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Tuesday, June 5, 2012

PRESS DIGEST - CANADA - Aug 31

n">Aug 31 (Reuters) - The following are top stories from selected Canadian newspapers. Reuters has not verified these stories and does not vouch for their accuracy.

THE GLOBE AND MAIL:

-- The apparent overthrow of Moammar Gadhafi's regime may not signal an end to Canada's military involvement in Libya, Foreign Affairs Minister John Baird says.

Canada's role in NATO's close support of the rebels-turned-rulers is due to end on Sept. 27, when Parliament's mandate for involvement expires. But Baird is not ruling out continuing that mission into October and beyond.

-- The push for a merger between the Liberal Party and the NDP has quickly become a major issue among the growing field of candidates to replace Jack Layton, threatening the steely discipline and tight focus that propelled the New Democrats to unprecedented standing in Ottawa.

Without Layton, the NDP establishment has been unable to put a lid on speculation about greater unity among parties that oppose the Conservative government in Parliament.

The top contenders for the NDP leadership - party president Brian Topp and House Leader Thomas Mulcair - are being forced to deal with the thorny issue after maverick MP Pat Martin said he will run if no one else takes a pro-merger position.

Report on Business Section:

-- At the stroke of midnight on Wednesday night, the switch from analog to digital signals will be completed in most major markets across Canada - and the country's private TV broadcasters will have spent more than $70 million to free up space on the airwaves at the government's command.

-- Canadian banks are no longer hoarding capital as they did during the economic crisis, but the country's major lenders are still reluctant to return cash to shareholders and deliver regular dividend increases that investors have long counted on.

Analysts expected Bank of Nova Scotia would boost its dividend while reporting third-quarter earnings on Tuesday, but the bank held back on a payout hike even as it reported a 21 percent increase in net earnings, or 18 per cent excluding one-time items.

NATIONAL POST

-- Vancouver police are launching a website dedicated to serving justice on those who were involved in the riots that followed Game 7 of the Stanley Cup playoffs in June.

At a news conference Tuesday, Inspector Les Yeo said the website initially will contain 40 photographs of people suspected of taking part in the riots, taken from pictures and video that were shot that night. People can submit additional pictures through the website, he added.

-- The European Union had no interest in negotiating a freetrade agreement with Canada nine years ago, despite heavy lobbying from the federal government, according to a newly leaked diplomatic cable.

The cable from the U.S. embassy in Ottawa and posted on the whistleblower website WikiLeaks, says the EU did not see any sound economic argument for the two parties to enter into a free-trade agreement.

Financial Post section:

-- Research In Motion Ltd has a problem with Apple Inc trademarking its WebKit software in Canada.

RIM has formally opposed Apple's application in documents filed with the Canadian Intellectual Property Office (CIPO) this month. Apple first asked to trademark its open-source Web browser software in May, 2010, and received preliminary approval in June, 2011.

-- CNN is moving deeper into mobile news delivery, announcing the acquisition Tuesday of Vancouver tech startup Zite, the developer of a personalized magazine iPad app. Terms of the deal were not disclosed, though online reports indicate the Atlantabased media outlet paid between $20-$25 million.


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Monday, May 28, 2012

UPDATE 2-Sony, Toshiba, Hitachi to merge LCD operations

* Govt fund to take 70 pct stake, invest Y200 bln

* Investment biggest for fund, could come under fire

* New firm asset-heavy, needs restructuring -analyst

* Industry headed for oversupply-analysts (Adds comments from South Korea, background)

By Mayumi Negishi

TOKYO, Aug 31 (Reuters) - Japan's Sony Corp , Toshiba Corp and Hitachi Ltd will merge their liquid-crystal display operations using $2.6 billion of government-backed funds to fend off growing competition from rivals in South Korea and Taiwan.

The merger will create the world's largest maker of small panels used in smartphones and tablet PCs, leapfrogging global leaders Sharp Corp of Japan and Samsung Electronics of South Korea.

The move would help the firms focus on their main operations. However, the 90-percent government-owned fund could come under fire for using public money to prop up a volatile business in its biggest investment to date.

The Innovation Network Corp of Japan (INCJ) will invest about 200 billion yen ($2.6 billion) in the merged unit, taking a 70 percent stake. Sony, Toshiba and Hitachi will each take a 10 percent stake, the three firms said on Wednesday.

They aim to complete the merger by the spring of 2012. A shakeup has been long overdue because falling panel prices and advances in technology have placed ever increasing demands on producers.

The three firms together controlled 21.5 percent of the market for small and medium-sized displays last year, larger than Sharp with 14.8 percent or Samsung Mobile with 11.9 percent, research firm DisplaySearch estimates.

All three had hesitated about investing in a new line to compete against Sharp, which is due to receive a $1 billion investment from Apple Inc , or South Korean rivals LG Display and Samsung Mobile Display, which have supply agreements with key clients.

Sony has been weighed down by chronic losses in its TVs, Toshiba is speeding up plans to shrink its chip business, while Hitachi has been looking to distance itself from the volatile panel business to focus on infrastructure operations.

"Sharp is especially aggressive, and those who don't have a strong customer base may struggle, given that only a handful of smartphone and tablet makers are doing well," said Nam Dae-jong, an analyst at HI Investment & Securities.

With more panel makers shifting focus to small-sized markets to meet demand from smartphone and tablet PC makers, he and other analysts predicted the industry would be oversupplied next year.

"It's not a business that will likely provide stable profits in the mid- to long term," said Shigeo Sugawara, a senior investment manager at Sompo Japan NipponKoa Asset Management.

The INCJ is supervised by Japan's trade ministry, which had been criticised for not supporting Japan's chip and display industries in the early 1990s, a failure critics say allowed U.S. and South Korean firms to take the lead.

"The decision reflects a growing sense of crisis in Japan in light of its falling market share in the global chip and display markets," said a South Korean government official, who declined to be named.

How the three firms, which use two different types of display technology, will merge operations is unclear. The announcement did not include details of how they intended to deal with business overlaps either.

"The parent companies have found a most convenient buyer for their factories and staff," said Yoshihisa Toyosaki, head of Japanese research firm and consultancy Architect Grand Design.

"The assets of the merged entity will be huge. Without restructuring, there is no way that this company will win against Sharp, or rivals from South Korea, Taiwan, and eventually China."

Past investments by the INCJ, which can invest up to 900 billion yen with mostly government-guaranteed funds, includes a 40 percent stake in Swiss meter maker Landis+Gyr to support Toshiba's $2.3 billion acquisition.

The new display company will focus on developing next-generation displays, including thinner organic light-emitting diode displays with higher resolution, the three firms said.

Hitachi has been in separate talks with Taiwan's Hon Hai Precision Industry , better known as Foxconn Electronics Inc, about a joint venture in LCD panels, sources have said.

Talks with the parent of Chimei Innolux Corp broke down when Hitachi failed to grab a key contract with Apple, an industry source said.

Ahead of the announcement, well-flagged by media, shares in Sony closed down 1.8 percent, Toshiba fell 2.4 percent and Hitachi rose 0.5 percent. The market benchmark Nikkei average ended flat. ($1 = 76.735 Japanese Yen) (Additional reporting by Isabel Reynolds in Tokyo and Miyoung Kim in Seoul, graphic by Christine Chan; Editing by Michael Watson and Neil Fullick)


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Monday, May 21, 2012

UPDATE 2-Russia's Mail.ru raises 2011 growth forecasts

* Internet investment group sees 50 pct sales growth in 2011

* Previous forecast for 40 pct sales growth - analysts

* EBITDA margin seen in the high 40s percent

* Shares trading 7 pct higher at $34 (Adds share price, more detail)

By John Bowker

MOSCOW, Aug 31 (Reuters) - Russian internet investment group Mail.ru (MAILRq.L) raised its full-year revenue growth forecast to 50 percent from 40 percent on Wednesday after sales and profit rose at its social network, online gaming and e-mail activities in the first half.

The company, which owns a little over 2 percent in Facebook, also said in a statement its full-year earnings before interest, tax, depreciation and amortisation (EBITDA) margin would be in the high 40s in percentage terms, compared with previous forecasts for mid-40s.

"For the first six months of 2011, Mail.Ru Group has significantly exceeded all key performance indicators compared to the prior period, delivering strong growth across all strategic sectors - communications, social networks and online gaming," Chief Executive and co-founder Dmitry Grishin said in the statement.

Mail.ru shares were trading 7 percent higher at $34 by 0722 GMT, up from an opening price of $31.

The company raised around $1 billion in a blockbuster initial public offering (IPO) in London last November, enjoying a share price rise of more than 30 percent on the opening day of trading.

But sluggish trading since then and a stake sale by founding shareholders have seen the stock slip back from around $37 at its peak.

That price values the firm at a discount of 54 percent to fellow Russian internet firm and search engine Yandex , according to analysts at Renaissance Capital, and 30 percent below China's Tencent .

Yandex, Russia's most-used search engine ahead of Google raised $1.4 billion in a New York IPO in May.

Mail.ru net income grew 115.5 percent in the first half to $85.6 million, while first half organic revenue growth was 59.3 percent.

The company's assets include the e-mail service that gives the company its name, Russian social network site VKontakte and several multi-player online games. (Reporting By John Bowker; editing by Maria Kiselyova and Helen Massy-Beresford)


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Tuesday, May 15, 2012

China's Shanda Interactive profit plunges 95 pct in Q2

SHANGHAI | Wed Aug 31, 2011 5:40am EDT

SHANGHAI Aug 31 (Reuters) - Chinese Internet firm Shanda Interactive said on Wednesday its second-quarter net profit fell 95 percent on increased costs.

The firm, which has an online gaming unit, Shanda Games , said its second quarter profit fell to 8.8 million yuan ($1.38 million) from 169.9 million yuan from a year ago.

Operating expenses rose to 858.6 million yuan in the quarter, up 44 percent while cost of services also rose 44 percent in the quarter.

Revenue rose 26 percent to 1.71 billion yuan.

"We believe our strategic initiatives and investments in new products and services will help us better capture the tremendous opportunities in the fast-evolving internet industry," said Chen Tianqiao, Shanda's chief executive, in a statement.

The firm's plan to list its e-book subsidiary, Cloudary Corp, was stalled in July due to unfavourable market conditions. ($1 = 6.381 Chinese Yuan) (Reporting by Melanie Lee; Editing by Kazunori Takada)


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Monday, May 7, 2012

China PV firm sets IPO price at 53 times earnings, raises $395 mln

SHANGHAI | Wed Aug 31, 2011 5:08am EDT

SHANGHAI Aug 31 (Reuters) - Beijing Jingyuntong Technology will raise 2.52 billion yuan ($395 million) from an initial public offering in Shanghai after setting the price at over 50 times its historic earnings.

The IPO size was nearly three times Jingyuntong's initial target of about 900 million yuan.

Jingyuntong will sell up to 60 million shares at 42 yuan a share, at the top of an indicative range, the company said in a statement to the Shanghai Stock Exchange late on Tuesday.

The offer price valued the company at 53.47 times 2010 earnings, it added.

The Chinese photovoltaic equipment maker and rivals such as Shenzhen-listed Zhejiang Jinggong Science and Technology Co Ltd and Jiangsu Huasheng Tianlong Photoelectric Co Ltd are beneficiaries of China's drive to develop its solar power sector.

The money raised will be used to finance the first phase development of a silicon industrial park in Beijing, according to its IPO prospectus.

Citic Securities is the underwriter of the IPO. ($1 = 6.381 yuan) (Reporting by Soo Ai Peng; Editing by Kazunori Takada)


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Sunday, April 29, 2012

Compal sees Q3, Q4 shipments flat from Q2

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Saturday, April 21, 2012

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