German government in Hypo offer

The German government has launched a takeover offer for troubled lender Hypo Real Estate (HRE).

The government's bank rescue fund said it was offering shareholders 1.39 euros per share, 15.8% higher than its last closing price of 1.20 euros.

But US investor JC Flowers, who has a 25% stake in HRE, has said he wants to remain a shareholder.

The rescue fund said if HRE became insolvent, there would be "substantial consequences" for financial markets.

Mr Flowers has previously signalled that he will not accept an offer below three euros a share.

A spokesman for the investor said: "There is still a clear preference to remain a shareholder and thus to be treated exactly the same as other shareholders that had to go under [Germany's bank] rescue shield."

Big losses

HRE has been Germany's highest-profile casualty of the financial crisis.

Last month, the German government moved to take an 8.7% stake in the firm, buying 60m euros ($67m; £54m) worth of new shares. The bank said at the time that the move was "a prerequisite for the intended recapitalisation of Hypo Real Estate" that the government "gain full control".

HRE reported a net loss of 5.46bn euros for 2008. So far, the government has provided it with loan guarantees of about 87bn euros.

The offer price values the shares the government does not already own at 290m euros.

Shares in HRE rose 15% in early trade.

Sensex remains up for the sixth day in a row

In volatile trading, the Bombay Stock Exchange benchmark Sensex on Thursday rose for the sixth straight day, the longest winning steak of the year on news of inflation easing and firming global cues.

The Sensex, which notched gains of nearly 12 per cent in the last five sessions, advanced by 0.57 per cent, or 61.52 points at 10,803.86.

During the day, it moved between 10,932.12 and 10,655.96 points.

However, the 50-share National Stock Exchange index Nifty, after touching a six-month high level of 3,400, fell to close with a loss of 0.90 points at 3,342.05.

While the market received support from firming overseas stock markets, the inflation rate falling to 0.26 per cent from 0.31 was a major booster.

Realty stocks were major gainers on agressive buying by funds on expectations of interest rate cuts by banks, leading to more home sales.

The realty sector index surged by 5.42 per cent to 2,041.33.

Commodity producers tracked gains in metal prices, while banking and financial company shares rose on expectations of a fresh stimulus move by the US.

The metal index rose by 3.72 per cent to 6,801.56, followed by the banking index, by 2.64 per cent to 5,045.27.

Trading in the metal sector picked up after the index of six metals rose 0.7 per cent on the London Metal Exchange, its second day of gains.

Wells Fargo expects record profit

US bank Wells Fargo has surprised investors by bucking the recession, saying it expects a record net profit.

The bank said profit will be $3bn in the first quarter, thanks to better-than-expected results at newly-acquired lender Wachovia.

Wells Fargo bought Wachovia, which was the fourth-largest US bank, after it almost collapsed last year.

"Wachovia's outstanding franchise has proven to be everything we thought it would," the bank said.

Wachovia merger

The bank said it expected revenue of $20bn for the quarter, translating into "another quarter of double-digit revenue growth" of 16%.

Banking giant Citigroup had initially tried to block the merger between Wachovia and Wells Fargo.

But the US Federal Reserve approved Wells Fargo's $12bn takeover after its all-stock offer.

Wells Fargo's results are set to include $372m in dividend payments to the US Treasury, which took a stake in many banks in exchange for a cash injection.

US financier Warren Buffett has a stake in Wells Fargo through his holding company, Berkshire Hathaway, which has lost its top credit rating from Moody's.

Man Utd parent company makes loss

Debt repayments at Manchester United have caused parent firm Red Football Joint Venture to make a £44.8m ($65.6m) pre-tax loss for the year to June 2008.

It covers the 2007/08 season, when United won the Premier League and Champions League, and takes the Red Football's debt from £604m to £649.4m.

Red Football Joint Venture was set up when the Glazer family borrowed heavily to buy the club for £790m in 2005.

Group turnover for the year was £256.2m, an English club record.

It was up from £210m the year before, and operating profit was up £5m on the previous year.

'Global brand'

The football club enjoyed a successful 2007/08 - with television revenues made from the improved Premier league deal and Champions League final run, sell-out games at the 75,000 capacity at Old Trafford, and all its other commercial revenues. "The turnover is spectacular, which is what you would expect from a season when they won the Premier League and Champions League," said Harry Philp, financial analyst at Hermes Sports Partners.

Match day revenues were up from 92.6m to £101.5m, while media income was up by close to 50%, from £61.5m to £90.7m. Meanwhile, the club's commercial operations generated £64m.

"The company continues to explore new commercial opportunities within the United Kingdom and overseas to further leverage the Manchester United brand," it said in a statement.

The club said it had four elements to increase its financial growth; maintaining playing success, treating fans as customers, leveraging the global brand, and developing club media rights.

Manchester United also made a profit of £21.8m on player transfers.