In Short

A roundup of today's other business stories in brief:

Refinancing of Cheyne Finance closer

Cheyne Finance, the Dublin-listed structured investment vehicle (SIV) that ran into trouble over the summer, moved a step closer to rehabilitation yesterday when Royal Bank of Scotland (RBS) was granted exclusivity in talks over refinancing the troubled $6.6 billion (€4.67 billion) SIV.

Deloitte & Touche, which is acting as receiver for the SIV formerly managed by Cheyne Capital, the London-based hedge fund, will discuss the finer details of a refinancing with RBS over the next couple of days.

SIVs have been at the centre of the recent liquidity crisis after the freeze in the short-term debt markets they rely on to fund their longer-term investments.

A successful deal would mark the first time an entire SIV portfolio has been sold.

- (Financial Times service)

Merrion to list on IEX next week

Shares in Merrion Pharmaceuticals, a specialist drug group with its European headquarters in Dublin, will next week become the 30th company to list on the IEX, the exchange for smaller companies.

The company, which was founded in 2004 to commercialise a portfolio of patented oral drug delivery technologies acquired from Elan, will start trading next Tuesday. It is also planning a Nasdaq listing.

Green guidelines for small firms

The Small Firms' Association has launched new environmental management guidelines for its members. The guidelines provide advice on meeting statutory environmental obligations and dealing with costs in the area.

German 'potential growth' rate rises

Germany's Bundesbank yesterday formally raised its assessment of the country's long-term economic potential in a vote of confidence that could affect future euro-zone interest rate decisions.

The revision to its "potential growth" rate - the pace at which the economy can expand without creating excessive inflationary pressures - reflected the structural changes in Europe's largest economy.

Although the rise was modest - lifting estimated potential growth by a quarter percentage point to about 1.5-1.75 per cent - the timing of the announcement was significant amid worries about the vulnerability of euro-zone economies to the global credit squeeze.

- (Financial Times service)

Electrolux warns of lower profits

Electrolux AB, the world's second-largest maker of household appliances, said lower US demand and higher steel and plastic costs may hurt earnings growth this year. The risk of a further decline in the US housing market and higher raw-materials prices "add uncertainty" to the 2007 outlook, chief executive Hans Straaberg said.

Third-quarter profit in Europe was "a great disappointment" after production expenses for new products exceeded forecasts.

- (Bloomberg)

General Motors outsells Toyota

General Motors (GM) outsold Toyota in the first nine months of the year, regaining its position as the world's largest carmaker in what has become a close race between the two rivals.

Toyota was hit in the last quarter by a near 5 per cent drop in sales in the US, where it has also suffered the defection of three key executives to competitors.

Toyota, which sold more vehicles than GM in the first half of the year, yesterday reported global sales of 7.05 million units up to the end of September, compared with GM's 7.06 million.