First written on January 18, 2009 Updated on Wednesday, January 20, 2010 Business News Summary - Issue 03/2010 The acquisition saga of Cadbury by Kraft Foods is nearing its climax. We have listed the sequence of events at our blog and those interested can peruse it by clicking on the link. There were rumors that the bid may be sweetened at the last minute and even a friendly deal at USD 19 billion. The original offer was at USD 17 billion which was at a premium of 31% over the then prevailing price. If the deal goes through at the new price, it will be at 43% premium. Obviously, Kraft is in a hurry to close the deal and willing to be stretched. It was confirmed that the deal is through at USD 19.6 billion. The internet search engine company, Google has threatened China, that it will pull out. The dispute is over censorship. Our comments on the same are published at the blog and can be perused by clicking here. Google is suspecting inside help to the break in into its computers and has taken some preventive actions.  Google is in further trouble in India because it has shown the Indian state of Arunachal Pradesh as part of China, as part of India and as a disputed territory, in three different versions. We don't want to sound prejudiced but we suspect this company's motives.  One of the sore points about AIG bailout issue was that it used the money to pay, giant merchant banks, whose names reads like who is who, 100 cents to the dollar for services rendered by them. The present US Treasury Secretary was the President of New York State FRB at that time. He has been summoned to appear before the House of Representatives Oversights Committee. This committee has also subpoenaed (Court Summons and Directives) for submission of all e-mails and other documents exchanged during the period. FRB defends its decision saying that not doing so, would have resulted in collapse of the US economy. This stand is debatable as many don't agree. The result of US economic fallout in 2008, has resulted in regulators and legislators taking a close look at financial services industry. The USG is likely to raise a bill for levying fees on all such banks to protect the tax payers from bearing the burden of bailouts in future. The estimated losses to the taxpayers is pegged around USD 117 billion, but the banks continue their excesses after freely getting out of trouble. It is rather strange that these banks which would have collapsed, if they were not bailed out with taxpayers money, reward themselves billions in bonuses, while the poor and honest taxpayers foot the bill for their losses. The USG just has to collect income tax at the rate of 99% on such bonuses and excesses. It is very simple. Just change the laws. There is no need to break one's head. All banks and people running them will fall in line. But that is not possible when congressmen and senators depend upon big businesses for campaign contributions and to stay in power. It is the middle class that will end up on the wrong side of the stick. Always and Everywhere. The Goddess of Justice has a tendency to tilt the scale on the side of powerful and the rich. Unfortunately, she is always blindfolded. It is reported that the shares of troubled JAL, fell to 8 cents last week due to fears that it might be delisted. This airline may file for bankruptcy protection for availing bailout funds under local Japanese laws. It is said that 1500 small firms will be affected if JAL sinks into bankruptcy. It is also reported that JAL has tied up with Delta Airlines of USA and changing its alliance. It is now confirmed that it will be filing for bankruptcy protection.  It is reported by Thomson - Reuters quoting a FT dispatch, that some small creditors of Dubai World (DW) want to offload their loans and exit. DW wants to restructure USD 22 billion of its debt and is in discussions with its creditors. One of the available options is to sell these loans which are in the form of assets at a discount to financial services firms which deal with distressed assets.  The US Justice Department has accused the pharmaceutical giant J&J of paying tens of million dollars to Omnicare Inc., to buy and recommend its drugs. If this found to be true, it will be a sad day for us because we have always rated this company very high in ethical standards.  Swiss Re has transferred its US business to Berkshire Hathaway for USD 1.27 billion. BH holds a very large portfolio in insurance business. It is also reported that BH wants to invest more in the South Korean steelmaker POSCO.  GOI has made its first positive move in a long time in the field of education. It has derecognized 44 deemed universities all over India. More are under scanner. Please click here to see the comments on the issue at our blog.  The Chrysler Group of USA has recalled around 24,000 vehicles due to a defect that could result in brake failure. Chrysler along with GM emerged out of bankruptcy protection last year. While recalls are necessary and speaks volumes about the integrity of the market system, it doesn't speak very highly about the company and its products, especially when it is trying to keep its head above water.  Both IBM and Intel have reported good results in the last quarter which is good news for the technology sector. While IBM has had 9% increase in profit, what is important is it has had a revenue growth in a year and half. That is more important. Profits can always be increased by cost cutting. While it is a continuous process, it doesn't help in the long run and stifles growth.  Written  by Madhavan Gopalachary The above news summary is based on the dispatches provided by various international media giants like BBC, Bloomberg, FT, Thomson-Reuters, Money watch, New York Times, IHT, Toronto Sun and Yahoo news. The Indian business news is based on dispatches provided by Hindu, NDTV and CNN-IBN. We are unable to provide individual references unless deemed important. Disclaimer on news summary The views, opinions and interpretations on the news are personal. Sponsorship does not mean that the sponsors endorse them. © Copyright,Jan-10 . www.mmgcommunications.info. Without prejudice. All rights reserved