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Tuesday Papers: BlackBerry sold for $4.7bn in last-ditch bid for survival

Tuesday Papers: BlackBerry sold for $4.7bn in last-ditch bid for survival

Top stories

  • Financial Times: BlackBerry has agreed to be bought by a consortium of Canadian investment companies for $4.7 billion in cash and taken private, in a last-ditch move to ensure the survival of one of the pioneers of the global smartphone industry.
  • The Daily Telegraph: Blackberry, which put itself up for sales last month and on Friday warned it would cut 4,500 jobs and lose almost $1 billion in the second quarter, confirmed it had acquired a new corporate jet just two months ago.
  • Financial Times: Ed Miliband will on Tuesday announce plans to increase corporation tax if Labour wins the next election, as he seeks to put the party on the side of smaller companies rather than corporations and banks.
  • Financial Times: JP Morgan Chase’s legal woes deepened as US authorities prepared to file civil charges as early as Tuesday alleging the bank misled investors in mortgage-backed securities sold in the lead-up to the financial crisis.
  • Financial Times: Citigroup said it would lay off around 1,000 people in its mortgage business, as refinancing volumes slump because of higher interest rates.
  • The Guardian: Neville Richardson's rearguard defence of his tenure as chief executive of the now crisis-stricken Co-op – and his leading role in its merger with Britannia – has been dealt a major blow after a letter from a top Bank of England regulator disputed many of his claims.
  • Financial Times: Flipboard, the digital magazine app, has raised $50 million from investors including Rizvi Traverse Management and Goldman Sachs, valuing the Silicon Valley company at $800 million.
  • The Daily Telegraph: Twitter has signed a major advertising partnership with CBS, the US broadcaster, as it battles to convince potental investors that it can translate its burgeoning network of users into revenues.
  • Financial Times: Apple sold more than 9 million of its latest iPhones over the launch weekend, up from 5 million last year and much higher than analysts had expected, sending its shares 5% higher.
  • Financial Times: Sales of GlaxoSmithKline’s medicines in China are thought to have dropped 30% since officials accused the UK pharmaceutical group of corruption, according to provisional analysts’ estimates.
  • The Independent: British Airways supremo Willie Walsh on Monday warned passengers that he expects a string of airlines to go bust this winter, as they struggle to shore up their balance sheets.

Business and economics

  • Financial Times: William Dudley, president of the New York Fed and vice-chair of the rate-setting Federal Open Market Committee, talked down the health of the world’s largest economy on Monday, saying it does not have enough momentum to justify slowing down the central bank’s $85 billion monthly asset purchases.
  • Financial Times: American companies are increasingly “reshoring” manufacturing operations from China to the US, according to a survey of executives conducted by the Boston Consulting Group.
  • Financial Times: US regulators on Monday approved plans for a joint venture on transatlantic routes between Delta Air Lines and Virgin Atlantic.
  • The Daily Telegraph: E&Y, one of the "Big Four" accountancy firms, is set to hire 3,700 people in Britain alone by the end of June 2014 to satisfy growing demand for business advice.
  • Financial Times: NYSE Euronext is seeking to amend its rules to make it less likely for trading houses to cancel options trades because of computer glitches such as the one recently suffered by Goldman Sachs.
  • Financial Times: Renminbi forwards hit a record high on Monday after China’s central bank signalled it would tolerate further appreciation against the dollar and strong manufacturing data spurred hopes of a recovery in the world’s second-largest economy.
  • The Daily Telegraph: Centrica has written off £240 million in wasted costs after scrapping its £1.4 billion plan to convert an empty North Sea gas field into a gas storage site, and shelving another smaller project indefinitely.
  • The Independent: The buy-to-let lender Paragon has made its biggest sale of bonds of £273 million, mostly triple-A rated, backed by loans to landlords since the financial crisis, amid surging demand from major investors.
  • Financial Times: Microsoft sought to reboot its faltering tablet hardware business on Monday as it unveiled second-generation models of the devices it has designed to bridge the gap between PCs and pure touchscreen machines.
  • Financial Times: Bankia is purging hundreds of external directorships across its network of industrial holdings as the nationalised Spanish bank removes politicians and trade unionists it paid to sit on the boards of related companies before its government rescue.
  • The Guardian: A Swiss village has voted to donate 110,000 Swiss francs (£75,000) of taxes paid by Ivan Glasenberg, the billionaire chief executive of GlencoreXstrata, to charities in countries where the London-listed mining and commodity trading company is accused of exploiting people and resources.
  • Financial Times: Marketers will soon be able to exploit the most detailed customer profiles ever after Acxiom, one of the largest data brokers, launched a system that combines offline details such as political leanings and income with their online activities.
  • Financial Times: Aberdeen Asset Management, the UK’s second-biggest listed investment group, experienced net outflows of £1.2 billion, which resulted in a contraction of assets under management to £201.7 billion at the end of August, compared with £209.6 billion at the end of June.
  • The Guardian: The private equity backers behind BMI Healthcare, Britain's biggest private hospital group, are coming under mounting pressure to inject capital into the rump of the financially stretched group as it comes under fierce attack from the Competition Commission, accused of extracting excessive profits from insurance firms and patients.
  • The Guardian: Tesco is hoping to make tablet computers accessible to a broader range of people with the launch of its 7" Hudl tablet computer.
  • The Independent: A former special adviser to Tory veteran Ken Clarke has joined the board of the Daily Mail as a non-executive director.

Share tips, comment and bids

  • Financial Times: Axa Private Equity, the Paris-based buyout fund manager, is preparing a sale of French natural ingredient maker Diana, in a much-awaited disposal that could fetch more than €1 billion.
  • Financial Times: Chrysler filed documents for an initial public offering late on Monday, a last resort following a dispute between majority owner Fiat and the healthcare trust that owns the rest of the US carmaker.
  • Daily Express: Genus, which supplies pig and bovine semen to farmers, has paid £24.8 million to buy Genetiporc, the pig genetics business of Aliments Breton Foods, North America’s top producer of organic and natural pork.
  • The Daily Telegraph: The failed attempt by AG Barr, the maker of Irn-Bru, to merge with Britvic cost the Scottish-based company £4.9 million.
  • The Guardian (Comment): The paragon of modern tech risks losing its shine by dodging queries about Indonesia, and an orgy of unregulated tin mining
  • The Daily Telegraph (Comment): How corporate hoarding could kill off the bull market in asset prices
  • The Daily Telegraph (Comment): Angela Merkel's triumph is a Pyrrhic victory for her and the German political elite.
  • Daily Mail (Comment – Alex Brummer): Labour's Shadow Chancellor Ed Balls wants to restrict pensions tax relief for ‘the highest earners’ to the same rate as average taxpayers. There is no attempt to define where Labour will draw the line.
  • Financial Times (Lex): BlackBerry: the value of the Canadian company’s cash, revenues, patents and liabilities are uncertain. Other than that it’s easy to value.
  • Financial Times (Lex): Air France-KLM: investors in the French-Dutch carrier may feel the last thing executives need is distraction. Alitalia looks like an cadenza too far.
  • Financial Times (Lex): Investment banks: do not get too excited about growth advisory business at the investment banks. IPOs and M&A are all very nice, but trading is still far more important.
  • Financial Times (Lex): Smithfield: the failure of Smithfield’s activists to get a higher bid shows that management is not always overmatched.

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