Headlines

Britain’s Serious Fraud Office is to meet with Icelandic investigators in London next month as Reykjavik seeks international help to discover whether criminal wrongdoing played a role in bringing down Iceland’s banking sector, the Financial Times reported. The talks signal increasing co-operation between the UK and Iceland over the corruption probe, even as tensions flare between the two countries over a disputed deal to repay billions of pounds lost by British savers in Icelandic banks.

Things are coming to a head in the saga to sell Opel. General Motors‘ European unit said on Thursday on its Web site that Magna International and its partner Sberbank had “clarified” their offer for the European automaker, and that the bid would be duly considered by G.M.’s board, The New York Times reported in its DealBook blog. Magna’s co-chief executive, Siegfried Wolf, put it differently, telling Reuters that his company had reached an agreement in principle to buy Opel from G.M. The boards of directors of G.M.

French construction firm Vinci SA has bought British builder Haymills Group in a "prepack" administration deal, administrator PricewaterhouseCoopers said on Thursday, Reuters reported. The privately-owned company was put up for sale after facing difficulties meeting its financial obligations and incurring losses from a Gibraltar subsidiary, PwC's Stephen Oldfield said. Vinci's acquisition of Haymills was a "prime example of when a prepack sale can be the best option", PwC's Oldfield said.

Shermag Inc., which is operating under court protection from creditors, said Wednesday that the Quebec Superior Court has approved the purchase of the company by Groupe Bermex Inc. for $1.25 million, The Canadian Press reported. The company said the court has also approved an interim financing deal that will see Bermex contribute of up to $3 million to finance Shermag until the deal closes. Under a deal, Bermex would provide $1.25 million in exchange for nearly 41.7 million new Shermag shares, representing about 70 per cent of the issued and outstanding shares in the company.

German retailer Arcandor AG will cut about 3,700 jobs at its Primondo mail order unit within the next several months, the company said in a statement Thursday, Forbes reported on an Associated Press story. The Essen-based company will hold a press conference with its insolvency administrator later Thursday to discuss the state of its business. The troubled retailer said Wednesday it would give up looking for an anchor investor for the whole group if it couldn't find one by Saturday.

Q-Cells, one of the world's biggest makers of solar cells, is planning to slash about a fifth of its workforce, it said on Thursday, in a move to counter the effects of a price war, Reuters reported. It now employs about 2,600 staff. The news comes a day after Chinese rivals JA Solar Holdings Co Ltd and LDK Solar Co Ltd posted quarterly net losses due to a price slump that has put a sudden stop to growth in the sector. Q-Cells in July withdrew its 2009 sales forecast after the price slump and high operating costs brought a 62 million-euro ($87.58 million) second-quarter operating loss.

More evidence of rising unemployment, particularly among young people, has highlighted the next economic challenge facing U.K. policy makers going into next year's election, The Wall Street Journal reported. Official data published Wednesday showed joblessness jumped more than expected to its highest rate in 13 years in the second quarter. More recent data showing the number of new workers claiming benefits also rose more than expected in July, indicating a further rise in unemployment over the summer.

Reserve Bank governor Glenn Stevens warned Australian homeowners and home buyers today to prepare for higher interest rates from the current "emergency" lows, as the economy starts to strengthen, The Australian reported. The central bank chief said the global economy was starting to improve, but there were still potential risks which could damage the recovery both in Australia and offshore.

Dissident shareholder Palo Alto Investors emerged victorious from a long battle with Canadian Superior Energy Inc. after the Calgary oil company yesterday recommended a new board of directors largely hand-picked by the U.S. investment firm, The Globe and Mail reported. If shareholders approve the new board, it could mark a new chapter for Canadian Superior, whose troubles in drilling a promising Caribbean natural gas find set off battles with shareholders, joint venture partners and creditors - and launched it into bankruptcy protection earlier this year.

The German fashion company Escada has filed for bankruptcy after being unable to obtain sufficient financing, a Munich district court said Thursday. The filing was expected after the company, famous for women’s fashion and accessories, failed to get the necessary support for an earlier bond swap, The New York Times reported. Escada was once one of the biggest fashion brands in the world, but has seen its popularity, sales and earnings decline.