Is this part of the cost-cutting switch over to CEE people have been warning about, for what seems like years now? Nokia says it’s going to be closing its Vienna-based headquarters for Central Europe and moving 60 jobs to Budapest. Those willing to follow the jobs two hours down the M1 are allegedly welcome to do so, but would they really be the same jobs (i.e. at the same salaries)? Wonder who’s looking for the office space for Nokai…
It doesn’t mean the company’s workforce at its factory in Savar can breathe easier, though, as half of the plant’s workforce are being given pink slips.
Europa Capital LLP has sold the second and final phase of Office Campus Gasometer to Bank Austria Real Invest for around €75m. Located in the Simmering district of Vienna, the 28,400 sqm building’s tenants include Nokia Siemens, Networks, Fujitsu, LG Electronics and Wiener Wohnen. The sale was completed on behalf of Europa Fund. RED Real Estate Development GmbH was development manager of OCG2.
Immofinanz will be selling €550m in convertible bonds to help finance its bonds that come due between 2014 and 2107. If you own shares in the company, you’ll get first crack at the new issuance, whose conversion price could be 30-40 percent above the current share price, and whose coupon could be over 3%. This would allegedly complete the financial restructuring following the company’s descent into distress in 2009. Immofinanz was merged with Immoeast, reams of assets were sold and a totally reshaped management structure was installed. Proof of this could come at the end of 2011, as dividend payments to shareholders are now being hinted at.
If you read German, or if you can deal with google’s translator, Immofinanz’s CEO Eduard Zehetner has jumped on the blog bandwagon with posts of this own. Interestingly, it’s being done on the company’s actual webpage. His latest posting was a rejection of allegations that appeared in the Austrian media about him allegedly engaging in insider trading. It gets tasty when he wonders aloud if the disgraced Immofinanz czar Karl Petrikovics isn’t in some way involved.
The Viennese waltz between Immoeast and Immofinanz looks to be coming to a close as the two companies, already merged at the hip, are set to merge in January. The two companies own huge shares in each other anyway and seem to be taking advantage of the relatively calm financial waters to do a deal not everyone thinks is a great idea. Immoeast has been performing far better this year than last, with saying it had net income of €63.3m for the three months ending October 31. A bit better than the €1.47bn loss of a year before. If its share price dropped yesterday on the news of the proposed merger, maybe it’s because Immofinanz debts exceed its assets by €750m. For the record, as Bloomberg points out, Immofinanz owns 54.4% of Immoeast.
Immoeast shareholders would get 54.4% of the new, merged company. If anyone has some insight as to what the real attraction for Immoeast is, or the potential pitfalls, we’re all ears.