Showing posts with label confirms. Show all posts
Showing posts with label confirms. Show all posts

Wednesday, June 8, 2011

US confirms $500m Chrysler sale

3 June 2011 Last updated at 06:45 GMT Jeep under construction at the Chrysler plant in Toledo, Ohio The deal is likely to be announced by President Obama on a visit to Chrysler's Toledo, Ohio plant The US Treasury has confirmed it will sell its remaining 6% stake in Chrysler to Fiat for $500m (?306m).

The sale will sever the US government's last ties with the Detroit firm, which it rescued from bankruptcy in 2008-09.

It will also give the Italian carmaker a 52% majority stake in the US firm.

The deal - likely to be announced by President Obama on Friday at a visit to a Chrysler plant in Toledo, Ohio - is expected by Washington to leave it with a $1.3bn loss on the Chrysler rescue.

'Improbable turnaround'

The US Treasury originally provided $12.5bn in emergency loans to the troubled carmaker during the financial crisis and recession.

Treasury Secretary Tim Geithner said it was "one of the most improbable turnarounds in recent history" and has insisted that the government's intervention was aimed at saving US jobs, and not at making a profit.

Since briefly entering bankruptcy during 2009, the firm has returned to strong profitability under Fiat's guidance, recording a profit of $116m in the first three months of this year.

As well as the equity purchase, Fiat has also agreed to pay an additional $75m - split $60m to the US government and $15m to Canada - to buy out an option on Chrysler's shares currently held by the United Auto Workers retiree trust.

The deal could take up to three months to get necessary regulatory approvals, the Treasury cautioned, but is expected to go through more quickly than that.


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Saturday, June 4, 2011

Tepco confirms extra rod meltdown

24 May 2011 Last updated at 03:59 GMT Fukushima nuclear plant The problems with the Fukushima nuclear plant have raised questions over Tepco's future Tokyo Electric Power (Tepco) has confirmed the meltdown of extra fuel rods in reactors at its damaged Fukushima nuclear power plant.

The company said that the rods were in its Number 2 and Number 3 reactors.

Tepco has been trying to contain radiation from the plant, crippled by the 11 March earthquake and tsunami.

The company said that it planned to stick to its timetable of getting the radiation under control by January.

Tepco's announcement came on the same day that a team from the United Nations' atomic watchdog, the International Atomic Energy Agency (IAEA), kicked off a visit in Japan.

100 hours Continue reading the main story
Based on our analysis, we have reached the conclusion that a certain amount of nuclear fuel has melted down.”

End Quote Ken Matsuda Tepco Earlier this month, Tepco had revealed that rods at its Number 1 reactor melted down. It was thought that a similar problem had occurred in the other reactors but it was difficult to confirm.

"Based on our analysis, we have reached the conclusion that a certain amount of nuclear fuel has melted down," Ken Matsuda, a Tepco spokesman told the BBC.

He said the analysis came from a report that Tepco was required to submit to Japan's Nuclear and Industrial Safety Agency (Nisa).

The spokesman added that most of the fuel from the Number 2 reactor had melted approximately 100 hours after the earthquake, which measured 9 on the Richter scale, struck Japan.

The meltdown in the Number 3 reactor took place about 60 hours after the quake.

Mr Matsuda said the new discovery would not alter Tepco's plans.

The company has said that it wants to reach a "cold shutdown" of the power plant by January, and has been trying to cool the reactors and get the unstable fuel rods back under control.

"This result does not change our work," he said.

Continue reading the main story image of Roland Buerk Roland Buerk BBC News, Tokyo

Japan's government has faced some criticism at home, and from its neighbours, over its handling of the crisis at the Fukushima nuclear power station.

The Chief Cabinet Secretary Yukio Edano has said the team from the International Atomic Energy Agency is being welcomed into the country to demonstrate transparency.

Led by Mike Weightman, Britain's chief inspector of nuclear installations, the 20 experts from a dozen countries are expected to visit the crippled plant.

They'll also meet officials as they compile a report which will be presented to member states of the IAEA next month.

The aim is to learn lessons to improve nuclear safety worldwide, and to share expertise.

Radiation monitoring Earlier in May, Tepco revealed that the damage sustained by the Number 1 reactor immediately after the earthquake and tsunami was far more severe than initially thought.

Professor Nobumasa Akiyama of Hitotsubashi University in Tokyo said Tepco's new revelation reinforces that idea.

In an effort to better understand the current situation in Japan specialists from the IAEA are joining other international experts in Tokyo for a fact-finding mission.

They are expected to submit a report on Japan's handling of the nuclear crisis to present to the IAEA's member states.

The group is expected to visit the Fukushima nuclear plant, though details have not been finalised.

Professor Akiyama said that the IAEA had come under criticism for its reaction to the Fukushima crisis.

"First of all, it has not been able to provide the information on what's going on on the ground," he said. "Secondly, it hasn't been able to provide a prescription for the solution of the crisis."

Mr Akiyama said the nuclear agency would be expected to provide more guidelines for nuclear safety after the visit to Japan this week.

He added that it may need to be beef up its funding and staff if it was going to be able to fulfil its mandate.


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