Newspaper post €0.65 / 28c Business Today WEDNESDAY 23 July 2008 - ISSUE NO. 545 Interview: Pre-budget document welcomed Editorial: Transport strike Mario De Marco with caution – lessons to be learnt Page 4 Page 6 Page 7 www.businesstoday.com.mt World Business Highlights GO snatches Melita Wachovia Reports Record $8.9 Billion Loss, Slashes Payout, Cuts 6,350 Jobs Wachovia Corp., the U.S. bank that hired Treasury Undersecretary Robert Steel as chief TV rights purchaser executive officer two weeks ago, reported a record quarterly loss of Charlot Zahra negotiation of TV rights for the not confirm the move. based equity firm GMT Group $8.9 billion, slashed the dividend and competition. She is flanked by “She is not a public figure, Communications Partners last year. announced 6,350 job cuts. The stock The move of the person who used Jack Mizzi, GO’s content manager, therefore we will not disclose The impact of Dandria’s move slumped as much as 10 percent in to negotiate the TV rights for Melita who is responsible for local sports the terms and conditions of her to GO on the sporting rights New York trading. Cable to arch-rival telecoms opera- acquisitions. employment,” he told Business acquisition market is yet to be tor GO a few months ago has been Dandria joined Melita way back in Today. He said it was “normal” for ascertained, however, it is known Fannie, Freddie Rescue May Cost kept hush-hush by both operators. June 1991 when the cable company, employees in the telecoms sector, that GO have managed to eat away Taxpayers $25 Billion, Budget Office Says Treasury Secretary Henry Business Today has learnt that had just started its operations in like in any other activity, to switch some of the TV rights which were Paulson’s rescue package for Fannie Michele Dandria left Melita Cable and had not even started from one company to the other. held traditionally held by Melita, Mae and Freddie Mac will probably last year after sixteen years at the offering its services to customers. Sources told Business Today that a particularly the English FA Cup and cost $25 billion, the Congressional company as programming and When Business Today contacted “significant” number of employees the matches of the British national Budget Office said. acquisition manager. Dandria for her comments about the had left Melita and joined GO football team. She has now joined GO as product matter, we were instead contacted after the arrival of the company’s Crude Oil Falls as Storm Forecast manager TV, responsible for the by a GO spokesperson, who would new majority shareholders, UK- [email protected] to Miss Gulf of Mexico Production Areas Crude oil fell to the lowest in more than six weeks on forecasts that a tropical storm in the Gulf of Mexico will miss oil fields and refineries, BWA licences may be easing concern that supplies will be disrupted. revoked, MCA warns Assured Guaranty Plunges, Bond Risk Soars on Moody’s Review for Downgrade Assured Guaranty Ltd. plunged and the cost to protect Charlot Zahra the licence conditions which may against a default by the bond insurer include the suspension or revocation and Financial Security Assurance of the licence on the basis of serious Holdings Ltd. rose to a record after The Malta Communications Author- and repeated breaches,” the MCA Moody’s Investors Service said it may ity (MCA) is not excluding suspend- spokesperson warned. cut their Aaa ratings. ing or revoking the licences of the Asked what concrete action the broadband wireless access operators MCA is taking to ensure that the two UAL’s United Airlines Boosts Planned Job Cuts to 7,000 as Fuel (BWA) for not having rolled out their operators abided by the conditions of Costs Surge UAL Corp.’s United services despite being given a licence their respective licences, the MCA Airlines, the world’s second-largest to do so three years ago. spokesperson said: “Following public carrier, said it will cut more than In 2007, Vodafone Malta Limited consultation last year, a regulatory 7,000 jobs by the end of 2009 to stem rolled out their broadband wireless decision dated 18 October 2007 was losses from record fuel bills. access services according to their taken to establish the mechanism licence obligations. However, the and quantum of administrative fines FTSE 100 other two BWA licence holders, to be imposed on licensees that Cellcom Limited and GO Mobile, failed to comply with their rollout- have still not started the rollout of obligations. This decision was not their respective services. contested. Asked by Business Today whether “On the basis of this decision, the MCA was contemplating the daily fines are being imposed on removal of the assignment of the Cellcom Limited and Mobisle frequency spectrum to the two Communications Limited,” companies and issue another call for the authority’s spokesperson applications for companies interested told Business Today. “A daily in offering the service, an MCA administrative fine of €127.63c has spokesperson said: “Both companies been imposed, effective as from 1 Inside have now informed the MCA that August 2007, on both companies they will endeavour to comply with and fines are being paid. These The Attractiveness their rollout obligations before their fines are to run until such time as of Malta for Foreign next rollout coverage date. MCA is satisfied that the companies “If either of the said companies have complied with their respective Investments do not demonstrate that they obligations.” Last week, 72 executives of foreign are complying with their rollout Finally, the MCA did not mince its owned companies based in Malta obligations, the MCA may consider words on its stance on the occupation taking other measures in line with of finite public frequency page 3 were invited by Ernst & Young to participate in a survey to identify what makes Malta attractive as an Markets investment country. Page 6 Security Closing Prices in Euro Closing Prices in Euro % Change Tue 15-July-08 Tue 22-July-08 from previous wk

Bank of p.l.c. 4.670 4.660 -0.214% Dodge Citi HSBC Bank Malta p.l.c. 3.800 3.830 0.789% Like something out of the old Lombard Bank p.l.c. 2.900 2.900 0.000% Middlesea Insurance p.l.c. 3.340 3.340 0.000% American Wild West the Banking and Simonds Farsons Cisk p.l.c. 2.800 2.830 1.071% Financial sector has had to endure GO p.l.c. 2.598 2.500 -3.772% International Hotel Investments p.l.c. 1.049 1.050 0.095% an ‘OK Corral’ type shoot-out since Plaza Centres p.l.c. 1.730 1.730 0.000% Malta International Airport p.l.c. 3.062 3.120 1.894% the end of last year with much blood GlobalCapital p.l.c. 2.500 2.500 0.000% being spilt. But have the bullets now Datatrak Holdings p.l.c. 0.291 0.291 0.000% San Tumas Shareholdings p.l.c. 2.562 2.562 0.000% stopped being fired? Mark Lamb Medserv p.l.c. 3.990 3.990 0.000% Grand Harbour Marina p.l.c. 2.100 2.250 7.143% discusses. Crimsonwing p.l.c. 0.530 0.530 0.000% Page 10 MaltaPost p.l.c. 0.810 0.800 -1.235% RS2 Software p.l.c. 0.815 0.815 0.000%