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	January 08, 1999	atimes.com

Front Page

BUSINESS IN ASIA TODAY

Hyundai to start talks on takeover of LG Semicon
SEOUL - Hyundai Electronics Industries (KSE:00660) will start negotiations today with LG Semicon (29890) to cement issues involving the 100 percent takeover of LG Semicon.

A Hyundai official said the company had decided to accept the LG Group's offer in full, and to hold talks with the LG side on the price of the takeover, including extending cash payments under the mediation of the Federation of Korean Industries.

China to continue heavy issue of debt securities
BEIJING - The Chinese government will continue heavy issuance of debt securities in 1999 to finance infrastructure spending aimed at achieving economic growth of seven percent or higher, Finance Minister Xiang Huaicheng said Wednesday.

He said China would issue 316.5 billion yuan in government bonds in 1999, at least 10 percent more than in the previous year's initial budget. The figurewill represent China's largest fiscal spending initiative onrecord.

Ho Chi Minh City to become metropolis
HANOI - Ho Chi Minh City should be an economic, tourist and international business metropolis with a population of 10 million by the year 2020, according to an adjusted master plan approved by the Prime Minister.

"The city centre will be expanded to Thu Thiem to fully utilise its geographical position, land, infrastructure facilities and environment," Deputy Prime Minister Ngo Xuan Loc said.

Car sales hit record high in Australia
SYDNEY - Sales of new cars in Australia surged by almost 12 percent last year, a record high, figures show. Federal Chamber of Automotive Industrieschief executive Peter Sturrack said 807,000 new cars were sold in 1998.

State power firm PLN suffers major loss
JAKARTA - State electricity producer Perusahaan Listrik Negara (PLN) suffered a loss of Rp5.94 trillion (US$742.5 million) in 1998.

PLN president Adhi Satriya said Wednesday his company last year earned only Rp13.33 trillion, while its operational costs reached Rp 17.86 trillion. "The deficit has been covered by the government through a subsidy of Rp2.1 trillion," he said.

S Korea to set up train-ferry system
SEOUL - South Korea plans to establish a "train-ferry composite transportation" system in which large vessels will carry container-loaded trains to a depot connected to the Trans-China Railroad, the Ministry of Construction and Transportation said Thursday.

The plan is part of the five-year (1999-2003) basic plan on the country's logistics announced by the ministry. The project of the marine and land transportation system between South Korea and China follows a bilateral agreement that the two countries signed late last year to enhance bilateral railroad transportation.

Ansett sells stake in Diners Club operations
MELBOURNE - Ansett Airlines has sold its 68.2 percent stake in Diners Club's Australian operations back to parent company Diners Club International, which is owned by Citibank, for a reported A$80 million ($US50.2 million).

A key to the sale is a five-year agreement with Ansett, which has a codeshare agreement with Malaysia Airlines, tocontinue the commercial arrangement with the airline'sfrequent-flyer program.

Land developer gets investment perks from Manila
MANILA - The Filipino-Italian firm PRB Land Development Corp. has been granted investment perks by the Board of Investments for its pioneer-status 95-billion peso (US$2.4 billion) infrastructure project.

The project will develop Laguna Bay and its surrounding vicinities that consist of a highway, tollway, railways, waterways and landfill development.

(Asia Pulse)