Sanofi in Australian vitamin deal

French drugs giant Sanofi-Aventis is to buy Australia's largest distributor of vitamin supplements.

It will pay 560m Australian dollars ($545m; £274m) to Primary Health Care for the company.

Primary acquired the distributor when it bought Symbion Health in February and Primary said the sale would pay off debt from funding the Symbion deal.

Primary added the sale would help it to focus on core businesses and integrate the rest of the Symbion business.

Primary said that the "employees and customers will benefit under the new ownership of Sanofi-Aventis with its dedicated focus on the manufacture and marketing of healthcare products".

French firm 'quits Iran gas deal'

The head of French energy giant Total has said it will not invest in Iran because it is too politically risky.

The company had been planning to develop the huge South Pars gas field, but Christophe de Margerie told the Financial Times it would not go ahead.

The announcement comes a day after Iran test-fired a series of missiles amid weeks of rising tensions with Israel and the US over its nuclear ambitions.

Analysts say Total's move will be a big blow to the Iranian energy industry.

It means Iran is now unlikely to significantly increase its gas exports until late into the next decade, they add.

In further response to the test missiles, US Secretary of State Condoleezza Rice said on Thursday that Washington would defend the interests of America and those of its allies from attacks by Iran.

Sanctions

Total has a memorandum of understanding with the state-owned National Iranian Oil Company to develop Phase 11 of Iran's half of the South Pars field in the Gulf.

In May, Total said it was still interested in working on the project together with the Malaysian company, Petronas.

But Mr De Margerie's comments now cast serious doubt on whether the French firm will invest in the Islamic Republic in the near future.

"Today we would be taking too much political risk to invest in Iran because people will say: 'Total will do anything for money'," he said.

The remarks follow increasing tension between Iran and Israel over Tehran's nuclear programme.

The US has also recently stepped up the pressure to impose tougher sanctions on the Iranian government and companies that do business with it.

Total was the last major Western energy group to have seriously considered investing in the country's huge gas reserves.

It was also one of the few companies in the world to have the technology needed to exploit Iran's huge, but untapped gas reserves.

The BBC's Jon Leyne in Tehran says it has been particularly galling for Tehran to watch as Qatar pumps vast amounts of gas from the South Pars field to its side of the Gulf, helping it become one of the world's major energy suppliers.

But observers say it is not just sanctions or political pressure - international banks simply are not prepared to put up the billions of dollars needed for such investments in Iran.

'Provocative' missile test

Mr De Margerie's remarks come a day after state media reported that the Iranian Revolutionary Guards test-fired a updated version of the Shahab-3 missile, said to have a range of 2,000km (1,240 miles).

Gen Hoseyn Salami, the Guards' air force commander, said the tests demonstrated Iran's "resolve and might against enemies who in recent weeks have threatened Iran with harsh language".

State media quoted him as saying: "Our hands are always on the trigger and our missiles are ready for launch."

Tehran has tested the Shahab-3 before, but the latest launch comes amid rising tensions in the region.

William Burns, the top official handling Iranian issues at the US state department, said the launch was "very disturbing, provocative and reckless".

But US officials played down suggestions that the move had brought military confrontation with Iran any closer.

"The reality is there is a lot of signalling going on, but everybody recognises what the consequences of any kind of a conflict would be," said Defence Secretary Robert Gates.

EADS hit as tanker deal reopened

Shares in EADS have fallen 3% on news that the US government has reopened a $35bn (£17bn) contract to supply the US Air Force with refuelling tankers.

The deal had been given to EADS, which owns Airbus, and its partner Northrop Grumman, but the US said mistakes had been made when the bids were evaluated.

US plane maker Boeing will now get the opportunity to rebid.

Analysts say it could prove difficult for EADS to win the contract and some fear it could lead to job losses.

'Significant errors'

The Air Force's decision to award the contract to EADS and Northrop Grumman has been controversial in the US.

Northrop's aerial refuelling tankers would be assembled in the US using components largely made in Europe.

When the decision went against Boeing, the company and a number of US senators campaigned to get the tender process reopened.

The US Government Accountability Office (GAO) reassessed the Air Force's decision and last month said "significant errors" had been made, including the evaluation of which of the two proposals was cheaper.

The initial evaluation had suggested that the Northrop Grumman bid would probably work out cheaper over the life of the deal. But when re-examined, Boeing looked to be the cheapest, the GAO said.

Tough challenge

The decision to re-open the bid was expected but still represents a serious blow to EADS's hopes to expand in the US.

"The new competition will be doubly difficult for any non-American challenger, i.e. EADS, to actually win because politics will decide who will win this competition," Howard Wheeldon, aerospace analyst, told the BBC.

"It alters the perspective on their ability to grow in the US, which is a very important market for them."

An Airbus plant in Flintshire, which employs 7,400 people, was expected to build the wings and the deal had been expected to safeguard these jobs.

However, Mr Wheeldon doubted that the loss of the contract would lead to job losses.

"It does not signal an increase in the number of jobs the company will shed," he said. "If they had won it... it would have created new jobs."

Huge deal

Boeing welcomed the decision to reopen the competition, but expressed concern that the selection criteria might be different.

"It's encouraging that the Defense Department intends to take steps to ensure a fair and open competition that, among other things, fully accounts for life-cycle costs, such as fuel, to provide the most capable tanker at the best value for the American taxpayer," Boeing said in a statement.

The deal - one of the biggest in the Air Force's history - is the first of three contracts to supply up to 600 new refuelling tankers. The 30-year deal could be worth up to $100bn.

Northrop Grumman, which was awarded the contract along with EADS in February, said the "best tanker" had already been picked.

"We are reviewing the decision to ensure the re-competition will provide both companies a fair opportunity to present the strengths of their proposals," the company said in a statement.

The Pentagon is expected to decide by the end of the year who will be awarded the contract. It has taken over responsibility for the process from the Air Force.

Coca-Cola defends Olympics deal

The chairman of soft drinks giant Coca-Cola has defended the firm's Olympic sponsorship in Beijing despite protests about China's role in Tibet.

Neville Isdell told the BBC the firm supported the "credo of the Olympic movement", and agreed deals well before it knew where each Games would be held.

The company, whose Olympic involvement dates back to 1928, was also a sponsor for the 1936 Games in Berlin.

Mr Isdell said he would have agreed to that deal too, had he been in charge.

"The sponsorship would have been committed four or five years ahead of that, and don't forget Neville Chamberlain was in Berlin on a very popular mission to talk to Hitler," he said.

"Not everything was known in 1938 and the Olympics were in 1936."

Coca-Cola's relationship with the Games began with the 1928 event in Amsterdam.

Other big brands associated with the Games include Adidas, McDonald's, Kodak and VW.

Tibetan protesters

This year sponsors have had to deflect negative publicity after some of the international legs of the Olympic torch relay suffered violent protests over Chinese rule in Tibet.

Reebok, which is owned by Adidas and is kitting out 250 Games participants, has decided against making its athletes available for press conferences or one-on-one interviews during the event.

Mr Isdell said Coca-Cola sponsored each event before knowing where the Games would be held.

"What we support is not actually individual governments but the whole aura that surrounds the Olympics and the credo of the Olympic movement," he said.

Despite the widespread protests about China's stance on Tibet and its role in the crisis in Darfur, Coca-Cola did not reconsider its Olympic pact, he said.

"What we are about is the broader context of what the Olympics brings to every country that it takes place in."

Mr Isdell believes the Beijing Olympics will help China open up to the world and bring about change.

"Look back in history, and you will see that China stagnated when it closed itself off to the world," he added.

'Symbol of peace'

With one month to go, Mr Isdell said the company remained committed to China's Games and he aims to carry the symbolic torch on the opening day.

"The Olympic torch was a symbol of peace. It was developed originally around the Greek Olympics to stop the warring that was going on between different factions in Greece at that time.

"There are people who want it to communicate something different and are trying to use that symbolism for issues that may have a very fair resonance. But I don't believe it is right to use those symbols of peace for another cause."

Mr Isdell said Coca-Cola's sponsorship strategy was based on moral principles.

"I believe the Olympics are a force for good and if they were not a force for good, we would not sponsor them."

The firm also rebuffs claims about the healthiness of its drinks, blaming a lack of exercise in the developed world for serious obesity problems.

"It is about physical activity and if you look at the overall calorie intake around the world it has not increased in the developed world. What has happened is that the level of physical activity has decreased," Mr Isdell said.

Coca-Cola argues that, as one of the world's biggest brands, public perception of its social and environmental credentials is often wrong.

"We have 1,000 factories around the world," Mr Isdell said. "We are a local business with a very, very high level of local input - normally 85%. Therefore that minimises our carbon footprint."

The company is tackling rising food costs and is also considering price rises to absorb the impact of higher commodity costs, such as corn syrup used in its drinks.

NBC agrees Weather Channel deal

NBC Universal and private equity firms Bain Capital and Blackstone Group have agreed to buy The Weather Channel from Landmark Communications.

The terms of the deal have not been revealed, but the price tag is reported to have been almost $3.5bn (£1.8bn).

The channel will be run as a separate business from the company's other channels, which include MSNBC and CNBC.

The Weather Channel was put up for sale in January, but its owner was reported to be hoping to sell it for $5bn.

It is the third most distributed US cable channel, reaching 97% of US homes with cable, while its website is accessed by nearly 40 million users per month.

NBC- which is part of General Electric - and its partners announced last month that they were in exclusive talks to buy the company.

The agreement is one of the largest private equity deals of the last 12 months. Such acquisitions have dried up as banks have become reluctant to lend money as part of the credit crunch.

US tanker deal thrown into doubt

Boeing should get a second chance to bid for a $35bn US Air Force contract, a US government agency has said.

The Government Accountability Office (GAO) upheld Boeing's protest against the awarding of the air tanker deal to rivals Northrop Grumman and EADS.

It said that the Air Force had made a "number of errors" that could have swung the outcome of the competition.

The GAO's ruling is not binding, but it puts huge pressure on the Air Force to put the process out to tender again.

The GAO said in a statement: "The Air Force made a number of significant errors that could have affected the outcome of what was a close competition.

"We therefore sustained Boeing's protest."

Massive victory

The decision is a massive victory for Boeing, paving the way for it to win back all or part of the contract, which was for 179 new aircraft.

It was welcomed by many US lawmakers, who had been angered over the possibility that US jobs could be lost to Europe, particularly with the economy so fragile.

The Air Force said it would review the ruling and set out its response.

"The Air Force will select the best value tanker for our nation's defence, while being good stewards of the taxpayer dollar," it added.

The news was met with disappointment from Airbus parent firm EADS, but chief executive Louis Gallois remained upbeat.

"It's important to recognise that the announcement is an evaluation of the selection process, not the merits of the aircraft," he said.

Randy Belote at Northrop Grumman said, "We continue to believe that Northrop Grumman offered the most modern and capable tanker."
The Northrop tanker - the KC-30 - would be based on the Airbus A330, while Boeing's offering is the KC-767, a new version of the Boeing 767.

Fixed-Rate Deals 'Highest This Century'

Homeowners refinancing their mortgage face the highest fixed-rates deals since the start of the decade, according to a survey.Figures compiled by personal finance website MoneyFacts and carried in the Daily Telegraph show that the average rate for a two-year loan has hit 6.64% - up from just 4.34% two years ago.

It means that someone coming to the end of a mortgage on a £150,000 house they took out in 2005, will see their average repayments jump by £206 a month to £1,025.

It is estimated that around 1.4 million homeowners will see their fixed deals expire this year.

MoneyFacts' figures show that someone taking a typical five-year deal in 2003 on a £250,000 home loan will have to stump up almost £500 more when it comes to their new deal.

Typical fixed rates are the highest since 2000, it found.

The new research will come as bad news for first-time buyers, as well as existing homeowners.

Not only are they facing greater repayment costs, but they are also now expected to put down a greater deposit to be approved a mortgage.