The Star Online: Business
The Star Online: Business |
- MU to raise two-thirds of $1bil in S'pore through non-voting preferences shares
- Japan mulls 4th extra budget of 12 trln yen
- Australia consumer confidence up in Sept
| MU to raise two-thirds of $1bil in S'pore through non-voting preferences shares Posted: 13 Sep 2011 06:07 PM PDT LONDON, Sept 14 (Reuters) Manchester United [MNU.UL] is planning to raise up to two-thirds of a planned $1 billion initial public offering in Singapore through non-voting preferences shares, the Financial Times reported on Wednesday. The newspaper reported that the move would keep as much as 88 percent of voting rights in the hands of the Glazer family, its American owners. Plans being drawn up for the IPO would see the English soccer's Premier League champions selling about a third of the equity in the club, which is valued at about $3 billion. According to people with knowledge of the transaction cited in the article, the balance of the shares would be in the form of nonvoting perpetual preference stock without dividend guarantees or the right to sell the shares back to the club, both common features of preference share issues. The preference shares would rank ahead of the ordinary shares in the event of an insolvency, potentially making them attractive to institutions such as Temasek [TEM.UL], the Singapore state investment agency, which is considering taking a large stake as a cornerstone investor. The two classes of shares would be sold as a package, although the relative values have not been finalised, according to the FT. |
| Japan mulls 4th extra budget of 12 trln yen Posted: 13 Sep 2011 05:55 PM PDT TOKYO, Sept 14 (Reuters) The Japanese government is considering compiling a fourth extra budget for the fiscal year to March of about 1 to 2 trillion yen ($1326 billion) to fund additional economic steps without issuing new bonds, the Yomiuri newspaper reported on Wednesday. The extra budget, which Prime Minister Yoshihiko Noda's government may start compiling as early as November, could provide funding as concerns grow over a global economic slowdown and the euro zone debt crisis, the Yomiuri said without citing sources. The budget, which may also include funding for rebuilding following a recent storm that hit western Japan, will be funded from extra money that was set aside for bond interest payments that turned out to be lower than expected, the Yomiuri said. The government is currently working on a third extra budget, expected to be more than 10 trillion yen in size. It aims to submit a bill on this to the country's divided parliament in October. Money from that budget will be used to fund projects to rebuild areas destroyed by a huge earthquake and tsunami in March and also include steps to combat the strong yen, which is clouding the outlook for Japan's exportoriented economy. How to secure reconstruction funding is still under debate in Japan, saddled with a public debt twice the size of its $5 trillion economy. Noda has said he first wants to cut wasteful spending and carry out expenditure and revenue reforms then hike taxes, but opinions vary in his ruling party. A government tax panel headed by Finance Minister Jun Azumi is planning to present various options soon. The panel plans to drop the corporate tax rate by 5 percentage points to meet a ruling party pledge, before raising that tax by 4 percentage points for a limited period of three years to fund rebuilding, the Asahi newspaper reported. The rest will be filled in by raising other taxes, mainly income tax, and the hike period will be for five to 15 years, the Asahi reported, without citing sources. ($1 = 76.880 Japanese Yen) |
| Australia consumer confidence up in Sept Posted: 13 Sep 2011 05:49 PM PDT SYDNEY, Sept 14 (Reuters) A closelywatched measure of Australian consumer confidence rebounded strongly in September as lessening fears of a hike in interest rates and better news on the economy helped offset turmoil on global markets. The survey of 1,200 people by Westpac Bank and the Melbourne Institute released on Wednesday showed its index of consumer sentiment jumped 8.1 percent in September to 96.9. That followed hefty drops in August and July and still left the index down 14.4 percent on September last year. "This is a surprisingly strong result," said Westpac chief economist Bill Evans. He thought it likely that diminished fears of a rise in rates from the Reserve Bank of Australia (RBA) may have helped sentiment. The central bank made it clear last week that it was best for policy to stay on hold while markets were so volatile. Data out last week had also shown the economy grew a healthy 1.2 percent in the second quarter, though that was balanced somewhat by a disappointing report on employment. Gains in the survey came across all questions and demographic groups. The index reflecting economic conditions for the next 12 months surged 16.6 percent, while that for the next five years rose 4.5 percent. The index measuring family finances compared to a year ago climbed 11.2 percent, while that for family finances over the coming 12 months increased by 9.5 percent. In a promising sign for consumption, the measure of whether it was a good time to buy major household items also firmed by 3.2 percent. It was notable that household spending in the second quarter, particularly on services, proved much stronger than suggested by surveys or retailers. And there was good news for the subdued housing market as the index tracking responses on "whether now is a good time to buy a dwelling" jumped by 15.1 percent, to its highest level for two years. |
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