Alliance Data Agrees To Be Acquired By Blackstone Group For $7.8 Bln - Update
(RTTNews) - Thursday, Alliance Data Systems Corp. (ADS), a provider of loyalty and marketing solutions, said it agreed to be acquired by Blackstone Capital Partners V L.P., an affiliate of The Blackstone Group, for about $7.8 billion, including the assumption of certain debt. Blackstone will pay $81.75 per share in cash, which represents a premium of about 30% over Alliance Data's May 16 closing share price of $62.96.
Following the unanimous recommendation of a special committee, the board approved the agreement and recommended the stockholders to adopt the agreement.
Subject to customary closing conditions and regulatory and stockholder approvals, the deal is expected to close by year-end.
Alliance Data said there is no financing condition to the obligations of Blackstone to consummate the transaction, while equity and debt commitments for the full amount of the merger consideration have been received. It is currently expected that substantially all of the company's outstanding series A and series B senior notes will either be tendered for or repaid in connection with the transaction.
In connection with this transaction, Banc of America Securities LLC and Lehman Brothers, Inc. served as financial advisors to the company and the special committee, and Evercore Group L.L.C. served as financial advisor to the special committee. The company got the legal counsel from Akin Gump Strauss Hauer & Feld LLP, while Kirkland & Ellis LLP served as legal counsel to the special committee.
Credit Suisse Securities (USA) LLC and Blackstone Corporate Advisory Services served as financial advisors to The Blackstone Group, and Simpson Thacher & Bartlett LLP served as its legal counsel.
Last month, the Dallas, Texas based Alliance Data reported that its first quarter net income rose 1% to $56.9 million or $0.70 per share from $56.4 million or $0.69 per share in the prior year quarter.
Cash earnings for the quarter grew 11% to $76.9 million from $69.2 million in the comparable quarter a year ago. On a per share basis, cash earnings were $0.95, up 12% from $0.85 in the similar quarter last year. Total revenues for the quarter advanced 15% to $549.2 million.
For the upcoming second quarter, Alliance Data expects minimum cash earning of $0.80 per share indicating seasonal downturn in private label earnings. Analysts currently expect the company to earn $0.83 per share for the second quarter.
The company's full year cash earnings guidance was indicated to be at least $3.60 per share, up from its prior guidance of $3.55 per share. Street analysts currently expect the company to earn $3.63 per share for the year.
Last year, Alliance Data, through its subsidiary, agreed to acquire to acquire Abacus fro about $435 million cash. The deal bought Abacus solutions' 80+ private label credit card retail clients.
The proposed acquisition of Alliance Data is the latest in the string of private equity deals.
Yesterday, Data management firm Acxiom Corp. (ACXM) said it agreed to be bought by investment firms Silver Lake and ValueAct Capital in all cash deal valued at $3.0 billion, including the assumption of about $756 million of debt. Under the terms of the deal, Acxiom shareholders will receive $27.10 in cash for each share held.
Also, yesterday, eye health company Bausch & Lomb Inc. (BOL) revealed an agreement to be acquired by affiliates of private equity firm Warburg Pincus in a transaction valued at about $4.5 billion, inclusive of approximately $830 million of debt. Under the terms of the deal, affiliates of Warburg Pincus will acquire all the outstanding shares of Bausch & Lomb common stock for $65.00 per share in cash.
Early April, First Data Corp. (FDC), a provider of electronic commerce and payment services and a competitor of Alliance Data, also agreed to be acquired by an affiliate of private equity firm Kohlberg Kravis Roberts & Co. or KKR for about $29 billion in cash, or $34 per share. The deal is expected to close by the end of the third quarter of 2007.
Blackstone Group-Profile
Blackstone is managing over $32.4 billion through its Blackstone Capital Partners I, II, III, IV, and V and Blackstone Communications Partners funds. Blackstone has invested in over 100 companies and the total enterprise value of all transactions effected up to December 31, 2006 is over $191 billion.
Recent deals by Blackstone Group
Last month, Blackstone bought Pharmaceutical Technologies and Services segment from Cardinal Health (CAH) for approximately $3.3 billion.
Last December, Biomet, Inc. (BMET) a maker of musculoskeletal medical products, agreed to be acquired by a private equity consortium in a transaction with a total equity value of approximately $10.9 billion, or $44 per share. The consortium included affiliates of the Blackstone Group, Goldman Sachs Capital Partners, Kohlberg Kravis Roberts & Co. and TPG.
Also in December, Freescale Semiconductor merged with an entity controlled by a consortium of private equity funds led by The Blackstone Group and including The Carlyle Group, funds advised by Permira Advisers LLC and Texas Pacific Group in a $17.6 billion deal.
Stock Quote
On the takeover news, Alliance Data shares are soaring 24.57% or $15.47 and currently trading at $78.43, a new-52-week high for the stock. For the past one-year, Alliance Data shares are trending between $47.45 and $68.10. The stock is currently trading on a volume of more than 14.14 million shares, compared to a 3-month average volume of 1.06 million shares.
Copyright(c) 2007 RealTimeTraders.com, Inc. All Rights Reserved
May 17, 2007
Visitors to Money Expo 2007 praise SET group's services
Most of the 100,000 visitors to SET's Investment Zone at Money Expo 2007 last
week said they were satisfied with services, activities, and information
provided. Total purchase of mutual fund investment units during Money Expo
reached a record of THB 768 million, with the weight in favor of fixed-income
funds. About 15,000 people attended 50 seminar sessions during the four-day
fair. The Analysts Fair held concurrently with Money Expo for the first time
was also successful.
Activities by The Stock Exchange of Thailand (SET) and its subsidiaries
received very good responses from visitors. From a survey of visitors to the
Exchange's zone, it was popular as were other areas where the financial
service providers exhibited, SET President Ms. Patareeya Benjapolchai said.
"Apparently, investors as well as the general public are looking for
opportunities and alternatives to put their money to work and to gain a
stronger financial position. There were 1,108 mutual funds accounts opened
during the expo, with a record of THB 768 million in funds. It is noteworthy
that people were interested in the fixed-income funds. Some people with high
net worth decided to invest THB 20 - 30 million each. There were 3,179
accounts opened for trading securities, showing that people are looking for
more diversified choices of savings,"Ms. Patareeya said. "Thus the Expo's
objective in bringing the financial institutions to meet with clients or
service users has been met," she said.
Expo visitors purchased SET publications, for which they received a 30% - 50%
discount. They also joined in making charitable donations of as much as THB
415,899, in return for receiving SET publications. These donations indicate
that there was a strong demand for investment information.
SETTRADE.Com's booth highlighting the Clock2WIN online stock simulation game
also drew a lot of crowds. The dry runs of the game, held seven times a day
during the expo, were full, with nearly 2,000 people participating.
Thailand Securities Depository Co., Ltd., which is a SET subsidiary, held an
activity for a good cause. It invited a renowned actor and its latest
presenter for e-Dividend service, Mr. Ravit Therdwong, to paint T-shirts and
put them up for auction. Total proceeds of THB 64,918 will go to Baan Gerda in
Lopburi Province, a home for the care of orphans infected with HIV.
For Thailand Futures Exchange PCL (TFEX), the Expo was a great opportunity to
introduce SET50 Index Options to the public at large before the product
launch. A futures and options simulation game--TFEX Futures Camp Challenge
2007 also attracted numerous applicants. The Bond Electronic Exchange (BEX)
and Market for Alternative Investment (mai) had a lot of visitors and gave
away special gifts to people interested in bonds and small capitalization
stocks.
A final highlight was the distribution of free annual reports of listed
companies. Expo visitors acquired about 120,000 copies of these reports in
hard copy, plus 48,500 CDs containing annual reports.
week said they were satisfied with services, activities, and information
provided. Total purchase of mutual fund investment units during Money Expo
reached a record of THB 768 million, with the weight in favor of fixed-income
funds. About 15,000 people attended 50 seminar sessions during the four-day
fair. The Analysts Fair held concurrently with Money Expo for the first time
was also successful.
Activities by The Stock Exchange of Thailand (SET) and its subsidiaries
received very good responses from visitors. From a survey of visitors to the
Exchange's zone, it was popular as were other areas where the financial
service providers exhibited, SET President Ms. Patareeya Benjapolchai said.
"Apparently, investors as well as the general public are looking for
opportunities and alternatives to put their money to work and to gain a
stronger financial position. There were 1,108 mutual funds accounts opened
during the expo, with a record of THB 768 million in funds. It is noteworthy
that people were interested in the fixed-income funds. Some people with high
net worth decided to invest THB 20 - 30 million each. There were 3,179
accounts opened for trading securities, showing that people are looking for
more diversified choices of savings,"Ms. Patareeya said. "Thus the Expo's
objective in bringing the financial institutions to meet with clients or
service users has been met," she said.
Expo visitors purchased SET publications, for which they received a 30% - 50%
discount. They also joined in making charitable donations of as much as THB
415,899, in return for receiving SET publications. These donations indicate
that there was a strong demand for investment information.
SETTRADE.Com's booth highlighting the Clock2WIN online stock simulation game
also drew a lot of crowds. The dry runs of the game, held seven times a day
during the expo, were full, with nearly 2,000 people participating.
Thailand Securities Depository Co., Ltd., which is a SET subsidiary, held an
activity for a good cause. It invited a renowned actor and its latest
presenter for e-Dividend service, Mr. Ravit Therdwong, to paint T-shirts and
put them up for auction. Total proceeds of THB 64,918 will go to Baan Gerda in
Lopburi Province, a home for the care of orphans infected with HIV.
For Thailand Futures Exchange PCL (TFEX), the Expo was a great opportunity to
introduce SET50 Index Options to the public at large before the product
launch. A futures and options simulation game--TFEX Futures Camp Challenge
2007 also attracted numerous applicants. The Bond Electronic Exchange (BEX)
and Market for Alternative Investment (mai) had a lot of visitors and gave
away special gifts to people interested in bonds and small capitalization
stocks.
A final highlight was the distribution of free annual reports of listed
companies. Expo visitors acquired about 120,000 copies of these reports in
hard copy, plus 48,500 CDs containing annual reports.
Thailand's Governance Committee to hold seminar for financial advisors
Thailand's National Corporate Governance Committee will host a seminar May 17
to educate financial advisors on how to advise listed firms about corporate
governance (CG) requirements.
Mr. Suthichai Chitvanich, a member and secretary of the Subcommittee on
Investor Education and Public Relations and on Corporate Governance in
Thailand, announced that the country's National CG Committee, in conjunction
with the Securities and Exchange Commission, and The Stock Exchange of
Thailand (SET)'s CG Center will host a forum called "CG Substance and Form:
What Financial Advisors Should Know"on Friday, May 18, 2007, between 9:30 -
12:00 hrs., at the SET Building. It will provide guidelines for financial
advisors to use when they prepare companies wishing to be listed on the
exchange.
"Financial advisors play a key role in developing CG as they work closely
with both potential and existing listings. After a listing, they will
continue advising the firm for another year. Thus comprehension of CG will be
an added value for both the advisors and their clients," Mr. Suthichai said.
The seminar will focus on how to advise clients about CG principles and
implementation. Comprehension on these matters should enhance advisors'
reliability while improving listed companies' disclosure about their
implementation of CG.
"If financial advisors understand CG principles and implementation as
accepted by international standards, they will give better counsel to
clients, thus leading to better disclosure as expected by listed firms'
stakeholders. Attendance at this seminar will also be credited by ASCO
(Association of Securities Companies) as meeting its training requirements
for financial advisors. The collaboration and support from related
organizations in the capital market have shown their commitment to develop
Thai CG in line with international standards,"Mr. Suthichai said.
SET has issued a set of guidelines, CG Principles 2006, for listed companies.
The guidelines have been improved by adding principles recognized by the
Organization for Economic Cooperation Development, together with the World
Bank's recommendations.
This year SET's CG Center plans to host a quarterly seminar for public firms
and related parties. Issues in focus are shareholders' rights, directors'
responsibilities, and effective implementation of CG principles. The Exchange
will also encourage all companies in the SET100 Index to have a unit or staff
directly responsible for investor relations.
to educate financial advisors on how to advise listed firms about corporate
governance (CG) requirements.
Mr. Suthichai Chitvanich, a member and secretary of the Subcommittee on
Investor Education and Public Relations and on Corporate Governance in
Thailand, announced that the country's National CG Committee, in conjunction
with the Securities and Exchange Commission, and The Stock Exchange of
Thailand (SET)'s CG Center will host a forum called "CG Substance and Form:
What Financial Advisors Should Know"on Friday, May 18, 2007, between 9:30 -
12:00 hrs., at the SET Building. It will provide guidelines for financial
advisors to use when they prepare companies wishing to be listed on the
exchange.
"Financial advisors play a key role in developing CG as they work closely
with both potential and existing listings. After a listing, they will
continue advising the firm for another year. Thus comprehension of CG will be
an added value for both the advisors and their clients," Mr. Suthichai said.
The seminar will focus on how to advise clients about CG principles and
implementation. Comprehension on these matters should enhance advisors'
reliability while improving listed companies' disclosure about their
implementation of CG.
"If financial advisors understand CG principles and implementation as
accepted by international standards, they will give better counsel to
clients, thus leading to better disclosure as expected by listed firms'
stakeholders. Attendance at this seminar will also be credited by ASCO
(Association of Securities Companies) as meeting its training requirements
for financial advisors. The collaboration and support from related
organizations in the capital market have shown their commitment to develop
Thai CG in line with international standards,"Mr. Suthichai said.
SET has issued a set of guidelines, CG Principles 2006, for listed companies.
The guidelines have been improved by adding principles recognized by the
Organization for Economic Cooperation Development, together with the World
Bank's recommendations.
This year SET's CG Center plans to host a quarterly seminar for public firms
and related parties. Issues in focus are shareholders' rights, directors'
responsibilities, and effective implementation of CG principles. The Exchange
will also encourage all companies in the SET100 Index to have a unit or staff
directly responsible for investor relations.
May 16, 2007
Stock Tricks
There are several "tricks" that experienced investors use to make a profit. Like the rest of the stock market, these tricks are very risky, and you should know what you are doing if you use these tricks. The tricks include selling short, buying on margin, and buying warrants.
The first risky trick is short selling. Basically, short selling is selling a stock before you actually buy it. To sell short, you first borrow stocks from a broker. Then, you sell them immediately on the market. You keep the money that you earned from selling the stocks, and wait, hoping that the price for the stock will drop. If the price for the stock does drop, then you can buy back the stock, and give them back to your broker. You will then have made a profit, since you sold them for more than you bought them for. For example, if you borrow 100 stocks at 4 dollars per stock, and sell them in the market, you have 400 dollars. If you wait a while, and the price of the stock decreases to 2 dollars per stock, you can buy 100 stocks for 200 dollars. You then return the 100 stocks to the broker, pay a little bit of interest, and keep the other 200 dollars. Unfortunately, selling short does not always end as well as that. Consider if you borrow 100 stocks at 4 dollars a stock again. You then sell them and get 400 dollars. You wait a few weeks, but the price of the stock continues to increase. Before you know it, the price of the stock is 6 dollars. You have to give the broker his stocks, and you have to pay him interest. This means that you have to pay 600 dollars to get the stocks back, and right there, you just lost 200 dollars.
Buying on margin is another trick which is basically buying stocks on borrowed money. You must first set up a margin account, which has a minimum balance of 2000 dollars. Once you have a margin account, you can borrow up to 50 percent of the cost of buying the stocks you want. By borrowing 50 percent of the cost, you are controlling something twice as valuable as what you paid for. This will enable you to gain more profits with less money. For example, if you put in 500 dollars, and the broker lends you 500 dollars, then you have 1000 dollars to work with. You then buy 100 stocks at 10 dollars a stock. If the price for the stock increases to 15 dollars, and you sell at that price, then you have 1500 dollars. You then pay back the broker the 500 dollars plus interest, and you have made roughly 1000 dollars, doubling your initial investment of 500 dollars,. If you had only invested 500 dollars of your own money, you would have only gotten 50 stocks. Then, after selling them for 15 dollars, you would have made only 750 dollars, which is only 250 dollars more than your initial investment. The risky part about this is that your losses are also magnified. Had you bought 100 stocks on margin at 10 dollars, and the price had dropped to 5 dollars, you would have lost all 500 of your dollars, since you have to pay the broker back his 500 dollars. If you had invested only your 500 dollars and bought 50 stocks at 10 dollars, and the price dropped to 5 dollars, then you would only have lost 250 dollars.
Buying warrants is a less risky trick. A warrant is sold by a company that is planning on issuing stocks soon. The warrant gives you the right to buy stocks at a certain price. For example, if you buy a warrant to buy a stock at 5 dollars for 1 dollar, and the stock ends up being issued at 10 dollars a share, then you can sell the shares for a profit of 4 dollars per share, since you paid only 6 dollars total, and sold them at 10 dollars.
The first risky trick is short selling. Basically, short selling is selling a stock before you actually buy it. To sell short, you first borrow stocks from a broker. Then, you sell them immediately on the market. You keep the money that you earned from selling the stocks, and wait, hoping that the price for the stock will drop. If the price for the stock does drop, then you can buy back the stock, and give them back to your broker. You will then have made a profit, since you sold them for more than you bought them for. For example, if you borrow 100 stocks at 4 dollars per stock, and sell them in the market, you have 400 dollars. If you wait a while, and the price of the stock decreases to 2 dollars per stock, you can buy 100 stocks for 200 dollars. You then return the 100 stocks to the broker, pay a little bit of interest, and keep the other 200 dollars. Unfortunately, selling short does not always end as well as that. Consider if you borrow 100 stocks at 4 dollars a stock again. You then sell them and get 400 dollars. You wait a few weeks, but the price of the stock continues to increase. Before you know it, the price of the stock is 6 dollars. You have to give the broker his stocks, and you have to pay him interest. This means that you have to pay 600 dollars to get the stocks back, and right there, you just lost 200 dollars.
Buying on margin is another trick which is basically buying stocks on borrowed money. You must first set up a margin account, which has a minimum balance of 2000 dollars. Once you have a margin account, you can borrow up to 50 percent of the cost of buying the stocks you want. By borrowing 50 percent of the cost, you are controlling something twice as valuable as what you paid for. This will enable you to gain more profits with less money. For example, if you put in 500 dollars, and the broker lends you 500 dollars, then you have 1000 dollars to work with. You then buy 100 stocks at 10 dollars a stock. If the price for the stock increases to 15 dollars, and you sell at that price, then you have 1500 dollars. You then pay back the broker the 500 dollars plus interest, and you have made roughly 1000 dollars, doubling your initial investment of 500 dollars,. If you had only invested 500 dollars of your own money, you would have only gotten 50 stocks. Then, after selling them for 15 dollars, you would have made only 750 dollars, which is only 250 dollars more than your initial investment. The risky part about this is that your losses are also magnified. Had you bought 100 stocks on margin at 10 dollars, and the price had dropped to 5 dollars, you would have lost all 500 of your dollars, since you have to pay the broker back his 500 dollars. If you had invested only your 500 dollars and bought 50 stocks at 10 dollars, and the price dropped to 5 dollars, then you would only have lost 250 dollars.
Buying warrants is a less risky trick. A warrant is sold by a company that is planning on issuing stocks soon. The warrant gives you the right to buy stocks at a certain price. For example, if you buy a warrant to buy a stock at 5 dollars for 1 dollar, and the stock ends up being issued at 10 dollars a share, then you can sell the shares for a profit of 4 dollars per share, since you paid only 6 dollars total, and sold them at 10 dollars.
Market Trends
Why does the stock market go up and down? Theses fluctuations occur partly because companies make money, or lose money, but it is much more involved than that. A stock is only worth what someone will pay for it. Usually, if a company makes a lot of money, its value rises, because people are willing to pay more for a company's stock if the company is doing well. There are many other factors that affect the value of stocks. One example is interest rates, or the amount of money you have to pay a bank to loan money, or how much it has to pay you to keep your money in their bank. If interest rates are high, stock prices generally go down, because if people can make a decent amount of money, by keeping their money in banks, or buying bonds, they feel like they should not take the risk in the stock market.
Many other factors have an effect on the stock market- for example, the state of the economy. If there is more money floating around, there is more flowing into companies making their prices rise. Yet another factor is time of year, and publicity. Many stocks are seasonal, meaning they do well during certain parts of the year, and worse during others. An example is an ice company, the ones that package ice that you buy at the supermarket. During the summer, with picnics, and sweltering heat, their product sells well, and thus their stock price goes up; But during the winter, when people are not as interested in a picnic with 20 below temperatures, their price goes down. Publicity has an effect on stock prices. If an article comes out saying that company ABC, has just invented this new type of ice that will revolutionize the industry, odds are their price will increase. Conversely, if an article comes out saying that company ABC's president is a crook, and stole the pension funds, it is a good bet that the price will go down.
Many other factors have an effect on the stock market- for example, the state of the economy. If there is more money floating around, there is more flowing into companies making their prices rise. Yet another factor is time of year, and publicity. Many stocks are seasonal, meaning they do well during certain parts of the year, and worse during others. An example is an ice company, the ones that package ice that you buy at the supermarket. During the summer, with picnics, and sweltering heat, their product sells well, and thus their stock price goes up; But during the winter, when people are not as interested in a picnic with 20 below temperatures, their price goes down. Publicity has an effect on stock prices. If an article comes out saying that company ABC, has just invented this new type of ice that will revolutionize the industry, odds are their price will increase. Conversely, if an article comes out saying that company ABC's president is a crook, and stole the pension funds, it is a good bet that the price will go down.
Closed-End Funds
Closed-End Funds
A closed-end fund is one of three basic types of professionally managed investment companies, along with open-end funds (more commonly known as mutual funds), and unit investment trusts.
Many investors choose closed-end funds to help broaden and diversify their portfolios. A wide variety of closed-end funds from all asset classes are available, all subject to different risks and levels of volatility. The approximately 630 U.S. listed closed-end funds have total net assets exceeding $200 billion. Among the largest issuers of closed-end funds are Nuveen, BlackRock and Morgan Stanley's Van Kampen, as well as Merrill Lynch, Legg Mason, John Hancock and PIMCO.
The NYSE trades more than 480 closed-end funds with a total market value of approximately $114 billion. In 2006, 19 closed-end funds listed on the NYSE, raising approximately $9.4 billion in capital.
A closed-end fund is one of three basic types of professionally managed investment companies, along with open-end funds (more commonly known as mutual funds), and unit investment trusts.
Many investors choose closed-end funds to help broaden and diversify their portfolios. A wide variety of closed-end funds from all asset classes are available, all subject to different risks and levels of volatility. The approximately 630 U.S. listed closed-end funds have total net assets exceeding $200 billion. Among the largest issuers of closed-end funds are Nuveen, BlackRock and Morgan Stanley's Van Kampen, as well as Merrill Lynch, Legg Mason, John Hancock and PIMCO.
The NYSE trades more than 480 closed-end funds with a total market value of approximately $114 billion. In 2006, 19 closed-end funds listed on the NYSE, raising approximately $9.4 billion in capital.
May 14, 2007
ASIA MARKETS: Asian Markets Decline On U.S. Growth Concerns
By Chris Oliver
Asian stocks fell across the board Friday on renewed concerns for the health of the U.S. economy.
The 225-issue Nikkei Averagefell 1% to 17,553.72, while the Topix index shed 0.8% to 1,723.09. Exporter stocks felt the pressure.
"Chain store retails sales figures were lower than expected, sparking increased concern over U.S. growth. That is why exporters were sold," said Hirokazu Yuihama, head of regional strategy for Daiwa Institute of Research in Hong Kong.
"The Japanese economy is trending upwards and growth momentum is not that weak," Yuihama said. "If the Bank of Japan's policy does not change in the near term, I think that will support the Japanese market, but I don't expect a sharp increase from the current level."
In Seoul, the Kospi index rebounded from early losses to rise 0.2% to a fresh closing record 1,603.56. Shares of Hyundai Steel surged 14% after Morgan Stanley said a tie-up with Arcelor Mittal had strategic merit, though no such deal has actually been proposed.
Australia's S&P/ASX 200 ended 0.9% lower at 6,297.4 and New Zealand's NZX-50 shed 0.6% to 4,226.39.
Singapore's Strait Times Index fell 0.6% and Malaysia's KLSE Composite was down 0.3%. Taiwan's leading index, the Weighted Price Index, fell 0.8%.
Among oil stocks, Nippon Oilrose 0.2% after crude-oil prices firmed in U.S. trading.
In currencies, the U.S. dollar was quoted at 119.76 yen, compared to 119.85 yen late in New York Thursday.
In Tokyo trading, shares of Canon (CAJ) eased 1.9% while Sony Corp. (SNE) retreated 1.7%.
Investors revisit mining M&A
Australian mining shares ended mixed amid declines in natural resource prices and growing skepticism of an imminent takeover bid by BHP Billiton for smaller rival Rio Tinto. Shares of BHP Billiton (BHP) fell 2.5% while Rio Tinto (RTP) nudged 0.1% higher.
Automotive shares bucked the downtrend, with Toyota Motor Corp. (TM) climbing 1.1% while Nissan Motor (NSANY) was up 0.8 %.
China's Shanghai Composite Index fell 0.7% to 4,021.68, retreating from a record close in the previous session.
Hong Kong's Hang Seng Index ended 1.2% lower at 20,468.21. The Hang Seng China Enterprises Index, or Hong Kong-listed shares in mainland companies, was down 1.7% 10,392.01.
Traders said declines in China-shares listed on mainland stock exchanges were to be expected in view of the lightening pace of recent gains and broker this week notes warning of an overheating.
Among shares in Hong Kong, mobile operator China Mobile (CHL) fell 1.3%. Export and supply chain distribution company Li & Fung fell 0.9% on investor concern weaker U.S. growth will dampen export demand.
Hang Seng Index compiler HIS Services Ltd. announced after the close of trading that Chinese insurer Ping An Insurance Groupwill be elevated to blue- chip status from June 4.
Konica Minolta Holdingsfell 7.6% on profit taking following recent share price gains and a brokerage downgrade from Mizuho Securities. On Thursday, Konica Minolta reported a group net profit of 72.54 billion yen ($604.69 million) for the fiscal year ending in March, reversing a 54.3 billion yen loss in the previous year.
Oil prices rose 32 cents to $62.15 a barrel in electronic trading. On the New York Mercantile Exchange Thursday, June crude climbed 26 cents to finish at $ 61.81 a barrel.
U.S. stocks ended sharply lower Thursday as investors assessed weaker April retail sales data and news that the trade deficit widened sharply in March, after improving over the past six months.
(END) Dow Jones Newswires
05-12-070000ET
Copyright (c) 2007 Dow Jones & Company, Inc.
Asian stocks fell across the board Friday on renewed concerns for the health of the U.S. economy.
The 225-issue Nikkei Averagefell 1% to 17,553.72, while the Topix index shed 0.8% to 1,723.09. Exporter stocks felt the pressure.
"Chain store retails sales figures were lower than expected, sparking increased concern over U.S. growth. That is why exporters were sold," said Hirokazu Yuihama, head of regional strategy for Daiwa Institute of Research in Hong Kong.
"The Japanese economy is trending upwards and growth momentum is not that weak," Yuihama said. "If the Bank of Japan's policy does not change in the near term, I think that will support the Japanese market, but I don't expect a sharp increase from the current level."
In Seoul, the Kospi index rebounded from early losses to rise 0.2% to a fresh closing record 1,603.56. Shares of Hyundai Steel surged 14% after Morgan Stanley said a tie-up with Arcelor Mittal had strategic merit, though no such deal has actually been proposed.
Australia's S&P/ASX 200 ended 0.9% lower at 6,297.4 and New Zealand's NZX-50 shed 0.6% to 4,226.39.
Singapore's Strait Times Index fell 0.6% and Malaysia's KLSE Composite was down 0.3%. Taiwan's leading index, the Weighted Price Index, fell 0.8%.
Among oil stocks, Nippon Oilrose 0.2% after crude-oil prices firmed in U.S. trading.
In currencies, the U.S. dollar was quoted at 119.76 yen, compared to 119.85 yen late in New York Thursday.
In Tokyo trading, shares of Canon (CAJ) eased 1.9% while Sony Corp. (SNE) retreated 1.7%.
Investors revisit mining M&A
Australian mining shares ended mixed amid declines in natural resource prices and growing skepticism of an imminent takeover bid by BHP Billiton for smaller rival Rio Tinto. Shares of BHP Billiton (BHP) fell 2.5% while Rio Tinto (RTP) nudged 0.1% higher.
Automotive shares bucked the downtrend, with Toyota Motor Corp. (TM) climbing 1.1% while Nissan Motor (NSANY) was up 0.8 %.
China's Shanghai Composite Index fell 0.7% to 4,021.68, retreating from a record close in the previous session.
Hong Kong's Hang Seng Index ended 1.2% lower at 20,468.21. The Hang Seng China Enterprises Index, or Hong Kong-listed shares in mainland companies, was down 1.7% 10,392.01.
Traders said declines in China-shares listed on mainland stock exchanges were to be expected in view of the lightening pace of recent gains and broker this week notes warning of an overheating.
Among shares in Hong Kong, mobile operator China Mobile (CHL) fell 1.3%. Export and supply chain distribution company Li & Fung fell 0.9% on investor concern weaker U.S. growth will dampen export demand.
Hang Seng Index compiler HIS Services Ltd. announced after the close of trading that Chinese insurer Ping An Insurance Groupwill be elevated to blue- chip status from June 4.
Konica Minolta Holdingsfell 7.6% on profit taking following recent share price gains and a brokerage downgrade from Mizuho Securities. On Thursday, Konica Minolta reported a group net profit of 72.54 billion yen ($604.69 million) for the fiscal year ending in March, reversing a 54.3 billion yen loss in the previous year.
Oil prices rose 32 cents to $62.15 a barrel in electronic trading. On the New York Mercantile Exchange Thursday, June crude climbed 26 cents to finish at $ 61.81 a barrel.
U.S. stocks ended sharply lower Thursday as investors assessed weaker April retail sales data and news that the trade deficit widened sharply in March, after improving over the past six months.
(END) Dow Jones Newswires
05-12-070000ET
Copyright (c) 2007 Dow Jones & Company, Inc.
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