BofA posts slim profit despite settlement

NEW YORK: Bank of America Corp. eked out a third-quarter profit even after taking $ 1.6 billion of litigation charges, as the second-largest US bank set aside less money to cover bad loans. The results show Chief Executive Brian Moynihan is still haunted by acquisitions forged during the financial crisis. The bank last month agreed to pay $ 2.4 billion to settle claims that it hid crucial information from shareholders when it bought investment bank Merrill Lynch & Co. at the height of the financial crisis. Bank of America had already set aside some money for the settlement, but it said last month that the pact, a UK tax charge and an accounting charge related to the value of its debt would reduce third-quarter earnings by 28 cents per share.

PepsiCo third-quarter net income drops 5%

NEW YORK: PepsiCo. Inc.’s net income dipped 5 percent in the third quarter, as the food and beverage maker poured more money into bolstering its flagship brands and developing new products that cater to shifting consumer tastes. The company, which makes Frito-Lay snacks, Tropicana juice and Quaker Oats, stood by its guidance for the year and profit came in above Wall Street expectations. As part of a turnaround push that began this year, PepsiCo. is working to raise the stature of its key brands, such as its namesake cola and Gatorade sports drink. The company, based in Purchase, New York, is betting that this will help cultivate customer loyalty and make the products more resilient to competition and price hikes.

Talks fail to restart Kingfisher flights

MUMBAI: Talks between striking staff and the management of India’s Kingfisher Airlines failed to reach an agreement to re-start flights, the chief executive said. A crippling strike by employees who have not received salaries for seven months has forced the airline, which is teetering on the brink of financial collapse, to ground all its planes since Oct. 1. Kingfisher’s top managers met some striking employees to persuade them to call off their agitation and return to work. The meeting “made good progress” but more talks will have to be held, Sanjay Aggarwal said. Another meeting is likely next Monday, he said.A striking staffer, who attended the meeting, said that the talks were “positive” but added the strike would continue until salaries are paid in full. Employees have been offered one month’s pay to return to work, but they refused.

ExxonMobil invests $ 3.1 bn in Canadian assets

NEW YORK: US energy giant ExxonMobil announced that it was buying Canada’s Celtic Exploration for Canadian $ 3.1 billion ($ 3.14 billion) in a deal to expand its shale assets portfolio.”ExxonMobil Canada will acquire 545,000 net acres (220,554 hectares) in the liquids-rich Montney shale, 104,000 net acres in the Duvernay shale and additional acreage in other areas of Alberta,” Exxon’s Canadian unit said in a statement. Exxon will assume Celtic’s debt and pay Celtic shareholders $24.50 a share, which represents $ 2.6 billion for the some 105.6 million shares in circulation. Celtic shareholders will receive shares of a new company that will hold assets not included in the Exxon deal, including acreage in British Columbia and Alberta and interests in oil and gas properties in Alberta. “This acquisition will add significant liquids-rich resources to our existing North American unconventional portfolio,” said Andrew Barry, president of ExxonMobil Canada.