Austrian Economic News - Week 11 -17 Jun

Monday

Austrian builder Strabag said on Monday it had received a USD 43.2m order for road rehabilitation in Moldova. The project will run for 24 months.
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Austrian Airlines (AUA) will transfer further flights to its parent Lufthansa, sister firm Swiss as well as to Augsburg Airways and Welcome Air. The move became necessary after 120 pilots left the company after the implemented change of the pay conditions.

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Austrian insurer Uniqa announced that it is before the divestment of its hotel portfolio. Via the decision Uniqa plans to focus on its core business.

Tuesday

Vienna Airport announced on Tuesday it serviced 1.99m passengers in May 2012, up 4.2% on year. Since the start of the year, the airport, which recently opened its Check-in 3 terminal, has handled 8.36m passengers, an increase of 8.1%.

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Austrian Airlines (AUA) said it carried 4.375m passengers in January to May 2012, a rise of 7.9% in annual terms. Occupancy rate improved 3.3% percentage points to 73%. The number of passengers in May inched up 1% to 1.036m.

Wednesday

Real estate developer Immofinanz plans to issue a bond worth up to EUR 75m. The bond is expected to bear a coupon of 5.25% and have a maturity of five years.

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Bank Austria has decided to divest of its heritage-protected headquarters on the Schottenring in Vienna's downtown. The deal is expected to take place by the end of the year. The bank, however, will continue to use the building until 2016/17.

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Vienna Airport said that it had opened insolvency proceedings against Artifacts, Saveria and Striberny, companies owned by Rakesh Sardana, which run stores at the airport. Vienna Airport spoke for "significant payment arrears" on behalf of the firms.

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Real estate developer Conwert has successfully issued a bond worth EUR 65m. The five-year bond bears a coupon of 5.75%.

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Following a new syndicate contract between Knünz GmbH and Pierer GmbH, their joint vehicle Cross Motorsport Systems has to file a compulsory takeover bid for Pankl Racing Systems. The offer is expected to stand at EUR 18.03 apiece.

Thursday

Cross Industries has to file a mandatory takeover offer for motorcycle producer KTM after the signing of a new syndicated contract between Stefan Pierer and Rudolf Knünz, the owners of Cross. The offer price is seen at EUR 44 per share.

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Austrian annual inflation rate decreased to 2.1% in May from 2.3% in April and thus reached its lowest level since November 2010. The euro-zone consumer price index was assessed at 2.3%.

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Volksbank International (VBI), bought by Russian Sberbank in mid-February, had ended 2011 with a loss of EUR 160.4m, compared to EUR 15.1m in profit for 2010. The bank, a former subsidiary of OeVAG, was burdened by write-downs for EUR 158.6m.

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Real estate developer Immofinanz has fixed the volume of its planned corporate bond at EUR 100m, with an interest rate of 5.25%. 

Friday

Mexico's billionaire Carlos Slim has secured a minority stake in Telekom Austria, the company announced on Friday. Presently Slim, via his America Movil, controls 6.75% in the telecommunications provider, while he has 3.14% via Immobiliaria Carso. The businessman has however agreed with Austrian investor Ronny Pecik to take the latter's stake in TA and thus to boost his shareholding to 25.9%. State holding ÖIAG, which owns 28.4% in the firm, has welcomed the entry of Slim.