Billionaire Slim’s Europe Plans On Hold As Kpn Talks End

`Tough Ride

In contrast, that metric has risen in the developed markets of Europe and the U.S., said Michael Issenberg, Accors chairman for Asia-Pacific. The next couple of years will be pretty challenging in India as there has been a fair amount of supply, and more hotels are being built over the next two years, Issenberg said in an interview in Singapore . ITC Ltd. (ITC) , Asias second-biggest cigarette maker by market value, Indian Hotels Co. (IH) , the owner of the Taj chain, are among operators pressing ahead with their expansion plans, undeterred by the worst economic slowdown in a decade. The number of rooms in Indias top eight cities is set to increase 19 percent this year from 73,000, according to Cushmans estimates. Saving Costs Revenue per room fell 9.4 percent to 3,143 rupees ($51) in the second quarter from the previous three months, data from the property broker showed. The decline is primarily due to the slow recovery in demand and the pace of addition to rooms, Akshay Kulkarni, regional director for hospitality at Cushman said. The short-term outlook for the industry is a bit challenging with economic and political issues in the backdrop of a slow global economy, Kulkarni said. Additionally, travel in the corporate segment seems to be wary as companies are focused on saving costs. Supply outstripped demand by 41 percent as of 2012, and the estimate for 2016 is 39 percent, data from Cushman showed. (EIH) , the owner of the Oberoi brand of hotels, have halved in the past three years, according to data compiled by Bloomberg. Indian Hotels slid 2.2 percent to 49.20 rupees as of 12:17 p.m. in Mumbai trading today, while EIH rose 0.7 percent to 55 rupees. No Scope Indian Hotels reported its first annual loss since at least 1997 in the year ended March 31 as sales growth slowed to the least in three years, according to data compiled by Bloomberg. EIH had its smallest profit since 2005.

The rally is based on expensive price cutting and manipulated sales data, which will only further undermine the precarious state of most of Europes non-German manufacturers. Car sales may have stopped falling at close to 20 year lows, and forecasts for next year are positive. But much of this improvement has been down to huge spending by the manufacturers on discounts and price cuts, while dealers are being persuaded to buy the excess cars on their lots which count as new car sales. These will eventually be sold on to the public at well below sticker price. The Brussels-based European Car Manufacturers Association, known by its acronym in French, ACEA, ( www.acea.be ) announced today that Western European car sales were up 5.4 per cent in September compared with the same month last year at just over 1.1 million, bringing the total for the year so far to 8.8 million. Thats a fall of 4.0 per cent on the first nine months of last year. Peter Fuss, partner at consultants Ernst & Young Ernst & Young s Global Automotive Center in Frankfurt, Germany, said the recovery in car sales was down to the improvement in Europes economic outlook, with the Euro currency zone pulling out of recession during the second half of 2013. But with factory use down to less than 65 per cent by manufacturers, according to Fuss, this underlines the chronic overcapacity in Europe, which remains unresolved because of pressure from unions and governments to resist rationalisation. The European industry is looking for a bailout along the lines of the U.S. intervention on behalf of bankrupt GM and Chrysler, to allow it to finally shut-down uneconomic factories. But given the financial crisis in the euro zone, this is simply unaffordable. Ernst & Young expects an overall decline of three per cent in Western Europe for the whole year, and only modest growth next year. This growth will continue to be artificial one that is driven by discounts and self-registrations. We estimate it will take at least two years for the market to witness the real sales recovery, driven by replacement demand. As a result, profits for automakers are likely to remain challenged at least until 2014 is out, Fuss said.

Europe’s Car Sales Rally, Thanks To Discounts, Dealer Action

There is of course a possibility that well get back at the table again, he said. Its difficult to assess at the moment how the relationship with America Movil will develop. Slim directed America Movils highest-ranking executives to the talks, including CEO Daniel Hajj, Chief Financial Officer Carlos Garcia-Moreno and Elias, who is director of strategic alliances for the companys fixed-line unit. Slim, 73, didnt personally take part in the negotiations, said Elias, who like Hajj is a son-in-law of the billionaire. Telefonica Deal The companies failed to reach an agreement even after America Movil helped KPN get a better price from Telefonica SA (TEF) for its German unit, E-Plus. After discussions with Slims company, Madrid-based Telefonica agreed in August to raise its bid for E-Plus to 8.55 billion euros from 8.1 billion euros. The transaction is awaiting regulatory approval. Blok said today he expects approval by mid-2014. A Telefonica press official declined to comment. KPN had argued that a tax offset from the sale of E-Plus makes the company more valuable, people with knowledge of the discussions said earlier, asking not to be identified because the talks were private. KPN was seeking as much as 3 euros a share from America Movil, said Robin Bienenstock , an analyst at Sanford C. Bernstein & Co. in London . Little Understanding? They came in to make an offer for a company without fully understanding the rules of the market, she said. Peter Schiefer, a spokesman for Vienna-based Telekom Austria, declined to comment.