L’Oreal has offered to buy Chinese facial mask maker Magic Holdings International, a move that would put the world’s largest cosmetics group in the lead of the fastest growing sector in China’s $15-billion skincare market. China is the third-biggest market for cosmetics in the world as well as for Paris-based L’Oreal’s products. Magic Holdings has the biggest market share in the facial mask market. L’Oreal’s HK$6.54 billion ($840 million) takeover offer for Magic Holdings would be a small price to pay to expand in such a high-growth segment, said Summer Wang, Hong Kong-based analyst at BOCOM International investment bank. The offer values Magic Holdings at 9.1 times its last fiscal year sales. In a joint statement, Magic Holdings chairman Stephen Tang welcomed the offer.
Foreign banks in talks to buy stake in China?s Huarong
Deutsche Bank, Goldman Sachs and Morgan Stanley have held talks with China’s Huarong Asset Management Corp to invest in its $1.5-billion stake sale ahead of the company’s expected IPO next year, the Financial Times reported. The interest of foreign banks in Huarong comes amid looming concerns of a surge in bad loans across China. A spike in non-performing loans would increase the demand for the services of China’s asset management companies. Huarong, established in 1999, is the biggest of the four funds that China’s government set up to remove an estimated 1.4 trillion yuan ($230 billion) worth of bad loans from the country’s top four state lenders.
Cohen to refuse SAC client push to return cash early
Steven Cohen?s $14-billion SAC Capital Advisors, which last month was indicted by the government as a ?veritable magnet for market cheaters?, has refused clients? requests that the firm speed up payouts on the billions of dollars earmarked for withdrawals, according to three people familiar with the discussions. SAC, which faces a midnight deadline for redemption requests from investors who want to pull money from the firm, has told clients that final payments will be made at the end of the year. Some investors have pushed Cohen to give clients their money back before then, fearing that the government could freeze the funds? assets, said the people. The government has said it doesn?t plan on restraining assets.
Porsche faces new hedge fund cartel claim
Porsche Automobil Holding faces a new legal manoeuvre from hedge funds seeking to recoup billions of euros they say they lost amid the former sports carmaker?s aborted bid to buy Volkswagen. The funds, which include Elliott International and Perry Partners, are suing Porsche for 1.81 billion euros ($2.4 billion) over claims it manipulated Volkswagen shares by denying interest in a deal before it made a bid. After other investors lost two similar claims at a German tribunal last year, the funds added antitrust claims against Porsche to their suit, forcing a move to a court that specialises in cartel suits. ?It?s a litigation tactic sometimes used to get rid of a particular court,? Albrecht Bach, an antitrust lawyer at Oppenlaender Rechtsanwaelte in Stuttgart who isn?t involved in the dispute, said in an interview. Porsche, hounded for years by investor suits, has so far been successful in defending against allegations it manipulated Volkswagen shares.
Hackers use new tactic to attack US media sites
Hackers promoting the Syrian Electronic Army (SEA) simultaneously targeted websites belon-ging to CNN, Time and the Washington Post on Thursday by breaching Outbrain, a firm which publishes content recommendations on the sit-es. That resulted in some WashingtonPost.com and Time.com customers being redirected to the website of the SEA when they clicked on the content from Outbrain, said Outbrain vice-pres-ident Lisa LaCour. The CNN International site briefly displayed a headline that said “Hacked by SEA”, she said. The SEA is an online group that supports Syrian President Bashar al-Assad and has been linked to high-profile attacks. The latest attacks were significant because the hackers simultaneously targeted several sites by breaching a single supplier whose content is published on multiple platforms.
