Renesas shareholders set to approve bailout
Shareholders of Japan’s embattled Renesas Electronics Corp are close to approving a government-led bailout, Reuters reported, sending the firm’s shares 17% higher on relief that the $2.4 billion rescue was being finalised. The deal is set to keep the world’s biggest maker of microcontroller chips afloat for the next few years, but analysts say that despite job cuts and planned plant closures, Renesas still faces many challenges including the restructuring of its loss-making system chip division. The state-backed Innovation Network Corp will spend 180 billion yen ($2.2 billion) to take a two-thirds stake in Renesas, which has been hit by fierce overseas competition, production cuts by clients and fragile finances.
Telefonica considers US listing for LatAm ops
Spanish telecom company Telefonica is considering grouping its Latin American businesses into a Spanish holding company to list in New York next year, newspaper Expansion reported on Monday. The firm is on a debt-cutting drive after years of credit-fueled expansion and successfully listed part of its German unit in October. Should Telefonica need to raise more cash next year, its most likely plan is to float a minority stake in a newly-created holding company for its Latin American assets, Expansion said, without citing sources.
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