Ford agreed to Volvo sale

Ford has agreed the terms of the sale of its Swedish business, Volvo Cars, to China's Geely. Ford said "some work still remains to be completed" but the deal will be finalised early next year ahead of completion soon after Easter. Ford put Volvo up for sale a year ago to help pay off its debt and make its business more focused. Geely was named preferred bidder in November. If completed, it will be the largest purchase by a Chinese car firm. ANALYSIS Emily Young, Business reporter, BBC News Agreement has been reached at last. Volvo will almost certainly be sold to Geely. The question for Volvo is whether its new Chinese owner will do more for the marque than Ford did. On one level, the decade-long US-Swedish partnership can be seen as a successful. They benefited from each other's technology and expertise. But although many new models have been introduced in recent years, Volvo sales have not increased much. That may change under Geely, which will market Volvo in the fast-growing Chinese market. Ford said that while the "substantive commercial terms" had been settled, financing still needed to be completed and government approval was also necessary. The update on the sale is necessary for Geely to apply for government approval of the deal and with it, it is thought, the firm's financial backing. No details were given of how much the deal is worth, but it is widely rumoured that Geely will pay Ford $2 bn (£1.2 bn; 1.4 bn euros), less than a third of the $6.45 bn Ford paid for Volvo in 1999. Ford said it expects to continue co-operating with Volvo Cars, but did not intend to retain a shareholding in the business after the sale. Benefits for all Industry observers say the sale is good news for Volvo. VOLVO First Volvo made in 1927 Bought by Ford in 1999 Employs 20 ,000 worldwide In 2008 sales fell 18.3 % to 374 ,297
"In theory, the Chinese market could be an opportunity for Volvo," Nomura's auto specialist Michael Tyndall said. "It's a well-known brand, has a good heritage and a range of products that should appeal to the Chinese consumer." Equally, the deal should help Geely get into the Western market. It is thought that the main sticking point in the talks between Ford and Geely had been disagreement about how to deal with intellectual property rights - setting the parameters of Geely's use of Volvo's technology, such as its famous safety equipment, and the extent and cost of using any technology needed from Ford's research. Moving to China Professor David Bailey from the Coventry Business School said that he expects much of the Volvo production to be moved to China, which recently overtook the US to become the world's largest market for cars. GEELY Founded in 1986 Started as refrigerator parts supplier Employs 12 ,000 Production capacity of 300 ,000 cars a year "I would expect development and research to remain in Sweden, and maybe some production, but the big scale production will probably come from China," he said. "In the long run the question is whether they can continue to develop Volvo's safety profile and advanced engineering technology" he added. Geely said that Volvo would continue to lead the trend of world auto technology in safety and environmental protection. "It will quickly increase its unique competitive status in the Chinese market," the firm added.

Indian visa & some complain

India has tightened rules for long-term tourist visas, barring visitors from returning within two months of leaving. Under previous rules, tourists on long-term visas had to leave the country every 180 days. Many simply paid brief visits to neighbouring countries. Some countries have protested against the new rules, with the US saying they are being applied inconsistently. India's move follows the arrest in the US of a man charged in connection with the 2008 Mumbai (Bombay) attacks. David Headley, a Pakistani American, is said to have travelled to India several times last year to help identify targets for the attacks, which left more than 170 people dead. 'Gaps' India's new regulations effectively also make it much harder for people to use long-term tourists visas to work in the country. " Prior guidance and procedures that allowed re- entry to India after stays of up to 180 days are no longer in effect " US embassy in Delhi The government has yet to formally announce or provide details of the new rules, but Home Minister P Chidambaram set out the case for tightening regulations on Tuesday. "The gaps in the visa system have been exposed in a number of cases, the most notable among them being the case of David Headley. The compelling need to create a fool-proof system cannot be overstated," he said. In a posting on its website, the US embassy in Delhi said the "new visa and registration regulations are being implemented inconsistently". "Travellers have reported being denied re-entry after exiting India for business or family emergencies, or for tourist travel to nearby countries, even if their initial visit to India was for only a few days," the statement said. "The US mission has received confirmation that foreign passports are now stamped on exit to indicate that the bearer cannot re-enter India within two months of exit unless special permission is obtained from an Indian embassy, consulate, or high commission abroad, regardless of the validity of visa or length of stay in India." On Tuesday, visiting British Business Secretary Lord Mandelson raised the issue with Mr Chidambaram. "I can understand the motive for the new visa arrangements but we have to be careful not to make, create general restrictions," Lord Mandelson was quoted as saying by the Press Trust of India news agency. "I think, for many tourists, a two-month gap is too big." A spokeswoman at the British High Commission in Delhi said: "There is no real clarity over the details of the proposals or how they might be implemented. We understand that the Indian government is reconsidering its plans."

Fiat takes over a serbian factory

Fiat has signed a deal to take over the Zastava car factory in Serbia. Fiat, which now owns more than 67 % of Zastava through the deal, plans to make up to 200 ,000 cars there per year. The carmaker has made an initial investment of 100 m euros (£90 m;$143) and is expected to pay another 100 m euros next year. At the signing of the deal, Serbia's economy minister Mladjan Dinkic said production of two new Fiat models would be launched at the factory in 2011. It is understood that these cars will be for export to Europe and the US. The deal is part of a 700 m-euro agreement signed by Fiat and the Serbian government last year. Zastava is best known as the maker of the Yugo car.

UK firms cuts party

The office Christmas party, with its promise of free alcohol, flirting and a chance to see colleagues let rip on the dancefloor, has long been an annual highlight for many British workers. But a deep recession and widespread lay-offs have taken a bite out of budgets and caused managers to downsize or cancel the festivities altogether. A business survey this week estimated that Christmas party spending is down from about one billion pounds in 2007 — the year before the recession hit—to 600 million pounds (965 million dollars, 675 million euros) this year. Banks are among those most likely to scrap the champagne, thanks as much to debts incurred during the credit crunch as a fear of exacerbating the public perception that they are living the high life while ordinary people struggle. Royal Bank of Scotland last year kicked up a media storm after spending a reported one million pounds (1.1 million euros, 1.6 million dollars) on their Christmas parties, with another 300,000 pounds to treat its top executives. RBS is now 70-per cent owned by the taxpayer after its huge exposure to risky assets forced a massive government bail out. It was following a long tradition of big spending at Christmas, but this year managers have taken a more diplomatic approach, with the mass get-together scrapped in favour of events organised by individual teams of workers. The firm will still make a contribution but it will be small, a spokeswoman said, telling AFP: ' Our staff have worked very hard over the last 12 months. 'We won't waste bank money but the longstanding tradition of paying a small contribution towards staff parties has been judged appropriate.' In the same vein, Lloyds TSB, another bank which has spared no expense in the past for its Christmas parties, has toned things down this year.

Microsoft word selling banned by court

A US court of appeals barred Microsoft on Tuesday from selling certain versions of its popular Word program and ordered it to pay $290 million in a patent dispute with a Canadian company. The US court of appeals for the federal circuit upheld a jury verdict and lower court ruling in the patent case filed against the US software giant by Toronto-based i4i Inc nearly three years ago. 'This ruling is clear and convincing evidence that our case was just and right, and that Microsoft wilfully infringed our patent,' i4i founder Michel Vulpe said in a statement. 'This is what we've been looking for since March 2007,' added i4i chairman Loudon Owen. 'We are vindicated and we're appreciative but we're not surprised because we believed from the outset that we had a great case and that the trial judge made the right decision,' Owen told AFP. A US district court judge in Texas on August 12 upheld both a jury ruling that Microsoft's Word program violates an XML patent held by i4i and the award of more than $290 million in damages and interest. The judge also issued an injunction that would ban Microsoft from selling versions of its word processing program Word that infringe on the patented technology, which Microsoft dismissed on Tuesday as a 'little-used feature.' The Redmond, Washington-based Microsoft appealed but the three-judge court of appeals for the federal circuit ruled against the software powerhouse. Microsoft indicated Tuesday it may file further appeals and said in a statement it was 'moving quickly' to comply with the injunction on selling certain Word products, which takes effect on January 11, 2010. Microsoft stressed that the injunction only refers to US sales of versions of Microsoft Word 2007 and Microsoft Office 2007 and said it has already 'put the wheels in motion to remove this little-used feature from these products.' 'Therefore, we expect to have copies of Microsoft Word 2007 and Office 2007, with this feature removed, available for US sale and distribution by the injunction date,' Microsoft said. 'Beta versions of Microsoft Word 2010 and Microsoft Office 2010, which are available now for downloading, do not contain the technology covered by the injunction,' Microsoft added.

US home sales rise

Sales of US existing homes surged 7.4 percent in November to the highest level since February 2007 , as buyers rushed to take advantage of tax credits, industry figures showed Tuesday. The National Association of Realtors said sales rose to a seasonally adjusted annual rate of 6.54 million units in November from 6.09 million in October. This is 44.1 percent higher than the depressed levels of November 2008 and best since February 2007. The group said buying was sparked by a rush of first-time buyers to close sales before the original November 30 deadline government tax credits. Congress later voted to extend the credit and expand it to include other home purchases as well. "This clearly is a rush of first-time buyers not wanting to miss out on the tax credit, but there are many more potential buyers who can enter the market in the months ahead," said NAR chief economist Lawrence Yun. "We expect a temporary sales drop while buying activity ramps up for another surge in the spring when buyers take advantage of the expanded tax credit, which hopefully will take us into a self-sustaining market in the second half of 2010. "

Ethiopian's invite Bangladeshi RMG maker

Bangladeshi entrepreneurs with good reputation in readymade garment (RMG) sector can explore Ethiopian market, said a business delegation from the northeastern African country at a discussion in Dhaka yesterday. A seven-member team led by President of Ethiopian Chamber of Commerce and Sectoral Association Eyessus W Zafu came to Bangladesh on a five-day visit to attend public-private dialogues organised by International Finance Corporation in Bogra and Rajshahi. The country has a good reputation in the RMG sector and can look for business opportunities in Ethiopian textile market, said Zafu. "Bangladesh can take the advantage of duty- and quota-free access to American and European markets through African Growth and Opportunity Act," he said. Bangladesh can also enter the Common Market for Eastern Southern Africa, which is comprised of 22 countries, Zafu added. The IFC initiated the public-private dialogues nine months ago in Barisal, Sylhet, Rajshahi and Bogra to identify the local problems in business and economic development, and find solutions. The aim of the dialogues is to create a vibrant private sector business climate, ensure the growth of small and medium enterprises and generate employments, said Laura Watson, programme manager of Bangladesh Investment Climate Fund, which is managed by IFC. "We have learned something from the dialogues and will use those in Ethiopia," said Zafu. "We noticed a high-level awareness among the participants and the commitment they showed was inspiring." The Ethiopian team will sign a memorandum of understanding with Dhaka Chamber of Commerce and Industry to strengthen business cooperation. The delegation will leave Dhaka tomorrow.

Bangladesh govt may reconsider in IPO restriction

The government is likely to reconsider its decision that new companies -- willing to float IPO -- will have to offer shares equivalent to 40 percent of their paid-up capital. After a meeting with a Chittagong Stock Exchange delegation at his office yesterday, Finance Minister AMA Muhith told reporters that the finance ministry would consider the proposals of bourses in the interest of the market, BSS reports. The finance ministry at a meeting on November 5 took a series of decisions tightening capital market rules. CSE delegates told the minister that the ministry's decisions, if implemented, would hinder the market growth. The decisions include allowing IPO floatation by new companies that will offer shares equivalent to 40 percent of paid-up capital. Another move was to ban the direct listing of private companies. The CSE delegation, led by its President Fakhor Uddin Ali Ahmad, told the minister that the restrictions on IPO would discourage many companies with high paid-up capital to come to market. According to a CSE proposal, the minimum requirement for IPO flotation can be fixed at 25 percent -- instead of 40 percent -- for the companies with Tk 500 crore in paid-up capital. For those with more than Tk 500 crore in paid-up capital, the IPO size can be 15 percent of paid-up capital, the CSE proposed.

Pizza Hut BD introduce new menu

Pizza Hut unveiled its new range of pastas and sauces on Tuesday. Transcom Foods Ltd, franchisee of Pizza Hut, will now serve popular pastas like penne, fusilli, spaghetti and macaroni, together with four new sauces -- tomato based arabiatta, creamy spinach, mushroom sauce and bolognaise. "The new range of pastas and sauces is part of our enhanced dine-in experience, which aims to provide the best casual dining atmosphere while enjoying a wide range of delicious foods," said Akku Chowdhury, executive director of Transcom Foods. With an array of pastas and sauces to choose from, customers are free to create their "own sensation". Pizza Hut, with six years of operations in Bangladesh, managed to serve six lakh customers with 5 ,500 daily walk-in customers.