Page 25 - Aruba Today

BUSINESS A25
Monday 22 February 2016

China’s top securities regulator steps down amid turmoil

DIDI TANG public anger at the dra- the state press after officials ning major shareholders in munist Party’s desire for
Associated Press matic boom and bust, but said Chinese stocks should publicly-traded compa- market-oriented reform
BEIJING (AP) — China’s top doesn’t address the mar- rise, the Shanghai and nies from selling any shares and its overriding objective
securities regulator Xiao ket’s underlying problems. Shenzhen markets vaulted and ordering state funds to of retaining absolute politi-
Gang will step down fol- The official Xinhua News from late 2014, reaching a buy. The bust hurt millions of cal control.
lowing months of turmoil in Agency reported Satur- peak in June last year, then neophyte Chinese investors The Shanghai Composite
Chinese stock markets that day that Xiao would be re- crumbled in several waves who piled into the market Index closed at 2,860.02 on
battered faith in Beijing’s placed by Liu Shiyu, chair- of panic selling that sent when it was near its peak. Friday, which is a decline
economic management. man of the Agriculture shockwaves around the Analysts say Beijing’s moves of about 45 percent from
The departure of Xiao, a le- Bank of China and a former world. on stocks, as well as its halt- its peak in June of about
gal expert with decades of deputy governor of China’s Officials prolonged the ing steps to ease currency 5,178 and barely higher
experience in the finance central bank. turmoil with draconian controls, show the tension than late 2014, when the
industry, may help assuage Fueled by cheer-leading in measures such as ban- between the ruling Com- market started rising.q

Yahoo board hires investment banks to mull possible sale

Yahoo CEO Marissa Mayer delivers an address in San Francisco. Yahoo’s board has hired three frustrated with a steep drop ated company while leav-
in the company’s stock ing behind prized stakes in
investment banking firms to evaluate potential bids for its Internet operations. price have been pushing Alibaba Group, a rapidly
for a sale of the Internet growing Internet company
(AP Photo/Eric Risberg) operations instead. in China, and Yahoo Ja-
The board has now re- pan. The proposed spinoff
MICHAEL LIEDTKE time to turn around the profitable products. sponded to that pressure might not be completed
by hiring investment bank- until next year, if Yahoo’s
Associated Press struggling company. Mayer believes the over- ers Goldman Sachs, J.P. Internet business isn’t sold
Morgan and PJT Partners to before then.
SAN FRANCISCO (AP) — The move announced haul will boost profits and set up a process for meet- Yahoo Inc. didn’t identify
ing with companies inter- any of the potential bid-
Yahoo’s board has hired this weekend comes 2 1/2 sharpen Yahoo’s focus on ested in buying all or parts ders that it might meet. Ve-
of Yahoo’sbusiness. A spe- rizon Communications has
three investment banking weeks after Yahoo dis- mobile apps and other ser- cial committee of Yahoo’s publicly said it might be in-
directors will discuss the terested in buying parts of
firms to evaluate potential closed it would consider vices most likely to revive options with the bankers the company after paying
and the company’s legal $4.4 billion last year to snap
bids for its Internet opera- “strategic alternatives” the company’s revenue advisers, Cravath, Swaine up another fading Internet
& Moore. While the board company, AOL Inc.
tions in the clearest sign yet while Mayer cuts costs growth after years of de- mulls those alternatives, Analysts believe Yahoo’s
Mayer will continue to pur- other likely suitors may in-
that CEO Marissa Mayer through mass layoffs, office cline. sue a turnaround plan that clude AT&T, Comcast and
includes jettisoning 15 per- various private equity firms
may not have much more closures and a purge of un- Some Yahoo shareholders cent of Yahoo’s workforce. that specialize in snapping
“We believe that pursu- up troubled companies
ing these complementary with well-known brands
paths is in the best interests such as Yahoo.
of our shareholders and will Virtually all of Yahoo’s cur-
maximize value,” Yahoo rent market value of $28
Chairman Maynard Webb billion is tied to its stakes in
said in a statement. Alibaba and Yahoo Japan.
Mayer also is trying to spin The holdings in Alibaba
off Yahoo’s Internet op- alone are valued at $26
erations into a newly cre- billion.q

Feds: Witnesses fear retaliation from ex-pharma CEO Shkreli

MICHAEL BALSAMO after his criminal case plays ried Shkreli would retaliate Shkreli’s attorney, Benjamin cine called Daraprim and
Associated Press out. They fear that if Shkreli against them if they testi- Brafman, said the allega- promptly raised the price
NEW YORK (AP) — Several is allowed to take deposi- fied because they “have tions against his client are from $13.50 to $750 per pill.
witnesses in a securities tions in the civil case, he will been threatened” by “preposterous.” The former hedge fund
fraud case against phar- have access to information Shkreli over past disputes, “While his ‘keen intellect’ manager was arrested in
maceutical executive Mar- that isn’t normally disclosed prosecutors said. One of can at times be intimi- December after prosecu-
tin Shkreli are concerned until the late stages of a the witnesses, who wasn’t dating to mere mortals, tors said he lost investors’
he will retaliate if they tes- criminal case. identified in court papers, nothing else about Martin money through bad trades
tify against him, U.S. pros- “Here, there is evidence also told prosecutors that Shkreli is intimidating at all,” and then looted Retrophin,
ecutors say in a court filing. that defendant Shkreli has Shkreli reached out to them he said. another pharmaceutical
Federal prosecutors in New taken steps to intimidate or after he learned he was un- Shkreli, 32, gained notori- company where he was
York are asking a judge threaten individuals in the der investigation and “sug- ety last year after a drug CEO, for $11 million to pay
delay a civil lawsuit that past,” prosecutors wrote in gested that the witness company he founded, Tur- back his disgruntled cli-
the U.S. Securities and filings Thursday. agree to a false version of ing Pharmaceuticals, spent ents. Shkreli has pleaded
Exchange Commission Several of the witnesses told certain events,” authorities $55 million for the U.S. rights not guilty to securities fraud
brought against Shkreli until prosecutors they were wor- said. to sell a life-saving medi- and conspiracy charges.q