Warsh to Remain at Fed Board as Successor Sought for Geithner

By Craig Torres

Jan. 18 (Bloomberg) -- Federal Reserve Governor Kevin Warsh, once a leading contender to succeed Timothy Geithner as president of the New York Fed, is no longer in the running.

Warsh, 38, will remain Chairman Ben S. Bernanke’s chief liaison with the Treasury Department and other regulators as the central bank prepares to roll out billions of dollars in new programs to revive lending, said a person familiar with the matter. Warsh’s withdrawal leaves William Dudley, 56, the New York Fed’s top markets official and a former Goldman Sachs Group Inc. economist, as the leading internal candidate for the job.

“Bill is an economist who spent most of his career following the Fed and monetary policy,” said Robert Eisenbeis, a former research director at the Atlanta Fed, who worked with Dudley when both were at the Fed Board in the 1980s. “He also knows the market side.”

Warsh’s departure would have left Bernanke and Fed Vice Chairman Donald Kohn as the only experienced governors in the midst of the biggest expansion of the central bank’s role in the economy since the Great Depression. The newest governor, Elizabeth Duke, has been in her position since August, and there are still two vacancies at the Board in Washington.

Directors have also spoken in recent weeks with Credit Suisse executive Paul Calello; Terrence Checki, the New York Fed’s head of emerging markets and international affairs, and David McCormick, outgoing Treasury undersecretary for international affairs, according to people familiar with the process. H. Rodgin Cohen, chairman of the New York law firm Sullivan & Cromwell LLP, isn’t considered a frontrunner.

Treasury Nominee

The New York Fed is seeking a replacement for Geithner, who has been nominated by President-elect Barack Obama to be Treasury secretary and faces Senate confirmation hearings as soon as next week. The New York Fed chief administers more than half of the central bank’s $2 trillion of assets and serves as its main link with financial markets.

With the economy mired in a recession and financial markets still shaky, the head of the New York Fed will be a central figure in the discussions on cleansing bad assets from bank balance sheets, shaping bank regulations, and eventually unwinding the central bank’s emergency lending programs.

The Fed’s lending is “not as elegant as we might like,” Dudley said Jan. 4 at a conference in San Francisco. Still, “if we don’t do anything to slow down the pace of that adjustment” in banks’ balance sheets, “it’s going to do very significant damage to the macro economy,” he said.

Expanding Role

Some regional Fed bank presidents have been critical of the Board and New York Fed decisions to expand the central bank’s role. The central bank is financing $334 billion in commercial paper, some of it issued by non-bank corporations, and participating in a government program to insure the troubled assets of Bank of America Corp. and Citigroup Inc. The Fed is also financing American International Group with $82.6 billion in emergency credits.

“The critical policy question of our time is where to establish the boundaries around the public-sector safety net,” Richmond Federal Reserve Bank President Jeffrey Lacker said in a speech two days ago. “The dramatic recent expansion in Federal Reserve lending, and government support more broadly, has extended public sector support beyond existing supervisory reach.”

Regional Fed bank presidents are nominated by their boards and subject to approval by the Board of Governors in Washington, which already has two vacancies. Warsh’s term as Fed governor expires Jan. 31, 2018, leaving him the option of remaining in Washington for a prolonged period. He joined the Fed in February 2006, taking up part of an unexpired 14-year term.

Berkeley Degree

Before joining the New York Fed in January 2007, Dudley spent more than two decades as an economist at Goldman Sachs, taking over the U.S. research team in 1995. Dudley worked at the Fed in Washington from 1981 to 1983, another period of recession. He earned a doctorate in economics from the University of California at Berkeley.

To contact the reporter on this story: Craig Torres in Washington at ctorres3@bloomberg.net

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Carlos Slim May Invest in New York Times, WSJ Says

By Mike Millard and Luzi Ann Javier

Jan. 18 (Bloomberg) -- The New York Times Co. is in talks with Mexican billionaire Carlos Slim on investing in the publishing company to help it through financial problems, the Wall Street Journal said, citing people familiar with the matter.

One option being discussed is a preferred stock issue, similar to a loan, under which Slim would have no voting rights. The talks are continuing and may not succeed, the newspaper said.

The third-largest U.S. newspaper publisher is cutting jobs, freezing pay increases of non-union workers, reducing dividends and selling front-page advertising space to raise cash to help repay a $400 million credit line in May. New York Times lost 13 percent of its market value this year, extending the 58 percent decline in 2008, as it faces falling advertising sales and shrinking newspaper circulation.

The publisher's Senior Vice President for Corporate Communications Catherine Mathis declined to comment on the Journal report when contacted by Bloomberg News. The shares added 3.7 percent to $6.41 in New York on Jan. 16.

New York Times said on Dec. 8 it may mortgage its Manhattan headquarters to borrow as much as $225 million to help repay debt. The publisher is also seeking a buyer for its 17.5 percent stake in the holding company for the Boston Red Sox baseball team, according to a person with knowledge of the discussions. The stake may be worth as much as $166.3 million, Barclays Capital said.

To contact the reporter for this story: Luzi Ann Javier in Singapore at ljavier@bloomberg.net

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Gulf Bonds May Return 20% as Default Risk Falls, Mashreq Says

By Haris Anwar and Arif Sharif

Jan. 18 (Bloomberg) -- Persian Gulf-based companies’ debt may rally this year, with some bonds returning as much as 20 percent, as the risk of default recedes and credit markets re-open, Mashreq Capital DIFC Ltd. said.

“The default probabilities that have been priced in are way too high,” said Abdul Kadir Hussain, chief executive officer of Mashreq Capital, a unit of the United Arab Emirates’ fourth-biggest lender. “The high-quality, high-grade bond space is by far the most attractive investment opportunity in the region.”

Investors are shunning corporate debt in the area amid the worst financial crisis since the 1930s following the collapse of the U.S. subprime-mortgage market in 2007. Lending in the Gulf states has been strangled, hurting the real-estate market, while tumbling oil prices since July have trimmed government revenue.

The largest state-owned companies in the United Arab Emirates have $20 billion of debt that falls due in 2009, according to a Merrill Lynch & Co. report published in October.

Hussain recommends buying the bonds of Abu Dhabi National Energy Co., a state-controlled power and oil producer known as Taqa, Saudi Basic Industries Corp., the world’s biggest chemicals maker by market value, and Qatar Petroleum, a state-run energy company in the world’s largest producer of liquefied natural gas.

“Loans are being repaid and deals are being refinanced, which is having a knock-on effect on valuations,” Hussain said. “On a total return basis, you’re probably talking about a 12 percent to 20 percent return on these names.”

Raising Cash

Other companies raising money include Borse Dubai Ltd., which is seeking $2.5 billion to refinance a loan. Dubai Aerospace Enterprise, a state-owned aviation manufacturing and services firm, raised an $800 million credit facility from a group of international and local lenders, the firm said today.

Credit-default swap contracts covering the debt of Taqa were last quoted at 317 basis points on Jan. 16, according to CMA Datavision prices. That compares with 475 basis points in October. A drop shows an improvement in the perception of credit quality.

“There is short-term uncertainty about the region’s ability to refinance its maturing debt, and that’s affecting high-quality debt as well,” Hussain said. “That’s the sweet spot of regional bond investing in my view, where you don’t have the super-turbo-charged 30 percent yield, but the possibility of a rebound is excellent.”

To contact the reporter on this story: Haris Anwar in Dubai on Hanwar2@bloomberg.net

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Dubai Aerospace Raises $800 Million in Three-Year Loan

By Haris Anwar

Jan. 18 (Bloomberg) -- Dubai Aerospace Enterprise, the state- owned aviation manufacturing and services company, raised a $800 million credit facility from a group of international and local lenders for general corporate purposes.

The three-year financing includes a revolving credit facility and an Islamic portion, Dubai Aerospace said in an e-mailed statement today. Citibank NA, Deutsche Bank AG, Emirates Bank International PJSC, Lloyds TSB Bank Plc and Noor Islamic Bank participated in the loan.

To contact the reporter on this story: Haris Anwar in Dubai on Hanwar2@bloomberg.net

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Abu Dhabi to Develop Market for Exchange Traded Funds in 2009

By Shaji Mathew

Jan. 18 (Bloomberg) -- The Abu Dhabi Securities Exchange plans to develop markets for exchange traded funds, debt securities and derivatives this year after trading volumes declined in 2008 and foreigners reduced their investments.

Total traded volumes on the exchange fell 4 percent to 49.9 billion shares from the year-earlier period, while the percentage of stocks owned by foreigners dropped to 9 from 13 in 2007, the bourse said today in an e-mailed statement.

The total value of equities traded in 2008 increased 32 percent to 232 billion dirhams ($63 billion) compared with 175 billion dirhams in the year earlier. The real-estate industry accounted for most of the trading value.

“Our priorities for 2009 are to develop markets for Exchange Traded Funds, debt securities and derivatives as well as continuing to enhance transparency and the regulatory environment,” Chief Executive Officer Tom Healy said in the statement.

To contact the reporter on this story: Shaji Mathew in Dubai at shajimathew@bloomberg.net

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Savola Shares Drop 10% After Reporting Fourth-Quarter Loss

By Shaji Mathew

Jan. 18 (Bloomberg) -- Savola Al Azizia United Co.’s shares dropped 10 percent after the largest food producer in Saudi Arabia reported a loss of 464 million riyals ($124 million) in the fourth quarter, compared with a profit of 177 million riyals in the year-earlier period.

The shares declined to 20.7 riyals, the lowest level since Nov. 24 last year, on the Saudi bourse.

To contact the reporter on this story: Shaji Mathew in Dubai at shajimathew@bloomberg.net

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Gulf Shares Fall on Concern That Earnings May Lag Expectations

By Arif Sharif

Jan. 18 (Bloomberg) -- Persian Gulf shares declined on forecasts that Saudi Basic Industries Corp.’s profit will drop, stoking concern that corporate earnings in the region may be lower than expected.

Saudi Basic, the region’s biggest publicly traded company known as Sabic, dropped for a fourth day. Savola Al Azizia United Co., Saudi Arabia’s biggest food producer, fell to the lowest intra-day level in almost two months. Emaar Properties PJSC also retreated.

Saudi Arabia’s Tadawul index declined 1.4 percent to 4,636.04 at 11:36 a.m. local time, bringing the five-day slump to 10 percent. The Dubai Financial Market General Index dropped 4.8 percent and the Abu Dhabi Securities Exchange General Index retreated 3 percent. Qatar’s Doha Securities Market Index fell 3.3 percent.

“The consensus on Sabic’s numbers is a possible indication of weaker-than-expected fourth-quarter earnings across the region, which is why the markets are under pressure,” Mohammed Galal, head of foreign institutional sales at Al Futtaim HC Securities, said in a phone interview today. “The local sentiment is negative, there is a lack of foreign investment, oil prices are falling and the global markets are weak,” he added.

Sabic, the world’s largest petrochemicals maker, fell 4.9 percent to 44.8 riyals, bringing the four-day drop to 20 percent.

The company may report its steepest decline in quarterly profit since 2002 after the global financial crisis and a slumping auto industry reduced demand for plastics and chemicals, according to the average estimate of four analysts surveyed by Bloomberg. Fourth-quarter net income probably fell 31 percent to 4.74 billion riyals ($1.1 billion), according to the survey.

Oil’s Drop

Crude oil futures in New York closed at $36.51 a barrel on Jan. 16, down 11 percent for the week. Prices have tumbled 60 percent from a year ago. U.S. stocks fell for a second week, led by financial companies, after Citigroup Inc. said it will split in two and Bank of America Corp. required emergency federal funds for its acquisition of Merrill Lynch & Co. European stocks also slid last week.

Savola lost 10 percent to 20.7 riyals and is poised for its lowest close since Nov. 24. The company reported a loss of 464 million riyals ($124 million) in the fourth quarter, compared with a profit of 177 million riyals in the year-earlier period.

Emaar, the United Arab Emirates’ biggest real-estate developer, fell 2.3 percent to 2.12 dirhams.

Industries Qatar, the region’s second-biggest petrochemicals company, retreated 2.8 percent to 73.4 riyals.

The Kuwait Stock Exchange Index declined 1.4 percent and the Bahrain All Share Index dropped 0.2 percent. Oman’s market was closed today.

To contact the reporter on this story: Arif Sharif in Dubai at asharif2@bloomberg.net

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Sapporo Hokuyo Seeks Public Funds on Credit Crisis, Nikkei Says

By Megumi Yamanaka and Hikeki Sagiike

Jan. 18 (Bloomberg) -- Sapporo Hokuyo Holdings Inc., a regional bank based in Japan’s northern Hokkaido island, may receive public funds by March as the credit crisis widens its losses, the Nikkei newspaper reported.

The bank will likely apply at the end of this month, the newspaper reported today, without saying where it got the information. That would make Sapporo Hokuyo the first Japanese bank in two years to receive public funds.

The application is a preventative measure under a regulation set in December that allows local banks to receive public funds so that they can continue lending to small and medium-sized companies, the report said.

As of now, no decision has been made on the financing matter reported today, Sapporo Hokuyo said in a statement to the Tokyo Stock Exchange. Calls to Japan’s Financial Services Agency weren’t answered on a Sunday.

Sapporo Hokuyo in November forecast a net loss of 27.5 billion yen for the year ending March, shifting from a previously projected profit of 20 billion yen, because of bad debt and loss from securities investments.

To contact the reporter on this story: Megumi Yamanaka in Tokyo at myamanaka@bloomberg.net.

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Obama Bank Rescue May Make New Effort to Resolve Toxic Assets

By Robert Schmidt and Rich Miller

Jan. 18 (Bloomberg) -- President-elect Barack Obama is likely to back a financial-rescue effort that channels capital to banks and deals with troubled assets clogging balance sheets, according to people familiar with the matter.

Obama’s team will also use part of the $350 billion remaining from the Troubled Asset Relief Program to help stem foreclosures and assist municipalities that are having trouble borrowing, the people said. The Federal Reserve and Federal Deposit Insurance Corp. are advocating a government-backed “bad” or “aggregator” bank to acquire hundreds of billions of dollars of troubled securities now held by lenders.

Last week’s sell-off in financial stocks and the deepening recession put pressure on Treasury Secretary-designate Timothy Geithner and Obama’s economics chief Lawrence Summers to unveil a comprehensive program soon after Obama is sworn in on Jan. 20. Without a radical new effort, soaring credit losses could prolong and deepen a recession that is now more than a year old.

“We have a deteriorating real economy and deteriorating financial sector feeding on each other,” said Raghuram Rajan, a former chief economist for the International Monetary Fund who’s now a professor of finance at the University of Chicago. “It may be distasteful but we need to put more money in the banks.”

An Obama adviser, who declined to be identified, said the incoming administration has yet to settle on a plan for using the TARP money to aid financial institutions.

Praise From Bair

Outgoing Treasury Secretary Henry Paulson and FDIC Chairman Sheila Bair, who will likely remain at her post, praised the so- called bad bank idea on Jan. 16, backing up comments earlier in the week by Fed Chairman Ben S. Bernanke and Vice Chairman Donald Kohn.

“A lot of work has been done on an aggregator bank” and other ways of using the $700 billion financial-rescue fund to “go further when it comes to dealing with illiquid assets,” Paulson told reporters in Washington.

An alternative would be to provide guarantees for the assets while they remain on the banks’ books. The Treasury, Fed and FDIC took that approach on Jan. 16 when they provided a backstop of $118 billion for Bank of America Corp. The company also received a $20 billion capital infusion.

“Moving these problem assets off banks’ balance sheets may open the market to new capital, both to purchase the troubled assets and to recapitalize the banks,” said Brian Olasov, a managing director at the McKenna Long & Aldridge law firm in Atlanta. “Credit won’t flow in material ways until bank portfolios are cleansed and collateral values are re- established.”

Toll on Economy

The U.S. economy showed further signs of buckling under the weight of the credit crisis, according to reports last week. Consumer prices fell 0.7 percent in December, capping the smallest annual increase since 1954, the Labor Department said. Industrial output shrank 2 percent, and the capacity-utilization rate slid to 73.6 percent, according to the Fed. A private survey showed consumer sentiment little changed in January.

Obama is set to take office on Jan. 20 and his advisers have been working to craft a comprehensive blueprint for overhauling the bailout. Summers, speaking to business executives on a recent conference call, said that the new administration wanted to have its financial recovery plan work in tandem with the $825 billion economic stimulus it proposed.

Summers, according to one person on the call, said Obama would have a significantly different approach to implementing the TARP.

New Approach

Paulson and Bernanke sought to end a series of ad-hoc interventions with financial companies last September, by urging lawmakers to approve the TARP legislation. While the initial proposal was to use the rescue funds to purchase illiquid assets, Paulson instead bought stakes in banks.

The Obama administration’s “principle advantage over Secretary Paulson is that they are not acting on an ad-hoc basis,” said William Sweet, a partner at the Skadden, Arps, Slate, Meagher & Flom law firm in Washington who represents financial institutions.

The Senate Jan. 15 approved the release of the second half of TARP.

A Bernanke-led oversight panel issued a report last week calling for Treasury to “continue to take actions under the TARP to stabilize financial markets, help strengthen financial institutions, improve the functioning of credit markets and address systemic risks, given the disproportionate consequences that instability of the nation’s financial institutions and markets may have for the broader economy.”

Price Tag

While Summers told Congress Obama’s Treasury would use between $50 billion and $100 billion for a mortgage modification program, a good chunk of the rest of the funds could be used to buy the illiquid assets from banks. The FDIC, which has authority to take “any action” with insured deposit-taking firms deemed necessary to counter “adverse effects on economic conditions or financial stability,” could also play a role.

“We think by leveraging TARP funds in this way, you could have a significant capacity to acquire troubled assets,” Bair said. Officials could “require those institutions selling assets into this facility to contribute some capital cushion themselves.” Bair spoke in an interview with CNBC.

To contact the reporter on this story: Robert Schmidt in Washington at rschmidt5@bloomberg.net; Rich Miller in Washington rmiller28@bloomberg.net

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Russia, Ukraine Reach Gas Deal, May Sign by Tomorrow

By Mark Sweetman and Amanda Jordan

Jan. 18 (Bloomberg) -- Russian Prime Minister Vladimir Putin and his Ukrainian counterpart Yulia Timoshenko reached an agreement on natural-gas supplies that may see shipments to Europe resume after almost two weeks of disruption.

A package of documents covering prices and transit fees should be prepared by tomorrow, allowing Russian exports via Ukraine to restart, Timoshenko said today on Russian state television after meeting Putin in Moscow. The talks had been “very difficult,” she said.

The two premiers agreed that Ukraine will get a 20 percent discount on the price it pays for gas from Russia this year should it maintain the fee it charges for transporting fuel to Europe at the 2008 level, Putin said. The countries will move to a European pricing formula for gas supply and transit next year, he said, without specifying any prices.

The breakthrough came after officials from the European Union, which has suffered gas shortages during the crisis, stepped up the pressure on both sides to find a solution at a Kremlin summit yesterday. Exporter OAO Gazprom cut off flows to Europe via Ukraine on Jan. 7 after talks over pricing and transit fees broke down. Russia accused its western neighbor of siphoning off Europe-bound gas for its own use, a charge the country denies.

The agreement means supplies to Europe should start “soon,” Putin said, without giving an exact date.

EU Pressure

“Clearly there’s been pressure to get the gas flowing and get a deal which stops the current dispute,” Mark Spelman, global head of strategy at Accenture Ltd. in London, said yesterday by telephone.

Sergei Kupriyanov, a spokesman for Gazprom, declined to comment on the agreement when contacted by Bloomberg News.

The EU had labeled the talks a “test case” for the reliability of Russia and Ukraine as energy providers, while Russian President Dmitry Medvedev called for a new international agreement to prevent future wrangles over gas transit. Europe gets a quarter of its gas from Moscow-based Gazprom, which ended direct deliveries to Ukraine on Jan. 1 after negotiations on a supply contract for this year collapsed.

EU nations have reported declines in gas stockpiles since Gazprom turned off the taps, prompting renewed calls for diversification of energy supplies.

Stockpiles Drained

German inventories sank to “unusually” low levels, while Slovenia said supplies may last less than a month and Croatia sought emergency imports. Balkan countries, the worst hit by the halt in shipments, were forced to ration gas use, shut factories and cut power.

The gas crisis “shows how dependent Europe is on Russian exports,” Eugen Weinberg, senior commodity analyst at Commerzbank AG, said Jan. 15 in a Bloomberg Television interview. “Building alternative routes takes years; there is no way out just yet.”

The conflict has “exposed European weakness in gas,” Accenture’s Spelman said. The EU “hasn’t had a coordinated approach. What we need are moves toward a multiyear deal.”

The Moscow meeting was arranged after the EU said it may urge companies in the 27-nation bloc to seek legal redress if fuel supplies remain halted. Serbia said it may take legal action against NAK Naftogaz Ukrainy, Ukraine’s state utility, for failing to deliver gas, while Croatia’s Ina Industrija Nafte d.d. was considering a lawsuit against Russia, Business.hr reported.

“I think the damage has been done in terms of the relationships, particularly with the European Union,” Spelman said. “We’ve had a lot of bargaining. I wouldn’t be surprised if there aren’t one or two more twists and turns.”

Proposals

In the past two days, Russia and EU utilities made separate proposals to find a way out of the impasse.

European energy companies GDF Suez SA, E.ON Ruhrgas AG and Eni SpA yesterday sent a proposal to Gazprom that would allow flows to start immediately, they said in a statement. Their plan would have been a “temporary solution” to the crisis, meeting conditions demanded by Naftogaz in the “short term,” they said.

Their idea followed a meeting with Putin in Berlin on Jan. 16, during which he sought to persuade them to form a group that would buy the gas needed to operate Ukraine’s pipeline system. Ukraine’s demand that Russia supply this so-called technical gas has been one of the main sticking points of the dispute.

Medvedev subsequently put forward an alternative proposal, whereby a European bank would provide a “letter of credit” for as much as $1 billion for Ukraine, guaranteeing the country’s gas payments, the president told reporters in Moscow yesterday.

It was unclear whether the agreement reached by Putin and Timoshenko would draw on either of these proposals.

To contact the reporters on this story: Mark Sweetman in Moscow at msweetman@bloomberg.net; Amanda Jordan in London at ajordan11@bloomberg.net

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Queensland Rail Pays A$70 Million for 12 United Group Trains

By Jesse Riseborough

Jan. 18 (Bloomberg) -- Queensland Rail, Australia's biggest rail transporter of coal, said it bought 12 new locomotives for A$70 million ($47 million) from United Group Ltd. to expand its general freight unit.

``The market is forecast to double between 2000 and 2020 as product is shifted from road to rail, and with our new fleet we aim to leverage off that growth and expand our market share,'' Ken Lewsey, general manager of Queensland Rail's freight unit, said today in an e-mailed statement.

Australia's freight market is worth A$1 billion a year, Lewsey said.

To contact the reporter on this story: Jesse Riseborough in Melbourne at jriseborough@bloomberg.net

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Australian Body to Get More Authority to Oversee Margin Lenders

By Jesse Riseborough

Jan. 18 (Bloomberg) -- Australia's corporate regulator will be given more authority to regulate the nation's margin lending industry as it aims to provide greater protection for investors and reduce costs for providers.

From July 1, all margin lending providers will have to obtain a license from the Australian Securities and Investments Commission and ensure staff are properly trained to provide advice on the product, Nick Sherry, minister for superannuation and corporate law, said today in an e-mailed statement.

Talks involving the government and industry on the new regulations will start this week, the statement said.

To contact the reporter on this story: Jesse Riseborough in Melbourne at jriseborough@bloomberg.net

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Taiwan’s Financial Regulator Shuts Walsun Insurance

By Janet Ong

Jan. 17 (Bloomberg) -- Taiwan’s financial regulator said it has shut down property insurer Walsun Insurance Ltd. after the company failed to meet minimum capital-requirement levels.

“We had repeatedly asked Walsun to raise its capital to the mandatory level, but it wasn’t able to do so,” Sean Chen, chairman of the Financial Supervisory Commission, said in a briefing today. “The company wouldn’t be able to meet its obligations to its customers as its finances were in a dire state.”

Walshun is the second insurer shut down by the government, following the takeover of property insurer Kuo Hua Insurance Co. in 2005. Taiwan’s insurance companies hold NT$535.6 billion ($16 billion) in securities linked to Fannie Mae and Freddie Mac.

The 80-year-old insurer, formerly known as Tai Ping Insurance Co., had losses of NT$2.87 billion at the end of September, and debt of NT$870 million, said Huang Tien-mu, head of the insurance bureau at the commission.

Walsun’s policy holders will be covered by a NT$2 billion insurance stabilization fund, Chen said. The regulator has asked Taiwan Insurance Institute, a semi-official agency, clean up the closely held Walsun and look for a buyer.

Walsun had 1.6 percent of Taiwan’s property insurance market at the end of 2008, according to the regulator.

The risk-based capital ratio, or RBC, represents an amount of capital, based on an assessment of risk, which a company should hold to protect customers against adverse developments. Taiwan requires insurers to have a minimum ratio of 200 percent. Taiwan’s insurance companies, other than Walsun, have a ratio of more than 300 percent, Chen said.

The commission declined to say what Walshun’s RBC was.

To contact the reporter on this story: Janet Ong in Taipei at jong3@bloomberg.net

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Australia's Newcastle Thermal-Coal Prices Steady at 8-Week High

By Jesse Riseborough

Jan. 17 (Bloomberg) -- Power-station coal prices at Australia's Newcastle port, a benchmark for Asia, were little changed last week at an eight-week high as a drop in exports of the fuel reduced supplies.

The weekly index for power-station coal prices at the New South Wales port rose 2 cents to $81.46 a metric ton in the week ended yesterday, according to the globalCOAL NEWC Index. The index traded between $76.09 and $81.46 in the last eight weeks.

The price has tumbled 58 percent from a July record as the global recession and slowing economic growth in China, the biggest coal consumer, curb demand from utilities. Coal shipments from Newcastle fell 28 percent last week.

Xstrata Plc, the world's largest exporter of power-station coal, BHP Billiton Ltd. and Rio Tinto Group are among mining companies that ship coal through Newcastle.

Contract prices for thermal coal in the year that started April 1, 2008, more than doubled to $125 a ton. Prices may fall 40 percent to $75 a ton for the year starting April 1 as demand from Chinese utilities wanes, Macquarie Group Ltd. said in an e- mailed report today.

To contact the reporter on this story: Jesse Riseborough in Melbourne at jriseborough@bloomberg.net

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Asian Currencies Post Weekly Drop as Global Recession Deepens

By Kim Kyoungwha and Lilian Karunungan

Jan. 17 (Bloomberg) -- Asian currencies fell this week, pushing a regional benchmark to a one-month low, as a deepening global economic slump prompted investors cut their holdings of riskier assets.

Malaysia’s ringgit, the South Korean won and India’s rupee all slumped about 1 percent as reports showed U.S. retail sales dropped for a sixth month in December and China’s exports fell the most in a decade. The MSCI Asia Pacific Index of shares lost 5.7 percent, the biggest weekly slide since Nov. 21, as Japan announced the largest decline in machinery orders on record.

“Doubts and fears on whether policy measures will work to shore up the economy are growing,” said Kim Jae Eun, an economist with Hana Daetoo Securities Co. in Seoul. “That keeps seeping through to currency and stock markets.”

The Bloomberg-JPMorgan Asia Dollar Index, which tracks the region’s 10 most-active currencies excluding the yen, slid 0.4 percent this week to 105.56. It touched a one-month low of 103.79 on Jan. 12. The ringgit dropped 1 percent to 3.5765 per dollar, the won declined 1.1 percent to 1,358 and the rupee lost 1.1 percent to 48.7975.

China, South Korea and Singapore are due to report fourth- quarter economic growth next week, while the Bank of Japan and Malaysia’s central bank meet on interest rates. China’s economy probably expanded at the slowest pace in seven years, while Singapore’s contracted, according to economists surveyed by Bloomberg News. A quarter-point rate cut is forecast in Malaysia.

‘Not Finished’

China’s exports fell 2.8 percent in December from a year ago and Japanese machinery orders in November dropped 16 percent, according to data released this week. Singapore’s shipments plunged 20.8 percent last month, the most since early 2002, and U.S. retail sales slid 2.7 percent from November.

The rupiah fell as foreign investors sold more Indonesian stocks than they bought in three of the last four trading days. Indonesia said this week it will more than double its budget deficit target to 2.5 percent of GDP to bolster economic growth.

“The global financial crisis is not yet finished,” said Rully Nova, a currency trader at PT Bank Himpunan Saudara in Jakarta. “It’s not good for the rupiah.”

Malaysia’s currency slid for a second week ahead of the central bank meeting on Jan. 21, at which economists surveyed by Bloomberg predict the benchmark interest rate will be reduced to 3 percent. Malaysia is working on a second fiscal stimulus program after announcing a 7 billion ringgit ($1.9 billion) package in November, Second Finance Minister Nor Mohamed Yakcop said last week.

“The ringgit could benefit from any knee-jerk reaction to fiscal stimulus or rate-cut efforts,” said Joanna Tan, a regional economist at Forecast Pte in Singapore. “But we think sentiment is still fragile and there’s further downside to the ringgit and economic growth outlook.”

Exports, Recession

Malaysia’s exports dropped 4.9 percent from a year earlier in November, the biggest drop since 2002. Singapore, the U.S. and Japan, which together accounted for 38 percent of Malaysia’s overseas sales in 2008, are all in the midst of recessions.

Singapore’s dollar fell 0.5 percent this week to S$1.4868 against the greenback. The economy contracted 1.7 percent in the fourth quarter from the previous three months, a Bloomberg survey showed before next week’s data.

Elsewhere, Taiwan’s dollar declined 0.6 percent this week to NT$33.36 versus the U.S. currency. The Thai baht fell 0.2 percent to 34.89 and the Philippine peso slipped 0.1 percent to 47.205. The Vietnamese dong and China’s yuan were both little changed at 17,478.50 and 6.8374 respectively.

To contact the reporters on this story: Kim Kyoungwha in Beijing at kkim19@bloomberg.net; Lilian Karunungan in Singapore at lkarunungan@bloomberg.net.

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Asian Stocks Fall Most in Eight Weeks on Worsening Recession

By Chen Shiyin

Jan. 17 (Bloomberg) -- Asian stocks fell, sending the region’s benchmark index to its largest drop in eight weeks, as a slump in Japanese machinery orders and U.S. retail sales renewed concern the global recession is deepening.

Advantest Corp., the world’s biggest maker of memory-chip testing equipment, lost 11 percent as machine orders sank by a record. Samsung Electronics Co., the No. 1 television maker, retreated 4.9 percent after U.S. retail sales declined for a sixth month. Aluminum Corp. of China Ltd., the nation’s biggest producer of the metal, dropped 18 percent in Hong Kong as U.S. rival Alcoa Inc. posted the first quarterly loss in six years.

“The global economy is continuing to deteriorate,” said Rob Patterson, who manages about $2 billion at Argo Investments Ltd. in Adelaide. “If the U.S. economy is slowing, it means they’re importing less from countries like China, and that China is buying fewer commodities. It’s not helpful to anyone.”

The MSCI Asia Pacific Index slid 5.8 percent to 84.68, the largest five-day loss since the period ended Nov. 21. Energy companies posted the biggest declines on the MSCI index, which fell a record 43 percent last year as the global economy sank into recession, hurting demand and forcing companies to cut jobs as profits slump.

Japan’s Nikkei 225 Stock Average lost 6.9 percent, its second straight weekly drop. Benchmark indexes retreated across the region, apart for Sri Lanka and China, where the Shanghai Composite Index added 2.6 percent. Haitong Securities Co. paced gains on speculation the central bank will cut interest rates for the sixth time since September to spur economic growth.

Advantest, Hitachi Construction

Advantest declined 11 percent to 1,262 yen, its third straight weekly loss. Hitachi Construction Machinery Co., the world’s largest maker of giant excavators, tumbled 18 percent to 1,007 yen.

Japan’s machine orders, an indicator of capital spending in the next three to six months, decreased 16.2 percent in November from the previous month, the Cabinet Office said on Jan. 15, the biggest decline since the current survey began in 1987. Economists had estimated an 8 percent slump.

U.S. retail sales also dropped for a sixth month, with a 2.7 percent drop in December, the longest stretch of declines since the tallies began in 1992, the Commerce Department said on Jan. 14. That’s more than twice the decline economists had estimated.

Samsung slid 4.9 percent to 469,000 won in Seoul, halting two weeks of gains. Westfield Group, the world’s No. 1 shopping center owner by market value, slipped 12 percent to A$12.20 in Sydney, a record low.

In South Korea, KB Financial Group slumped 4.5 percent to 35,350 won. Vice Finance Minister Bae Kook Hwan said the country’s economic growth in 2009 is likely to fall short of central bank and International Monetary Fund predictions.

Recession

Growth in the global economy will slow to 2.2 percent this year, a rate “equivalent to a global recession,” the IMF said in November. Companies in the MSCI Asia benchmark reported an aggregate 32 percent drop in profit in the latest quarter, according to data compiled by Bloomberg.

“The market looks like it’s pointing down for now as investors are afraid of what could happen next,” said Hiroshi Chano, who helps manage the equivalent of $7.3 billion at Yasuda Asset Management Co. in Tokyo. “The market is really not very cheap when examined from an earnings standpoint.”

Signs of the deepening recession sent crude oil prices down 12 percent to $35.95 a barrel in New York this week, the biggest decline in more than a month. Copper also tumbled for the first time in three weeks.

Chalco, BHP

Aluminum Corp. of China, or Chalco, slumped 18 percent to HK$3.67 in Hong Kong. BHP Billiton Ltd., the largest mining company, slid 5.7 percent to A$29.88 in Australia as crude oil and metal prices retreated amid signs of slowing demand. The company is also Australia’s largest oil and gas producer.

PetroChina Co., China’s largest oil explorer, dropped 13 percent to HK$6.12 in Hong Kong, the most since the week ended Oct. 24. Cnooc Ltd., China’s biggest offshore oil producer, sank 11 percent to HK$6.64.

PT Bumi Resources, Asia’s biggest exporter of power-station coal, tumbled 19 percent to 510 rupiah, on concern it’s overpaying for a planned $565 million acquisition of three companies.

Haitong, China’s second-biggest brokerage by market value, rallied 17 percent to 10.91 yuan. Industrial Bank Co., a Chinese lender partly owned by a unit of HSBC Holdings Plc, soared 17 percent to 17.93 yuan.

China Rates

China has cut interest rates and unveiled in November a 4 trillion yuan ($585 billion) spending plan to bolster economic expansion. Premier Wen Jiabao pledged on Jan. 11 to announce additional support measures before the legislature meets in March.

“The market is expecting a further easing of monetary policies from the government after a spate of bad economic data,” said Wu Kan, a fund manager in Shanghai at Dazhong Insurance Co., which oversees the equivalent of $285 million.

To contact the reporter responsible for this story: Chen Shiyin in Singapore at schen37@bloomberg.net

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Euro Drops in Longest Stretch of Losses Since November on ECB

By Molly Seltzer and Ye Xie

Jan. 17 (Bloomberg) -- The euro dropped against the dollar for a third week in its longest losing stretch since November as the European Central Bank cut borrowing costs by a half- percentage point and signaled it may lower interest rates again.

The 16-nation currency touched a six-week low versus the yen as Standard & Poor’s cut the credit rating of Greece and threatened to downgrade the debt of Portugal and Spain. The yen and the dollar gained against most of their major counterparts as losses at Bank of America Corp. and Citigroup Inc. encouraged investors to take refuge in the currencies.

“I am bearish on the euro,” said Neil Mackinnon, chief economist in London at ECU Group Plc and a former U.K. Treasury official, in an interview on Bloomberg Television. “The ECB is still behind the curve in my view. A half-point move is not enough.”

The euro fell 1.6 percent to $1.3267 yesterday from $1.3476 on Jan. 9, losing 5 percent so far in 2009. The currency dropped 1.2 percent to 120.37 yen from 121.81 and touched 116.23 on Jan. 15, the lowest level since Dec. 5. The dollar gained 0.4 percent to 90.72 yen from 90.39 a week earlier.

Russia’s ruble slid as much as 0.9 percent to 32.6675 per dollar yesterday, the weakest level since Russia redenominated the currency in 1998, after the central bank accelerated its devaluation to stem the drain on foreign-exchange reserves. Bank Rossii devalued the currency for the fifth time in six days, a central bank official said, more than twice the pace in November and December. The ruble depreciated 5 percent this week.

Weaker Won

Canada’s dollar posted its worst weekly performance since October as the nation’s trade surplus dropped in November to the narrowest level in more than a decade. The currency declined 4.7 percent to C$1.2431 per U.S. dollar.

South Korea’s won, Asia’s worst performer against the dollar last year, posted a fourth weekly loss on concern the deepening global recession will hurt demand for exports and further U.S. bank failures will prompt hoarding of dollars. The won dropped 1.1 percent to 1,358.20 versus the greenback.

The euro weakened versus the dollar on Jan. 15 as the ECB lowered the main refinancing rate to 2 percent, matching a record low, and signaled it’s likely to cut interest rates further. The benchmark borrowing cost compares with 1.5 percent in the U.K. and a range of zero to 0.25 percent in the U.S. The ECB isn’t planning to lower borrowing costs to zero, President Jean-Claude Trichet said in an interview with Japanese public broadcaster NHK yesterday.

S&P on Jan. 14 cut Greece’s sovereign credit rating by one level to A- after threatening to drop Portugal’s AA- and Spain’s AAA credit ratings earlier in the week.

‘Talk’ of Breakup

“Talk of a euro breakup on sovereign debt downgrades is premature at this point, although the talk is getting louder,” wrote Dustin Reid, director of currency strategy at RBS Global Banking & Markets in Chicago, in a note yesterday.

The U.S. currency gained 8.5 percent to 54.64 cents per New Zealand dollar as deepening losses at financial firms led investors to seek the relative safety of U.S. Treasuries.

Bank of America reported yesterday its first loss since 1991 and got a $138 billion federal lifeline, while Citigroup Inc. posted an $8.29 billion loss, twice as much as analysts estimated, and said it will be split into two.

The ICE’s Dollar Index, which tracks the greenback against the euro, the yen, the pound, the Canadian dollar, the Swiss franc and Sweden’s krona, touched 85.137 on Jan. 15, the highest since Dec. 11. U.S. Treasuries rallied this week, pushing the two-year note’s yield three basis points lower to 0.72 percent.

‘Vicious Cycle’

“There’s this risk of a vicious cycle, where the economy is weak, and that leads to further weakness in companies and maybe further bankruptcies,” said Meg Browne, a currency strategist at Brown Brothers Harriman & Co. in New York. “It’s a reminder of the risks we still face, and I think that’s a dollar positive.”

The yen gained 4.1 percent this week to 61.08 against Australia’s dollar and 7.8 percent to 49.61 versus New Zealand’s dollar. A 4.5 percent drop in the Standard & Poor’s 500 Index prompted investors to sell higher-yielding assets and pay back low-cost loans in Japan’s currency. Its 0.1 percent target lending rate compares with 4.25 percent in Australia and 5 percent in New Zealand.

Japan’s yen advanced to 113.64 per euro on Oct. 27, the strongest since 2002, as coordinated rate cuts by major central banks on Oct. 8 and financial-system bailouts in the U.S. and Europe failed to revive stock markets.

To contact the reporters on this story: Molly Seltzer in New York at mseltzer4@bloomberg.net; Ye Xie in New York at yxie6@bloomberg.net

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BNP Paribas Executives to Give Up Bonuses Amid Financial Crisis

By Albertina Torsoli

Jan. 17 (Bloomberg) -- BNP Paribas SA said Chairman Michel Pebereau and Chief Executive Officer Baudouin Prot will give up their bonuses for 2008 because of lower full-year profit linked to the global financial meltdown.

The company “always exercises a responsible remuneration policy,” BNP spokesman Jonathan Mullen in Paris said in a telephone interview today. The decision was made “in line with our policy,” he added.

The executives bowed to pressure from French President Nicolas Sarkozy, who wants banks to limit bonuses and dividends as he plans a second round of aid for the finance industry amid a deepening recession, Le Figaro reported earlier.

The Paris-based bank will post a 2008 profit of about 3 billion euros ($3.98 billion), Le Figaro said. Mullen declined to comment on the newspaper’s report.

BNP Paribas will be releasing full-year results Feb. 19.

To contact the reporter on this story: Albertina Torsoli in Paris at atorsoli@bloomberg.net

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India’s Singh Predicts ‘Difficult’ Year, Signals More Measures

By Kartik Goyal

Jan. 17 (Bloomberg) -- India’s Prime Minister Manmohan Singh said the fiscal year starting April 1 will be “difficult” and signaled policy makers may add to interest- rate and tax cuts to bolster the slowing economy.

“The difficult period will continue,” into the next fiscal year, Singh said at an awards function in Mumbai today. “The government will plan on continuing its efforts for a supporting environment next year also. Both monetary and fiscal policy will have to be tailored to that objective.”

Prime Minister Singh, seeking re-election before May, wants to boost consumption as a decline in exports forces companies to reduce production and fire workers. India may add to four interest-rate cuts since October and unveil more fiscal stimulus packages to revive an economy, which it expects to expand at the slowest pace since 2003 in the year ending March 31.

Growth in the current fiscal year may slow to between 6.5 percent and 7 percent, he said, from more than an average 9 percent in the last three years, Singh said.

“The global economic horizon is cloudier than it has been for a long time,” he said. “It will be a testing time for the economy and for individual businesses in all sectors.”

India’s overseas shipments dropped 9.9 percent in November from a year earlier after contracting 12.1 percent in October. The decline in exports and output may continue for the next two quarters, Trade Minister Kamal Nath said in a Jan. 8 Bloomberg Television interview. Industrial production grew 2.4 percent in November after declining for the first time in 15 years.

‘Ample Flexibility’

Cooling inflation will “give ample flexibility for monetary policy,” Singh said.

Inflation in India has more than halved from a 16-year high of 12.91 percent in August as a global recession drives down prices of oil and other commodities. That’s given the government and the central bank room to unveil measures to spur growth without fanning prices. Wholesale prices climbed 5.24 percent in the week to Jan. 3, the smallest increase in 11 months.

The Reserve Bank of India has slashed the benchmark repurchase rate by 350 basis points to 5.5 percent since October. To spur growth and stimulate consumer demand, India’s government on Jan. 2 unveiled a second stimulus package to inject capital into banks and allowed overseas investors to double purchases of debt.

Governments worldwide are announcing spending packages to boost growth amid a deepening global slump. China in November unveiled a 4 trillion-yuan ($586 billion) stimulus package to revive demand. Thailand said on Dec. 26 that it will spend 300 billion baht ($8.6 billion) to help an economy the government predicts may slip into a recession in the first quarter.

‘Blot’ on Image

Singh said the Satyam “episode is a blot on our corporate image and indicates how fraud and malfeasance in one company can inflict suffering on many and can also tarnish India’s image more broadly.”

Satyam Computer Services Ltd., India’s fourth-largest software exporter, is facing fraud investigation after its founder Ramalinga Raju on Jan. 7 admitted to overstating profits.

Singh, in his first public address in Mumbai after the terror attacks in November, said his government won’t spare any effort to ensure the safety of Mumbai.

Pakistan must act against the militant group Lashkar-e- Taiba and must ensure nothing like Mumbai happens again, he said. India expects Pakistan to take steps against the attackers, he said.

India has blamed the Pakistan-based militant group for the attacks that killed 164 people, raising tensions between the nuclear-armed neighbors. Pakistan has said it wanted to cooperate with India to combat terrorism.

To contact the reporter on this story: Kartik Goyal in New Delhi at kgoyal@bloomberg.net

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Satyam Seeks Emergency Bank Funds, Says It’s Looking for CEO

By M.C. Govardhana Rangan and Kartik Goyal

Jan. 17 (Bloomberg) -- Satyam Computer Services Ltd., under investigation for fraud, is in talks with banks to overcome a cash crunch that may leave the software maker without enough money to pay salaries and utility bills.

The government-appointed board is seeking funds, looking for a new chief executive officer and improving revenue collection, Satyam said in an e-mailed statement today. India’s fourth-largest software exporter is being probed after founder Ramalinga Raju said Jan. 7 he overstated profits.

“All efforts are being made to ensure that the employees are paid their salaries on time,” the company said. The board members are “in touch with key customers and so far have not heard of deliveries being affected in any way.”

State Farm Mutual Automobile Insurance Co., the largest home and auto insurer in the U.S., yesterday canceled its Satyam contract, dealing a blow to the Hyderabad-based company’s efforts to persuade customers it can fulfill their orders. Satyam needs clients including FIFA, soccer’s governing body, to keep paying after the government ruled out a bailout and the company said it may take three months to sort out its accounts.

The Satyam episode “is a blot on our corporate image and indicates how fraud and malfeasance in one company can inflict suffering on many and can also tarnish India’s image more broadly,” Prime Minister Manmohan Singh said in Mumbai today.

Pending Payments

Satyam won’t know how much it needs until auditors confirm assets and assess how much clients owe, director Deepak Parekh said on Jan. 15. Satyam has 17 billion rupees ($348 million) of pending payments from customers, he said.

The board will now meet once a week and members will take turns to chair meetings until the government appoints a chairman, today’s statement said.

The board also appointed Brahmayya & Co. as internal auditors of the company and Amarchand & Mangaldas and Suresh A. Shroff & Co. as legal advisers to the board. Directors T.N. Manoharan, C. Achuthan and Mr. S.B. Mainak will make up an audit committee.

“The new board is doing everything to try and stabilize the situation, find a new chief executive officer, reassure clients, but all this takes time,” said Krupal Maniar, a Mumbai-based analyst at ICICI Securities Ltd. “Unfortunately, time is what’s against them.”

Promise to Banks

India’s government has assured state-run banks it won’t hinder their seizure of pledged properties if Satyam’s subsidiaries fail to meet loan payments, the Economic Times reported today.

State-run banks have lent 20 billion rupees to subsidiaries of the computer-services provider and hold securities valued at 27 billion rupees, the report said, citing a finance ministry official who declined to be identified.

Ram Mynampati, removed from the board after a three-day stint as interim chief executive officer, and executive Virender Aggarwal are meeting with customers in the U.S. and Singapore, the company said.

Bloomington, Illinois-based State Farm told Satyam on Jan. 15 that it was terminating the order. “The current uncertainties surrounding Satyam’s future and potential impact to State Farm resulted in this decision,” spokesman Jeff McCollum said in an e-mail yesterday.

Satyam doesn’t comment on specific clients, the company said in a mobile-phone text message.

CEO Speculation

Vivek Paul, the former vice chairman of Wipro Ltd., India’s third-largest computer-services provider, declined to comment on an Economic Times report that he’d join Satyam. Paul quit private equity firm TPG last month, where he had been a partner since leaving Wipro in October 2005.

Satyam rose 21 percent yesterday, after falling 32 percent on Jan. 15. The stock has lost 86 percent of its market value since Ramalinga Raju’s Jan. 7 statement that he fabricated $1 billion in cash and assets.

Mark Mobius, who oversees about $26 billion in emerging- market stocks as executive chairman of Templeton Asset Management, said his fund sold all its shares in Satyam and didn’t lose money because it “got out early.”

“We have analysts on the ground and we had been suspicious for a while,” he said in Kuala Lumpur today. “So we were gradually reducing what we had there.”

Raju, 54, was arrested on Jan. 9. He, his younger brother and former managing director Rama, and former chief financial officer Srinivas Vadlamani have been remanded to judicial custody until Jan. 23.

Police Custody

A court in Hyderabad today sent the three to police custody starting tomorrow for interrogations, Raju’s lawyer Bharat Kumar said in televised comments. Raju will appeal against the court order on Monday, Kumar said.

Judge D. Ramakrishna will separately consider on Jan. 19 a bail application moved on behalf of Raju and the other two. The judge said yesterday he would also pass orders on a plea by the Securities and Exchange Board of India seeking access to Raju for recording a statement on share trading in the company.

“As the reorganization of the board of directors proceeds, the company is better positioned to focus solely on ensuring continued service to customers and restoring stakeholder confidence,” the company said in a statement to the Bombay Stock Exchange today. Satyam also said it paid U.S. workers the first of the two cycles of January wages.

FIFA Role

Satyam is reassuring FIFA, based in Zurich, that the company can continue its role in the 2010 World Cup, Sridhar Maturi, who runs sports marketing at Satyam, said on Jan. 15.

Dilbagh Gill, Satyam’s head of sport, spent two days in Zurich this week with FIFA officials, he said. Satyam, the first Indian company to sponsor a World Cup, is meant to be FIFA’s official information-technology provider until 2014.

Nestle SA, the world’s largest food company and a Satyam client, said this week it is considering alternative solutions to avoid disruption of information-technology operations. Telstra Corp., Australia’s largest telephone company, said Satyam’s disclosure will be a factor when it cuts two of its four major IT suppliers this year.

To contact the reporters on this story: M.C. Govardhana Rangan in Mumbai at grangan@bloomberg.net; Kartik Goyal in New Delhi at kgoyal@bloomberg.net

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Gazprom Seeks to Participate in Nigerian Gas Pipeline to Europe

By Ahmed Rouaba

Jan. 17 (Bloomberg) -- OAO Gazprom, Russia’s gas exporter, is interested in participating in a gas pipeline project that would link Nigeria to Europe through Algeria.

“The project is important for us,” Boris Ivanov, Chief Executive Officer of Gazprom Netherlands, told Bloomberg News in an interview while in Algiers to sign an exploration contract.

“I am on a tour of Africa,” Ivanov said. “I will discuss with partners the feasibility of the project. If the project is done, we will participate in it.”

The pipeline is being studied by Nigerian National Petroleum Corp. Gazprom already has a presence in both Nigeria and Algeria.

For Related News:

To contact the reporter on this story: Ahmed Rouaba in Algiers through the newsroom in London or arouaba@bloomberg.net.

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