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Monday, October 27, 2008.

From Creamer Media in Johannesburg, I'm Shannon O'Donnell.

Making headlines today:

On Monday, the JSE made a conditional offer to acquire the entire ordinary share capital of the Bond Exchange of South Africa for 173,22-million rand.

The proposed deal aims to create a unified multiproduct exchange that provides sophisticated trading, clearing, and settlement infrastructure to its clients.

JSE deputy CEO Nicky Newton-King said she believes that integrating Besa and the JSE is in line with bourse consolidation around the world. She said it would improve South Africa's competitive ability in an increasingly international market for securities trading.

She added that it was challenging to have a well-performing modern economy without a good financial system, of which strong capital markets were an essential part. It allowed participants to mobilise savings, allocate capital and manage risk.

On Friday, power generation firm Independent Power South Africa said that it was in advance discussions to sell four gas turbines. The company previously intended the turbines for its Coega project, near Port Elizabeth.

Ipsa stated that it had been approached by a number of potential buyers. It was now in various stages of negotiations at a price in excess of 100-million dollars, which compared with an all-in acquisition price of 60-million dollars.

The company is selling off the turbines as a result of constitutional changes affecting the Coega Development Corporation. These changes were necessary for the granting of leasehold rights for a new independent power plant to serve the baseload power and steam needs of industrial customers on the Coega site.

As no firm timetable had yet been set for establishing an independent combined cycle gas turbine plant on line, it was unlikely that the mid-2009 target for the first 521 MW would be met.

Also making headlines:

The World Trade Organisation says the poorest countries must improve their trade capacity.
China's economy is sound, but challenges loom.
Nicholas Stern says the risks of global warming are greater than the financial crisis.
And, a member of the Energy Intensive User Group says that the one-size-fits-all savings plan could threaten growth.

That's a round up of news making headlines today. For more on these and other stories please visit engineeringnews.co.za.