Yale University is investing $50 million in the initial public offering of shares by China Railway Construction Corp. According to news reports Yale is among nine cornerstone investors who will buy shares for a combined value of $450 million.Cornerstone investors are guaranteed stock in the shares sale.The move is expected to boost investor confidence.Yale and its co-investors are committed not to sell the shares for 12 months. Yale has the second biggest North American college endowment fund of about $15 billion.
China Railway Construction has built more than half of China's rail links since its establishment in 1948. it aims to sell 2.45 billion yuan denominated shares in Shanghai and about 1.71 billion shares in HongKong for a total of $5.4 billion.The offering is the world's largest so far , this year.Demand for infrastructure shares in China remains strong and their values have largely resisted the price meltdown witnessed over the last couple of months.China, looking to ease transport bottlenecks caused by its booming economy, has planned an investment of $175 billion in its railway infrastructure in its five year plan through 2010.These shares will start trading in Shanghai on March 10th and in HongKong on March 13th.
Cellphone Companies Prepare For Price War.
On Feb. 19th Verizon Wireless shook up the cellphone industry by offering unlimited calling for $100 per month. Verizon's offer was immediately matched by AT&t Mobility(T) and T-Mobile U.S.A. Up to 15% of the customers of these three of the four largest US cellphone companies stand to benefit by this move.High daytime users may end up saving from 25% to 40% of their monthly bills.Concerns over a price war in the industry sent cellphone stocks lower on Wall Street.
Many analysts however consider it to be a smart move.Dismissing fears of lower revenues they pointed out that cellphone companies would in fact benefit from such a move as they will tempt people to shift away from landlines.Cable companies such as Comcast and Time Warner's cable division may be hit particularly hard.A wireless plan that gives unlimited calling for a fixed price is very attractive indeed.A service that can be used on the go can't be matched by anybody else.
The only concern is whether the networks of the cellphone providers will be able to handle the additional traffic generated by this plan.If they have done their homework properly, they should be in a happy position.
Many analysts however consider it to be a smart move.Dismissing fears of lower revenues they pointed out that cellphone companies would in fact benefit from such a move as they will tempt people to shift away from landlines.Cable companies such as Comcast and Time Warner's cable division may be hit particularly hard.A wireless plan that gives unlimited calling for a fixed price is very attractive indeed.A service that can be used on the go can't be matched by anybody else.
The only concern is whether the networks of the cellphone providers will be able to handle the additional traffic generated by this plan.If they have done their homework properly, they should be in a happy position.
Virgin Atlantic To Make First Biofuel Flight.
Virgin Atlantic is set to make the first flight by a commercial airline using biofuel.The flight will take-off from Heathrow airport in London and will fly to Amsterdam.It will not have any passengers on board.One of the Boeing 747's engines will be connected to an independent tank that will provide 20% of the engine's power.This will eliminate the risk to the flight that will have three engines running on conventional fuel which are capable of powering the plane if there is a problem. Virgin has refused to disclose what its biofuel, which is plant derived,is made from.It has stressed that the source will be revealed after the flight, but have explained that it does not compete with staple food resources.The Virgin flight is meant not only to prove the viability of alternative fuels to power aircraft, but also to challenge the conventional belief that biofuels freeze above 15,000 feet.
Various reports have suggested that although biofuels could play an important role in cutting greenhouse emissions, it would be disastrous if biofuel production was allowed to make inroads into biological diversity and natural ecosystems. Such damage can be done quickly, but may be difficult to reverse.
Biofuels, mainly diesel and ethanol made from plants are a viable option for replacing natural oil, but the carbon savings depend on what crop is used for the purpose. An indiscriminate switch to biofuels may raise food prices significantly all over the world.
Nevertheless, increasing biofuel production goes a long way towards promoting global energy security. Currently research is focussed on converting non- food vegetation into ethanol. Once the range of crops that can be used to manufacture ethanol expands sufficiently, the switch to such fuels will become convenient.
Various reports have suggested that although biofuels could play an important role in cutting greenhouse emissions, it would be disastrous if biofuel production was allowed to make inroads into biological diversity and natural ecosystems. Such damage can be done quickly, but may be difficult to reverse.
Biofuels, mainly diesel and ethanol made from plants are a viable option for replacing natural oil, but the carbon savings depend on what crop is used for the purpose. An indiscriminate switch to biofuels may raise food prices significantly all over the world.
Nevertheless, increasing biofuel production goes a long way towards promoting global energy security. Currently research is focussed on converting non- food vegetation into ethanol. Once the range of crops that can be used to manufacture ethanol expands sufficiently, the switch to such fuels will become convenient.
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