Headlines

Slaughter and May and Linklaters are among a host of top firms advising as a group of former Barclays bankers set up an offshore company to manage $12.3 billion (£7.4 billion) of the bank's most toxic debt, Legal Week reported. In addition to the magic circle duo, Skadden Arps Slate Meagher & Flom, Sullivan & Cromwell and Cadwalader Wickersham & Taft have all won roles in the creation of Protium Finance, a new hedge fund registered in the Cayman Islands.

Chinese carmakers are seeking to step into the gaps left by U.S. companies in Europe — but while acquisitions may give them access to badly-needed technical know-how, global brands and exposure to new markets, the question is whether they have learnt from past failures, a Reuters commentary found. With China now the world’s largest car market, it’s no surprise that Chinese carmakers — which have few if any really solid brands within their home market — want to start making more of a mark. In theory, foreign acquisitions offer a quick way to do so.

Government-owned Dubai World Thursday said it is scaling down operations at its troubled real-estate unit Nakheel, transferring assets and executives to its Istithmar World investment arm, amid ongoing concerns over the conglomerate's mounting debt pile, Dow Jones reported. "As part of an ongoing organizational operational restructuring process within the group, selected hotel and real-estate assets and the management teams related to these assets, primarily in international markets, have been transferred to Istithmar World," Dubai World said in an emailed statement.

The European Commission on Thursday promised extra steps to combat sinking dairy prices but insisted it would not abandon long-term farm reforms that include phasing out milk quotas after 2015, The Associated Press reported. EU Agriculture Commissioner Mariann Fischer Boel suggested that a European dairy futures market could stabilize prices and said she would study if better long-term contracts between farmers and the dairy industry can improve supply and demand.

Ireland's government proposed buying property loans with a book value of €77 billion ($113 billion) from five struggling Irish banks Wednesday, but the country's finance minister said some may still need additional capital, The Wall Street Journal reported. The plan, aimed at restarting stalled lending, faced fierce opposition when it was unveiled by Finance Minister Brian Lenihan in a rowdy session of parliament Wednesday. It is likely to face weeks of debate.

Telecom Corp. Of New Zealand Ltd. said Thursday that structural separation isn't being considered even though the debate about its separation has been reopened by a government decision to proceed with a 1.5 billion New Zealand dollar ($1.07 billion) national broadband network, Dow Jones reported. Earlier Thursday, Telecom Chief Executive Paul Reynolds told Radio New Zealand the government decision raised questions about Telecom's operational separation into three parts last year, forced on it by the government as part of tough regulations introduced in May 2006. Mr.

Canada has decided against launching a review of the $1.13 billion sale of the wireless assets of bankrupt Nortel Networks to Sweden's Ericsson, Industry Minister Tony Clement said on Wednesday. "I am satisfied that the assets sold fall well below the threshold required for a review under the Investment Canada Act," Clement said at a press conference in Toronto, Reuters reported.

OPI Pacific Finance Limited, a finance company that still owes $257 million to small investors, has been placed in receivership by its trustee, The New Zealand Herald reported. Perpetual Trust, acting for OPI's debenture holders and unsecured noteholders has appointed Colin McCloy and Maurice Noone of PricewaterhouseCoopers as receivers. OPI has been in a moratorium since May last year. OPI's secured debenture holders have so far been repaid 22.17 cents in each dollar they were owed, while the unsecured note holders have not got anything.

Independent News & Media has issued a fiercely worded attack on its rebel shareholder Denis O'Brien, warning that his "personal antagonism" could scupper rescue talks with its lenders at a critical stage, The Guardian reported. In a combative statement issued to the London and Dublin stock markets late today in response to O'Brien's demand yesterday for a shareholder vote on INM's financial restructuring plan, the board effectively told him to put up or shut up.

Canada's auto warranty program designed to help out the troubled North American car industry ended today and it didn't cost taxpayers a dime, Industry Minister Tony Clement says. "It was never activated because it was conditional upon either Chrysler or GM going into (bankruptcy protection) in Canada and neither of them happened," Clement told the Toronto Star.