Blackberry bid
RIM rescue
Canadian smartphone maker Research In Motion, which owns the Blackberry brand, looks likely to be taken private after a private equity consortium led by 10 per cent shareholder Fairfax tabled a $9 a share offer valuing the company at $4.9bn (£2.6bn). The offer will now go to due diligence over a six-week period during which other offers can be submitted. RIM's shares have suffered as it has struggled to keep up with the onslaught of competition in the smartphone sector. The company recently announced plans to cull 40 per cent of its global workforce after its market share fell to 3 per cent, down from 14 per cent in 2011. In the second quarter it sold 3.7m phones, which is a stark comparison with Apple's sales of 9m new iPhone5 units over last weekend.
Apple sweetens
iPhone 5 surge
Despite an initial lukewarm reception from tech analysts, the new Apple iPhone 5S and 5C both sold extremely well on their first weekend of availability. Aided by a launch which spanned 11 countries, including China for the first time, Apple sold 9m phones over the first three days in store leading to shortages in some areas as the company struggled to keep up with early demand. Investors who had previously reacted with caution to the new release of Apple's flagship phone took the news well and Apple's shares gained 5 per cent in trading on Monday. The company also reported that more than 200m devices worldwide are already running its iOS7 software only days after its launch.
Merkel wins
Decisive victory
Angela Merkel has been returned to power in Germany with an increased share of the vote despite the tough economic times the eurozone powerhouse has suffered in recent years. Ms Merkel's Christian Democrat party enjoyed its strongest showing for more than 20 years as it won 311 of the 630 seats available in parliament, falling just short of an outright majority. But her former coalition partner, the Free Democratic party saw its share slip below the 5 per cent level so won no seats, leaving Ms Merkel to find a new junior coalition partner. As a result, a 'grand coalition' with the second most popular party, the centre-left Social Democrats, looks the most likely outcome.
Chrysler spat
IPO plan
The relationship between US auto maker Chrysler and its 68.5 per cent shareholder Fiat could be threatened by moves to force an initial public offering (IPO) of the shares not held by the Italian auto giant. The relationship stems from the collapse of Chrysler into bankruptcy in 2009, following which the Italians took a majority stake and helped to drive the revival of the brand, whose US market share has risen from 8.8 per cent to 11.2 per cent in the intervening period. But the United Auto Workers Veba Healthcare Fund, which owns 14.5 per cent of the shares, retained the right to request an IPO if a deal could not be agreed for Fiat to buy its shares. The Italian company, which had harboured hopes of outright ownership, is opposed to the IPO and has threatened to revise its technology and design sharing relationship with Chrysler if the float goes ahead.
IPO's storm back
Market picks up
The latest chunky IPO to test the waters in London was announced this week when US group Riverstone Holdings announced plans to launch Riverstone Energy, an oil and gas investment company with former BP chief Lord Browne among its directors. Riverstone plans to raise £1.5bn from existing and new investors. With the Royal Mail float looming and the potential for more before the end of 2013, it promises to be the best year since the mid-2000s for new money raised in London, with IPO proceeds already totalling $7bn (£4.3bn) plus.
Mortgage boom
London leads
Mortgage approvals in the UK have registered their highest level since 2009 in further affirmation of a recovery in the housing market. The British Bankers' Association reported that 38,288 mortgages were approved in August, which was 28 per cent more than the same month last year. This news came on the back of yet more positive recent data on house prices in the UK market, which suggests that government initiatives to encourage first-time buyers, plus an improving economic picture, are driving home purchases. Meanwhile, London property appears to be in boom territory with the average price of a house in the capital rising by £38,729 over the past 12 months, which is more than the average net London household income of £38,688.
