Business News Roundup: Syngenta's Genetic Corn Fiasco, Lufthansa's Swiss International Takeover, and More

Strategic Insights -

Biotechnology company Syngenta AG admitted to mistakenly selling experimental genetically engineered corn to consumers between 2001 and 2004, but claims it poses no health risks. Meanwhile, Lufthansa won approval for a staggered takeover of Swiss International Airlines, with a potential value of up to 310 million euros. IBM settled with software maker Compuware, licensing $140 million worth of Compuware software and offering to buy $260 million worth of Compuware services over four years. Wholesale inflation rose by 0.4 percent last month, the biggest increase in three months. General Mills Inc. reported a drop in third-quarter earnings due to tax and accounting changes, while Oracle Corp. saw its quarterly earnings drop 15 percent due to the PeopleSoft acquisition.

Key Takeaways:

  • Syngenta AG accidentally sold experimental genetically engineered corn to consumers between 2001 and 2004, but claims it poses no health risks.
  • The acquisition of Swiss International Airlines by Lufthansa could be worth up to 310 million euros, with a staggered takeover and floating price for the embattled carrier.
  • The boards of both carriers and 83% of Swiss International's shareholders, including the Swiss government, have approved the deal.
  • IBM settled with software maker Compuware, licensing $140 million worth of Compuware software and offering to buy $260 million worth of Compuware services over four years.
  • Wholesale inflation rose by 0.4 percent last month, the biggest increase in three months, driven by increases in energy and food products.
  • General Mills Inc. reported a drop in third-quarter earnings due to tax and accounting changes, while Oracle Corp. saw its quarterly earnings drop 15 percent due to the PeopleSoft acquisition.
  • The PeopleSoft acquisition cost Oracle Corp. slightly more than its initially estimated $10.3 billion, coming in at $10.6 billion.

Statistics:

  • 2001-2004: The period during which Syngenta AG mistakenly sold experimental genetically engineered corn to consumers.
  • 0.4 percent: The percentage increase in wholesale inflation last month, the biggest increase in three months.
  • 83%: The percentage of Swiss International's shareholders, including the Swiss government, who have approved the deal with Lufthansa.
  • $140 million: The value of Compuware software to be licensed by IBM over four years.
  • $260 million: The value of Compuware services to be purchased by IBM over four years.
  • 15%: The percentage decrease in Oracle Corp.'s quarterly earnings due to the PeopleSoft acquisition.
  • $10.6 billion: The cost of the PeopleSoft acquisition to Oracle Corp., slightly more than its initially estimated $10.3 billion.

Sources:

  • Reuters: "Syngenta Mistakenly Sells Experimental Corn"
  • Bloomberg: "Lufthansa Wins Approval for Swiss International Takeover"
  • Bloomberg: "IBM Settles Compuware Case, to License Software"
  • Bloomberg: "General Mills Profit Falls as Taxes, Accounting Hit Earnings"
  • Bloomberg: "Oracle Profit Falls 15% as PeopleSoft Integration Hits"