COMPANY NEWS IN BRIEF

Atlantia makes last offer

Atlantia's motorway unit Autostrade per l'Italia has made the Italian government a new offer to settle a long-running dispute and prevent its concession being withdrawn, sources familiar with the matter said.

Rome has been threatening to revoke the licence since the collapse in 2018 of a bridge in Genoa that was run by the motorway operator, killing 43 people, but the ruling parties are divided over the issue.

Autostrade's last-ditch offer, presented as ministers gathered for a late-night cabinet meeting to discuss the matter, would see Benetton-backed Atlantia eventually bow out of Autostrade, the sources said.

In a first stage, state lender Cassa Depositi e Prestiti (CDP) would take a stake of 51% in Autostrade through a capital increase, the sources said.

The company would then be spun off to Atlantia investors and listed with the Benetton family either exiting or remaining with a residual stake, they said, adding the offer had not been finalised and could be subject to change. Atlantia declined to comment. – Nampa/Reuters

Calvin Klein owner PVH to cut 450 jobs

PVH Corp said on it would cut 450 jobs in North America and shutter 162 retail stores of its business that houses brands such as Van Heusen and IZOD, as the coronavirus crisis wreaks havoc on the apparel industry.

The Tommy Hilfiger and Calvin Klein owner said the layoffs, affecting 12% of its office workforce, would impact three brands and save about US$80 million annually.

"The Covid-19 crisis is dramatically reshaping the retail landscape in ways that we believe will be long-term in nature and far-reaching in terms of consumer purchasing behaviour," President Stefan Larsson said.

PVH estimated pre-tax charges of about US$80 million over the next 12 months from costs associated with the exit of its heritage brand retail business, which sells the three brands and accounted for 2.6% of its overall revenue in 2019.

"Overall, we see this as a positive development for PVH as the company exits a declining business and reduces costs," Bernstein analyst Jamie Merriman said. – Nampa/Reuters

Airbnb bookings pick up

Home rental firm Airbnb Inc said it recorded more than 1 million bookings globally on July 8, offering an early sign of recovery after a slowdown in reservations during the Covid-19 pandemic.

A major part of the bookings is for trips that will start on or before Aug. 7, the company said, adding it hit the 1 million mark for the first time since March 3.

Airbnb said it was partly due to pent-up demand, with affordable and closer destinations making up for the bulk.

The home rental firm has been reeling under weak demand as millions of tourists cancelled their vacation plans, work trips and family visits due to the pandemic, prompting it to suspend marketing activities for the year and cut about 25% of its workforce. – Nampa/Reuters

Huawei's equipment to cost US$630 million

BT, Britain's biggest mobile and broadband company, said it estimated that a ban on Huawei's equipment in its 5G networks would cost it no more than the 500 million pounds (US$630 million) it had earmarked to comply with a cap imposed earlier this year.

Telecom operators cannot buy any new 5G equipment from the Chinese company after the end of this year and all of its 5G gear has to be stripped out of networks by the end of 2027 under the measures announced on Tuesday.

Chief executive Philip Jansen said the decision clearly had logistical and cost implications for BT. "However, we believe the timescales outlined will allow us to make these changes without impacting on the coverage or resilience of our existing networks," he said.

"It will also allow us to continue to roll out our 5G and full fibre networks without a significant impact on the timescales we've previously announced."

BT was already working to remove Huawei's equipment from its EE mobile network to comply with a ban on its use in the most sensitive parts and a 35% cap on its overall use, at a cost of about 500 million pounds. - Nampa/Reuters

Telekom cuts investment, revenue forecast

Telekom Austria lowered its 2020 revenue forecast and cut its spending plans for the year after lower roaming income due to coronavirus-related travel restrictions and foreign exchange effects weighed on second-quarter core profit.

The group, which is controlled by Mexico's America Movil and the Austrian state, said on Tuesday it now expects a 2% decline in full-year revenue after previously forecasting a 1-2% rise from last year's 4.57 billion euros (US$5.21 billion).

It said it will cut initially planned investments of 770 million euros until the end of the year by a quarter. "As the further effects of Covid-19 are difficult to predict, precautionary cuts in capital expenditure and operating expenses will help to further secure flexibility," chief operating officer Alejandro Plater said in a statement.

The new investment plan does not include investments in new spectrum for 5G applications and potential acquisitions.

A1 Telekom Austria, which operates in six eastern European countries besides its home market, said revenue decreased 2.4% to 1.1 billion euros in the second quarter mainly due to lower roaming income and the devaluation of the Belarus currency. The group booked negative foreign exchange effects of 16.4 million euros. – Nampa/Reuters