17/08/2012 World Business Report

bid for the makers of Tiger Beer. The flagging currency saps Europe's

demand from the rest of the world The stock market pressure on

Facebook continues to build. Shares in the social network plunged some

6% on Thursday to close at a new low of $19.87. That is around half

the $38 they were floated at in a record breaking IPO back in May.

Worries about the company's ability to make money have contributed to

one of the most disastrous major flotation for many years. The

expiry of so-called lock-in restrictions, preventing some

shareholders from selling, could spell more trouble. Until now,

Facebook's original investors have not been allowed to sell their

shares. Those restrictions have started to end on Thursday. The

share price plunged another 6%. That is not the end of the matter.

Over the next few months, the number of Facebook shares in

circulation will quadruple. The next big charge will come in

November were Facebook employees are allowed to trade their shares

for the first time. That number includes Mark Zuckerberg, the

founder. As these extra shares come into circulation, the prize will

plunge even further. It is not the main issue facing Facebook. The

underlying worry is concern that the company would never generate

the massive profits required to justify its huge initial valuation.

It is something for investors to worry about. The bitter takeover

battle for the maker of Tiger Beer appears to be coming to a head.

Tell us the latest on this. It appears to be a battle.

There is a bit of a battle. It has been brewing for some weeks in

Singapore. Various companies are involved. They all have vested

interest. They're trying to raise their stakes in the makers of Tiger

Beer. The chief amongst them is Heineken. It has offered some $6

billion for the rest of the shares it does not own. The shares of Asia

Pacific Breweries have been suspended, pending an announcement.

According to some sources, Heineken is said to be in talks to try and

raise its bid. It is a fairly complex arrangement involving

several companies that have these interest. Companies associated with

a company owned by a tide billionaire is interested as well.

According to these sources, it is not clear how much a Heineken would

boost its share bid. A part of the reason is because Heineken is keen

on gaining more control is because South-East Asia is proving to be

one of the fastest growing drink markets in the world. Very few

independent companies are left out there to buy. It is a chance to

reach out to new consumers. The slump in the value of the euro

is making foreign goods and raw materials increasingly expensive

for the 27 countries they shared the single currency. -- 17

countries. Betray feeders and expect to show it is even harder

for exporters to sell goods and services into continental Europe. -

Winners paradoxically are companies within northern Europe. They are

selling to currencies outside the euro which are stronger. The losers

are those companies which have built businesses selling into

Europe but now find they are priced out of the market. Take his

internet security provider. Staff have worked long and hard to win

business across the continent. is the amount of money left over at

the end of the year which we can invest in the following year to

expand. Look at what happened to the euro over the course of the 12

months. These foreign exchange specialist advisers clients in

handling their Euro receipts. Timing of transactions are a worry

for clients. Should I sell it later in the hope that the rate fixes

itself? Should we break that level? For companies like this one,

selling in Europe is part of their success. More you're trouble with

the likes of Spain and Greece could South Africa is suffering one of

the bloodiest industrial disputes since the end of the Apartheid era

two decades ago. On Thursday police opened fire on striking miners

armed with machetes and sticks at the Marikana platinum mine, owned

by London based firm Lonmin. It is reported at least a dozen people

have been killed and many seriously injured. The unrest has been

characterised as a turf war between two unions. It has paralysed South

Africa's platinum industry, which accounts for 80% of the world's

reserves of the metal. The crisis is having repercussions around the

world. Shares of the mining company have been hit hard and the price of

platinum jumped by $30 an ounce on Thursday. We have a mining analyst

with us. Before we talk about the implications. Platt known is used

in a lot will start. -- stuff. -- planum. It is used in many things.

A wide variety of many things including the petroleum industry.

Chemotherapy and things like that. This unrest is having some be it

disruptions on the mind and the company. The London mines are not

operating. There are many other employees on strike and those who

are afraid of turning up to work. If it is not operating, in -- I

imagine that would have a big knock-on investors' confidence.

does. The companykph yesterday and told people they do not expect to

meet the numbers of this year. The year end in September. One of the

knock-on implications of that is that the debt covenants may come

under pressure. That is something the investors are concerned about.

There has been 80% increase on platinum. Historically, platinum is

quite a low level metal anyway. depends on how long this disruption

goes on for. We saw a six-week strike earlier in the year. That

had a fairly minor impact on the price. The industry is in

oversupply at the moment because of the depressed euro. That does

depend how long this drags on for. Yes or no? The thing we will see an