Global Business News: Ratings, Mergers, and Markets

Strategic Insights -

Standard & Poor's has placed Indonesia's sovereign ratings on CreditWatch due to the risk of aid curtailment from international creditors. This move reflects the concern that recent developments in East Timor may lead to a reduction in funding from the World Bank, IMF, and Paris Club. Meanwhile, Motorola Inc. is set to acquire Toshiba Corp.'s stake in Tohoku Semiconductor Corp., with plans to complete the purchase by the end of next year. The company has assured no personnel cutbacks at the venture. Additionally, Motorola is reportedly in negotiations to acquire General Instrument Corp. for at least $10 billion, with an announcement expected next week. Furthermore, Bell Atlantic Corp. and Vodafone AirTouch Plc are considering a merger of their U.S. mobile telephone units, creating a joint venture worth $70 to $80 billion. The stock market in Tokyo saw a significant increase, with the Nikkei 225 index rising 1.12 percent to 17,909.29.

Key Takeaways:

  • Standard & Poor's has placed Indonesia's sovereign ratings on CreditWatch due to the risk of aid curtailment from international creditors.
  • Motorola Inc. is set to acquire Toshiba Corp.'s 50% stake in Tohoku Semiconductor Corp. by the end of next year.
  • The deal is expected to have no impact on personnel at the venture, which currently manufactures microcontrollers.
  • Motorola Inc. is reportedly in negotiations to acquire General Instrument Corp. for at least $10 billion.
  • Bell Atlantic Corp. and Vodafone AirTouch Plc are considering a merger of their U.S. mobile telephone units, creating a joint venture worth $70 to $80 billion.
  • The new company will have Bell Atlantic with a 55% stake and Vodafone with a 45% stake.
  • The boards of Bell Atlantic and Vodafone are expected to vote on the plan Tuesday.
  • The Tokyo stock market saw a 1.12% increase in the Nikkei 225 index to 17,909.29, with 583 million shares changing hands.
  • Advances outpaced declines 704 to 542, with another 105 stocks ending unchanged.

Statistics:

  • Indonesia's sovereign ratings have been placed on CreditWatch by Standard & Poor's.
  • The risk of aid curtailment from international creditors is the main concern.
  • Motorola Inc. is set to acquire Toshiba Corp.'s stake in Tohoku Semiconductor Corp. for an undisclosed amount.
  • The purchase is expected to be completed by the end of next year.
  • The value of the deal for Motorola Inc.'s acquisition of General Instrument Corp. is at least $10 billion.
  • The joint venture between Bell Atlantic Corp. and Vodafone AirTouch Plc is expected to be worth $70 to $80 billion.
  • The new company will have a 55% stake held by Bell Atlantic Corp. and a 45% stake held by Vodafone AirTouch Plc.
  • The Tokyo stock market saw a 1.12% increase in the Nikkei 225 index to 17,909.29.
  • 583 million shares changed hands in the Tokyo stock market.

Sources:

  • Standard & Poor's
  • Motorola Inc.
  • The Financial Times
  • Bell Atlantic Corp.
  • Vodafone AirTouch Plc
  • The Wall Street Journal
  • Tokyo Stock Exchange
  • COMTEX (http://www.comtexnews.com)