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REWIND: International Business News #28

Posted on June 22nd, 2012 | Author: admin

  • Greek voters have endorsed the conservative New Democracy party in its recent election. Such a victory will establish a coalition government that will be instrumental in helping Greece stay within the euro zone. The election results positions the New Democracy Party as the largest party in Greece’s parliament. Antonis Samaras, the head of the New Democracy Party and the next prime minister of Greece will attempt to negotiate Greece’s austerity plan with European and international lenders. The first challenge will be to come up with 11.5 billion in budget cuts stemming from additional austerity measures.
  • Leaders of the world’s largest and developing economies meet this week in Los Cabos. The G-20 members will discuss means of containing Europe’s financial crisis. In furtherance of the foregoing, leaders will urge the focus away from budgetary austerity and instead focus on alternatives to encouraging strong growth. In particular, the recent elections in Greece will be a topic of discuss. The G-20 will engage in discussions to hopefully prevent a possible new global recession resulting from the financial turmoil in Europe and the potential break up of the Euro.
  • The Australian division of New Corp.’s  has offered US$2 billion to acquire Consolidated Media Holding Ltd. (“Consolidated Media”). News Corp.’s take over bid, which is valued at $3.50 a share, would allow News Corp. to double its current interest in Consolidated Media. Moreover, the proposed takeover would allow New Corp. to increase its exposure in Australia’s largest and profitable pay-TV industry.
  • A Dutch court ruled yesterday that Apple must pay Samsung damages for breach of patent. The patent dispute stems over patent breaching products used in smart phones and tablets which Apple sold in the Netherlands. The amount of damages, though not yet determined, will be calculated based on profits and revenues Apple made from as far back as August 4, 2010.
  • The UK has proposed establishing legislation which will give investors more say in executive pay. The proposed legislation will allow shareholders to have a vote on how much companies pay executive directors and will also require companies to publish the executive salaries. Executive pay has become a big issue for shareholders in the UK where shareholders have become unwilling to allow executives to receive large salaries for under performing companies. The legislation, which has been met with criticism, still needs to be approved by Parliament.