Major International Business Headlines Brief::: 26 April 2018

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Major International Business Headlines Brief::: 26 April 2018

 


 

 


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*  Kenya economy seen rebounding after election slowdown

*  Gold Fields' quarterly output falls, South Deep woes rumble on

*  Ghana looking to sell debt in the 7 pct coupon range -minister

*  South African watchdog says forex-rigging trial likely to begin in 2019

*  Steinhoff's former CEO Jooste gets creditor reprieve

*  South Africa's Exxaro to dispose of remaining stake in Tronox

*  South Africa's rand, bonds hit hard as dollar rally continues

*  Mauritius Lux Island Resorts 9-month pretax profit down 16 pct

*  Gold falls on strong dollar and higher U.S. yields

*  Facebook threw us under bus, says data firm Cubeyou

*  Facebook to vet UK political ads for May 2019 local elections

*  Barclays pushed into loss by US payout

*  Samsung Electronics posts fourth quarter of record profits

*  Sky bidding war erupts with £22bn formal bid from Comcast

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 

Kenya economy seen rebounding after election slowdown

NAIROBI (Reuters) - Kenya’s economy is expected to rebound to 5.8 percent
growth in 2018 after electoral uncertainty and drought cut last year’s
expansion to the lowest level in more than five years, Finance Minister
Henry Rotich said on Wednesday.

 

The economy will benefit from increased investment in key areas like
manufacturing, farming, housing and healthcare, he said.

 

President Uhuru Kenyatta won re-election in November in a second vote after
the first in August was annulled by the Supreme Court citing irregularities.
Around 100 people, mainly opposition supporters, were killed mainly by
police during the prolonged election season.

 

“Despite the slowdown in 2017 our outlook is bright,” Rotich said at the
launch of the annual economic survey. “We expect growth to recover to 5.8
percent in 2018 and over the medium term the growth is projected to increase
by more than 7 percent.”

 

Growth slowed to 4.9 percent last year from a revised 5.9 percent in 2016,
the statistics office said.

 

Kenya’s diversified economy is better able to withstand shocks like the
commodity price drop that started in 2014 and hit oil-producing African
countries such as Nigeria and Angola.

 

But its economy was hobbled by a severe drought in the first quarter of last
year that was followed by poor rainfall.

 

 

The services sector including tourism grew strongly last year and that
helped to offset the slowdown in farming and manufacturing, said Zachary
Mwangi, director general of the Kenya National Bureau of Statistics.

 

Tourism is vital for hard currency and jobs and grew 14.7 percent while
earnings surged 20 percent, he said.

 

In contrast, growth in the agriculture sector, which accounts for close to a
third of overall output, slid to just 1.6 percent in 2017 from 5.1 percent
the year before.

 

The government says manufacturing is a priority due to its potential to
create jobs and it grew at 0.2 percent last year from 2.7 percent the year
before.

 

Production of cement, sugar and processed milk slid as firms reeled from the
impact of the election and high costs.

 

Rotich said the projected economic rebound is supported by favourable
economic fundamentals including inflation, which has dropped to about 4
percent this year.

 

“The ongoing investments in infrastructure, improved business and factory
confidence and strong private consumption are expected to support growth,”
he said.

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

Gold Fields' quarterly output falls, South Deep woes rumble on

JOHANNESBURG (Reuters) - South Africa’s Gold Fields reported lower
production for the March quarter and flagged more challenges at its
problematic South Deep mine on Wednesday, sending its share price sharply
lower.

 

South Deep, the company’s last South African asset, has faced numerous
operational obstacles in a tough geological setting 3 km (2 miles) below the
surface and made a loss of 337.6 million rand ($27 million) in 2017.

 

The company’s “problem child”, which straddles a massive ore body west of
Johannesburg, is a mechanised mine that has continuously missed targets and
Chief Executive Nick Holland said in February the company would consider
unspecified “alternatives” if losses were not stemmed.

 

Gold production for the group slipped to 490,000 ounces for the March
quarter compared to 497,000 ounces last year, the company said in an
operational update.

 

“South Deep had a tough start to 2018, with production in Q1 2018 4 percent
higher Y-o-Y but 41 percent lower (from the previous quarter) at 48,000
ounces,” the company said.

 

Seasonal holidays and labour restructuring had an impact and output was also
curtailed by a change in shift arrangements which was supposed to lift
productivity but appears initially to have had the opposite effect.

 

“Although necessary to create a platform for sustainable and consistent
performance, these changes have inevitably created workforce uncertainty and
a disruption of operations,” the company said. Geological faults and poor
ground conditions also impeded operations.

 

“We do not expect the production guidance provided at the start of the year
(321 ounces) to be achieved and we are currently forecasting production of
244 ounces for the year,” Gold Fields said about South Deep’s outlook.

 

Gold Fields also said South Deep had concluded a three-year wage agreement
with organised labour for average annual increases of 7.3 percent. Inflation
is currently 3.8 percent.

 

The company’s share price was 5.20 percent lower at 0800 GMT compared to a
2.4 percent fall for Johannesburg’s Gold Mining Index.

 

($1 = 12.3968 rand)

 

 

 

Ghana looking to sell debt in the 7 pct coupon range -minister

NEW YORK (Reuters) - Ghana is seeking to issue up to $2.5 billion worth of
Eurobonds in the coming weeks with a coupon in the 7 percent range, a rate
well below previous sales, the West African nation’s finance minister told
Reuters in an interview on Tuesday.

 

The debt offering, for a country that still struggles with a debt burden
that last year was equivalent to roughly 69 percent of its overall economic
growth, coincides with government plans to leave a $918 million credit
program with the International Monetary Fund by year-end.

 

“Boy, I would love to have 7 or under 7 (percent). But that’s me. It is what
the market says,” Finance Minister Ken Ofori-Atta said. “I mean if you look
at our yields now, it has really tightened from where we were.”

 

Asked why an investor would put money to work by purchasing bonds of a
highly leveraged nation that is exiting the IMF program with still high
inflation, Ofori-Atta said: “Why wouldn’t you want to give us money. You are
looking for yield? I’m giving you yield.”

 

“I think we will go long, as much as we can ... So this time we would look
to see whether we could do 20 or 30 years, but that is all based on advice,”
Ofori-Atta said.

 

Citibank, JPMorgan, Bank of America and Standard Chartered are leading the
offering, he said.

 

The majority of the debt offering, however, will be focused on retiring
higher yielding debt, perhaps as much as $1.5 billion to $1.75 billion, he
said.

 

“I think we are likely going to go for $750 million of new money, and if
conditions are good, swap out an amount of about $1.5 billion to $1.75
billion,” Ofori-Atta said.

 

Ghana’s most recent Eurobond, a senior unsecured bond maturing in 2022, sold
at par in September 2016 carrying a 9.25 percent coupon. However, it last
traded with a yield of 4.725 percent, according to Thomson Reuters data..
Ghana’s credit is rated junk by the major credit rating agencies.

 

“We had sort of derailed from the IMF program by the time we got into
government,” Ofori-Atta said.

 

However, Ofori-Atta highlighted improving economic data. For example,
inflation was at 15.4 percent when the new government of President Nana
Akufo-Addo took over in January 2017. Last month, annual consumer price
inflation was 10.4 percent.

 

Ofori-Atta said Ghana was also interested in diversifying its borrowings
away from U.S. dollars, potentially looking at issuing in yen at some point
after the economy strengthens.

 

TAX COLLECTION, AIRPORT

Ofori-Atta said one of the main challenges is to build a better tax
collection system.

 

“The people are not paying their taxes and I’m not collecting enough money,”
he said, citing a 16.5 percent revenue-to-gross domestic product whereas
peer nations “are north of 20 percent.”

 

In Ghana, with a population of more than 28 million, personal income taxes
are being paid by about 1.5 million people while 6 million are operating in
the informal economy, he said. The Value Added Tax “penetration rate is
about 11 percent.”

 

“That is where we are going to have to focus on this year,” he said.

 

In addition to getting the economy back on track, Ofori-Atta said Ghana
wants to make a statement embarking on a transformational economic
development project, similar to the 1965 completion of the Akosombo Dam,
which harnessed the hydroelectric power of the Volta River Basin.

 

“What we have suggested is can we create a logistical airport center, almost
Dubai-like that would service the region?” of over 350 million people.

 

The preliminary cost for such a project would be above $3 billion and on a
scale to service 20 million travelers annually.

 

“I would expect by end-year 2019 we should be cutting sod,” Ofori-Atta said
when asked when the project might start.

 

 

 

South African watchdog says forex-rigging trial likely to begin in 2019

CAPE TOWN (Reuters) - Court proceedings against 18 banks accused of rigging
the rand currency are likely to start early next year, as prosecutors need
time to prepare the complex case, the head of cartels at South Africa’s
Competition Commission said on Wednesday.

 

“Our case against the banks is very strong and we want to deal with all
these technicalities so the matter can go on trial, maybe by the second
quarter of next year,” Makgale Mohlala said.

 

Competition authorities will first hold a series of “exception hearings” to
discuss the possible exclusion of banks on technical grounds. South Africa
said last August that it would no longer offer deals to banks cooperating
with investigations into the alleged currency rigging, a blow to some
lenders that had discreetly approached the watchdog for a settlement.

 

 

 

Steinhoff's former CEO Jooste gets creditor reprieve

CAPE TOWN (Reuters) - The former chief executive of crisis-hit retailer
Steinhoff has agreed to settle a $120 million civil claim against his
company by three lenders by December, lender Absa said on Wednesday.

 

Markus Jooste, who is under fraud investigation by the South Africa police,
resigned in December when Steinhoff uncovered accounting irregularities that
sent its share price crashing.

 

The out-of-court settlement comes after lenders Investec, ABSA and financial
group Sanlam had turned to the Cape High Court to liquidate one of the
entities that holds Jooste’s wealth in a bid to recoup their money.

 

The entity, known as Mayfair Speculators, asked lenders to give it until
December to raise money through asset sales to pay back what it owes, said
Absa spokeswoman Phumza Macanda.

 

Court papers show that Mayfair owes Absa around 226 million rand ($18
million), Sanlam Capital Markets around 800 million rand and Investec
roughly 250 million rand.

 

($1 = 12.4402 rand)

 

 

 

South Africa's Exxaro to dispose of remaining stake in Tronox

JOHANNESBURG (Reuters) - South African miner Exxaro Resources said on
Wednesday it plans to dispose of its remaining stake in U.S. titanium
products company Tronox to fund capital commitments, repay debt and to
distribute capital to shareholders.

 

Exxaro, which previously disposed of a stake worth $474 million, said in a
statement it plans to further disinvest from its remaining 24 percent stake
“in a thoughtful, efficient and staged process over time.”

 

The miner, which holds 28.7 million shares in Tronox, said its remaining
stake is valued at around $476 million assuming a share price of $16.57 per
share.

 

Exxaro, which mainly produces coal, completed its sale of 22.4 million
shares in Tronox in October last year and paid a special dividend of 4.5
billion rand ($377 million) from its income reserves after selling the
stake.

 

 

 

South Africa's rand, bonds hit hard as dollar rally continues

JOHANNESBURG (Reuters) - South Africa’s rand tumbled to its weakest in more
than the three months while bonds also slipped, as a rally in the dollar and
U.S. Treasuries coupled with rising geopolitical tension battered emerging
currencies on Wednesday.

 

At 1220 GMT the rand was down 1.38 percent at 12.5000 per dollar, its
weakest since January 10, having hit a session-low of 12.5325 as a wave of
risk-off sentiment wreaked havoc on emerging market currencies.

 

The Russian rouble was down one percent while the Turkish Lira slipped 0.4
percent.

 

“The rand has caught the cold from the U.S. dollar moves,” said Jameel
Ahmad, global head of currency strategy at FXTM.

 

“The rand has weakened a lot this week and it’s because of a lot of external
risks. We’ve see that the euro suffers, the yen’s suffered and the pound’s
suffered. It’s not a South Africa story,” Ahmad said, pointing to rising oil
prices and worries over a breakdown in the U.S.-Iran nuclear deal.

 

President Donald Trump has threatened to scrap the 2015 agreement - under
which Iran curbed its nuclear programme in return for sanctions relief,
sparking a wave of risk-off sentiment globally.

 

The dollar hit a four-month high on Wednesday after a rise in benchmark U.S.
Treasury yields above three percent rattled some currency bears and led
investors to consider whether the greenback was breaking out of a prolonged
weak spell.

 

Spot oil remained near three-year highs on the day.

 

The yield on the benchmark bond due in 2026 was up 10 basis points to 8.335
percent, its highest since Feb. 14.

 

On the bourse stocks were also weaker, with the Top40 blue-chip index down
1.3 percent at 50,213 points and the wider All-Share index down 1.2 percent
at 56,966 points.

 

Gold Fields and AngloGold Ashanti led the losers on the Top40, down 7.6
percent and 3.8 percent to 45.30 rand and 289.96 rand respectively.

 

Rand-linked stocks, mostly banks and financial were also hit by the slide in
the currency.

 

Financial services giant Sanlam along with the four big banks - Absa,
Nedbank, Standard Bank and FNB - were all down more than two percent.

 

 

 

Mauritius Lux Island Resorts 9-month pretax profit down 16 pct

PORT LOUIS (Reuters) - Mauritius hotels group Lux Island Resorts said on
Wednesday pretax profits for the first nine months of its financial year
fell 16 percent hurt by an extended construction of one of its resorts.

 

The luxury hotel group, which also manages resorts in the Maldives and
Reunion islands in the Indian Ocean, said pretax profit decreased to 509.27
million rupees ($15.11 million) in the nine months to end March.

 

Group revenue was up 10 percent to 4.50 billion rupees and earnings per
share dropped to 3.31 rupees from 3.99 rupees a year earlier, the company
said in a statement.

 

It said visitor numbers to Mauritius rose 4 percent to 1.07 million in the
nine months to March 31 while arrivals to the Maldives increased by 12
percent to 1.2 million.

 

Shares in Lux were unchanged at 71.25 rupees on Wednesday.

 

($1 = 33.7000 Mauritius rupees)

 

 

 

Gold falls on strong dollar and higher U.S. yields

LONDON (Reuters) - Gold fell on Wednesday as the dollar and U.S. Treasury
yields jumped on robust U.S. data and signs of an easing in the U.S.-China
trade conflict.

 

U.S Treasury yields rose to 3 percent for the first time in more than four
years, reflecting the durability of the U.S. economic expansion after U.S.
consumer confidence rebounded in April and new home sales increased more
than expected in March.

 

But higher yields on bonds make gold a less attractive investment because it
pays no interest. [US/]

 

Meanwhile, there was a decline in political risk after the United States
said it would likely reach a trade agreement with China and that officials
from both sides would sit down for negotiations in a few days.

 

“Recently there has been some optimism that the U.S-China trade war isn’t
going to be as big of an issue,” said Natixis precious metals analyst
Bernard Dahdah.

 

“There is a bit more confidence in the U.S. and that negatively affects
gold, naturally, in terms of geopolitics.”

 

Spot gold was down 0.4 percent at $1,325.06 per ounce, as of 0945 GMT,
erasing the gains made in the previous session when it broke a three-session
losing streak.

 

U.S. gold futures dropped 0.5 percent to $1,326.50 per ounce.

 

The dollar index, which measures the greenback against a basket of
currencies, rose 0.2 percent to 90.954. [USD/]

 

World stocks were down for the fifth straight session on Wednesday.
[MKTS/GLOB]

 

In other geopolitical news, North Korean leader Kim Jong Un is due to hold a
summit with South Korean President Moon Jae-In on Friday, and is expected to
meet with Trump in late May or early June.

 

“As traders put geopolitical and trade risk in the rear-view mirror for the
time being, how the dollar flourishes and wilts will be the primary driver
of near-term gold sentiment,” said Stephen Innes, APAC trading head, OANDA.

 

Gold is often seen as an alternative investment during times of political
and financial uncertainty.

 

“I think that the downward trend (in gold prices) will continue for the next
few days...” ahead of a meeting between leaders of North Korea and the
South, said Ji Ming, chief analyst, Shandong Gold Group.

 

In other precious metals, spot silver dropped 0.7 percent to $16.58 an
ounce, and platinum eased 0.3 percent to $923.30 an ounce.

 

Palladium fell for a third straight session, down 0.9 percent at $965.70 an
ounce.

 

 

 

 

Facebook threw us under bus, says data firm Cubeyou

A company suspended from Facebook in the fallout of the Cambridge Analytica
scandal says it feels betrayed by the social media giant.

 

Cubeyou collected information about users of the social media site through
personality quiz apps that was allegedly sold for marketing purposes.

 

Chief executive Federico Treu told the BBC the firm had done "nothing
wrong".

 

Facebook said the suspension was a "careful decision" made as part of a
broader ongoing investigation.

 

The tech giant is looking into whether Cubeyou collected data for academic
purposes and then used it commercially, following a partnership with
Cambridge University in the UK.

 

It said it took "any report of suspicious activity that could threaten
people's privacy" very seriously.

 

The allegations are similar to the way political consultancy Cambridge
Analytica exploited the data of about 87 million Facebook users.

 

The scandal rocked the social media firm and was one of the issues that led
to Facebook founder Mark Zuckerberg being grilled by US senators.

 

During that hearing, Mr Zuckerberg said Facebook would investigate "tens of
thousands" of apps to discover if any other companies had accessed data in a
similar way to Cambridge Analytica.

 

Zuckerberg: I'm still the man to run Facebook

Cambridge Analytica: The story so far

Facebook explored unpicking personalities

'Concerning'

Cubeyou says it "played by the book" with Mr Treu telling the BBC's Asia
Business Report that the firm had been a certified Facebook partner for six
years and had invested heavily in the platform.

 

"Facebook didn't think twice to throw us under the bus with all the
investment and our reputation on the line just because they wanted to
release the pressure from public opinion around what is happening right
now," he said.

 

"Initially I did understand where this was coming from. They are under a lot
of pressure.

 

"But.. we have to look at the whole situation. This isn't just concerning
for Cubeyou as a company but for all the developers out there."

 

He added that, even if allowed back on to Facebook, he thought it was
unlikely his company would work with them.

 

 

"We are looking for a partnership here and their behaviour obviously shows
otherwise so it doesn't make any business sense for us to keep partnering
with Facebook, unless they are changing completely their attitude," he said.

 

The comments came as Facebook revealed quarterly sales rose by nearly 50% in
the social media giant's first results since the privacy scandal over users'
data emerged.

 

Cubeyou is one of a number of firms set up to help businesses such as
publishers and advertisers target their marketing. It is unknown whether it
has also helped campaigns spread political messages, as was the case with
Cambridge Analytica.

 

On its website, Cubeyou describes itself as having "all the best consumer
data sources in one place".

 

"Identify consumers not only by their demographics or consumption habits but
by leveraging the whole spectrum of their personalities, interests and
passions," it says.--BBC

 

 

 

Facebook to vet UK political ads for May 2019 local elections

Facebook's chief technology officer is to promise MPs that the social
network will act to make political advertising far more transparent for UK
users.

 

Mike Schroepfer will say that his firm will be ready to authorise ads in
time for England and Northern Ireland's May 2019 local elections.

 

He will make the pledge while giving evidence to a parliament committee.

 

Facebook had previously committed itself to similar action in the US later
this year.

 

Mr Schroepfer is being questioned as part of the Department of Culture,
Media and Sport Select Committee's inquiry into fake news.

 

But the politicians also want to know more about the leak of Facebook data
to the political consultancy Cambridge Analytica.

 

The committee had wanted to hear from Facebook's founder and chief executive
Mark Zuckerberg.

 

Facebook sales soar 'despite challenges'

Was Facebook data's value 'literally nothing'?

Facebook threw us under bus, says data firm

'Facebook in PR crisis' on data row

However, he opted to send other executives to answer questions from
politicians outside the US, having given two days of testimony in Washington
earlier this month.

 

Advert archive

In his opening remarks, Mr Schroepfer will tell MPs that he and his boss are
deeply sorry about what happened with Cambridge Analytica, which he will
describe as a breach of trust.

 

He will also promise to deploy a new "view ads" button in the UK by June
2018, which will let members see all the adverts any page is showing to
users via Facebook, Messenger and Instagram. The company first launched the
facility in Canada last October.

 

In addition, Mr Schroepfer will promise the following will be up and running
in time for the 2019 local elections:

 

*         political ads will only be allowed if they are submitted by
authenticated accounts

*         such ads will be labelled as being "political" and it will be made
clear who paid for them

*         the adverts will subsequently be placed in a searchable archive
for seven years, where information will be provided about how many times
they may have been seen and how much money was spent on them

 

But MPs are likely to have questions about the use of Facebook in past
elections, notably the EU referendum, and whether there was any foreign
involvement.

 

They will also want to drill down into the Cambridge Analytica affair and
find out whether Facebook has uncovered similar cases during an audit of
developer behaviour.--BBC

 

 

 

Barclays pushed into loss by US payout

Barclays has been pushed into a first quarter loss after paying $2bn
(£1.4bn) to settle a lawsuit in the US over the sale of mortgage-backed
securities.

 

The bank also put aside an additional £400m to cover an increase in payment
protection insurance (PPI) mis-selling claims.

 

Barclays reported a pre-tax loss of £236m, compared with a profit of £1,682m
for the same time last year.

 

But excluding litigation costs, pre-tax profit rose by 1% to £1.7bn.

 

"This quarter we... reached an agreement with the US Department of Justice
to resolve issues related to the sale of Residential Mortgage-Backed
Securities between 2005 and 2007," said chief executive Jes Staley.

 

"While the penalty was substantial, this settlement represents a major
milestone for Barclays, putting behind us a significant decade-old legacy
matter."

 

As a result of the US settlement and the PPI charge, Barclays said its CET1
ratio - the financial cushion it is required to maintain to underpin loans -
fell to 12.7% compared with 13.3% in December 2017

 

However, Mr Staley said "given the earnings power of the group, and our
strong record in capital management, we are confident that we will get back
to around 13% in good time."--BBC

 

 

Samsung Electronics posts fourth quarter of record profits

Samsung Electronics posted record profits for a fourth quarter in a row,
thanks to strong demand for its memory chips and new Galaxy S9 smartphone.

 

The South Korean technology giant saw net profits of 11.7tn won ($10.8bn;
£7.7bn) between January to March, up 52% from a year earlier.

 

But it warned competition among high-end handset makers could hit future
sales and profits.

 

The whole industry is concerned that fewer customers are upgrading phones.

 

Driving the business

Along with concerns about its display panel business, "generating overall
earnings growth across the company will be a challenge" in the April-to-June
quarter, the firm said.

 

But the world's largest chip maker remains upbeat about demand for its
memory chips - the main driver of its business which made up 73% of its
first quarter operating profits.

 

The company said the "overall business outlook for the second half regarding
components is positive", especially the DRAM chips used in servers, graphics
cards and data centre infrastructure.

 

"Demand for server and mobile DRAM is expected to be robust and orders for
high-density storage chips will grow", the firm said.

 

Greg Roh from HMC Investment and Securities said he expected the memory chip
boom would help the firm to achieve the same level of profits in the next
quarter.

 

The latest results suggest that Samsung Electronics - seen as the jewel in
the crown of the sprawling Samsung group - has recovered from a series of
setbacks including the global recall of its overheating flagship Note 7
smartphone in 2016.

 

There was no comment on whether Lee Jae-yong would return as a prominent
face of the business.

 

The Samsung Group's heir apparent - who was also vice chairman of the
electronics division - was jailed for bribery and corruption last year.

 

Mr Lee has since been released from jail after his sentence was suspended on
appeal in February.--BBC

 

 

 

Sky bidding war erupts with £22bn formal bid from Comcast

US cable TV giant Comcast has made a formal £22bn bid for Sky that values
the UK broadcaster at £12.50 a share.

 

The move threatens Rupert Murdoch's attempts to take full control of the
pay-TV group.

 

The media mogul's 21st Century Fox has already agreed to buy the 61% of Sky
it does not already own - an offer worth about £19bn.

 

Sky said it was withdrawing its recommendation for the Fox bid following
Comcast's move.

 

Sky shares closed 3.4% higher at £13.59 - more than £1 above Comcast's
offer, suggesting a bidding war for control of Sky could erupt.

 

Disney, which struck a $66bn deal with Fox in December to buy most of its
entertainment assets, could also make a play for Sky.

 

Comcast - the biggest US cable TV firm that also owns the NBC network and
Universal Pictures - said its bid offered a premium of about 16% to Fox's
£10.75 a share offer.

 

Chief executive Brian Roberts said: "We have long believed Sky is an
outstanding company and a great fit with Comcast. Sky has a strong business,
excellent customer loyalty, and a valued brand."

 

Analysis: Simon Jack, BBC business editor

The gloves are officially off. The big winners here are the Sky shareholders
who can now sit back and watch these two slug it out in a bidding war.

 

Now there is a better offer formally on the table, the board of Sky has duly
retracted its recommendation to shareholders that they accept the Fox offer.
We now wait for the Murdoch response.

 

The markets think there will be one as shares are trading £1 higher than the
Comcast bid. The fight is already getting dirty, with teams of lawyers and
PRs on both sides preparing briefing notes about each others previous
misdemeanours, scandals and broken promises.

 

The bottom lines are these. A US company - either Comcast or Disney - will
end up owning Sky. Over decades of string-pulling and empire building,
Rupert Murdoch has usually got what he wants. But as he tries to dismantle
it (in the most financially advantageous way possible) - it's not all going
his way.

 

George Salmon, a Hargreaves Lansdown analyst.

 

"Part of the reason the value of the deal is significantly higher than what
Fox originally put forward is that Sky has since secured three more years of
rights to Premier League football at a reduced cost. As far as the value of
Sky goes, that's a game-changer," he said.

 

"Sky has proven the Premier League deals are well worth the outlay. The
group looks on course to deliver operating profits of £1.5bn this year,
double what it earned ten years ago."

 

Comcast said it would continue to engage with Sky's independent directors to
win a recommendation for its deal. In February it said it intended to make
an offer at the same level of £12.50 a share.

 

Comcast added that it planned to agree several legally binding commitments
with regard to Sky and in particular for Sky News, as well as keeping the
group's Osterley headquarters in west London for at least five years.

 

Mr Roberts added: "With its 23 million retail customers, leading positions
in the UK, Italy, and Germany, and its history of strong financial
performance, we see significant opportunities for growth by combining our
businesses."

 

He added: "We also understand the role that Sky plays in UK society and in
its customers' lives and we are determined to be responsible and trusted
owners of Sky."--BBC

 

 

 

 

 

 

 

 

 


 

 


 

INVESTORS DIARY 2018

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

Workers’ Day

 

01/05/2018

 


 

Africa Day

 

25/05/2018

 


Zimbabwe

Heroes’ Day

Zimbabwe

13/08/2018

 


Zimbabwe

Defence Forces Day

Zimbabwe

14/08/2018

 


 

 

 

 

 


 

 

 

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls ‘n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

 


 

 


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