Foxconn modify absorption Sharp

Imaginary walk before Sharp AQUOS "s flat-panel TVs in an electronics store in Tokyo, Thursday, February 25, 2016Image copyrightAP

captionSharp Image struggling with heavy debts and went through two main injections
Taiwanese manufacturer Foxconn says it has finally agreed to take on the struggling Japanese electronics company Sharp.

Foxconn said the deal is worth 389bn yen ($ 3.5bn, £ 2,4 billion) and give her a 66% stake in Sharp.

The Foxconn, which assembles most of the iPhones in the world, for the first time offered to invest in the troubled Japanese company in 2012, but the negotiations failed.

Both companies said that the deal will be signed on April 2nd.

This will be the first foreign capture of a major Japanese electronics firm.

Describing himself as a "world-class leaders in the technology industry", the Foxconn and Sharp announced that they will form a "historic strategic alliance."

The innovative firm

Established in 1912, Sharp is one of the oldest Japanese technology firm.

Japanese officials are reluctant to let it fall under foreign ownership because of the distinctive technology behind its display panels.

Prior to the announcement of the deal with Foxconn, Sharp discussing competing proposals from the government-backed consortium of Japanese investors.

Although in recent years there has been decline in his life, the company is still the leader in LCD technology, a key asset for Foxconn.

In 2012, Sharp was close to bankruptcy input. He is struggling with heavy debts and went through two main injections for the past four years.

Sharp innovations include mechanical pencil in 1915 and innovative developments in television technology.

Alaska Air to buy Virgin America in the $ 4 billion deal

Horizontal tail of Virgin Atlantic and Alaska Airlines aircraftImage copyrightAlaskaAirlines
Alaska Air Group has agreed to buy Virgin America in the transaction $ 4 billion (£ 2.8 billion) to create the fifth-largest US airline.

This will allow Alaska Seattle expand into profitable hubs such as San Francisco and Los Angeles.

Two board "unanimously approved" the deal, which will see the Alaska purchase Virgin America for $ 57 (£ 40) per share.

However, the Virgin founder Sir Richard Branson said that "unfortunately, nothing [he] could do to stop the" deal.

This merging of commercial airlines as US Airways and American Airlines first in the United States combined in 2013 to make the largest carrier in the world.

"Sadness"

Sir Richard BransonImage copyrightFrazer Harrison
Image captionSir Richard expressed his "sorrow" in the transaction for the acquisition of Alaska Air Virgin America
Virgin America, which accounts for about 1.5% of US domestic flight capacity was listed on the US stock market in 2014 as an offshoot of the London Virgin Group.

In a company blog, Sir Richard said: "I would be lying if I did not admit that our great sadness combined with another airline.

"Because I am not an American, the US Department of Transportation provided I take some of my shares of Virgin America, as the non-voting shares, reducing its impact on any absorption. So it was not, unfortunately, I could not do anything to stop it" .

He added that the consolidation is a trend that "can not be stopped," with the four airlines currently controlling more than 80% of the US market.

expansion

Alaska and its partner regional airlines, which together account for about 5% of US domestic flight capacity, serving more than 100 cities in the US, Canada, Costa Rica and Mexico.

If the transaction is approved by the state of US regulators and shareholders of Virgin America, the companies plan to complete the transaction before January 1, 2017.

Brad Tilden Regional, chairman and chief executive officer of Alaska Air Group, said: "With our extended network and strong presence in California, we offer customers a more attractive flight options to travel non-stop."

Virgin America shares rose 40% to $ 54.52 - just below the offer price - in early trading.

Alaska, which is reported to have beaten competition from rival Jet Blue Airlines for the company, fell 4.7% to $ 78.15.

Obama: "tax evasion is a big global problem"

President Obama warned, "tax evasion is a big global problem", and called on Congress to take action to eliminate tax loopholes.

"A lot of this is legal, but it is a problem," he said.
His comments come a day after the US Treasury announced new plans to prevent tax avoidance transactions, known as inversions.

Inversion associated American company merger with the company in a country with a lower tax rate and are becoming increasingly popular.

"These companies get all the rewards to be an American company, is not fulfilling its obligation to pay their fair share of taxes," Obama said.

The President called inversions "insidious loophole", and said that the company that made it was "game" the system.

The Ministry of Finance has taken measures to prevent the double inversions. His latest move focuses on the practice known as stripping income where the company uses internal loans to move money out of the United States in its foreign operations.

Inversion deals

Inversion of the transaction are not new but have gained more public attention in recent years.
Allergan shares fell 16% after the Treasury announcement, as investors feared that the new rules will lead Pfizer to drop $ 160 billion inversion contract with the Irish-based firm.

In accordance with the terms of the deal Pfizer will buy Allergan - Dublin- based on Botox maker- and move its headquarters to Ireland, where the corporate tax rate is 12.5%.

The corporate tax rate in the US is more than 30%.

In 2014, in another recent deal inversion, Burger King bought the Canadian coffee and donut chain Tim Horton.

Joint Group moved its headquarters in Ontario, Canada, where the corporate tax rate is 26.5%.
Over the weekend a massive leak of data in a Panamanian law firm identified a number of world leaders, as well as authorized by the corporation, using offshore accounts to hide money and avoid taxes.