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BUSINESS Wednesday 9 november 2022
Crypto exchange Binance to buy rival FTX in apparent bailout

By KEN SWEET cover the liquidity crunch." trading company Alam-
AP Business Writer The deal would make Bi- eda Research was heavily
NEW YORK (AP) — The cryp- nance, which is already exposed to FTT tokens, and
tocurrency exchange Bi- the biggest cryptocurrency those tokens were largely
nance said it plans to buy exchange by daily volume, not trading as of this week-
its rival FTX Trading, in what an even more dominant end. On Tuesday morning,
appears to be a bailout of player in the cryptocur- cryptocurrency investors
FTX. rency industry. FTX was the said they were having trou-
The owners of the two third largest exchange as ble withdrawing money
exchanges — Samuel of this week. from FTX as well. The value
Bankman-Fried of FTX and FTX is the latest cryptocur- of FTT plunged overnight
Changpeng Zhao of Bi- rency company this year to only to stabilize after the
nance — announced the come under financial pres- deal was announced.
deal on Twitter, but did sure as crypto assets such Other major cryptocurren-
not disclose any details. as bitcoin and ethereum cies were higher after the Binance CEO Changpeng Zhao answers a question during a
The deal was pending due have collapsed in value. Bi- deal was announced as Zoom meeting interview with The Associated Press on Nov. 16,
diligence, Zhao said on nance said this weekend it well, with Bitcoin rising 5%. 2021. The cryptocurrency exchange Binance said it plans to buy
its rival FTX Trading, in what appears to be a bailout of FTX.
Twitter. "This afternoon, FTX planned to sell a portion of Bankman-Fried, better Associated Press
asked for our help. There FTX's own cryptocurrency known by his initials SBF,
is a significant liquidity known as FTT on concerns was considered a savior of to companies. That includ- chased a stake in the on-
crunch," Zhao said on Twit- that the company was il- the crypto industry earlier ed companies like Voyager line trading platform Robin-
ter. "To protect users, we liquid. this year after pledging to Digital, which failed after hood after that company's
signed a non-binding (let- Much of the concerns buy certain crypto assets owning a stake in the failed shares plunged as rev-
ter of intent), intending to about FTX lay in its expo- to shore up the balance stable coin Terra. enue dropped and it lost
fully acquire FTX and help sure to FTT. Bankman-Fried's sheets of other failing cryp- Bankman-Fried also pur- money.q

Germany may block sale of chip factory to Chinese-owned firm

BERLIN (AP) — The Ger- Silex is owned by Sai Mi- alition opposed that deal
man government may de- croelectronics of China, while Chancellor Olaf
cide this week to block the according to German me- Scholz, a former Hamburg
sale of a chip factory to a dia. The planned 85 million- mayor, downplayed its sig-
Swedish subsidiary of a Chi- euro (dollar) sale was an- nificance.
nese company, following a nounced in December. COSCO was cleared to
recent compromise over a The change comes as Ger- take a stake below 25%,
Chinese shipping firm's in- many struggles with the ex- with a threshold above that
vestment in a German con- tent it should allow Chinese allowing an investor can
tainer terminal. companies to invest in Eu- block a company's deci-
German company Elmos rope's biggest economy. sions.
said late Monday that it The Cabinet, which will Scholz traveled to Beijing
was informed by the Econ- hold its weekly meeting last week, becoming the
omy Ministry that the sale of Wednesday, reached first leader from the Group
its factory in Dortmund to a compromise late last of Seven leading indus-
Silex Microsystems AB "will month after officials ar- trialized nations to meet
most likely be prohibited gued over whether to al- President Xi Jinping since
A winged 'Elmos rhinoceros' stands in front of the chip factory
Elmos Semiconductor SE offices in Dortmund, Germany, in the upcoming cabinet low China's COSCO to take the start of the COVID-19
Tuesday, Nov. 8, 2022. Germany company Elmos said it had session." The ministry previ- a 35% stake in a container pandemic. The visit, com-
been informed by the Economy Ministry that the sale of its ously "had indicated to the terminal at the Hamburg ing shortly after Xi further
factory in Dortmund to Silex Microsystems AB 'will most likely be parties that the transac- port. cemented his authoritarian
prohibited' by the German Government. tion most likely will be ap- Members of two junior par- rule at home, drew some
Associated Press proved," Elmos added. ties in the governing co- criticism at home.q

Kohl’s CEO steps down to take

president role at Levi Strauss

By ANNE D'INNOCENZIO directors has put in motion helm in September 2011,
AP Retail Writer a succession plan for her having served in top roles
NEW YORK (AP) — Michelle to succeed Chip Bergh as at Procter & Gamble dur- A pair of shoppers arrive at a Kohl’s, Nov. 26, 2021, in Everett,
Gass, CEO of department president and CEO in the ing his 21-year tenure. Mass. Michelle Gass, CEO of department store chain Kohl’s, is
stepping down from her role early next month and will become
store chain Kohl's, is step- next 18 months. She is ex- The moves come as Kohl's the president of denim giant Levi Strauss & Co. Levi’s said
ping down from her role pected to join the board have been under pres- Tuesday, Nov. 8, 2022, in a release that Gass will start on Jan.
early next month and will of directors on that date. sure by activist investors 2, and the board of directors has put in motion a succession
become the president of Gass, who joined Kohl's in to shake up management plan for her to succeed Chip Bergh as president and CEO in
denim giant Levi Strauss & June 2013 as chief mer- amid weak sales. the next 18 months.
Co. chandising and customer Kohl's announced pre- Associated Press
Levi's said Tuesday in a re- officer, became CEO in liminary figures for its third- down 6.9%, while net sales period. The company is ex-
lease that Gass will start on May 2018. quarter period. It said that will be down 7.2 % com- pected to release its results
Jan. 2, and the board of Bergh joined Levi Strauss's same-store sales will be pared to the year-ago on Nov. 17. q