CREDIT UNION HOME LOAN PROSPECT GREETED WITH OFFICIAL SCEPTICISM - The prospect of a move by credit unions to provide home loans has been greeted with acute scepticism in regulatory and official circles.
The Irish League of Credit Unions, which represents almost 500 local and professional credit unions, said yesterday it was exploring the possibility of offering mortgage financing to members.The league said such a move could be one year away at least, writes the Irish Times. However, it was made clear in regulatory circles that the credit union sector remains under financial strain and that the league and member credit unions would face very steep hurdles if they sought to embark down such a path. A number of credit unions ran into severe financial trouble in the financial crash. The most notable was Newbridge Credit Union, whose rescuer Permanent TSB has so far received €24.1 million from a maximum €53.9 million allocation from public resolution fund. In addition, the transfer of Howth Sutton Credit Union to Progressive Credit Union cost the State €2.15 million. The transfer of Killorglin Credit Union to Tralee Credit Union cost a total of €2.15 million. Despite these settlements, the registrar of credit unions, Anne Marie McKiernan, indicated in a speech at the weekend “a little more than than half of all credit unions” are still subject to some form of lending restriction. This includes limits on individual loan size or commercial lending activity and, in a small number of cases, a monthly limit on total lending.
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BATTLE OF THE BURGERS: SUPERMAC'S AND McDONALDS IN NAME ROW - American fast food giant McDonald's has hit Supermac's with a 41-page objection against its plans to use the Supermac's name across the EU. Upping the ante in the international trademark war between the two fast food firms, McDonald's has lodged the comprehensive objection to the EU Office for Harmonisation in the Internal Market against Supermac's (Holdings) application to register the 'Supermac's' trademark in the EU. McDonald's has also put on hold plans by the Galway-based firm to use the Supermac's name in Australia by objecting to its trademark there, says the Irish Independent. In the David and Goliath struggle between the two fast food businesses, the McDonald's objections, if successful, will stop Supermac's planned expansion in the UK, the EU and Australia in its tracks. Former teacher, Pat McDonagh started his fast food business in 1978 in Ballinasloe and the Galway man has since popularised the Mighty Mac double burger and the Chicken Snack Box with revenues of around €100m now. Worldwide, McDonald's serves 69 million people every day and recorded revenues of $8.14 billion in Europe alone in 2013. McDonald's state that the Irish firm using the name Supermac's in the EU would "take unfair advantage of the distinctive character and repute of" McDonald's earlier-won trademarks.
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PETROCELTIC BOARD 'TOO COMPLACENT' - Petroceltic’s largest independent shareholder has vowed not to back any further capital raising efforts by the Dublin-based explorer until its board is shaken up and CEO Brian O’Cathain removed. Activist investor, Worldview Capital Management, which owns nearly 30% of Petroceltic, has been at loggerheads with the Dublin firm since late last year, says the Irish Examiner. It initially opposed Petroceltic’s $100m fund raising/share placing plan last summer, before threatening legal action and calling for an overhaul of the board on the basis of the Irish explorer, allegedly, not following through on certain concessions promised to Worldview in return for its eventual backing of the aforementioned capital raise. Worldview has since called an EGM - to be held later this month - where it hopes to add another two representatives to the board and unseat current Mr O’Cathain. For its part, Petroceltic last month urged shareholders to reject Worldview’s resolutions at the upcoming EGM, saying approval of such would have “a negative impact on the board’s effectiveness” by diluting its independence. It also claimed Worldview is only trying to gain control of the business without having to buy it at a fair price.
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DALIAN WANDA BUYS SEPP BLATTER NEPHEW'S SPORTS RIGHTS AGENCY - Chinese property developer Dalian Wanda has won an auction for Infront Media, the Swiss company led by the nephew of Fifa president Sepp Blatter that distributes broadcasting rights for some of the world’s biggest sporting events. Wanda will pay more than €1 billion for the company, owned by private equity group Bridgepoint since 2011, in a deal that is expected to be announced later this week, people familiar with the matter said. It emerged as the frontrunner in the Infront auction in December. Philippe Blatter will remain in his role as Infront’s president and chief executive. The deal marks the latest stage of Dalian-based Wanda’s expansion beyond commercial real estate into leisure and entertainment, including sports, and comes just weeks after it acquired a 20% stake in Spain’s Atletico Madrid, writes the Financial Times. The company already owns US cinema chain AMC Theatres and Poole, Dorset-based luxury yachtmaker Sunseeker. The bedrock of Wanda’s business is one of the largest commercial property portfolios in China, with Rmb160 billion ($25.6 billion) in sales during the 2014 financial year placing it third after Vanke and Greenland as a developer. But it is augmenting its property holdings to reflect the evolution of Chinese consumers’ tastes beyond physical purchases to both online retail and increased spending on movies and entertainment.
