Economy
US problems escalate at HSBC |
|
|
| Economy | |
| Written by Gary Howes | |
| Monday, 11 May 2009 | |
|
Morning Business News, Mon 11 May: HSBC, Barclays, Centrica and BT.
HSBC's US problems continue to escalate with Europe's biggest bank expected to reveal that losses in Household, the business it bought in 2003, hit almost $5bn (£3.3bn) in the first three months of the year. HSBC (LON:HSBA) shares were down sharply this morning ending what has been a strong run on the FTSE. At 9am shares in HSBC were down 2.81% to 562p. BarclaysOver the weekend the Sunday Times reported that a bidding war could be sparked over the sale of Barclays iShares unit. It was reported that Barclays (LON:BARC) could solicit new offers from private equity and trade bidders before making a decision on whether to sell the business to CVC. Several parties are understood to have lodged expressions of interest. Apax, Bain Capital and BC Partners, the owner of Foxtons, the struggling estate agency chain, could all be interested in the fund manager. A clause allows Barclays a window for further 'shopping' - should another buyer be agreed CVC would however be entitled to over £100m. CentricaCentrica (LON:CNA) has negotiated down the price that it will pay EDF for a stake in British Energy. The company will confirm this morning that it has reached agreement with the French power group over its plans to take a stake in the nuclear electricity generator. Instead of paying £3.05bn for a 25% stake in British Energy, as agreed last September, Centrica is now paying the equivalent of £2.3bn for a 20% stake, The Times understands. BTBT (LON:BT.A) is preparing to cut its dividend for the first time in seven years after a dire performance by its unit serving the telecoms needs of multinationals. Ian Livingston, BT’s chief executive, will complete a horrible first year in charge on Thursday by setting out plans to revive BT Global Services, the deeply troubled unit that supplies networks and information technology to large companies, reports the FT.
|
|
Digg it! 
del.icio.us 
Newsvine 
Reddit 
Stumble It! 
