In Short

A round-up of today's other stories in brief.

Swiss lift total ban on foreign buys

Swisscom may make foreign acquisitions as long as the target is not a provider of basic telephone services in a particular country, the Swiss government said, lifting an earlier total ban on foreign buys.

However, Swisscom, still majority-owned by the government, will only be permitted to borrow up to 1.5 times its earnings before interest, tax, depreciation and amortisation (EBITDA), amounting to approximately 5 billion Swiss francs (€3.2 billion), the government said yesterday.

The cabinet approved a new four-year strategy for the firm after it had blocked Swisscom from all acquisitions abroad last month, effectively shooting down a planned takeover of Eircom.

It also said it would lay the groundwork for total privatisation of the former state monopoly.

"The new goals aim to allow Swisscom to take stakes in foreign telecommunications companies as long as they support the company's core business at home, or have another strategic-industrial logic," transportation and communications minister Moritz Leuenberger said after the cabinet meeting.

Swisscom acknowledged the government's decision in a statement, but said it allowed only limited flexibility in terms of acquisitions. - (Reuters)

Airtricity acquires Texan developer

Airtricity, the renewable energy company, has acquired a US energy company in a deal believed to be worth in excess of $10 million (€8.4 million).

The company being purchased is Renewable Generation Inc (RGI), an Austin, Texas based wind energy developer. The purchase price consists of cash and stock.

Established in 2001, RGI is a leading developer of wind projects in Texas and has over 1,000 megawatts of projects at various stages of development in Texas, New Mexico and Colorado. Among other assets, the deal gives Airtricity 100 per cent ownership of the 215 megawatt McDonald Ranch wind project which the two companies have been jointly developing and which goes into construction in mid 2006.

Providence field brought on stream

Exploration group Providence Resources said yesterday that one new production well at its Singleton oil field in southern England has been successfully brought on stream and a second will come on stream later this week.

The new wells, which are horizontal, are designed to develop reserves not presently accessed by the existing revenue-generating production wells. Providence, which has a 20 per cent stake in the field, said the aim of the new wells is to increase daily oil production by between 50 and 100 per cent.

Mining group upbeat on project

Mining group African Diamonds said it expects its AK6 development in Botswana to unfold next year as its partner on the project, De Beers, spends more than $22 million (€18.5 million) in their joint licenses in the region.

In a statement to the stock exchange, the group said it won't spend any money on the joint licenses and that the outlay on its own licenses in the region would be minimal.

It also said it will probably seek a partner next year for its proposed developments in Sierra Leone.

Unidare set to sell US business

Unidare has entered into a conditional agreement to sell ORS Nasco, its US distribution business, to a private equity company for $81 million (€68.4 million). The buyers are Brazos Private Equity Partners. Unidare's shareholders approved the transaction at an egm held on December 19th.