How would you like to get a loan with an interest rate 1% to 2% lower than you’d likely be able to get otherwise, with a seven-year term during which you don’t have to repay any principal — and even then you’ll have to pay back only 80% of what you borrowed?
You may be skeptical, but such loans actually exist — that is, for borrowers who need the financing to start or expand a business, or develop a project, that will provide economic, social, or environmental benefit to a low-income area.
It is surely a promising sign for Terry Gou, the boss of Foxconn, that Japan’s largest business newspaper, the Nikkei, is reporting unflatteringly on his efforts to buy Sharp, a near-bankrupt electronics firm. At first the Innovation Network Corporation of Japan (INCJ), a government-backed fund, had seemed certain to snap up the company, and the Nikkei said little. But now the paper is calling Gou a domineering, wilful “warlord of business” with close ties to China who it says has antagonized Sharp’s management with its tactics. So he must be getting somewhere.
Gou scored a coup on February 5 when he appeared to secure Sharp’s agreement to favor Foxconn’s bid of ¥660 billion ($5.6 billion) for the firm, rather than that of the INCJ, which is offering about half as much. Gou says the two firms are set to strike a deal this month. If so, it would be one of the biggest foreign takeovers of a Japanese firm. Sharp says it is still talking to the INCJ.
Forty percent of CFOs surveyed by BDO plan to pursue deals in 2016 and nearly all see M&A activity at least matching last year’s record pace.
New twists in the battle for control of an ailing electronics firm.
A recently reauthorized federal program rewards investments in low-income communities.
The payday lending scam made loans at exorbitant interest rates to 4.5 million Americans.
After a relentless pursuit, pharmaceutical firm Mylan pays a large premium to acquire a company that sells over-the-counter drugs.
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