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Bloomberg News reports that Brookfield and GIC are close to a binding offer for National Storage.
Bloomberg News, citing sources familiar with the situation, reported Sunday that Brookfield Asset Management (BAM) and Singapore's GIC were close to making a binding bid for National Storage REIT. The deal could value the Sydney listed company at around 4 billion Australian Dollars ($2.65 billion). The report stated that the parties were finalizing the details of the deal, which could be announced as early as Monday. Brookfield and GIC had also made good progress in their due diligence process on National Storage. The report states that the price for the binding offer will likely be the same in November as the conditional offer. Could not verify immediately the report. National Storage REIT announced last month that it received an A$4.02 Billion buyout offer by a consortium consisting of Brookfield, Singapore's GIC and other companies. This would have been the largest real estate privatisation in Australia. ($1 = 1,5067 Australian Dollars) (Reporting and editing by Andrea Ricci in Bengaluru)
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Canada's Air Transat suspends flights after pilots union strikes notice
Transat AT, a Canada-listed tour operator, announced on Sunday that Air Transat, Canada, will suspend its flights from December 8 to 9 after receiving a 72-hour notice of strike by ALPA, the union which represents the 700 pilots at the company. Air Transat's pilots may begin their strike as early at 3:00 am. Air Line Pilots Association said that the strike would begin at 3:00 AM ET on December 10. The Canadian leisure carrier deemed the strike announcement "premature", given the progress made at the bargaining tables. It said that it had offered compromises including a salary increase of 59% over five years, and improved working conditions. Bradley Small, Chair of the Air Transat Master Executive Council, said: "There's still time to avoid striking, but unless there are significant improvements at the bargaining tables, we may strike to get a modern contract." Transat AT reported that Air Transat was working with the union in order to avoid a strike, but it will stop all operations on December 9th to ensure passengers and crews are not left stranded. Transat AT Inc. offers Air Transat as a brand. Reporting by Abu Sultan in Bengaluru and Shivani Tana; editing by Andrea Ricci
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American Airlines asks for notices regarding the bankruptcy of Spirit Airlines
According to a court document, American Airlines has filed an appearance notice in the bankruptcy proceedings of Spirit Aviation and requested that all notices and documents be served going forward. Spirit filed for bankruptcy a second-time in August as it struggled to deal with its dwindling reserves of cash and increasing losses. The airline stated that it was looking at all possible options in its restructuring, including a merger and sale of the business. American Airlines filed a request in the Southern District Court of New York on December 5, requesting to receive all notices, including operating reports and plans of reorganization, as well as liquidation statements. Spirit and American didn't immediately respond to a comment request. Spirit Airlines has previously stated that they are considering all options to ensure the future of their airline. Spirit actively explores all possible opportunities. The merger or sale of Spirit could maximize value. Spirit stated in a SEC filing in October that the company was actively involved in discussions with several interested counterparties. The U.S. Supreme Court earlier this year rejected a request from American Airlines to overturn a judicial ruling that found the company's scrapped U.S. Northeast Partnership with JetBlue Airways in violation of federal antitrust laws. JetBlue and United Airlines have partnered in a partnership since then. You can also Both airlines' websites allow travelers to book flights. Spirit Airlines urged the U.S. Transportation Department in June to reject the collaboration of United and JetBlue. Spirit Airlines said it was anti-competitive and that other large airlines would pursue similar deals. Reporting by Doyinsola Oladipo in New York, editing by Andrea Ricci
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American Airlines asks for notices regarding the bankruptcy of Spirit Airlines
According to a court document, American Airlines has filed an appearance notice in the bankruptcy proceedings of Spirit Aviation and requested that all notices and documents be served going forward. Spirit filed for bankruptcy a second-time in August as it struggled to deal with its dwindling reserves of cash and increasing losses. The airline stated that it was looking at all possible options, including a merger and sale of the business. American Airlines filed a request in the Southern District Court of New York on December 5, requesting to receive all notices, including operating reports and plans of reorganization, as well as liquidation statements. Spirit and American didn't immediately respond to a comment request. Spirit Airlines has previously stated that they are considering all options to ensure the future of their airline. Spirit actively explores all possible opportunities. The merger or sale of Spirit could maximize value. Spirit stated in a SEC filing in October that it was actively in talks with several interested counterparties. (Reporting from Doyinsola Oladipo in New York, editing by Andrea Ricci.)
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Southwest Airlines fined $11 million by the US for holiday meltdown in 2022
The Trump Administration announced Saturday that it would waive a $11 million fine on Southwest Airlines, as part of the $140 million settlement for the airline's meltdown during a busy travel season in December 2022. Southwest Airlines in December 2023 will pay $35 million in cash and $90 million worth of travel vouchers for passengers who are delayed by at least 3 hours in reaching their final destination due to an airline issue or cancellation. This is because the airline handled the meltdown which stranded over 2 million passengers. In a written order, the U.S. Transportation Department cited Southwest Airlines' decision to invest more than $1 billion into its operations since the 2022 crash to improve performance and reliability as the reason for its decision to waive the remaining $11 millions of the fine due by January 31. Reporting by David Shepardson, Editing by Chizu nomiyama
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Merz and Macron to discuss fate FCAS fighter jet in the week of December 15, says industry source
A source in the industry said that the German Chancellor Friedrich Merz, and the French President Emmanuel Macron plan to discuss the fate the troubled Franco German fighter jet project FCAS – or SCAF – during the week of December 15. The Future Combat Air System (FCAS), a 100 billion-euro ($116-billion) project that was floated over eight years ago, is mired in disputes among the companies concerned about workshare and prized technologies. A source with knowledge of the project said earlier this week that the defence ministers from the participating countries, Germany, France, and Spain, will meet on the 11th to discuss it. The German government spokesperson refused to comment on the exact date but only said that the appointments made by the chancellor will be made public at the appropriate time. The French government did not respond to a request for comment. The French government was not immediately available for comment.
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Bloomberg News reports that Indian and US investigators will meet next week to discuss the Air India crash.
Bloomberg News reported that India would send investigators next week to the United States to review data collected on the fatal Air India crash in June, with the National Transportation Safety Board. The report cited people with knowledge of the situation as saying that Indian investigators planned to share their findings, which included any information they gleaned from cockpit voice and flight recorders. Could not verify immediately the report. The report stated that the meeting would take place at the NTSB headquarters in Washington D.C. Other parties, including Boeing representatives, will also be present. Boeing referred all comments to the Aircraft Accident Investigation Bureau. NTSB, India’s civil aviation ministry, and the AAIB didn't immediately respond to requests for comments. Shortly after takeoff, the Boeing 787 Dreamliner departing from Ahmedabad in India and heading to London began to lose thrust. The 242 passengers and 19 people on the ground were all killed, except for one. (Reporting and editing by Aidan Lewis, Aurora Ellis and Yazhini MV from Bengaluru)
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IAEA: Ukraine's Zaporizhzhia Nuclear Plant temporarily lost electricity overnight
The International Atomic Energy Agency reported on Saturday that Ukraine's Zaporizhzhia Nuclear Power Plant temporarily lost all of its off-site electricity overnight. It cited Director General Rafael Mariano Grossi. Since March 2022 when Russian forces seized much of the southeast Ukraine, this nuclear plant - Europe's biggest - has been under Russian authority. The plant is currently not producing electricity, but it relies on external power in order to keep the material cool and prevent a meltdown. IAEA reported that the plant had been reconnected after a 30-minute outage to a power line of 330 kilovolts (kV). The Russian-installed plant management said that the 750 kV power line, which was also previously disconnected, was now back in operation. Stable power supply was restored, they added. The management stated that radiation levels were normal. IAEA said that widespread military activities over night affected Ukraine's power grid, and caused operating nuclear power plants to reduce their output. Reporting by Gnaneshwarrajan and Yazhini MV in Bengaluru, Editing by Aidan Lewis & Bernadettebaum
Germany working to prevent UniCredit's quote for Commerzbank, sources say
Germany is working to irritate a possible takeover of among its biggest banks by an Italian competitor, a stance that pits Berlin against Rome and Europe's regulators, several people knowledgeable about federal government and regulators' thinking told Reuters.
Berlin was taken aback by UniCredit's swoop to develop a large stake in state-backed Commerzbank, a. move the Italian bank says could cause a merger.
Officials are now bracing for a potential hostile bid that. could tie Berlin's fortunes to those of Italy, whose financial obligation load. overshadows Germany's.
Integrating the banks poses a prospective risk to monetary. stability, they state, as UniCredit owns 10s of billions of euros. of Italian government bonds.
Numerous individuals in the German federal government are now pinning. their hopes on a regulatory review by the country's manager. BaFin, and are lobbying the regulator against an offer.
One essential argument is that Berlin might wind up footing the. costs if UniCredit were to be dragged into an Italian debt. crisis.
BaFin, which plays a crucial role in whether UniCredit can. attempt to get control of Commerzbank, has begun to analyse. UniCredit's demand to enable it to build its roughly 9.9%. shareholding to nearly 30%.
The watchdog will make a proposition to the European Central. Bank, the lenders' regulator, which has the last word, based upon. a handful of requirements such as the financial strength of the. buyer and the reputation of managers.
While Rome meticulously supports the deal, Berlin hopes its. concerns may ward off or at least delay the approval of. UniCredit's plan by the ECB.
BaFin has a delicate balancing act. While it is duty-bound. to deal with UniCredit's application even-handedly, it should likewise. consider the issues of the German federal government, as the. firm reports to the finance ministry.
A number of sources with knowledge of the ECB's thinking, said. there was extensive dispute with Germany's opposition,. although the nation stays prominent and can count on. powerful figures within the organization.
The ECB has stated large, European banks can better support. the economy and take on larger rivals in the United States.
Despite the fact that the 20 nations of the euro zone share a. currency, banking stays mostly national.
For the ECB, its handling of UniCredit's interest in. Commerzbank, balancing the interests of two of the bloc's. biggest countries, will be one of its biggest tests because. becoming the region's primary watchdog a decade ago.
BaFin and the European Reserve bank work closely together,. stated a spokesperson for BaFin, including that BaFin had a right to. suggest to the ECB whether a deal need to be authorized, leaving. the last word with the ECB.
This procedure makes an important contribution to financial. stability, he said.
A spokesperson for the ECB stated it remained in consistent. interaction with national authorities on such matters,. explaining choices as collaborative.
The ECB's chief manager Claudia Buch stated just recently the. organization would do anything to remove hurdles to. cross-border bank mergers, after president Christine Lagarde. explained such deals as desirable.
Italy's Treasury, Germany's finance ministry, Commerzbank,. and UniCredit declined to comment.
HAZARD
BaFin has a seat on the ECB's supervisory board along with. authorities from the 20 other nations that form the banking. union plus a smattering of ECB representatives. The ECB has. approximately 90 days to evaluate the case.
At the heart of Germany's issue is UniCredit's 40 billion. euros ($ 44 billion) of Italian government bonds.
This is seen as a prospective danger due to the fact that Italy is greatly. indebted. Commerzbank, which is smaller sized and financially weaker. than UniCredit, also has billions of euros of Italian bonds.
If Italy were to face trouble after a merger, authorities. fear Germany might have to step in.
However some ECB authorities see an option. Commerzbank could. ended up being a subsidiary within UniCredit, with clear plans on how to. deal with it individually in a crisis.
In the sovereign financial obligation crisis of the early 2010s, some. European nations had to bail out their banks, which were likewise. compromised by their sovereign, showing how linked they. were in a crisis that almost brought down the euro.
Berlin's response signals a lack of faith in the European. architecture put in place to avoid a repeat of the 2010-11. debt crisis, in addition to a deep-seated scepticism over Italy.
The German government believes UniCredit's move on. Commerzbank was aggressive and expect a hostile quote within. months, 3 sources knowledgeable about government thinking told. Reuters.
Individuals near to the federal government likewise stated trust between. Berlin and UniCredit CEO Andrea Orcel had actually almost collapsed.
They indicated Orcel's surprise carry on Commerzbank,. consisting of utilizing derivatives that offer him an alternative to get more. shares, in spite of earlier recommending he was acting in line with. Berlin's wishes.
Orcel just recently told an audience he had actually spoken repeatedly. with stakeholders in Commerzbank and was keen to resume. dialogue.
Two of individuals with knowledge of the federal government's. thinking stated Berlin and Commerzbank's working presumption was. that UniCredit might try to buy the bank within months.
(source: Reuters)