A roundup of today's other business news in brief
Armani firm seeks merger approval
An Irish-registered financing company of the Giorgio Armani fashion group is seeking court approval for a Dutch-registered Armani company to merge into it as part of a scheme aimed at “streamlining” the group’s financing operations.
The merger of the Dutch company, with net assets of €462 million, into the Irish company, with net assets of €7.6 million, was said in documents to be of “great significance” to the group, especially in connection with its fiscal planning and tax treatment in Italy. Mr Justice Peter Kelly directed the matter to be entered into the Commercial Court list.
Intel accused of bribery, coercion
New York’s attorney general yesterday alleged that Intel had used “bribery and coercion” to maintain its dominant market position after an investigation lasting almost two years.
Intel, which employs more than 4,000 people in Ireland, is already under investigation by the US Federal Trade Commission and has been censured in Europe, Japan and Korea.
The lawsuit alleges that Intel paid billions of dollars to PC makers for their exclusive use of its microprocessors, including $2 billion (€1.3 billion) in “rebates” to Dell in 2006. – Copyright The Financial Times Limited 2009
Judgment of 37.58m against O’Regan
Anglo Irish Bank has secured summary judgment for more than €37 million against businessman Hugh O’Regan arising from his own unpaid personal borrowings of €11.3 million and personal guarantees over €26.2 million loans to two of his companies.
Mr O’Regan claimed Anglo, having been supportive of him over some 15 years, had suddenly changed its attitude towards him and became “hostile”. He said he enjoyed a good relationship with Anglo until autumn 2008 when companies of which he was a director were involved in a transaction to acquire the old Hibernian United Services Club on Dublin’s St Stephen’s Green.
Mr Justice Peter Kelly ruled yesterday that Mr O’Regan, Park Avenue, Sandymount, had made no arguable defence on these or other grounds to the bank’s claim for judgment orders against him. He ruled the bank was entitled to summary judgment for €37.58 million.
Services sector nears growth
The Irish services sector shrank at the slowest pace in 18 months, with the amount of new business nearing growth territory, a survey published yesterday showed.
The NCB Purchasing Managers’ Index rose to 47.4 from 45.5 in September, the closest it has moved to the 50 mark that separates growth from contraction since March 2008. The sub-index of new business hovered near the 50 mark amid aggressive sales activities and increased foreign demand, although weak economic conditions meant new orders still fell marginally over the month.
The survey showed new business rose to its strongest since January 2008 when it last showed growth, jumping to 49.7 from 45.1 last month.
Orbiscom made profit prior to sale
Orbiscom, acquired by credit card giant Mastercard in January in a $100 million deal, generated a profit of almost half a million euros in the year before its sale.
Accounts filed at the Companies Registration Office show that, despite generating a profit of €490,895 in the year to end of December, the firm had retained losses of €34.1 million.
The accounts note that Orbiscom, which produces secure payments software, was required to write off $1 million owing from a number of related undertakings.
Founded in Dublin in 1999, its customers included Citi, Bank of America, Wells Fargo, PayPal, Swedbank and Banque Populaire.
