Exclusive: 2016 Ford Edge will be sold in Europe, China - sources

The Ford logo is pictured on the rooftop of Austria's Ford head branch in Vienna March 19, 2013.

Credit: Reuters/Heinz-Peter Bader

By Paul Lienert

DETROIT | Wed Aug 28, 2013 6:19pm BST

DETROIT (Reuters) - Ford Motor Co (F.N) expects to sell its Edge midsize crossover utility vehicle in global markets when the car is redesigned in early 2015, two sources familiar with the automaker's plans said on Wednesday.

Ford will build versions of the new Edge in North America and China for local customers, according to U.S. automotive suppliers familiar with the program. For the European market, the Edge would be imported from North America and sold in Ford's European showrooms alongside the redesigned S-Max and Galaxy.

The Edge, the S-Max and the Galaxy will all share a common architecture, known inside Ford as CD4.2, according to suppliers, and all three are slated to go into production about the same time.

In the United States, the new Edge is expected to go on sale in spring 2015 as a 2016 model, supplier said.

Neither the new S-Max nor the new Galaxy will be sold in the United States, a Ford spokesman confirmed.

Regarding the convergence of the three vehicles on a shared platform, Ford said, "We don't comment on rumour and speculation regarding future products."

On Tuesday, Ford previewed a concept version of the new S-Max that will be displayed next month at the Frankfurt Auto Show.

The new Edge and the new S-Max have been developed simultaneously, according to U.S. supplier sources, and share the same engineering program code, CD391, used by automakers and suppliers.

While their underpinnings are similar, the two vehicles will look different both inside and outside, sources said.

The new Edge and the new S-Max "will not be mirror images" of one another, as Ford's Escape and Kuga utility vehicles are, one source said.

The 2016 Edge will be wider and taller than the S-Max, but will be fitted with just two rows of seats. The Edge will have more rugged styling cues and be aimed at utility-vehicle buyers in both Europe and the United States.

The new S-Max will get three rows of seats and be targeted in Europe toward a different audience, including young families shopping for a multipurpose vehicle.

(Reporting by Paul Lienert in Detroit; Editing by Jeffrey Benkoe)

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Fiat seen extending temporary layoffs at Mirafiori - sources

People work at Fiat's Sevelsud plant in Atessa, central Italy, July 9, 2013.

Credit: Reuters/Remo Casilli

MILAN | Wed Aug 28, 2013 4:03pm BST

MILAN (Reuters) - Italian carmaker Fiat (FIA.MI) will ask workers at its largest factory in Italy to work reduced hours for another 12 months when a temporary layoff scheme expires at the end of September, two people familiar with the matter said on Wednesday.

Currently, workers at the Mirafiori plant go to the factory for three days per month to make the Alfa Romeo MiTo.

"At the end of September the layoffs at Mirafiori factory expire, and the matter will need to be dealt with," said a union source. "The layoffs are likely to be renewed for 12 more months."

Another union source confirmed the view that the layoffs will be renewed for another year.

Fiat declined to comment.

Fiat Chief Executive Sergio Marchionne said in February he wants to build new Alfa Romeo and Maserati models at Mirafiori, where 5,500 workers are currently laid off awaiting a recovery in Europe's car market.

The company had planned to invest about one billion euros in re-vamping the ageing factory.

But Fiat's future investments have been put on hold until it gets a clearer idea of the impact of a court ruling that a portion of Italy's labour rules are unconstitutional, the company said in July.

(Reporting by Stefano Rebaudo, writing by Jennifer Clark; editing by David Evans)

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Exclusive: SocGen plans $300 million sukuk program in Malaysia - sources

A logo is seen is seen in front of French bank Societe Generale headquarters in La Defense near Paris, February 13, 2013.

Credit: Reuters/Christian Hartmann

By Al-Zaquan Amer Hamzah

KUALA LUMPUR | Sat Aug 24, 2013 3:42am EDT

KUALA LUMPUR (Reuters) - Societe Generale (SOGN.PA) will launch a 1 billion ringgit ($300 million) Islamic bond program in Malaysia, two sources familiar with the deal told Reuters, becoming the second major European bank to issue sukuk and the first to do so in Asia.

SocGen, France's second-largest listed bank, is planning to issue the first tranche of the sukuk by the year-end, said one of the sources, who declined to be identified as he was not authorized to speak on the matter.

Western banks looking to raise capital are increasingly drawn to the Islamic bond market as the cost of credit is lower than in conventional markets. The Middle East unit of HSBC Holdings (HSBA.L) tapped the market in 2011 with a five-year $500 million issuance.

The growing popularity of Islamic debt as a choice of investment among Muslim banks and funds is also buoying the outlook for sukuk, as Islamic bonds are known.

Issuers of sukuk do not pay interest, a practice forbidden in Islam. Instead, buyers of sukuk become co-owners of the debt and receive annual profits from the issuer.

Global sukuk issuance grew 54 percent to $131.2 billion last year, with Malaysia accounting for 74 percent of primary market issuances.

Saudi Arabia followed with a 8 percent market share, and the United Arab Emirates with 4.7 percent and Indonesia with 4.6 percent, according to KFH Research, an Islamic investment research firm.

Malaysia has emerged as the world's No.1 market for primary sukuk issuances, with its strong regulatory framework, low taxes and geographical proximity to expanding Asian wealth.

The Malaysian central bank last month implemented new laws to stress compliance with Islamic laws, introducing higher penalties and making sharia advisors legally liable for the first time.

Hong Leong Islamic Bank (HLCB.KL) is advising the SocGen deal, according to the source.

SocGen will soon seek approval for its issuance plans from Malaysia's Securities Commission, having already received the green light to become a bond issuer from the central bank, the source said.

The central bank did not immediately respond to a request for comment, while a Hong Kong-based spokesperson for SocGen declined to comment.

The funds raised will go towards buying assets in Dubai, where SocGen's Middle East private banking operations are headquartered, said the source.

"Everything is in place," the source said.

EYE ON MALAYSIA

The issuance will help SocGen diversify its funding sources while benefiting from attractive premiums.

In the past year, three-year AAA-rated sukuk have offered yields of 3.65 to 3.72 percent, while conventional bonds with a comparable tenor and rating have yielded 3.69 to 3.76 percent. The lower yield range for sukuk translates into higher savings for issuers.

SocGen's sukuk in Malaysia will carry tenors of up to 15 years, according to the second source.

"For European countries that have yet to develop a regulatory framework for Islamic finance, Malaysia is an attractive destination," said Baljeet Kaur Grewal, managing director and vice chairman of KFH Research.

The large number of industry players in Malaysia, including foreign institutions mandated to invest in Islamic instruments, creates a ready market with significant demand for sukuk, said Kaur.

"There are a number of corporations planning to raise funds in the Malaysian Islamic capital market, from Australia to the Middle East, and this trend looks set to continue."

Other foreign companies such as the National Bank of Abu Dhabi NBAD.AD and Singapore-based palm oil producer Golden Agri-Resources Ltd (GAGR.SI) have in the past year tapped Malaysia's sukuk market.

In the first seven months of this year, issuers in Malaysia raised 19.8 billion ringgit through 47 sukuk, according to Thomson Reuters data.

That was a decline of nearly a third from a year earlier due to uncertainties surrounding a May election in Malaysia and a dip in external demand.

However, demand from Malaysia's public institutional funds such as the Employees Provident Fund and Lembaga Tabung Haji has remained resilient.

($1 = 3.3 ringgit)

(Additional reporting by Bernardo Vizcaino in SYDNEY and Umesh Desai in HONG KONG; Editing By Stuart Grudgings and Ryan Woo)

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Exclusive: SocGen plans $300 million sukuk program in Malaysia - sources

A logo is seen is seen in front of French bank Societe Generale headquarters in La Defense near Paris, February 13, 2013.

Credit: Reuters/Christian Hartmann

By Al-Zaquan Amer Hamzah

KUALA LUMPUR | Sat Aug 24, 2013 3:42am EDT

KUALA LUMPUR (Reuters) - Societe Generale (SOGN.PA) will launch a 1 billion ringgit ($300 million) Islamic bond program in Malaysia, two sources familiar with the deal told Reuters, becoming the second major European bank to issue sukuk and the first to do so in Asia.

SocGen, France's second-largest listed bank, is planning to issue the first tranche of the sukuk by the year-end, said one of the sources, who declined to be identified as he was not authorized to speak on the matter.

Western banks looking to raise capital are increasingly drawn to the Islamic bond market as the cost of credit is lower than in conventional markets. The Middle East unit of HSBC Holdings (HSBA.L) tapped the market in 2011 with a five-year $500 million issuance.

The growing popularity of Islamic debt as a choice of investment among Muslim banks and funds is also buoying the outlook for sukuk, as Islamic bonds are known.

Issuers of sukuk do not pay interest, a practice forbidden in Islam. Instead, buyers of sukuk become co-owners of the debt and receive annual profits from the issuer.

Global sukuk issuance grew 54 percent to $131.2 billion last year, with Malaysia accounting for 74 percent of primary market issuances.

Saudi Arabia followed with a 8 percent market share, and the United Arab Emirates with 4.7 percent and Indonesia with 4.6 percent, according to KFH Research, an Islamic investment research firm.

Malaysia has emerged as the world's No.1 market for primary sukuk issuances, with its strong regulatory framework, low taxes and geographical proximity to expanding Asian wealth.

The Malaysian central bank last month implemented new laws to stress compliance with Islamic laws, introducing higher penalties and making sharia advisors legally liable for the first time.

Hong Leong Islamic Bank (HLCB.KL) is advising the SocGen deal, according to the source.

SocGen will soon seek approval for its issuance plans from Malaysia's Securities Commission, having already received the green light to become a bond issuer from the central bank, the source said.

The central bank did not immediately respond to a request for comment, while a Hong Kong-based spokesperson for SocGen declined to comment.

The funds raised will go towards buying assets in Dubai, where SocGen's Middle East private banking operations are headquartered, said the source.

"Everything is in place," the source said.

EYE ON MALAYSIA

The issuance will help SocGen diversify its funding sources while benefiting from attractive premiums.

In the past year, three-year AAA-rated sukuk have offered yields of 3.65 to 3.72 percent, while conventional bonds with a comparable tenor and rating have yielded 3.69 to 3.76 percent. The lower yield range for sukuk translates into higher savings for issuers.

SocGen's sukuk in Malaysia will carry tenors of up to 15 years, according to the second source.

"For European countries that have yet to develop a regulatory framework for Islamic finance, Malaysia is an attractive destination," said Baljeet Kaur Grewal, managing director and vice chairman of KFH Research.

The large number of industry players in Malaysia, including foreign institutions mandated to invest in Islamic instruments, creates a ready market with significant demand for sukuk, said Kaur.

"There are a number of corporations planning to raise funds in the Malaysian Islamic capital market, from Australia to the Middle East, and this trend looks set to continue."

Other foreign companies such as the National Bank of Abu Dhabi NBAD.AD and Singapore-based palm oil producer Golden Agri-Resources Ltd (GAGR.SI) have in the past year tapped Malaysia's sukuk market.

In the first seven months of this year, issuers in Malaysia raised 19.8 billion ringgit through 47 sukuk, according to Thomson Reuters data.

That was a decline of nearly a third from a year earlier due to uncertainties surrounding a May election in Malaysia and a dip in external demand.

However, demand from Malaysia's public institutional funds such as the Employees Provident Fund and Lembaga Tabung Haji has remained resilient.

($1 = 3.3 ringgit)

(Additional reporting by Bernardo Vizcaino in SYDNEY and Umesh Desai in HONG KONG; Editing By Stuart Grudgings and Ryan Woo)

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Exclusive: SocGen plans $300 million sukuk program in Malaysia - sources

A logo is seen is seen in front of French bank Societe Generale headquarters in La Defense near Paris, February 13, 2013.

Credit: Reuters/Christian Hartmann

By Al-Zaquan Amer Hamzah

KUALA LUMPUR | Sat Aug 24, 2013 3:42am EDT

KUALA LUMPUR (Reuters) - Societe Generale (SOGN.PA) will launch a 1 billion ringgit ($300 million) Islamic bond program in Malaysia, two sources familiar with the deal told Reuters, becoming the second major European bank to issue sukuk and the first to do so in Asia.

SocGen, France's second-largest listed bank, is planning to issue the first tranche of the sukuk by the year-end, said one of the sources, who declined to be identified as he was not authorized to speak on the matter.

Western banks looking to raise capital are increasingly drawn to the Islamic bond market as the cost of credit is lower than in conventional markets. The Middle East unit of HSBC Holdings (HSBA.L) tapped the market in 2011 with a five-year $500 million issuance.

The growing popularity of Islamic debt as a choice of investment among Muslim banks and funds is also buoying the outlook for sukuk, as Islamic bonds are known.

Issuers of sukuk do not pay interest, a practice forbidden in Islam. Instead, buyers of sukuk become co-owners of the debt and receive annual profits from the issuer.

Global sukuk issuance grew 54 percent to $131.2 billion last year, with Malaysia accounting for 74 percent of primary market issuances.

Saudi Arabia followed with a 8 percent market share, and the United Arab Emirates with 4.7 percent and Indonesia with 4.6 percent, according to KFH Research, an Islamic investment research firm.

Malaysia has emerged as the world's No.1 market for primary sukuk issuances, with its strong regulatory framework, low taxes and geographical proximity to expanding Asian wealth.

The Malaysian central bank last month implemented new laws to stress compliance with Islamic laws, introducing higher penalties and making sharia advisors legally liable for the first time.

Hong Leong Islamic Bank (HLCB.KL) is advising the SocGen deal, according to the source.

SocGen will soon seek approval for its issuance plans from Malaysia's Securities Commission, having already received the green light to become a bond issuer from the central bank, the source said.

The central bank did not immediately respond to a request for comment, while a Hong Kong-based spokesperson for SocGen declined to comment.

The funds raised will go towards buying assets in Dubai, where SocGen's Middle East private banking operations are headquartered, said the source.

"Everything is in place," the source said.

EYE ON MALAYSIA

The issuance will help SocGen diversify its funding sources while benefiting from attractive premiums.

In the past year, three-year AAA-rated sukuk have offered yields of 3.65 to 3.72 percent, while conventional bonds with a comparable tenor and rating have yielded 3.69 to 3.76 percent. The lower yield range for sukuk translates into higher savings for issuers.

SocGen's sukuk in Malaysia will carry tenors of up to 15 years, according to the second source.

"For European countries that have yet to develop a regulatory framework for Islamic finance, Malaysia is an attractive destination," said Baljeet Kaur Grewal, managing director and vice chairman of KFH Research.

The large number of industry players in Malaysia, including foreign institutions mandated to invest in Islamic instruments, creates a ready market with significant demand for sukuk, said Kaur.

"There are a number of corporations planning to raise funds in the Malaysian Islamic capital market, from Australia to the Middle East, and this trend looks set to continue."

Other foreign companies such as the National Bank of Abu Dhabi NBAD.AD and Singapore-based palm oil producer Golden Agri-Resources Ltd (GAGR.SI) have in the past year tapped Malaysia's sukuk market.

In the first seven months of this year, issuers in Malaysia raised 19.8 billion ringgit through 47 sukuk, according to Thomson Reuters data.

That was a decline of nearly a third from a year earlier due to uncertainties surrounding a May election in Malaysia and a dip in external demand.

However, demand from Malaysia's public institutional funds such as the Employees Provident Fund and Lembaga Tabung Haji has remained resilient.

($1 = 3.3 ringgit)

(Additional reporting by Bernardo Vizcaino in SYDNEY and Umesh Desai in HONG KONG; Editing By Stuart Grudgings and Ryan Woo)

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Exclusive: SocGen plans $300 million sukuk programme in Malaysia - sources

A logo is seen is seen in front of French bank Societe Generale headquarters in La Defense near Paris, February 13, 2013.

Credit: Reuters/Christian Hartmann

By Al-Zaquan Amer Hamzah

KUALA LUMPUR | Sat Aug 24, 2013 8:43am BST

KUALA LUMPUR (Reuters) - Societe Generale (SOGN.PA) will launch a 1 billion ringgit ($300 million) Islamic bond programme in Malaysia, two sources familiar with the deal told Reuters, becoming the second major European bank to issue sukuk and the first to do so in Asia.

SocGen, France's second-largest listed bank, is planning to issue the first tranche of the sukuk by the year-end, said one of the sources, who declined to be identified as he was not authorised to speak on the matter.

Western banks looking to raise capital are increasingly drawn to the Islamic bond market as the cost of credit is lower than in conventional markets. The Middle East unit of HSBC Holdings (HSBA.L) tapped the market in 2011 with a five-year $500 million issuance.

The growing popularity of Islamic debt as a choice of investment among Muslim banks and funds is also buoying the outlook for sukuk, as Islamic bonds are known.

Issuers of sukuk do not pay interest, a practice forbidden in Islam. Instead, buyers of sukuk become co-owners of the debt and receive annual profits from the issuer.

Global sukuk issuance grew 54 percent to $131.2 billion last year, with Malaysia accounting for 74 percent of primary market issuances.

Saudi Arabia followed with a 8 percent market share, and the United Arab Emirates with 4.7 percent and Indonesia with 4.6 percent, according to KFH Research, an Islamic investment research firm.

Malaysia has emerged as the world's No.1 market for primary sukuk issuances, with its strong regulatory framework, low taxes and geographical proximity to expanding Asian wealth.

The Malaysian central bank last month implemented new laws to stress compliance with Islamic laws, introducing higher penalties and making sharia advisors legally liable for the first time.

Hong Leong Islamic Bank (HLCB.KL) is advising the SocGen deal, according to the source.

SocGen will soon seek approval for its issuance plans from Malaysia's Securities Commission, having already received the green light to become a bond issuer from the central bank, the source said.

The central bank did not immediately respond to a request for comment, while a Hong Kong-based spokesperson for SocGen declined to comment.

The funds raised will go towards buying assets in Dubai, where SocGen's Middle East private banking operations are headquartered, said the source.

"Everything is in place," the source said.

EYE ON MALAYSIA

The issuance will help SocGen diversify its funding sources while benefiting from attractive premiums.

In the past year, three-year AAA-rated sukuk have offered yields of 3.65 to 3.72 percent, while conventional bonds with a comparable tenor and rating have yielded 3.69 to 3.76 percent. The lower yield range for sukuk translates into higher savings for issuers.

SocGen's sukuk in Malaysia will carry tenors of up to 15 years, according to the second source.

"For European countries that have yet to develop a regulatory framework for Islamic finance, Malaysia is an attractive destination," said Baljeet Kaur Grewal, managing director and vice chairman of KFH Research.

The large number of industry players in Malaysia, including foreign institutions mandated to invest in Islamic instruments, creates a ready market with significant demand for sukuk, said Kaur.

"There are a number of corporations planning to raise funds in the Malaysian Islamic capital market, from Australia to the Middle East, and this trend looks set to continue."

Other foreign companies such as the National Bank of Abu Dhabi NBAD.AD and Singapore-based palm oil producer Golden Agri-Resources Ltd (GAGR.SI) have in the past year tapped Malaysia's sukuk market.

In the first seven months of this year, issuers in Malaysia raised 19.8 billion ringgit through 47 sukuk, according to Thomson Reuters data.

That was a decline of nearly a third from a year earlier due to uncertainties surrounding a May election in Malaysia and a dip in external demand.

However, demand from Malaysia's public institutional funds such as the Employees Provident Fund and Lembaga Tabung Haji has remained resilient.

(Additional reporting by Bernardo Vizcaino in SYDNEY and Umesh Desai in HONG KONG; Editing By Stuart Grudgings and Ryan Woo)

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ICE hires banks to advise on flotation of NYSE's Euronext: sources

Traders work on the floor of the New York Stock Exchange in New York December 20, 2012.

Credit: Reuters/Andrew Kelly

By Sophie Sassard and Anjuli Davies

LONDON | Wed Aug 21, 2013 11:55am EDT

LONDON (Reuters) - IntercontinentalExchange (ICE.N) (ICE) has hired three banks to advise on the listing of Euronext, whose sale is crucial to its $8.2 billion takeover of NYSE Euronext (NYX.N), three sources familiar with the situation said.

ABN Amro and existing advisers on the ICE/NYSE deal, Societe Generale (SOGN.PA) and JP Morgan (JPM.N), will act as global coordinators on the flotation of the combined Paris, Lisbon, Brussels and Amsterdam exchanges, the sources said.

ICE decided to float Euronext when it sealed a deal with NYSE Euronext last year in order to fund the transaction, to ease regulatory approval in Europe and to keep the combined group's focus on U.S. operations, one of the people said. ICE will however keep NYSE's Liffe interest rate futures exchange.

The U.S.-based exchange operator is planning to float about 50 percent of Euronext in Paris in the second half of next year and will retain about 30 percent, one of the sources said.

While an initial public listing (IPO) remains the most likely route, Euronext may also combine part or all of its activities with European rivals such as Germany's Deutsche Borse (DB1Gn.DE) or the Russian (MOEX.MM), Polish GPW.WA or Austrian stock exchanges, two of the people said.

"ICE and NYSE will listen to propositions," said one source, who asked not to be named because the talks are private.

Another of the three sources said that the IPO could be "pre-empted with a good offer".

"They've had a few discussions with possible buyers so far," he said.

OPEN GAME

Bankers expect further sector consolidation in the coming months as exchanges try to boost revenues by diversifying products and buying into settlement and clearing operations.

"It's very clear that sector consolidation is not over yet. Europe is pretty busy at the moment but you could see intra-consolidation in Eastern Europe, Asia and cross-border deals to combine geographies too," the third source said.

"The game is pretty open," he said.

Deutsche Borse may try to buy into Euronext's cash equities operation to diversify from its core derivatives business, two of the sources said, although another source close to the German exchange told Reuters that that was not an area where it was looking for acquisitions.

U.S. rival Nasdaq (NDAQ.O) and London's LSE (LSE.L) are also among the interested parties, all three sources said, although the EU's regulator may block a non-European sale, one said.

Deutsche Boerse is under the most pressure to act and, while a tie-up with its larger peer in Hong Kong would mean selling out, it could buy the Singapore stock exchange, he said, although it would be hard to create synergies across continents.

Deutsche Boerse's diversification strategy centers on expanding post-trade services such as clearing, the same source said.

Asian stock exchanges such as Singapore, Seoul or Hong Kong could also be targets for Nasdaq or the Tokyo and Shanghai exchanges, a separate source said.

Nasdaq is also looking to expand in the Middle East and may be interested in operators such as Dubai stock exchange, the same person said.

Euronext, JP Morgan, Deutsche Borse all declined to comment, while other parties were not immediately available for comment.

(Additional reporting by Christian Plumb, Alexandre Bokenbaum-Granier in Paris and Ed Taylor in Frankfurt; Editing by Louise Ireland)

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ICE hires banks to advise on flotation of NYSE's Euronext: sources

Traders work on the floor of the New York Stock Exchange in New York December 20, 2012.

Credit: Reuters/Andrew Kelly

By Sophie Sassard and Anjuli Davies

LONDON | Wed Aug 21, 2013 11:55am EDT

LONDON (Reuters) - IntercontinentalExchange (ICE.N) (ICE) has hired three banks to advise on the listing of Euronext, whose sale is crucial to its $8.2 billion takeover of NYSE Euronext (NYX.N), three sources familiar with the situation said.

ABN Amro and existing advisers on the ICE/NYSE deal, Societe Generale (SOGN.PA) and JP Morgan (JPM.N), will act as global coordinators on the flotation of the combined Paris, Lisbon, Brussels and Amsterdam exchanges, the sources said.

ICE decided to float Euronext when it sealed a deal with NYSE Euronext last year in order to fund the transaction, to ease regulatory approval in Europe and to keep the combined group's focus on U.S. operations, one of the people said. ICE will however keep NYSE's Liffe interest rate futures exchange.

The U.S.-based exchange operator is planning to float about 50 percent of Euronext in Paris in the second half of next year and will retain about 30 percent, one of the sources said.

While an initial public listing (IPO) remains the most likely route, Euronext may also combine part or all of its activities with European rivals such as Germany's Deutsche Borse (DB1Gn.DE) or the Russian (MOEX.MM), Polish GPW.WA or Austrian stock exchanges, two of the people said.

"ICE and NYSE will listen to propositions," said one source, who asked not to be named because the talks are private.

Another of the three sources said that the IPO could be "pre-empted with a good offer".

"They've had a few discussions with possible buyers so far," he said.

OPEN GAME

Bankers expect further sector consolidation in the coming months as exchanges try to boost revenues by diversifying products and buying into settlement and clearing operations.

"It's very clear that sector consolidation is not over yet. Europe is pretty busy at the moment but you could see intra-consolidation in Eastern Europe, Asia and cross-border deals to combine geographies too," the third source said.

"The game is pretty open," he said.

Deutsche Borse may try to buy into Euronext's cash equities operation to diversify from its core derivatives business, two of the sources said, although another source close to the German exchange told Reuters that that was not an area where it was looking for acquisitions.

U.S. rival Nasdaq (NDAQ.O) and London's LSE (LSE.L) are also among the interested parties, all three sources said, although the EU's regulator may block a non-European sale, one said.

Deutsche Boerse is under the most pressure to act and, while a tie-up with its larger peer in Hong Kong would mean selling out, it could buy the Singapore stock exchange, he said, although it would be hard to create synergies across continents.

Deutsche Boerse's diversification strategy centers on expanding post-trade services such as clearing, the same source said.

Asian stock exchanges such as Singapore, Seoul or Hong Kong could also be targets for Nasdaq or the Tokyo and Shanghai exchanges, a separate source said.

Nasdaq is also looking to expand in the Middle East and may be interested in operators such as Dubai stock exchange, the same person said.

Euronext, JP Morgan, Deutsche Borse all declined to comment, while other parties were not immediately available for comment.

(Additional reporting by Christian Plumb, Alexandre Bokenbaum-Granier in Paris and Ed Taylor in Frankfurt; Editing by Louise Ireland)

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Exclusive: China's banks to take next step in rate reform push - sources

A woman walks past a sign of Bank of China at its branch in Beijing March 26, 2013.

Credit: Reuters/Kim Kyung-Hoon

By Shengnan Zhang and Hongmei Zhao

BEIJING/HONG KONG | Thu Aug 22, 2013 6:41am EDT

BEIJING/HONG KONG (Reuters) - China's top banks are expected to win approval for the issuance of tens of billions of yuan in negotiable certificates of deposit (NCD) as early as next month, in another step towards developing market-determined interest rates.

NCDs would enable banks to access large amounts of funds at relatively stable costs, providing some alternative to borrowing from the inter-bank market, where the cost of funds can be volatile, as seen in June when a liquidity squeeze briefly sent short-term money market rates to nearly 30 percent.

Bank of China, the Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank and Bank of Communications, have submitted their plans for NCDS to the central bank, people familiar with the development told Reuters.

The NCD, or large denomination certificates of deposit tradeable on the interbank market, would be offered with maturities from three to six months and be priced with a premium over the Shanghai interbank offered rate (SHIBOR), the sources said.

Each bank is planning an NCD issuance of more than 10 billion yuan ($1.63 billion), one of the sources said. The likely face value of single certificates was unknown.

"The instrument could be rolled out soon, which not only opens up a liquidity channel for banks but also pushes forward interest rate reforms by gradually loosening controls on deposit rates," said a source close to the banking regulator.

The People's Bank of China (PBOC), the central bank, could give its approval as early as September, according to the sources, who all requested anonymity due to sensitivity over the issue.

The central bank, under the helm of reform-minded Zhou Xiaochuan, has been trying to promote the role of the SHIBOR as the benchmark for short-term borrowing costs.

The PBOC has been following a step-by-step approach in liberalizing interest rates, shifting its focus on loosening controls on bank deposit rates after it freed up bank lending rates in July.

Last month's decision to remove the floor on bank lending rates was seen as a largely symbolic prelude to removing caps on deposit rates, a much more difficult task that will take time.

Interest rate reforms are part of a broader effort of China's new leadership to steer the world's second-largest economy towards a growth model that relies more on domestic consumption and gradually scale back controls and directives and allow market forces to play a greater role.

The introduction of NCDs may have limited immediate impact on money market rates that are already moving in line with market supply and demand, but the pilot is widely seen as a heralding the eventual dismantling of controls on bank deposits rates.

The sources said that permission for NCDs will be expanded to other banks and non-banking institutions, paving the way for launching certificates of deposit for corporate and individual investors.

The central bank was not immediately available for comment.

The central bank has said that more preparations, including a deposit insurance scheme, are needed before a move on deposits. Economists said its caution also reflected concerns that freeing up deposit rates would squeeze banks' profits.

In 2012, the central bank gave lenders freedom to set a ceiling for deposit rates at up to 110 percent of the benchmarks set by the PBOC. The current benchmark for a one-year deposit, for example, is 3 percent. Analysts expect the PBOC to remove the ceiling slowly and cautiously in order to reduce risks to the banking system. ($1 = 6.1234 Chinese yuan)

(Writing and additional reporting by Kevin Yao; Editing by Simon Cameron-Moore)

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ICE hires banks to advise on flotation of NYSE's Euronext: sources

Traders work on the floor of the New York Stock Exchange in New York December 20, 2012.

Credit: Reuters/Andrew Kelly

By Sophie Sassard and Anjuli Davies

LONDON | Wed Aug 21, 2013 11:55am EDT

LONDON (Reuters) - IntercontinentalExchange (ICE.N) (ICE) has hired three banks to advise on the listing of Euronext, whose sale is crucial to its $8.2 billion takeover of NYSE Euronext (NYX.N), three sources familiar with the situation said.

ABN Amro and existing advisers on the ICE/NYSE deal, Societe Generale (SOGN.PA) and JP Morgan (JPM.N), will act as global coordinators on the flotation of the combined Paris, Lisbon, Brussels and Amsterdam exchanges, the sources said.

ICE decided to float Euronext when it sealed a deal with NYSE Euronext last year in order to fund the transaction, to ease regulatory approval in Europe and to keep the combined group's focus on U.S. operations, one of the people said. ICE will however keep NYSE's Liffe interest rate futures exchange.

The U.S.-based exchange operator is planning to float about 50 percent of Euronext in Paris in the second half of next year and will retain about 30 percent, one of the sources said.

While an initial public listing (IPO) remains the most likely route, Euronext may also combine part or all of its activities with European rivals such as Germany's Deutsche Borse (DB1Gn.DE) or the Russian (MOEX.MM), Polish GPW.WA or Austrian stock exchanges, two of the people said.

"ICE and NYSE will listen to propositions," said one source, who asked not to be named because the talks are private.

Another of the three sources said that the IPO could be "pre-empted with a good offer".

"They've had a few discussions with possible buyers so far," he said.

OPEN GAME

Bankers expect further sector consolidation in the coming months as exchanges try to boost revenues by diversifying products and buying into settlement and clearing operations.

"It's very clear that sector consolidation is not over yet. Europe is pretty busy at the moment but you could see intra-consolidation in Eastern Europe, Asia and cross-border deals to combine geographies too," the third source said.

"The game is pretty open," he said.

Deutsche Borse may try to buy into Euronext's cash equities operation to diversify from its core derivatives business, two of the sources said, although another source close to the German exchange told Reuters that that was not an area where it was looking for acquisitions.

U.S. rival Nasdaq (NDAQ.O) and London's LSE (LSE.L) are also among the interested parties, all three sources said, although the EU's regulator may block a non-European sale, one said.

Deutsche Boerse is under the most pressure to act and, while a tie-up with its larger peer in Hong Kong would mean selling out, it could buy the Singapore stock exchange, he said, although it would be hard to create synergies across continents.

Deutsche Boerse's diversification strategy centers on expanding post-trade services such as clearing, the same source said.

Asian stock exchanges such as Singapore, Seoul or Hong Kong could also be targets for Nasdaq or the Tokyo and Shanghai exchanges, a separate source said.

Nasdaq is also looking to expand in the Middle East and may be interested in operators such as Dubai stock exchange, the same person said.

Euronext, JP Morgan, Deutsche Borse all declined to comment, while other parties were not immediately available for comment.

(Additional reporting by Christian Plumb, Alexandre Bokenbaum-Granier in Paris and Ed Taylor in Frankfurt; Editing by Louise Ireland)

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ICE hires banks to advise on flotation of NYSE's Euronext: sources

Traders work on the floor of the New York Stock Exchange in New York December 20, 2012.

Credit: Reuters/Andrew Kelly

By Sophie Sassard and Anjuli Davies

LONDON | Wed Aug 21, 2013 11:55am EDT

LONDON (Reuters) - IntercontinentalExchange (ICE.N) (ICE) has hired three banks to advise on the listing of Euronext, whose sale is crucial to its $8.2 billion takeover of NYSE Euronext (NYX.N), three sources familiar with the situation said.

ABN Amro and existing advisers on the ICE/NYSE deal, Societe Generale (SOGN.PA) and JP Morgan (JPM.N), will act as global coordinators on the flotation of the combined Paris, Lisbon, Brussels and Amsterdam exchanges, the sources said.

ICE decided to float Euronext when it sealed a deal with NYSE Euronext last year in order to fund the transaction, to ease regulatory approval in Europe and to keep the combined group's focus on U.S. operations, one of the people said. ICE will however keep NYSE's Liffe interest rate futures exchange.

The U.S.-based exchange operator is planning to float about 50 percent of Euronext in Paris in the second half of next year and will retain about 30 percent, one of the sources said.

While an initial public listing (IPO) remains the most likely route, Euronext may also combine part or all of its activities with European rivals such as Germany's Deutsche Borse (DB1Gn.DE) or the Russian (MOEX.MM), Polish GPW.WA or Austrian stock exchanges, two of the people said.

"ICE and NYSE will listen to propositions," said one source, who asked not to be named because the talks are private.

Another of the three sources said that the IPO could be "pre-empted with a good offer".

"They've had a few discussions with possible buyers so far," he said.

OPEN GAME

Bankers expect further sector consolidation in the coming months as exchanges try to boost revenues by diversifying products and buying into settlement and clearing operations.

"It's very clear that sector consolidation is not over yet. Europe is pretty busy at the moment but you could see intra-consolidation in Eastern Europe, Asia and cross-border deals to combine geographies too," the third source said.

"The game is pretty open," he said.

Deutsche Borse may try to buy into Euronext's cash equities operation to diversify from its core derivatives business, two of the sources said, although another source close to the German exchange told Reuters that that was not an area where it was looking for acquisitions.

U.S. rival Nasdaq (NDAQ.O) and London's LSE (LSE.L) are also among the interested parties, all three sources said, although the EU's regulator may block a non-European sale, one said.

Deutsche Boerse is under the most pressure to act and, while a tie-up with its larger peer in Hong Kong would mean selling out, it could buy the Singapore stock exchange, he said, although it would be hard to create synergies across continents.

Deutsche Boerse's diversification strategy centers on expanding post-trade services such as clearing, the same source said.

Asian stock exchanges such as Singapore, Seoul or Hong Kong could also be targets for Nasdaq or the Tokyo and Shanghai exchanges, a separate source said.

Nasdaq is also looking to expand in the Middle East and may be interested in operators such as Dubai stock exchange, the same person said.

Euronext, JP Morgan, Deutsche Borse all declined to comment, while other parties were not immediately available for comment.

(Additional reporting by Christian Plumb, Alexandre Bokenbaum-Granier in Paris and Ed Taylor in Frankfurt; Editing by Louise Ireland)

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TDF disappointed by bids for its French unit: sources

By Sophie Sassard

Fri Aug 16, 2013 8:14am EDT

n">(Reuters) - Broadcast tower operator Telediffusion de France (TDF) received bids below the 4 billion-euro ($5.32 billion) asking price for its domestic unit, raising concern about its ability to seal a deal and repay debt, said three sources with knowledge of the process.

TDF, which provides services for broadcasting and telecoms companies, is owned by TPG, AXA Private Equity, Charterhouse and French sovereign wealth fund FSI, which had aimed to raise at least 4 billion euros to help repay debts of 3.8 billion euros ($5.04 billion) and avoid a costly restructuring, two of the sources said.

They hoped that a successful disposal of the French unit, which accounts for more than half of TDF's revenues, would pave the way for a sale of TDF's second-largest unit, its German business, according to the sources, who asked not to be named because the talks are private.

TDF owns television and radio masts, as well as satellite and internet operations. Prospective bidders could be hesitating because a recent network sharing deal between two of its clients, Bouygues Telecom and domestic rival SFR, could mean a fall in business, one of the sources said.

A combination of the financial crisis and setbacks in technological advances has hurt TDF's prospects since it was bought in 2006. Commenting this year in its annual report on its debt levels, TDF said: "Our initial business plan from 2006 was based on a number of assumptions that did not all materialize - for example mobile handheld TV, which has still not seen the light of day."

People close to the company have previously said that its owners would not sell the French business for less than 4 billion euros, which they see as the low-end value assuming earning before interest, tax, depreciation and amortization (EBITDA) improved to about 380 million euros in 2014 and applying sector multiples of 10.5-11.5 times EBITDA.

However people on the other side of the negotiation table are less bullish on forecast EBITDA and tend to apply 8-10 sector multiples, they said.

Investment Board (PSP Investments) PSPENP.UL in a consortium with infrastructure fund Arcus ARCP.WA emerged as the most motivated bidders in the first round of the auction that closed last week, the sources said.

They added that others invited to the auction included Ontario Teachers' Pension Plan (OTPP), U.S. mobile tower operators Crown Castle (CCI.N) and American Tower (AMT.N) as well as infrastructure funds Borealis BINTR.UL, Macquarie (MIIF.SI), AMP Capital and BNP Paribas-backed Antin.

But most did not submit bids last week, and the highest offer was in the area of 3.7 billion euros ($4.90 billion), the sources said.

Private equity fund TPG is TDF's largest shareholder with 42 percent of the equity, followed by France's national investment fund FSI and fellow private equity funds AXA and Charterhouse.

TPG, TDF, FSI and AMP Capital declined to comment. The other parties were not immediately available for comment.

(Additional reporting by Claire Ruckin in London and Matthieu Protard in Paris; Editing by Sophie Walker)

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TDF disappointed by bids for its French unit: sources

By Sophie Sassard

Fri Aug 16, 2013 8:14am EDT

n">(Reuters) - Broadcast tower operator Telediffusion de France (TDF) received bids below the 4 billion-euro ($5.32 billion) asking price for its domestic unit, raising concern about its ability to seal a deal and repay debt, said three sources with knowledge of the process.

TDF, which provides services for broadcasting and telecoms companies, is owned by TPG, AXA Private Equity, Charterhouse and French sovereign wealth fund FSI, which had aimed to raise at least 4 billion euros to help repay debts of 3.8 billion euros ($5.04 billion) and avoid a costly restructuring, two of the sources said.

They hoped that a successful disposal of the French unit, which accounts for more than half of TDF's revenues, would pave the way for a sale of TDF's second-largest unit, its German business, according to the sources, who asked not to be named because the talks are private.

TDF owns television and radio masts, as well as satellite and internet operations. Prospective bidders could be hesitating because a recent network sharing deal between two of its clients, Bouygues Telecom and domestic rival SFR, could mean a fall in business, one of the sources said.

A combination of the financial crisis and setbacks in technological advances has hurt TDF's prospects since it was bought in 2006. Commenting this year in its annual report on its debt levels, TDF said: "Our initial business plan from 2006 was based on a number of assumptions that did not all materialize - for example mobile handheld TV, which has still not seen the light of day."

People close to the company have previously said that its owners would not sell the French business for less than 4 billion euros, which they see as the low-end value assuming earning before interest, tax, depreciation and amortization (EBITDA) improved to about 380 million euros in 2014 and applying sector multiples of 10.5-11.5 times EBITDA.

However people on the other side of the negotiation table are less bullish on forecast EBITDA and tend to apply 8-10 sector multiples, they said.

Investment Board (PSP Investments) PSPENP.UL in a consortium with infrastructure fund Arcus ARCP.WA emerged as the most motivated bidders in the first round of the auction that closed last week, the sources said.

They added that others invited to the auction included Ontario Teachers' Pension Plan (OTPP), U.S. mobile tower operators Crown Castle (CCI.N) and American Tower (AMT.N) as well as infrastructure funds Borealis BINTR.UL, Macquarie (MIIF.SI), AMP Capital and BNP Paribas-backed Antin.

But most did not submit bids last week, and the highest offer was in the area of 3.7 billion euros ($4.90 billion), the sources said.

Private equity fund TPG is TDF's largest shareholder with 42 percent of the equity, followed by France's national investment fund FSI and fellow private equity funds AXA and Charterhouse.

TPG, TDF, FSI and AMP Capital declined to comment. The other parties were not immediately available for comment.

(Additional reporting by Claire Ruckin in London and Matthieu Protard in Paris; Editing by Sophie Walker)

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Siemens' board to discuss management's future at weekend: sources

The logo of Siemens AG company is pictured atop a factory in Berlin October 9, 2012.

Credit: Reuters/Fabrizio Bensch

By Jens Hack and Maria Sheahan

MUNICH | Fri Jul 26, 2013 1:42pm EDT

MUNICH (Reuters) - Members of Siemens' (SIEGn.DE) supervisory board will meet at the weekend to discuss the future of the German engineering group's management, two people familiar with the matter said on Friday, a day after the firm abandoned its 2014 profit target.

There was some respite for Chief Executive Peter Loescher on financial markets, with shares in one of Europe's biggest industrial producers rising 1.4 percent after sinking around 8 percent on the profit warning a day earlier.

But with concern among financial investors growing about Loescher's ability to turn around one of Europe's biggest industrial producers, sources told Reuters that supervisory board members representing workers and shareholders had called separate emergency meetings for this weekend.

The agenda for both meetings - which come ahead of a joint meeting scheduled for Wednesday, a day before the company releases third-quarter results - includes an item on "the future composition of management", one of the sources said.

Siemens' supervisory board has 20 members and, as is customary in Germany, half of them represent the interests of workers and the other half those of shareholders in one of Germany's three biggest companies by market value.

"I'm facing headwinds now, but it's never been like me to give up or strike the sails quickly," Loescher told German daily Sueddeutsche Zeitung in a preview of an interview due to run on Saturday.

Loescher has faced criticism for being too slow to react to the global economic downturn, and his credibility has been undermined by a string of profit warnings as management over-estimated the speed of economic recovery.

A symbol of Germany's industrial backbone and the high added-value economic model that makes it the envy of the rest of Europe, Siemens is suffering from the stuttering global demand that saw German exports fall the most since late 2009 in May.

But while that substantially reflects the problems of the rest of the euro zone and a slowdown in China, some of Siemens' competitors seem to be showing improvement where the German firm is not.

General Electric (GE.N) last week unveiled a surprise jump in its backlog of orders for locomotives, X-ray machines and scores of other products, and Dutch rival Philips (PHG.AS) has reported robust orders for ultrasound and scanning products.

FAILING TO DELIVER

Loescher last year launched a program to save 6 billion euros ($8 billion) over two years. But Siemens, whose products range from gas turbines to fast trains and hearing aids, has so far failed to make the progress Loescher promised.

On Thursday, the company said in a very brief statement it no longer expected to reach a target of raising its core operating profit margin to at least 12 percent from 9.5 percent by 2014.

"We have to face the tough reality of a weak global economy, especially in Siemens' important core markets, and realize that the 12 percent is not reachable from today's point of view," Loescher said in the interview with Sueddeutsche Zeitung.

Siemens is scheduled to release third-quarter results on Thursday, and analysts expect Loescher to elaborate at that time on what prompted the company to scrap its margin target.

German media are speculating on who could replace Loescher if push came to shove. Magazine Manager Magazin said that shareholder representatives favor Siegfried Russwurm, chief executive of Siemens' bread-and-butter Industry business.

Newspaper Die Welt said one option was to name finance chief Joe Kaeser as CEO, while another was for supervisory board Chairman Gerhard Cromme, who brought Loescher to Siemens six years ago, to take the helm on an interim basis.

Another possibility is that CFO Kaeser and Russwurm could share the job as co-CEOs, Sueddeutsche Zeitung said.

(Reporting by Jens Hack; Writing by Maria Sheahan; Editing by Patrick Graham)

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Siemens' board to discuss management's future at weekend: sources

The logo of Siemens AG company is pictured atop a factory in Berlin October 9, 2012.

Credit: Reuters/Fabrizio Bensch

By Jens Hack and Maria Sheahan

MUNICH | Fri Jul 26, 2013 1:42pm EDT

MUNICH (Reuters) - Members of Siemens' (SIEGn.DE) supervisory board will meet at the weekend to discuss the future of the German engineering group's management, two people familiar with the matter said on Friday, a day after the firm abandoned its 2014 profit target.

There was some respite for Chief Executive Peter Loescher on financial markets, with shares in one of Europe's biggest industrial producers rising 1.4 percent after sinking around 8 percent on the profit warning a day earlier.

But with concern among financial investors growing about Loescher's ability to turn around one of Europe's biggest industrial producers, sources told Reuters that supervisory board members representing workers and shareholders had called separate emergency meetings for this weekend.

The agenda for both meetings - which come ahead of a joint meeting scheduled for Wednesday, a day before the company releases third-quarter results - includes an item on "the future composition of management", one of the sources said.

Siemens' supervisory board has 20 members and, as is customary in Germany, half of them represent the interests of workers and the other half those of shareholders in one of Germany's three biggest companies by market value.

"I'm facing headwinds now, but it's never been like me to give up or strike the sails quickly," Loescher told German daily Sueddeutsche Zeitung in a preview of an interview due to run on Saturday.

Loescher has faced criticism for being too slow to react to the global economic downturn, and his credibility has been undermined by a string of profit warnings as management over-estimated the speed of economic recovery.

A symbol of Germany's industrial backbone and the high added-value economic model that makes it the envy of the rest of Europe, Siemens is suffering from the stuttering global demand that saw German exports fall the most since late 2009 in May.

But while that substantially reflects the problems of the rest of the euro zone and a slowdown in China, some of Siemens' competitors seem to be showing improvement where the German firm is not.

General Electric (GE.N) last week unveiled a surprise jump in its backlog of orders for locomotives, X-ray machines and scores of other products, and Dutch rival Philips (PHG.AS) has reported robust orders for ultrasound and scanning products.

FAILING TO DELIVER

Loescher last year launched a program to save 6 billion euros ($8 billion) over two years. But Siemens, whose products range from gas turbines to fast trains and hearing aids, has so far failed to make the progress Loescher promised.

On Thursday, the company said in a very brief statement it no longer expected to reach a target of raising its core operating profit margin to at least 12 percent from 9.5 percent by 2014.

"We have to face the tough reality of a weak global economy, especially in Siemens' important core markets, and realize that the 12 percent is not reachable from today's point of view," Loescher said in the interview with Sueddeutsche Zeitung.

Siemens is scheduled to release third-quarter results on Thursday, and analysts expect Loescher to elaborate at that time on what prompted the company to scrap its margin target.

German media are speculating on who could replace Loescher if push came to shove. Magazine Manager Magazin said that shareholder representatives favor Siegfried Russwurm, chief executive of Siemens' bread-and-butter Industry business.

Newspaper Die Welt said one option was to name finance chief Joe Kaeser as CEO, while another was for supervisory board Chairman Gerhard Cromme, who brought Loescher to Siemens six years ago, to take the helm on an interim basis.

Another possibility is that CFO Kaeser and Russwurm could share the job as co-CEOs, Sueddeutsche Zeitung said.

(Reporting by Jens Hack; Writing by Maria Sheahan; Editing by Patrick Graham)

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Siemens' board to meet at weekend to discuss management: sources

MUNICH | Fri Jul 26, 2013 8:20am EDT

MUNICH (Reuters) - Members of Siemens' (SIEGn.DE) supervisory board will meet at the weekend to discuss the German engineering group's management, two people familiar with the matter said on Friday, days after Siemens abandoned its 2014 profit margin target.

Pressure is building on Chief Executive Peter Loescher who is seen as struggling to turn Siemens around.

Shares in the company turned positive after the news, gaining 1.6 percent higher at 79.85 euros by 1215 GMT.

Supervisory board members representing Siemens workers and shareholders will meet separately ahead of a joint meeting scheduled for Wednesday, the sources said.

Siemens' supervisory board has 20 members and, as is customary in Germany, half of them represent the interests of workers and the other half those of shareholders.

The group, which is due to publish its third-quarter results on Thursday, declined to comment.

(Reporting by Jens Hack; Writing by Maria Sheahan; Editing by Louise Ireland and Christoph Steitz)

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Majority of Siemens board wants to oust CEO: sources

MUNICH (Reuters) - A majority of Siemens supervisory board members are in favor of voting out Chief Executive Peter Loescher, two people familiar with the matter told Reuters on Saturday.

The majority of the 20-member board wants current finance chief Joe Kaeser named as Loescher's successor, the sources said following emergency meetings of board members two days after Siemens abandoned a 2014 profit margin target.

Siemens declined to comment on the matter.

A bellwether of Germany's economy whose products range from gas turbines to fast trains and hearing aids, Siemens is suffering from the stuttering global demand that saw German exports fall the most since late 2009 in May.

Loescher has been aiming to boost Siemens' profitability by cutting costs and focusing on the company's most successful businesses, but he has lost credibility by overpromising and underdelivering on the company's finances.

This week, Siemens issued its sixth profit warning since Loescher took office in 2007, saying in a very brief statement that it no longer expected to boost its core operating profit margin to at least 12 percent from 9.5 percent by 2014.

(Reporting by Jens Hack.; Writing by Maria Sheahan. Editing by Andreas Cremer.)

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Siemens' board to meet at weekend to discuss management: sources

MUNICH (Reuters) - Members of Siemens' supervisory board will meet at the weekend to discuss the German engineering group's management, two people familiar with the matter said on Friday, days after Siemens abandoned its 2014 profit margin target.

Steitz)

Pressure is building on Chief Executive Peter Loescher who is seen as struggling to turn Siemens around.

Shares in the company turned positive after the news, gaining 1.6 percent higher at 79.85 euros by 1215 GMT.

Supervisory board members representing Siemens workers and shareholders will meet separately ahead of a joint meeting scheduled for Wednesday, the sources said.

Siemens' supervisory board has 20 members and, as is customary in Germany, half of them represent the interests of workers and the other half those of shareholders.

The group, which is due to publish its third-quarter results on Thursday, declined to comment.

(Reporting by Jens Hack; Writing by Maria Sheahan; Editing by Louise Ireland and Christoph

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Lossy Computing of Correlated Sources with Fractional Sampling. (arXiv:1206.1389v3 [cs.IT] UPDATED)

Comments: 33 pages, 11 figures, to appear in journal Sorry, I could not read the content fromt this page.

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