A roundup of today's other business news in brief
Success of Greek bond issue eases foreign concerns
International alarm over Greece’s debt crisis abated yesterday when investors flocked to buy the government’s first bond issue of the year, an indication that it may run into less trouble than expected in meeting its short-term financing needs.
Investors placed about €20 billion in orders for the five-year, fixed-rate bond, four times more than the government had reckoned on. However, in a sign that Greece is being made to pay for years of fiscal profligacy, the bond carried a record high interest rate spread relative to the rate for German bonds, the euro zone’s benchmark.
The bonds will be priced to yield 350 basis points more than the benchmark mid-swap rate, one banker said.
Greece needs €53 billion to fund its debt requirements this year, a task that may prove harder than raising last year’s sum of more than €60 billion if, as some investors suspect, global financing conditions tighten in the course of 2010.
Software firm to create 14 jobs in Hertz deal
A Kerry-based company has signed a deal with car rental firm Hertz that will create new jobs in Ireland.
Monex Financial Services, which is based in Killarney, will provide its multi-currency treasury management software systems to Hertz in Europe to allow customers to convert their credit card transactions into their own currency when they pay.
The deal will add an extra €1.5 billion in turnover to the more than €8 billion Monex processes on behalf of clients. A total of 14 jobs will be created in Ireland and other countries for the duration of the contract.
Ericsson to cut more jobs as sales fall
Spending cuts by telecom operators hurt quarterly sales at mobile network maker Ericsson more than expected but cost measures eased the pain from a market stalled by recession, it said yesterday.
The company also said it will cut about 6,500 jobs, up from a target of 5,000 announced last year.
Last February, Ericsson, which has operations in Ireland, said it would cut 300 jobs at its research and development section in Clonskeagh, Dublin. At the time, there were 1,700 people employed at its facilities in Clonskeagh, Dún Laoghaire and Athlone, Co Westmeath. The job losses were set to be phased in over 18 months.
Liberty Global to sell stake in Jupiter
Liberty Global is to sell its 37.8 per cent stake in Japanese TV cable operator Jupiter for 361.66 billion yen (€2.83 billion). Mobile-phone operator KDDI is paying about 140,000 yen for each Jupiter share, 44 per cent more than its closing price yesterday. - (Reuters)
AIB’s Polish unit may pay dividend
Bank Zachodni WBK, the Polish unit of Allied Irish Banks, is considering paying out a dividend from 2009 profit, media reports yesterday cited chief executive Mateusz Morawiecki as saying.
However, any dividend would not be high, Mr Morawiecki said.
Cryptologic licenses 10 games to Bet24
Dublin-based online casino gaming specialist Cryptologic has signed an agreement to license at least 10 of its popular betting games to Scandinavian internet gaming firm Bet24.
The agreement will see Cryptologic earn recurring revenues from wagers placed by Bet24 customers on some of Cryptologic’s top slot games. Two games have already gone live on the website, with the remainder expected to launch throughout 2010.
Ferrero rules out rival bid for Cadbury
Italy’s Ferrero has ruled out a rival bid for Cadbury, clearing the way for Kraft Foods to complete its £11.7 billion proposed takeover of the British confectioner.
Fellow chocolate maker Hershey said last Friday it had no intention of bidding for Cadbury, so Kraft appears on course to complete its bid by the deadline of February 2nd.
Last week Kraft agreed a cash and shares deal that at the time valued Cadbury shares at 840 pence. – (Reuters)
