HSBC Holdings Plc, the U.K.'s biggest bank, on Friday completed its $9.85 billion purchase of Republic New York Corp., doubling HSBC's private banking business and making it the third-largest retail bank in New York State.
The purchase also includes the New York-based bank's Safra Republic Holdings SA affiliate. Both were founded by billionaire Edmond J. Safra, who was killed this month in a fire at his Monaco home.
London-based HSBC Holdings delayed and renegotiated the terms of the acquisition, originally announced in May, after Japanese regulators alleged Republic was involved in a $1 billion fraud by one of its clients, Princeton Economics International Inc.
To salvage the sale, Safra accepted as much as 19 percent less for his stakes in Republic and Safra Republic Holdings.
The purchase price, which had originally been $10.3 billion, dropped to 9.85 billion as he agreed to take $59.41 a share for his stock. Other Republic shareholders will receive $72 a share.
US West sells Global Crossing stock
NEW YORK (AP) -- US West, the Denver-based Baby Bell telephone company, said Friday it sold more than half of its stock in Global Crossing Ltd., but US West took a big loss on the sale.
US West sold 24 million shares in Global Crossing for about $48 a piece, far below the $62.75 US West originally paid for the stock in May, when the two companies announced plans to merge.
Their agreement fell apart in July after US West received a higher, hostile bid from Qwest Communications, a Denver long-distance phone company. Nevertheless, US West continued to hold a 9.5 percent stake in Global Crossing, which quickly lost much of its value.
Global Crossing, a Bermuda-based company building an undersea fiber-optic cable network, saw its shares slide as low as $20.31 1/4 in September. The stock has recovered in recent months, and US West seized the chance to sell 65 percent of its shares.
Because US West sold the stock at a loss, the company's fourth-quarter earnings will be reduced by about 44 cents a share.
Global Crossing's stocks rose $2.18 3/4 to $50 Friday on the Nasdaq Stock Market. Shares of US West rose $1.81 1/4 to $72 on the New York Stock Exchange. Qwest's shares increased $1 to $43 on the Nasdaq.
Gateway sells Amiga trademark
SAN DIEGO (Bloomberg) -- Gateway Inc., the No. 2 direct seller of personal computers, sold its Amiga trademark and remaining Amiga computers to Amino Development Corp., scrapping a plan to revive the multimedia pioneer it acquired two years ago.
Terms of the sale, which is effective immediately, weren't disclosed Friday. Closely held Amino Development also purchased from Gateway the rights to Internet domain names, used for Web sites and e-mail addresses, that relate to Amiga.
Gateway gained the Amiga name in March 1997 with the purchase of Amiga Technologies, whose Amiga multimedia PC from the 1980s retained a core group of fans. The company said it decided to sell the brand after combining Amiga's software engineering with its own strategy to sell a line of scaled-down computers known as Internet appliances.
Buffalo stocks rise 2.1 percent
Buffalo stocks rose for a second week, led by Moog Inc., Royal Ahold NV and Hartmarx Corp., as all three major national stock indexes hit new highs.
The Bloomberg Buffalo Stock Index rose 3.89, or 2.1 percent, to 190.63 this week. The employee-weighted list of 55 companies with operations in the region set a 52-week closing high of 214.74 on July 6 and a low of 178.11 on Oct. 15.
Moog, a maker of aerospace parts, rose 5 5/1 6 to 27 this week. The shares of the East Aurora-based company fell 31 percent this year.
Royal Ahold, the world's sixth-largest supermarket owner and owner of Tops Friendly Markets, rose 1 1 3/1 6 to 29 1 5/1 6. Chicago-based Hartmarx Corp., the No. 1 U.S. maker of men's suits and the owner of M. Wile Co., rose 9/1 6 to 4 1/1 6.
Twenty-nine stocks rose, 20 fell and six were unchanged.
Among the decliners, National Fuel Gas Co., which produces, stores and distributes natural gas, fell 1 3/8 to 46 1/2 . Astronics Corp., which makes lighting products and custom packaging, fell 1 to 10 1/8 .
In the broader market, the Dow Jones Industrial Average gained 91.36, or 0.8 percent, to a record 11,497.12 for the week. The Standard & Poor's 500 Index rose 10.91, or 0.8 percent, to a record 1469.25. The Nasdaq Composite Index gained 99.87 to a record 4069.31.