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After last week’s downgrading of General Motors and Ford to ājunkā status (affecting a record $450 billion in debt), bond investors remained jittery on rumours that hedge funds holding GM bonds were nursing big losses. Analysts believe that many funds bought the bonds in March, after a profit warning from GM, expecting that the debt would be oversold.
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Following hard on the heels of the KMT’s Lien Chan, a second opposition leader from Taiwan paid a visit to Beijing. James Soong heads the People First Party, which favours reuniting Taiwan with China.
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Cegetel and neuf telecom, two large telecom firms in France, said they would merge their fixed-line and internet divisions. The new company, called neuf Cegetel, will have 900,000 broadband customers and expects sales of euro2.8 billion ($3.6 billion) this year.
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A new Iraqi government was sworn in , three months after a general election , with Dr Ibrahim al-Jaafari , a moderate Shia Islamist , as prime minister , alomg with 17 other Shias , seven Kurdsćand -provided that a final clutch of ministries is agreed upon- half a dozen Sunni Arabs.In the past week , at least 150 civilians , security forces and insrgents have gied explosion in the Kurdish capital , Arbil.
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MCI , an American long-distance telecom firm , agreed to be acquired by Verizon for $8.5 billion.MCI’s board rejected a 15% higher offer of $9.8 billion from Qwest-the fourth time that a bid from Qwest had been spurned in three months. Verizon’s sweetened bid is 25% higher than the $6.7 billion in initially offered , and which MCI accepted , in February.
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