PRESS DIGEST - Wall Street Journal - July 4

(Reuters) - * Buyout firm KKR & Co. LP [KKR.UL] filed to raise $1.25
billion in an initial public offering, following in the
footsteps of archrival Blackstone Group.




* Detroit's big three auto makers posted weaker June sales
despite fresh incentives, as General Motors Corp. and
Ford Motor Co. continued to slash sales to rental fleets.
Toyota Motor Corp.'s U.S. vehicle sales jumped 10
percent.


Read more at Reuters.com Mergers News

Dollar near 26-year low vs pound as ECB, BoE awaited

(Reuters) - The dollar held near a 26-year low against the pound on Wednesday and a two-month trough versus the euro, with trade quiet around the U.S. Independence Day holiday as investors awaited key central bank verdicts later this week.

The yen edged up after ratings agency Moody's said it may upgrade Japan's sovereign rating of A2, saying the country had reached an "inflection point" in the government's efforts to improve its massive debt.


Read more at Reuters Africa

Citigroup, Foreign Banks Triple China Profit Growth Through Yuan Services

(Bloomberg) -- Profit growth at Citigroup Inc., ABN
Amro Holding NV and other foreign banks in China tripled this
year after they were allowed to offer local-currency services, a
central bank report said.

Overseas banks earned a combined 3.05 billion yuan ($401
million) in the first five months, up 43 percent from a year
earlier, the People's Bank of China said in a research report
published by China Securities Journal. Profit growth accelerated
from an average 14 percent over the past five years.


Read more at Bloomberg Currencies News

UPDATE 4-Blackstone to buy Hilton for $26 bln

(Reuters) - LOS ANGELES, July 3 - U.S. private equity firm
Blackstone Group agreed on Tuesday to buy Hilton Hotels
Corp. for about $26 billion, the richest in a series of
recent private equity offers for hotel companies.




Under terms of the agreed deal, Blackstone will pay $47.50
for each share of Hilton, one of the most prominent global
hotel brand names, and take on debt.


Read more at Reuters.com Mergers News

Rubber Trades Near Six-Month Low in Tokyo on Speculation Supply Rising

(Bloomberg) -- Rubber futures in Tokyo, the global
benchmark, were little changed, trading near a six-month low
amid speculation that supply from Southeast Asian producing
nations is picking up.

Natural rubber supply tends to increase after the end of
wintering, or the low production season, in top-producer
Thailand, where early rains threatened to curb output. Thai
plantations may still be affected by scattered rainfall, while
drier weather in southern Indonesia, the second-biggest producer,
will help operations there, forecaster Meteorlogix said
yesterday.


Read more at Bloomberg Commodities News

Korean Won Falls as Minister Warns on Excessive Gains; Revenue Hurts Peso

(Bloomberg) -- South Korea's won fell from a seven-
month high after Finance Minister Kwon Okyu said the government
will take measures to slow its gain when necessary.

The currency snapped a four-day, 1.1 percent rally on
speculation the central bank will sell the won. The exchange rate
may threaten growth by making Korean goods more expensive abroad,
reducing demand for the nation's exports.


Read more at Bloomberg Currencies News

Australian Dollar Gains as Record Exports Improve Economic Growth Outlook

(Bloomberg) -- The Australian dollar rose after a
government report showed exports surged to a record in May,
bolstering the outlook for economic growth.

The currency climbed as the report showed the trade deficit
unexpectedly narrowed to the lowest in nine months, helped by
higher commodity prices. The local dollar has increased 15
percent in the past year, the second-biggest gainer among the 16
most-traded currencies, amid rising demand for the raw materials
Australia ships overseas such as gold, iron ore and nickel.


Read more at Bloomberg Currencies News

BHP's Pyrenees Oil Field in Australia May Help Increase Oil Production 22%

(Bloomberg) -- BHP Billiton Ltd., Australia's largest
oil and gas producer, may raise its annual output by as much as
22 percent after approving the $1.7 billion Pyrenees crude
project off the northwestern coast.

The field, in which it owns a 71 percent stake, will deliver
as much as 96,000 barrels of oil a day when it starts in 2010,
the Melbourne-based company said in a statement yesterday. The
production gain was derived by Bloomberg based on the company's
output of 116 million barrels in the year ended June 2006.


Read more at Bloomberg Energy News

UPDATE 1-Chinese Estates says in buyout talks

(Reuters) - "The board confirms that it has received expressions of
interest in relation to the company from a number of third
parties. The board is in talks with some of these parties," it
said in a statement.




The South China Morning post reported on Tuesday that The
Children's Investment Fund Management , the company's second
largest shareholder, as well as Och-Ziff Capital Management
Group, and Marathon and Fortress Investment Group have looked at
ways to buy Chinese Estates through a joint bid.


Read more at Reuters.com Mergers News

UPDATE 3-Buyout firm KKR files for $1.25 bln IPO

(Reuters) - The planned IPO follows last month's high-profile listing
of rival Blackstone Group LP , which raised $4.13 billion
and ushered in a new era for an industry that has come to
dominate financial markets worldwide by pursuing ever-larger
takeovers and raising record amounts of capital.




Unlike the Blackstone IPO, however, KKR's owners are not
selling any common units or receiving any net proceeds.


Read more at Reuters.com Bonds News

Indonesia, Malaysia, Sri Lanka, Taiwan, Thailand: Asian Local Bond Preview

(Bloomberg) -- The following events and economic
reports may influence trading in Asian local-currency bonds
today. Yields are from the previous session.

China: China's Agricultural Development Bank, one of the
nation's three policy banks, will sell 10 billion yuan ($1.32
billion) of floating-rate three-year notes on July 6. The debt
will carry an interest rate of the one-year deposit rate plus a
spread that is to be auctioned. The central bank last month
raised the benchmark one-year deposit rate to 3.06 percent from
0.27 percentage point.


Read more at Bloomberg Bonds News

Australian Dollar May Strengthen as Yields Attract After Stock Market Gain

(Bloomberg) -- The Australian dollar may gain on
speculation rising global stocks will give investors confidence
to buy the nation's higher-yielding assets.

The local dollar is the second-biggest gainer of the past
12 months among the 16 most-traded currencies as investors have
been attracted to Australia's 6.25 percent interest rate, which
the central bank is likely to keep unchanged today. That
compares with 5.25 percent in the U.S. and 0.5 percent in Japan.
The Morgan Stanley Capital International Asia Pacific Index
rose 0.7 percent yesterday to a record.


Read more at Bloomberg Currencies News

UPDATE 1-Colombia cen govt deficit $1.63 bln in Feb

(Reuters) - The central government fiscal deficit for the first two
months of this year was 4.18 trillion pesos or $2.13 billion
compared with 5.64 trillion pesos in the same period a year
earlier, the finance ministry said in a statement.




The local peso currency traded at 1,960.61 pesos to the
U.S. dollar.


Read more at Reuters.com Bonds News

Dollar Is Near Record Low Against the Euro Before Interest-Rate Meetings

(Bloomberg) -- The dollar was near a record low
versus the euro and the weakest in 26 years against the pound
before two European central bank policy meetings tomorrow.

The Bank of England is forecast to raise borrowing costs
while the European Central Bank may signal future increases to
tame inflation. The dollar has dropped 3 percent against the euro
and 2.9 percent versus the pound this year on bets the Federal
Reserve will keep interest rates unchanged, dimming the allure of
U.S. assets relative to those in the euro region and U.K.


Read more at Bloomberg Currencies News

Wheat Futures Are Little Changed, Paring Early Losses on Harvest Progress

(Bloomberg) -- Wheat closed little changed in
Kansas City, paring earlier losses on progress in harvesting
the winter crop, especially in Kansas, the biggest producer.

About 40 percent of U.S. winter wheat was cut as of July
1, compared with 22 percent a week earlier, the Department of
Agriculture said yesterday. About 59 percent of the winter
wheat in Kansas was harvested, up from 20 percent. Still, the
overall harvest is behind the five-year average of 54 percent
because of heavy rains in parts of the Great Plains.


Read more at Bloomberg Commodities News

Fitch cuts BCE to junk status on leveraged buyout

(Reuters) - The pending $32.6 billion buyout would be the biggest
global buyout if it goes through.




Fitch lowered BCE's issuer default and senior unsecured
debt ratings to "BB-minus," three steps below investment grade,
from "BBB-plus," three steps above junk territory.


Read more at Reuters.com Mergers News

Copper Futures Rebound in New York on Strike Threats at Chilean Mines

(Bloomberg) -- Copper futures rose to a seven-week
high in New York on concern striking workers will increase
protests in Chile, the world's largest source of the metal.

Contract workers at Chile's state-owned Codelco, the
world's largest copper producer, said yesterday that protests
will worsen unless the company negotiates. The price of copper
gained 2 percent last week as labor unrest that began June 25
cut Codelco output.


Read more at Bloomberg Commodities News

Dell gets extended conditional listing from Nasdaq

(Reuters) - On June 19, Dell had said Nasdaq informed the company that
it was not in compliance with the exchange's stock-listing
requirements after it delayed filing first-quarter financial
results with regulators.





Read more at Reuters.com Government Filings News

U.S. Stocks Advance on Factory Orders, Takeovers; Wendy's, Apple Climb

(Bloomberg) -- U.S. stocks gained for a second day
after factory orders fell less than forecast and $8.5 billion
of takeovers spurred speculation that mergers and acquisitions
will extend the rally.

Wendy's International Inc., the third-biggest hamburger
chain, advanced the most in two months after billionaire
investor Nelson Peltz said he may make a bid for the company.
Apple Inc. jumped to a record and Oracle Corp. reached a six-
year high in trading that ended at 1 p.m. before the
Independence Day holiday.


Read more at Bloomberg Stocks News

No crisis lurks in sub-prime woes: Deutsche Bank

(Reuters) - "There will be more but I don't think we will see systemic risks in this area," Baenziger told a financial conference organized by Germany's central bank.




Baenziger said the problems that U.S. lender Bear Stearns has had with two of its hedge fund businesses active in the mortgage lending market were unlikely to crop up at other banks.


Read more at Reuters.com Bonds News

United Capital hedge funds not liquidating despite losses

(Reuters) - The funds hold most of the firm's assets under management,
which stood at about $619 million as of March.







Read more at Reuters.com Bonds News

Treasuries Decline Most in More Than a Week as Demand for Risk Stabilizes

(Bloomberg) -- Treasuries declined the most in more
than a week as a drop in a measure of the perceived risk of
owning U.S. corporate bonds reduced demand for the safety of
government debt.

The CDX North America Crossover Index, made up of the debt
of 35 companies, fell for the first time in five days after
rising to a 10-month high yesterday, according to Deutsche Bank
AG.


Read more at Bloomberg Bonds News

Apple iPhone margins 55 percent

(Reuters) - ISuppli said its estimates did not include costs such as royalties and logistics. Some analysts have also speculated that AT&T Inc. , the exclusive U.S. service provider for the phone, may take a portion of the iPhone retail price for devices it sells in its stores.




According to iSuppli, the phone's display, a much lauded feature for the device, costs $27 or about 10.8 percent of the device's hardware costs. The display was supplied by Germany's Balda AG , iSuppli said.


Read more at Reuters.com Business News

Auto discounts deepen in June: analyst

(Reuters) - All of the six leading automakers offered bigger discounts in June than they had in May with the exception of General Motors Corp. , Edmunds said.




In a significant departure from usual practice, the three leading Japanese automakers all stepped up their discounting in the face of slack demand, Edmunds said.


Read more at Reuters.com Business News

Apple iPhone margins 55 pct, shares rise: ISuppli

(Reuters) - In January, iSuppli, which does not include costs for royalties and logistics, said it had estimated a $264.85 hardware and manufacturing cost for the eight-gigabyte device.




Apple shares rose $4.42 or almost 4 percent to $125.68 on Nasdaq after the news. Shares of AT&T Inc. , the exclusive U.S. service provider for the phone, were down 35 cents at $41.50 on the New York Stock Exchange.


Read more at Reuters.com Hot Stocks News

Brazil's Real Strengthens on Expectations Export Trade to Continue Robust

(Bloomberg) -- Brazil's currency gained for a second
day on bets the country's trade surplus will continue surprising
analysts on the upside as exports rise.

``The trade data released yesterday was reassuring because
even with the appreciation of the real, exports are very
strong,'' said Reginaldo Galhardo, currency director of Treviso
Corretora, a Sao Paulo brokerage. He predicts the real will
trade at about 1.90 per dollar by the end of the year amid
increasing inflows from purchases of local financial assets by
foreign investors.


Read more at Bloomberg Currencies News

Archeus hedge fund sues GlobeOp over fund's demise

(Reuters) - The suit could dampen investor enthusiasm for GlobeOp's
pending initial public offering. GlobeOp disclosed June 15 that
it plans to raise 52 million pounds in a listing
on the London Stock Exchange.




"GlobeOp acted with reckless indifference to the rights of
Archeus, the Animi Funds and their investors in a manner that
smacked of intentional wrongdoing," Archeus said in its
lawsuit.


Read more at Reuters.com Mergers News

First Quantum Congo copper mine starts up

(Reuters) - First Quantum's Frontier copper mine project in the Democratic Republic of Congo (DRC) is starting commissioning as part of the Canadian company's growth plans, an official said on Tuesday.

"The Frontier project is starting commissioning as we speak," the company's President Clive Newall told delegates at a Numis Metals Mining Conference in London.


Read more at Reuters Africa

UPDATE 1-United Capital says halts hedge fund refunds

(Reuters) - "We have temporarily suspended redemptions," said Michael
Gregory, spokesman for United Capital Markets in Key Biscayne,
Florida. The firm offered no further comment but said a
statement would be forthcoming later on Tuesday.




The funds hold most of the firm's assets under management,
which stood at about $619 million as of March. The company has
had an unusually high number of redemption requests, including
one from an investor who had put up about 25 percent of the
funds' money, and it did not want to be a forced seller of
securities, according to a report on Bloomberg News' Web site.



Read more at Reuters.com Bonds News

Rio Narcea recommends Lundin's sweetened bid

(Reuters) - The bid, initially made on April 20, was extended to July
16 from June 29. Under a support agreement between Lundin and
Rio Narcea, the offer cannot be extended beyond June 19.




Lundin said it has entered lock-up agreements with major
shareholders representing about 30.9 percent of Rio Narcea's
shares. It said shareholders with an additional 12.3 percent
stake have indicated their intent to tender their shares to the
amended offer.


Read more at Reuters.com Mergers News

Kroger says labor contract ratified by union

(Reuters) - The three-year contract covers more than 3,100 Kroger associates at 27 stores in the Toledo metropolitan area, the company said in a statement.






Read more at Reuters.com Government Filings News

Avon, Commerce Bancorp, Ford, Movie Gallery, Wendy's: U.S. Equity Preview

(Bloomberg) -- The following is a list of companies
whose shares may have unusual price changes in U.S. exchanges
today. This preview includes news that broke after exchanges
closed yesterday. Stock symbols are in parentheses after company
names. Share prices are as of 9 a.m. in New York.

American Capital Strategies Ltd. (ACAS US) rose $1.70, or 4
percent, to $44.70 in trading before U.S. exchanges opened. The
specialty finance company will replace Dollar General Corp. (DG
US) in the Standard & Poor's 500 Index, S&P said in a statement.


Read more at Bloomberg Stocks News

Wall St set to open higher on M&A

(Reuters) - Kraft Foods is in exclusive talks to buy Danone's biscuit and cereal unit for 5.3 billion euros in cash, the companies said. Kraft's shares rose 0.8 percent in Europe.




Kraft's widely rumored bid for Danone's cookie unit, which includes the LU, Prince and Tuc brands, will give the U.S. food company a stronger foothold in Europe and in emerging markets.


Read more at Reuters.com Hot Stocks News

Walgreen June same-store sales up 5.1 percent

(Reuters) - Total sales rose 9.5 percent to $4.38 billion.



Same-store sales of general, or "front-end" merchandise such as candy and cosmetics rose 6.8 percent. Same-store pharmacy sales increased 4.2 percent and were pressured by the introduction of lower-priced generic drugs.


Read more at Reuters.com Market News

Mozambique needs $150 mln a year for education

(Reuters) - Mozambique is looking to donor nations for at least $150 million a year to expand its education network, its prime minister said on Tuesday.

Luisa Diogo told Reuters the funds would be needed to meet the southern African country's U.N Millennium Development Goals, a global campaign which includes fighting poverty and improving education with a 2015 target date.


Read more at Reuters Africa

UPDATE 1-EU approves Cerberus purchase of Chrysler

(Reuters) - BRUSSELS, July 3 - U.S. buyout firm Cerberus Capital Management [CBS.UL] won approval from the European Commission on Tuesday to buy U.S. carmaker Chrysler from DaimlerChrysler .



The deal was approved under a special simplified procedure because neither customers nor competitors had lodged any objections, the Commission said.


Read more at Reuters.com Mergers News

Private equity industry promises more transparency

(Reuters) - Walker, appointed by the British Private Equity and Venture
Capital Association earlier this year, said on Tuesday that his
guidelines would recommend, for example, that reports and
accounts be published online four months after a company's year
end -- far ahead of the nine-month legal obligation.




Reports would also include some disclosure on managers in
funds, though not on limited partners.


Read more at Reuters.com Government Filings News

UPDATE 1-German 2007 car registration forecast lowered

(Reuters) - "After intensive examination of all influencing factors,
we've decided to adjust our forecast for the domestic car market
in 2007 in view of the newest figures," VDA President Matthias
Wissmann said in a statement.




The industry now expects roughly 3.2 million new cars to be
registered this year, after previously forecasting 3.3 million.


Read more at Reuters.com Economic News

Air Liquide, CRH, Prologis, Bancaja Plan to Sell Debt: European Bond Alert

(Bloomberg) -- The following is a list of bond sales
denominated in euros or pounds and expected in the coming days
and weeks.

Investment-Grade Sales


Read more at Bloomberg Bonds News

Petroplus's BRC Oil Refinery Starts Production After Maintenance Shutdown

(Bloomberg) -- Petroplus Holdings AG resumed
production at its BRC refinery north of Antwerp, Belgium, after it
was shut for scheduled maintenance in May, three company employees
with knowledge of the plant's operations said.

Full output will be achieved this week, said one of the
people, who declined to be identified because of company policy.
The BRC refinery can process 110,000 barrels a day, according to
the Zug, Switzerland-based, company's Web site. The Petroplus
plant refines crude into ultra-low sulfur diesel, heating oil,
gasoil, naphtha and gasoline, the site said.


Read more at Bloomberg Energy News

Japan 10-Year Government Bonds Rise; MOF Sets Highest Coupon Since August

(Bloomberg) -- Japan's 10-year bonds rose after the
Ministry of Finance set the highest coupon since August at an
auction of benchmark debt today, ending speculation that the
government would reissue securities with a lower payout.

The ministry set a 1.9 percent coupon on 1.9 trillion yen
($15.5 billion) of the new securities after yields climbed to
their highest in almost a year last month. Brokers had asked the
government to reissue the benchmark No. 286 bond to help ease a
shortage of the debt in the repurchase market, Kazuo Katayama,
director of the ministry's finance division, said last week.


Read more at Bloomberg Bonds News

U.K. Stocks Rise, Paced by SHares of Kazakhmys, Yell Group, Enterprise

(Bloomberg) -- U.K. stocks advanced, paced by
Kazakhmys Plc as copper gained. Yell Group Plc and Enterprise
Inns Plc climbed.

The benchmark FTSE 100 Index rallied 35.7, or 0.5 percent,
to 6626.3 in London at 8:05 a.m. The FTSE All-Share Index added
19.57, or 0.6 percent, to 3416.34. Ireland's ISEQ Index rose
65.17 to 9387.73.


Read more at Bloomberg Stocks News