Inc. has extended the deadline for its A$520 million (U.S.$334.46 million) takeover of OzEmail (ASX:OZM) after failing to secure the required 75% of registered shareholder acceptances.A few hours short of the, Worldcom released a statement informing the market and shareholders that it would be extending the bid offer for the Australian internet service provider by two weeks.

SmithKline Beecham expands in Pakistan
KARACHI - SmithKline Beecham has announced an expansion program in Pakistan, including a capital injection of $10 million. The program was aimed at enhancing production capacity and upgradingexisting manufacturing facilities, the pharmaceutical major said.

Pakistani govt. brings down drug prices
ISLAMABAD - The Pakistan government has announced a 10 percent across the board reduction in the prices of 46 commonly used drugs. Making the announcement, the federal Health Minister, Makhdoom Javed Hashmi, said the reduction in prices had not been achieved by giving tax concessions to the companies. Instead, the government had reduced the prices of those medicines where the manufacturers' profits were very high. The reduction in prices of these drugs had been made after verifying raw material prices.

(Asia Pulse)


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