Quickbites

Source close to the talks said the European Union will clear it too. “The Justice Department has closed its investigation into the merger of Price Waterhouse and Coopers and Lybrand, clearing them to merge," Justice Department spokesman Michael Gordon said. "We worked closely with the Europeans on their investigation".

A US source close to the talks said the Europeans would issue no “statement of objection” and clear the way for the merger as well. A "statement of objection" would involve a further investigation into the merger. Even if the EC decided not to forward any objections to the planned merger, it would still have to consult with EU national antitrust experts.

Puma profits fall, EPS rises

The German sportswear manufacturer Puma saw netprofits last year fall by 19 per cent to 67.7 million marks ($37.1 million) but earnings per share rose to 4.40 marks against 3.88 marks in 1996, the company said. The price of shares in the group responded by rising by 2.20 marks or six per cent to 39.25 marks. The group announced at the beginning of February that pre-tax profits had risen by nearly 13 per cent to more than 73 million marks ($40 million) in 1997 from consolidated sales which had risen by nearly 12 per cent to 547 million marks, excluding results from franchises.

The company said then that pre-tax profits this year would be halved owing to an increase of investment and the effects of the financial crisis in Asia.

Daewoo’s deal with Ukraine’s AvtoZaz under fire from EC

The European Commission has told Ukraine that it must modify trade advantages forming part of an agreement between Daewoo of South Korea and AvtoZaz within three weeks because the arrangements are discriminatory. An EU official here, Hugues Mingarelli, said: "Wehave given Ukrainian authorities a list of the points which we hold run counter to the rules of the World Trade Organisation and the partnership and cooperation agreement which we have signed with Kiev. "We have asked our Ukrainian partners to reply to our remarks within three weeks."

The European Union has found that Ukraine was seeking to protect a joint company formed recently by Daewoo and AvtoZaz which is the only car manufacturer in Ukraine. The Government has extended big tax advantages to the venture and has restricted the import of used cars.