Systematic solution: Itoman's problems will be spirited away
Article Abstract:
The impending merger of Itoman Corp with Sumikin Bussan Kaisha Ltd reflects how the Japanese keiretsu system of corporate affiliations is proving to be advantageous in an economic downturn. Although Sumikin, a metals-trading company controlled by Sumitomo Metal Industries Ltd, is only half the size of Itoman, it will emerge as the 12th largest general trading firm in Japan after the share swap deal. Analysts estimate that Itoman owes 500 billion yen ($4 billion). In the merger deal, Sumikin will not be responsible for any of Itoman's liabilities and will absorb Itoman's profitable food and textile trading businesses along with most of the 1,300 employees.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
Falling star; problems come home to roost at First Pacific
Article Abstract:
First Pacific Co (FPC) suffered a US$37 million loss in 1991, the first for the conglomerate in its 11 years of operation. The deficit was caused by bad investments and restructuring costs of Metro Drug, a Philippine subsidiary. FPC is listed on the Hong Kong stock exchange and is involved in several businesses. Much of its strength has been gained by merging with and acquiring profitable companies. FPC is expected to continue its expansion despite huge losses. Analysts believe FPC will find it hard to recover from a 1.8 debt equity ratio spawned by debts between US$500 to US$600 million.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
Customers come first
Article Abstract:
Taiwan's new private banks give the old state-owned banks fierce competition. This situation proved to be advantageous to the population because of lowered interest rates and better terms for deposits as the banks try to outdo each other. However, the same situation substantially lowered the profits of the banking industry. The liberalization of Taiwan's banking industry had widespread effects and industry leaders hope it is for the best.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Speaking out. Problems in the resource sector
- Abstracts: Getting wired: Seoul hopes viewers will prefer cable over satellite TV. Can do, make do: Hyundai Motors pins hopes on automation
- Abstracts: Pains of indigestion; Indonesian food firm faces debt problems. Double-edged sword
- Abstracts: Renminbi's rough ride. Cuisine and cure