Asia News Briefs
Sharp, Mitsubishi Announce Wireless Bar-Code Joint Venture
Sharp Corp. and Mitsubishi Corp. said they plan to set up a joint venture this month to develop and market a wireless version of the bar-code identification system. The 50-50 joint venture, Japan RF Solutions Co., will act as a developer and seller of the "Intellitag" system based on technology developed by Intermec Technologies Corp. of the U.S. The Intellitag system uses a small tag embedded with an antenna and microchip that can store data sent via radio frequencies. The system can read information on the tags up to 1.5 meters away. It can also input data into as many as 50 tags per second. The tags can be used for automated inventory control, parcel sorting and distribution tracking, the companies said. The joint venture will be capitalized at 150 million yen ($1.2 million). Sharp holds an exclusive license for the sale of Intellitag products in Japan. Mitsubishi has been expanding its logistics technology operations, which include contracts for a public transit ticket system in Hong Kong. Mitsubishi has also applied together with Toppan Printing Co. for a patent for a tag recycling system to help cut Intellitag production costs.
Fujitsu, Japan Radio Set Up Venture for W-CDMA
Fujitsu Ltd. and Japan Radio Co. said they have set up a joint venture to develop hardware and software for W-CDMA (wide-band code division multiplex access) mobile communications equipment. The new company, FJ Mobile Core Technologies Co., was established April 2, and is expected to start operations later this month. Fujitsu holds a 70% stake in the joint venture capitalized at 100 million yen ($804,052), while Japan Radio holds the remaining 30%, they said. The new company will aim to register 1.7 billion yen in sales this fiscal year through March 2002, Fujitsu and Japan Radio said. The joint venture will combine the two companies' know-how and technology in mobile communications and aims to speed up and rationalize their product development, they said. W-CDMA technology is used in next-generation mobile communications systems. NTT DoCoMo Inc. is expected to start offering the W-CDMA services in late May.
Chongqing Changan, Ford in Compact-Car Venture
China's Ministry of Foreign Trade and Economic Cooperation has approved the $98 million compact-car venture between Chongqing Changan Automobile Co. Ltd. and Ford Motor Co., the local car company said Wednesday. Chongqing Changan, one of the biggest automakers in China, said in its annual report that the deal was approved Nov. 30 last year but was only announced Wednesday. The joint venture will produce compact cars and alternative fuel vehicles. Last year, General Motors Corp. also was in talks with Chongqing Changan for a similar joint venture. The statement didn't say what happened to its negotiations with GM. Chongqing Changan will invest $23.5 million in the joint venture using cash and other types of assets, or 24% of the total investment costs. Its parent company is contributing 26%, and Ford and its China unit will contribute the remaining 50%. The venture will have an annual production capacity of 50,000 units. Chongqing Changan said the venture will expand its products, which currently comprises minivans and light trucks.
CyberWorks, TVB Discuss Pay-TV Services
Telecommunications and Internet company Pacific Century CyberWorks Ltd. and Hong Kong's dominant broadcaster Television Broadcasting Ltd. are in talks to develop pay-TV services in Hong Kong, a CyberWorks spokeswoman said. CyberWorks' iTV is one of the two incumbent pay-TV operators in Hong Kong along with i-Cable Communications Ltd. However, CyberWorks spokeswoman Joan Wagner declined to comment on whether the company would invest in TVB's satellite unit, Galaxy Satellite Broadcasting, which is looking for a strategic partner. Without a partner to provide needed funding, TVB is at risk of losing its pay-TV license in Hong Kong. TVB, which is one of five new companies awarded pay-TV licenses last July, postponed a HK$88 million (US$11.3 million) payment for its license last month after failing to secure funding from its strategic investor, Malaysia's Measat Broadcast Network Systems. Measat has said it won't proceed with its purchase of up to 40% of Galaxy, a deal worth about US$150 million. For that reason, TVB may be forced to pull the plug on its pay-TV plans, because government rules require that it have less than a 50% stake in Galaxy.
Yahoo!'s Australian Unit Completes Purchase of SOLD.com.au
Yahoo! Inc.'s Yahoo! Australia & NZ unit completed its acquisition of the auction site SOLD.com.au. A Yahoo spokeswoman declined to disclose the financial terms of the deal. In a press release, Yahoo said the two services will be integrated to help deliver better auction services to customers and businesses in Australia. SOLD.com.au has more than 180,000 registered users and 185 retail merchants. The combined company is now located at Yahoo! Australia & NZ's headquarters in Sydney. During the integration process, Yahoo! Australia & NZ Auctions and SOLD.com.au will continue to operate as two separate Web properties, providing direct links to each other's services. The integration of the two sites is expected to be completed in the second half of 2001.
Kookmin Bank Urges H&CB to Accept Merger Decision
South Korea's Kookmin Bank said that Housing & Commercial Bank should accept the decision by the merger steering committee, jointly set up by the two banks, to allow Kookmin to play a leading role in their planned merger. The committee members agreed on March 28 to have Kookmin Bank become the surviving entity after the merger, because its assets were larger than those of Housing & Commercial Bank. But Housing & Commercial Bank refused to accept the decision, Kookmin Bank said in a statement. Despite a delay in the agreement, Kookmin Bank said it will continue to proceed with merger negotiations. The banks had hoped to sign a formal contract on the merger by the end of March and establish the new company by July 1. The banks didn't say when the merger announcement will be made. Meanwhile, Kookmin Bank President Kim Sang Hoon and Housing & Commercial Bank President Kim Jung Tae held a meeting overnight to finalize key issues including the merger ratio and the name of the merged entity. But they failed to agree on these issues, a Kookmin Bank spokesman said. The two banks also couldn't agree on the merger ratio of 1 to 1.6 that the committee proposed, the spokesman said. The ratio would involve the exchange of one H&CB share for 1.6 Kookmin shares. H&CB wants a ratio of 1 to 1.7. The merger, the first non-government imposed merger among healthy Korean banks, would create the country's largest bank. If the merger fails, it would be a major blow to the restructuring of the bank sector, analysts say.
South Korean Freighter, Crew Missing Off Japan Coast
A South Korean freighter with a crew of 28 was missing Wednesday in the Pacific Ocean off the coast of southwestern Japan, the Japan Coast Guard said. An air search found an empty lifeboat bearing the name of the Honghae Sanyo Wednesday morning at a point about 45 kilometers south of Kochi prefecture, said Coast Guard spokesman Katsuhiko Segawa. Kochi is about 625 kilometers southwest of Tokyo. An oil slick of undetermined size and believed to be from the freighter was sighted nearby, Segawa said. No distress call from the ship had been received, he said. There were four South Koreans and 24 crew members from Myanmar aboard the 22,725-ton Honghae Sanyo, Segawa said. The ship had been due to arrive at a port in Hyogo prefecture in western Japan by Tuesday evening, he said. The cargo vessel left the South Korean port of Incheon on Saturday. Two aircraft and two patrol boats were searching for the vessel, he said.
BHP Will Pay Smaller Premium for Billiton Than Expected
BHP Ltd. chief executive Paul Anderson said Wednesday the premium that the steel, energy and minerals company will pay as part of its planned merger with Billiton PLC of the United Kingdom, will be below the 20% analysts have suggested. Mr. Anderson told reporters BHP will issue a memorandum to shareholders next week and the documents will show that the premium to be paid by BHP will be less than 20%. "I think you will see a number in there that's less than 20%," Mr. Anderson said. Asked about the recent performance of BHP's share price since the merger proposal was revealed last month, Mr. Anderson said there has been a lot of arbitrage activity between BHP and Billiton shares. He said BHP's share price is "just about where I would expect." He said there has been some uncertainty in the market about whether the merger will proceed, but said he thinks it highly probable the deal will win the support of shareholders.
-- Compiled from Dow Jones Newswires reports.
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