Headlines

Dutch bank DSB is seeking a state capital injection of 100 million euros as part of a rescue plan also involving the conversion of savings deposits into stock, after talks with a potential U.S. buyer broke down, Reuters reported. A Dutch court appointed administrators last Monday at DSB at the request of the central bank after a run on the bank drained 600 million euros in deposits in just 12 days. DSB's owner and founder, Dirk Scheringa, had since tried unsuccessfully to find a buyer for the business.

In the year-long economic slump that is the most severe Canada has experienced since the early 1990s, 357,000 people have lost their jobs – in every sector of the economy, and at every level of the work force, The Globe and Mail reported. But the meltdown has also had a devastating impact on a group that does not show up in the monthly unemployment statistics: the retired. Already hobbled by an aging work force and companies’ gradual move away from guarantees for retired workers, Canada’s pension system has been pushed to the breaking point by the downturn.

The European Commission voiced concern Friday over Germany's planned aid for a consortium led by Canadian-based Magna International to take a majority stake in carmaker Opel and suggested that General Motors Co. be allowed to "reconsider" the deal, The Canadian Press reported. Germany offered aid worth US$6.7 billion to support the deal, and hopes other European countries that have Opel plants will contribute to that financing. Adam Opel GmbH has its headquarters in Ruesselsheim, Germany.

Mariella Burani Fashion Group SpA likely will reach an agreement with its creditors on how to restructure more than €470 million ($700.1 million) of debt ahead of a planned capital increase, according to the head of the Italian apparel maker, Dow Jones reported. Burani presented its latest proposal to creditors and expected a response from them in the coming days, Chief Executive Gabrielle Fontanesi said in a statement issued late Friday. Burani shareholders are to hold an extraordinary meeting Oct. 30 to approve the capital increase among other measures designed to stave off bankruptcy.

Workers at troubled Russian automaker AvtoVAZ gathered on Saturday in a peaceful protest to renew calls for the nationalisation of the firm, which lost $655 million in the first half of this year, Reuters reported. Its organisers, the independent Unity trade union, estimated that 3,000 people attended, while Russian news agencies cited Interior Ministry estimates of roughly 700. Both figures represent a tiny fraction of the Soviet-era plant's 102,000-strong workforce, indicating that recent government efforts to avert unrest in this industrial city on the Volga River have been successful.

French farmers struggling with slumping grain prices blanketed the Champs-Elysees with bales of hay and set them ablaze Friday, also tangling highways around the country as they demanded government help, The Wall Street Journal reported. About 150 farmers blocked traffic and unloaded hay and tires onto the most famous shopping street in Paris. The protesters set the hay on fire before firefighters quickly extinguished the flames.

Shares of struggling carrier Japan Airlines Corp. slid to a new all-time low Friday as investors spooked by the state of its balance sheet shrugged aside assurances from Japan's transport minister that a long-awaited, multi-billion dollar restructuring plan backed by the government is coming together smoothly, Dow Jones reported. JAL's plight comes after the company slumped to its largest-ever quarterly net loss of Y99 billion in the April-June quarter, from a Y3.41 billion net loss in the same period a year earlier.

Ciena Corp. won court approval Thursday to start bidding on Nortel Network Corp.'s optical and Ethernet division with an offer valued at more than $532 million, The Associated Press reported. Bankruptcy court judges in Delaware and Ontario gave the bid process the green light after requesting changes in the auction rules. Creditors had complained the rules gave Ciena, the lead bidder, too much power over the auction process. Read more.

Stricken Dutch bank DSB failed to reach a deal with major Dutch banks in late night talks on Thursday aimed at finding an option for DSB's survival, Dutch media reported on Friday. DSB got a one-day extension to find a buyer from a Dutch court on Thursday, which said a deal with a big Dutch bank was the only credible option for a continuation of the privately held bank. DSB collapsed on Monday after a run on the bank cost it more than €600 million ($894.2 million) in deposits in 12 days. It was placed under control of administrators.

The Japanese government said Friday it will scrap part of the previous Cabinet's stimulus package, freeing up 2.926 trillion yen ($32.38 billion) so that it can redirect the money toward more effective projects to stimulate growth, The Wall Street Journal reported. The decision capped weeks of government efforts to save money by axing what it sees as ineffective programs in the 14 trillion yen budget, which was enacted in May by the previous Liberal Democratic Party administration to pay for most of its record 15.4 trillion yen stimulus package.