A round-up of today's other business news in brief
Hypo not to benefit from 500bn bailout
Hypo Real Estate Holding €50 billion bailout, part-funded by German banks and insurers, will not be subsidised by the government's €500 billion rescue package for the industry, the German finance ministry said.
"The two rescue packages are separate," finance ministry spokesman Stefan Olbermann said yesterday. He added that the rescue package for Hypo Real Estate was designed to save the lender and that government's plan "refers to a different, wider problem".
The bailout of Munich-based Hypo Real Estate, agreed by the government and financial institutions on October 5th, was the country's biggest since the second World War.
The company was forced to seek the lifeline after its Dublin-based Depfa Bank unit failed to get short-term funding amid the credit crunch. - (Bloomberg)
Biogen Idec shares fall by 4.6%
Biogen Idec has reported third-quarter earnings that topped expectations, but sales of its multiple sclerosis drug Tysabri slowed, sending the company's shares down as much as 4.6 per cent.
Investors have been watching to see the impact on physician prescribing patterns of Tysabri after the company reported earlier this year that two patients had developed a deadly brain infection known as progressive multifocal leukoencephalopathy, or PML.
Biogen has a partnership with Irish firm Elan to develop and market Tysabri.
On a conference call with investors, Biogen said it is holding to its projection that 100,000 patients will be taking Tysabri by 2010, but acknowledged that growth will have to accelerate if it is to achieve that goal.
Massachusetts-based Biogen said net profit in the quarter rose to $207 million, or 70 cents a share, from $119 million, or 41 cents a share, a year ago, while revenue rose to nearly $1.1 billion from $789 million a year ago. - (Reuters)
Nissan to cut motor production
Nissan Motor said yesterday it would cut production in Japan, Britain and Spain in response to falling demand around the world as fears of a global economic slowdown prompt consumers to hold off on car purchases.
Japan's third largest automaker, in which Renault holds a 44 per cent stake, will slash production by a total 65,000 vehicles at its Kyushu and Tochigi plants in Japan from November to March, it said. It had already reduced production by 10,000 vehicles in Tochigi from September.
Nissan had planned total domestic production of 1.39 million vehicles for the business year to next March.
Tullow drilling in Uganda successful
Listed explorer Tullow Oil, which has significant interests in Africa, said drilling at the Warthog-1 well in Uganda was successful. Drilling began on September 27th and reached a depth of 911 metres, Tullow said in a statement. Warthog-1 has "a gross hydrocarbon-bearing interval of approximately 150 metres, with 46 metres of net hydrocarbon pay," it said.
Heritage Oil Ltd operates the well. Warthog-1 will be suspended as a potential future production well and the rig will move to drill Buffalo-1 to a depth of about 600 metres, starting in mid-November, Tullow said.
Shares in Tullow, which has interests in over 100 exploration and production licenses in 22 countries, advanced 2.3 per cent to 510 pence. - (Bloomberg)
