Business Blog Posts

The dollar edged up, supported by higher Treasury yields after improving U.S. data last week.

U.S. Treasuries fell in Asia, with 10-year yields hitting a six-month high as investors kept dumping Treasuries on the back of higher growth and higher deficits in the United States.

European shares extended their two-week rally on Monday, reaching a 26-month high in the wake of upbeat U.S. and Chinese data.

Data published over the weekend showed China's industrial output in November beat expectations with a slight acceleration to 13.3 percent year-on-year growth from 13.1 percent in October, sending copper to a record high.

The data also showed China's headline inflation climbing to a 28-month high of 5.1 percent in the year to November, from 4.4 percent in October.

Worries that China would lift interest rates over the weekend because of rising inflation were not realized. Instead, sources told Reuters on Monday a selective increase in required reserves for Chinese banks that was due to expire this week will be extended for another three months.

Oil prices were higher on Monday after the Organization of the Petroleum Exporting Countries agreed at the weekend to keep crude oil output levels flat.

The Financial Times said on Monday that European officials are considering plans to overhaul the euro zone's 440 billion euro rescue fund and use it to buy bonds of distressed

governments, making it easier to help debt-swamped countries without resorting to fully-fledged bail-outs.

President Barack Obama's tax deal with Republicans will likely win grudging passage in the U.S. Congress, backers and critics agreed on Sunday, after Obama clashed with liberals in his own party who branded it a giveaway to the rich.

Genzyme (GENZ.O) will be in focus after Sanofi-Aventis (SASY.PA) extended its $18.5 billion cash offer for the biotech firm until January 21 and left open the option to prolong it further, a sign the French drugmaker is getting ready for a long battle.

Wal-Mart Stores Inc (WMT.N) is in advanced talks with New York's construction unions to get their backing for its entry into New York City's retail market, The Wall Street Journal reported on Sunday.

Capital Shopping Centres (CSCG.L) has slammed as "incapable of implementation and completely impracticable" an alternative funding offer from its shareholder and would-be bidder Simon Property Group Inc (SPG.N), who quickly responded, urging CSC to postpone a vote on its planned acquisition of Trafford Center mall.

Grocery store chain Great Atlantic & Pacific Tea Co (GAP.N) filed for bankruptcy on Sunday, drained of cash by tough competition and a sluggish economic recovery.

Carlyle Group's CYL.UL Chief Financial Officer Peter Nachtwey has resigned and the move could delay the U.S. private equity firm's planned initial public offering, the Financial Times said, citing people familiar with the matter.

Only 0.9 percent of shares were tendered by a Friday deadline for the $69-a-share bid, which Genzyme has rejected as too low, and Sanofi has said it won't raise unless Genzyme's board is willing to talk.

"This gives time to pursue discussions behind the scenes," Raymond James analyst Eric Le Berrigaud said. "They will try to determine at what price Genzyme will decide to partially open the door."

A spokesman for Sanofi confirmed that the company still wanted to enter talks with Genzyme.

Sanofi could look at including a scheme linking Genzyme's value to future performance of its key experimental multiple sclerosis drug, Campath, people familiar with the situation said last week.

The idea of contingent value rights (CVRs) is favored by the Genzyme camp. Through CVRs, Sanofi could end up paying Genzyme investors more if Campath proves to be the success Genzyme expects.

"I find it surprising that they haven't raised their offer. If they are extending their offer, it's probably to negotiate a CVR," CM-CIC analyst Arsene Guekam said. "I don't expect them to raise the offer very significantly, maybe one or two euros."

Analysts widely expect Sanofi can only win Genzyme if it improves its current offer. A Reuters poll in August suggested $78 a share could succeed.

Genzyme shares have been trading at more than $70 on average since July when news broke of Sanofi's interest.

The stock was little changed at 52.69 euros ($69.51) in Frankfurt trading by 1204 GMT on Monday. Sanofi shares were 0.3 percent softer.

Sanofi's efforts to buy Genzyme could continue until May, when Genzyme holds its annual shareholder meeting, giving Sanofi a chance to try to overturn Genzyme's board.

The company said on Monday its offer would now run until January 21, "unless it is further extended."

Long takeover battles are not uncommon. U.S. industrial gases company Air Products (APD.N) has been trying to buy Airgas (ARG.N) since February, while in the drug sector, it took about eight months before Roche (ROG.VX) could buy the part of Genentech it did not already own.

Genzyme Chief Executive Henri Termeer raised the possibility of negotiating a CVR last month as a way to break the stalemate between him and Sanofi CEO Chris Viehbacher.

Sanofi's finance head, Jerome Contamine, called it "an interesting idea in principle" to resolve value disputes.