Company news in brief
Vitol pulls out of deal to buy Nigerian oil fields
Oil trader Vitol has quit a consortium that was set to buy a stake in two Nigerian oil fields from Brazil's Petrobras, its former partner said on Friday.
Africa Oil said it would conclude the US$1.5 billion purchase alone after Vitol and Delonex Energy pulled out of the deal to buy half of Petrobras Oil and Gas, known as Petrobras Africa, from the Brazilian company.
Africa Oil said the deal will go ahead under the previously agreed terms. It has agreed a US$250 million loan facility with BTG Pactual and will fund the rest with available cash.
BTG, Brazil's largest independent investment bank, owns the other 50% stake in Petrobras Africa, whose core assets are stakes in offshore fields that produce Nigerian oil grades Agbami, Egina and Akpo.
Vitol did not issue a statement on the withdrawal. A source close to Vitol said the deal was taking too long to close, including the wait for necessary clearances from Brazilian and Nigerian officials. – Nampa/Reuters
Ryanair worried about MAX aircraft
Ryanair yesterday said there was a real risk that it would have no Boeing 737 MAX aircraft flying next summer if there are additional delays to the return to service of the grounded aircraft.
"We have now reduced our expectation of 30 MAX aircraft being delivered to us in advance of peak summer 2020 down to 20 aircraft and there is a real risk of none," chief executive Michael O'Leary said in a video presentation.
"We have already reduced our passenger growth forecast ... we may have to cut that again but frankly there is no point in keeping on changing the number until we get more certainty," he said. – Nampa/Reuters
Wide range for Aramco valuation
Analysts provided wide valuation estimates for Saudi Aramco, ranging between US$1.2 trillion and US$2.3 trillion, fund managers who have seen research notes said, as the oil giant kick-started its initial public offering (IPO) on the local bourse.
Bank analysts started showing IPO research to fund managers soon after Aramco, the world's most profitable company, on Sunday announced its intention to float on the domestic bourse in what could be the world's biggest listing.
The research reports highlight the challenge faced in hitting Saudi crown prince Mohammed bin Salman's initial valuation target of US$2 trillion for the world's largest oil producer, with some banks having said it could be about US$1.5 trillion.
Aramco's long-awaited announcement on Sunday did not disclose the number of shares to be sold, pricing or the date for a launch.
Sources have told Reuters Aramco could offer 1%-2% of its shares on the Riyadh exchange, raising as much as US$20 billion to US$40 billion. A deal over US$25 billion would top the record-breaking one of Chinese e-commerce giant Alibaba in 2014. – Nampa/Reuters
McDonald's ousts CEO over relationship
McDonald's Corp dismissed chief executive Steve Easterbrook over a recent consensual relationship with an employee, which the board determined violated company policy, the fast-food giant said on Sunday.
The board found that Easterbrook, 52, who had led McDonald's since 2015, had "demonstrated poor judgment" involving the relationship, McDonald's said in a news release. Easterbrook relinquished his seat on the company's board as well.
"This was a mistake," Easterbrook said of the relationship in an email to employees on Sunday released by the company. "Given the values of the company, I agree with the board that it is time for me to move on."
His departure was among the most significant in corporate America in the past several years over relationships deemed inappropriate.
Scrutiny of executives and their treatment of employees has intensified amid the #MeToo social media movement, which highlighted instances of sexual harassment in the workplace. In June 2018, Intel Corp CEO Brian Krzanich resigned after an investigation found he had a consensual relationship with an employee that breached company policy. – Nampa/Reuters
British Airways-owner buys Air Europa
British Airways owner IAG said yesterday it had agreed to buy Spanish carrier Air Europa for 1 billion euro (US$1.12 billion) in cash, bolstering its ability to compete for European travel to Latin America and the Caribbean through Madrid.
Against the backdrop of a challenging environment for airlines globally, the deal is the latest by a big European carrier looking westward to boost traffic and average fares.
Air Europa offers domestic and international flights to 69 destinations, including long-haul routes to Latin America, the United States and the Caribbean.
"Acquiring Air Europa would add a new competitive, cost effective airline to IAG, consolidating Madrid as a leading European hub and resulting in IAG achieving South Atlantic leadership," Willie Walsh, chief executive of IAG said.
IAG said the agreement with Air Europa was signed by its Spanish unit Iberia and added it expected the deal to close in the second half of next year. – Nampa/Reuters
Oil trader Vitol has quit a consortium that was set to buy a stake in two Nigerian oil fields from Brazil's Petrobras, its former partner said on Friday.
Africa Oil said it would conclude the US$1.5 billion purchase alone after Vitol and Delonex Energy pulled out of the deal to buy half of Petrobras Oil and Gas, known as Petrobras Africa, from the Brazilian company.
Africa Oil said the deal will go ahead under the previously agreed terms. It has agreed a US$250 million loan facility with BTG Pactual and will fund the rest with available cash.
BTG, Brazil's largest independent investment bank, owns the other 50% stake in Petrobras Africa, whose core assets are stakes in offshore fields that produce Nigerian oil grades Agbami, Egina and Akpo.
Vitol did not issue a statement on the withdrawal. A source close to Vitol said the deal was taking too long to close, including the wait for necessary clearances from Brazilian and Nigerian officials. – Nampa/Reuters
Ryanair worried about MAX aircraft
Ryanair yesterday said there was a real risk that it would have no Boeing 737 MAX aircraft flying next summer if there are additional delays to the return to service of the grounded aircraft.
"We have now reduced our expectation of 30 MAX aircraft being delivered to us in advance of peak summer 2020 down to 20 aircraft and there is a real risk of none," chief executive Michael O'Leary said in a video presentation.
"We have already reduced our passenger growth forecast ... we may have to cut that again but frankly there is no point in keeping on changing the number until we get more certainty," he said. – Nampa/Reuters
Wide range for Aramco valuation
Analysts provided wide valuation estimates for Saudi Aramco, ranging between US$1.2 trillion and US$2.3 trillion, fund managers who have seen research notes said, as the oil giant kick-started its initial public offering (IPO) on the local bourse.
Bank analysts started showing IPO research to fund managers soon after Aramco, the world's most profitable company, on Sunday announced its intention to float on the domestic bourse in what could be the world's biggest listing.
The research reports highlight the challenge faced in hitting Saudi crown prince Mohammed bin Salman's initial valuation target of US$2 trillion for the world's largest oil producer, with some banks having said it could be about US$1.5 trillion.
Aramco's long-awaited announcement on Sunday did not disclose the number of shares to be sold, pricing or the date for a launch.
Sources have told Reuters Aramco could offer 1%-2% of its shares on the Riyadh exchange, raising as much as US$20 billion to US$40 billion. A deal over US$25 billion would top the record-breaking one of Chinese e-commerce giant Alibaba in 2014. – Nampa/Reuters
McDonald's ousts CEO over relationship
McDonald's Corp dismissed chief executive Steve Easterbrook over a recent consensual relationship with an employee, which the board determined violated company policy, the fast-food giant said on Sunday.
The board found that Easterbrook, 52, who had led McDonald's since 2015, had "demonstrated poor judgment" involving the relationship, McDonald's said in a news release. Easterbrook relinquished his seat on the company's board as well.
"This was a mistake," Easterbrook said of the relationship in an email to employees on Sunday released by the company. "Given the values of the company, I agree with the board that it is time for me to move on."
His departure was among the most significant in corporate America in the past several years over relationships deemed inappropriate.
Scrutiny of executives and their treatment of employees has intensified amid the #MeToo social media movement, which highlighted instances of sexual harassment in the workplace. In June 2018, Intel Corp CEO Brian Krzanich resigned after an investigation found he had a consensual relationship with an employee that breached company policy. – Nampa/Reuters
British Airways-owner buys Air Europa
British Airways owner IAG said yesterday it had agreed to buy Spanish carrier Air Europa for 1 billion euro (US$1.12 billion) in cash, bolstering its ability to compete for European travel to Latin America and the Caribbean through Madrid.
Against the backdrop of a challenging environment for airlines globally, the deal is the latest by a big European carrier looking westward to boost traffic and average fares.
Air Europa offers domestic and international flights to 69 destinations, including long-haul routes to Latin America, the United States and the Caribbean.
"Acquiring Air Europa would add a new competitive, cost effective airline to IAG, consolidating Madrid as a leading European hub and resulting in IAG achieving South Atlantic leadership," Willie Walsh, chief executive of IAG said.
IAG said the agreement with Air Europa was signed by its Spanish unit Iberia and added it expected the deal to close in the second half of next year. – Nampa/Reuters
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