Investor group aims to buy Adidas’ Reebok unit

NEW YORK: An investor group that includes Jynwel Capital and funds affiliated with the Abu Dhabi government is launching a bid to buy Reebok from Adidas AG for about $2.2 billion, the Wall Street Journal reported on Sunday.

Jynwel Capital, a Hong Kong-based private equity investment and advisory firm run by Jho Low, and the Abu Dhabi government-affiliated funds planned to make the offer imminently in a letter to Adidas directors, the Journal reported, citing unnamed sources close to the matter.

The investors are expected to argue that Reebok would do better if it were managed independently, the Journal reported.—Reuters

IBM to pay $1.5bn to shed its chip division

NEW YORK: IBM will pay $1.5 billion to Globalfoundries in order to shed its costly chip division.

IBM Director of Research John E. Kelly III said in an interview Monday that handing over control of the semiconductor operations will allow it to grow faster, while IBM continues to invest in and expand its chip research.

IBM will make payments to the chipmaker over three years, but it took a $4.7bn charge for the third quarter when it reported earnings Monday.

The company fell short of Wall Street profit expectations and revenue slid 4 per cent, sending shares down 7pc at the open of trading.—AP

SAP cuts outlook despite profit rise in Q3

FRANKFURT: SAP, the German software giant, said on Monday it was trimming its profit forecast for the whole of 2014, despite a strong rise in revenues and profits in the third quarter.

SAP said in a statement it expects full-year operating profit to be in a range of 5.6-5.8 billion euros ($7.1bn-7.4bn), lower than its previous forecast of 5.8bn-6.bn euros.

SAP attributed the downgrade to “less upfront revenues” and short-term pressures on margins as it refocuses its business on cloud-based software technology.

Published in Dawn, October 21st , 2014