International Business News

Oil prices had closed up on Friday for the third consecutive session on the New York market, as investors were reassured by statements by Fed Chairman on possible new measures to support the economy if necessary.

The October contract on the U.S. light crude closed up 1.81 dollars, or 2.47%, to 75.17 dollars a barrel on the New York Mercantile Exchange.

At the time of closing in New York, a barrel of Brent crude advanced $ 1.70, or 2.27%, to 76.72 dollars.

On the whole week, the contract on crude grew by $ 1.71, or 2.33%, signing up after two consecutive weeks of declines.

The Federal Reserve Chairman United States, Ben Bernanke said Friday that the economic recovery had slowed more than expected and the Fed was prepared, if necessary, to adopt additional measures to support the activity.

Prices were also supported by redemptions of short positions against the threat of tropical storm "Earl", which moves in the Atlantic and could become a hurricane by Sunday.

Concerns over Hurricane Danielle "were however attenuated as it swirls currently above the Atlantic, far from shore, according to the U.S. weather service.

BP announced the sale for 1.9 billion dollars (1.44 billion euros) of its Colombian subsidiary to a consortium of the Canadian Talisman Energy and Ecopetrol, the Colombian national oil company.

This sale is the latest of British Petroleum, which has announced plans to lift a thirty billion through asset sales to offset the costs of the oil spill in the Gulf of Mexico.

BP has already sold last month to seven billion dollars of assets in the United States, Canada and Egypt, the American Apache.It also plans to divest its assets in Pakistan and Vietnam, which could bring him $ 1.7 billion, in the opinion of analysts.

The Kuwait's oil minister said Tuesday that the national carrier Kuwait Petroleum International might be interested in certain assets from BP.

The emirate's sovereign wealth fund owns shares in British company to the tune of 1.75% and on Monday denied media reports that BP had asked him to reach 3%.

BP announced last week a charge of $ 32.2 billion on its second quarter results, due to the spill, but analysts believe the final slate will be much higher.

BP confirmed the upcoming resignation of its CEO, Tony Hayward, widely criticized for his handling of the oil spill in the Gulf of Mexico and its replacement by the American Robert Dudley.

This announcement coincides with a special charge of $ 32.2 billion (24.8 billion euros) related to the oil spill, which plunges the accounts of the British group into the red to the tune of 16.97 billion only for the quarter April-June.

"The tragedy of the explosion and damage wells Macondo environments that ensued marked a turning point," said the group's president, Carl-Henric Svanberg after announcing the departure of Tony Hayward.

"BP is a strong company but will now be (…) a different company."

Robert Dudley, 54, currently in charge of the group's activities in the U.S., oversees efforts to contain the oil spill, considered the worst in the history of the United States, which pollutes the region since the collapse of the Deepwater Horizon platform April 20.

He will be based in London after taking office and will sell the direction of the American branch in Lamar McKey, the company said.

Tony Hayward to take its share towards the non-executive of TNK-BP, BP's joint venture in Russia.He will receive compensation equivalent to one year's salary, or 1,045,000 pounds (1,250,000 euros).

Hayward had angered the U.S. administration for having complained of being overstretched since the beginning of the disaster and for having, during his congressional testimony, tried to dodge responsibility for his group.

Excluding costs related to oil spills and other non-operating expenses, BP poster for the second quarter adjusted earnings of the replacement cost of 4.98 billion dollars, in accordance with Reuters based on estimates of 11 analysts.

Adjusted earnings replacement cost excludes gains or losses related to changes in valuation reserves of fuel and is comparable to net income.

In a separate announcement, BP said its asset sales could reach a total of 30 billion dollars over the next 18 months, which could allow it to reduce its debt by between 10 and 15 billion dollars.

The group said it will review its dividend policy once established results for the fourth quarter.

Agricultural Bank of China (AGBANK), China's third largest bank, has priced its initial public offering dual Hong Kong and Shanghai, which should enable it to raise more than $ 22 billion (17.5 billion euros ) hypothesized high, bigger bet on the market ever.

The first trading day will be held July 15 in Shanghai and Hong Kong the next day. The official announcement of the award is scheduled for Wednesday.

AGBANK, founded by Mao Zedong in 1951, operates a large network of branches in the Chinese countryside and in larger cities.

Three years ago, AGBANK was technically bankrupt.His recovery, after a rescue of 30 billion dollars, has been boosted by the strong growth experienced in the country and the state control over the banking sector.

In Hong Kong, AGBANK sold 25.4 billion shares, representing 8% of its enlarged capital, at a price of 3.20 Hong Kong dollars part, totaling 10.4 billion U.S. dollars, it was reported Tuesday source close to the matter.

The bank had tightened Monday its price range, between 3.18 and 3.38 dollars per share in Hong Kong, against an initial range of 2.88 to 3.48 dollars.

In Shanghai, the price was fixed at the top of its indicative range which started at 2.52 yuan.AGBANK will sell 22.24 billion of yuan-denominated A shares at a price of 2.68 yuan coin, or 59.6 billion yuan (8.8 billion dollars).

In total, AGBANK rise $ 19.3 billion through its dual listing and even 22.2 billion dollars if the over-allotment option is exercised, an event likely in view of the application.

Previously, the largest ever IPO was that of Industrial & Commercial Bank of China with 21.9 billion in 2006.

OFFER 20 times oversubscribed

China International Capital Corp (CICC), Deutsche Bank, Goldman Sachs, JPMorgan, Macquarie and Morgan Stanley are the banks organizing the operation in Hong Kong, with the brokerage firm of AGBANK.

For placing on the market in Shanghai, banks are CICC, CITIC Securities, Guotai Junan Securities and Galaxy.

AGBANK is quoting on the stock market to allow the government to achieve its objective, namely to have the four largest banks in the country publicly traded.

Having for many of them had periods of insolvency, it are now among the largest banks – and companies – in terms of market capitalization.

A source familiar with the matter, it indicates that the offer of AGBANK in Shanghai was 20 times oversubscribed by institutional investors.

In Hong Kong, the institutional demand came from Asia to 4%, 30% U.S. 25% Europe thee, according to sources involved.

Individuals have however shown little enthusiasm in Shanghai, like Hong Kong.

The IPO allotment option included, values AGBANK about 150 billion dollars (nearly 120 billion euros), making it the fourth largest bank in terms of global market capitalization behind ICBC, China Construction Bank and HSBC .

Chaired by Xiang Junbo, headline writer and war hero, AGBANK operates 24,000 branches, employs 441,000 people and boasts 320 million customers.

The price for AGBANK bodes well for the four Chinese banks wishing to raise capital as is the case for Bank of China and ICBC.

The Shanghai stock market has lost nearly 25% since mid-April and fell sharply last week, partly because investors sold shares to participate in the offer AGBANK.