Today's other stories in brief
Rate rises dampening house prices
Interest rate increases are having a dampening effect on growth in house prices, according to the AIB's latest analysis of the housing market. According to its latest bulletin, house price inflation slowed from an August peak of 15.4 per cent to 13.1 per cent in November with the AIB predicting that house price inflation was likely to have moderated further during December.
The analysis also suggests that housing output will fall next year, following what it says is a "distinct" slowdown in the pace of house registrations and "weak" planning permissions.
Nasdaq to pursue bid for LSE
The Nasdaq Stock Market said that imminent third-quarter figures from the London Stock Exchange would not affect its hostile bid for the British exchange.
The Daily Telegraph said the LSE would release third-quarter numbers this week, almost three weeks early, as part of its defence against the cash offer of 1,243 pence a share from the US stock market group.
The bid from Nasdaq, which already owns just under 30 percent of the LSE, values it at £2.7 billion (€4 billion).
"The imminent announcement of LSE's 2006 financials, which has been anticipated in press speculation, in no way changes the fact that LSE's value case has been entirely based on current and historical financial performance," Nasdaq said in a statement.
Concern over new laws in Thailand
Thailand's overseas business community yesterday urged the military-installed government to re-think revisions to foreign investment laws, saying it was "gravely concerned" about the effects on current and potential investors.
However, Krik-krai Jirapaet, commerce minister, said the cabinet would address the possible changes today in spite of objections both from foreign business groups and Thailand's main trading partners.
He also rebuffed overseas business groups for speaking out publicly.
US Airways beefs up bid for Delta
US Airways has beefed up the financing for its unsolicited $8.6 billion (€6.6 billion) bid for Delta Air Lines in a move that could pave the way for an increased offer.
The Phoenix-based carrier said Morgan Stanley would join Citigroup as joint underwriter for its proposed bid, which is being reviewed by Delta's creditors alongside a standalone restructuring plan from the Atlanta-based airline.
US Airways has maintained it will not increase the cash-and-stock offer outlined in October, but said the $7.3 billion (€5.6 billion) financing commitment "has also been revised to provide significantly improved financial terms". - ( Financial Times service)
Lawyers prepare for Parmalat trial
Lawyers have resumed preparations for a trial in one of the biggest cases between Parmalat and its former auditors and bankers after the parties failed to find a quick resolution during the US holiday season. However, people close to the negotiations said that Deloitte, the audit firm, had been pushing for an out-of-court settlement with the Italian dairy company.
New management at Parmalat, which collapsed amid fraud at the end of 2003, is suing for billions of euros the banks and auditors it believes helped prolong wrongdoing. None has admitted wrongdoing. -
(Financial Times service)
