Facing Losses, Billionaire Takes His Own Life

The New York Times / World Business | Tuesday, January 6, 2009

Adolf Merckle, 74, was ranked as the world's 94th richest person in 2008, according to Forbes magazine. Photo: Reuters

By CARTER DOUGHERTY
Published: Tuesday, January 6, 2009
FRANKFURT — Adolf Merckle, the German billionaire whose speculation in volatile Volkswagen stock had pushed his sprawling business empire to the edge of ruin, has committed suicide, his family said Tuesday. Mr. Merckle, 74, was found dead on railroad tracks near his villa in the southern German hamlet of Blaubeuren on Monday evening. German authorities in the nearby city of Ulm confirmed the death and said there was no sign anyone else was involved. “The distress to his firms caused by the financial crisis and the related uncertainties of recent weeks, along with the helplessness of no longer being able to handle the situation, broke the passionate family businessman, and he ended his life,” the family said in a statement.

The police said a suicide note had been found; its contents were not publicly released. More than any other single investment, Mr. Merckle’s poorly timed bet on Volkswagen shares caused the financial distress that led to his death. Last fall, Mr. Merckle lost hundreds of millions of euros when he was caught in a brief but ferocious speculative riptide linked to a campaign by Porsche, the sports car manufacturer, to seize control of Volkswagen. He was facing the dismantling of his empire and the sale of major holdings at the time of his death. Porsche announced late Monday — around the time Mr. Merckle was taking his own life — that it had acquired slightly more than 50 percent of Volkswagen shares, up from a 42.6 percent voting stake in October. Porsche has said it planned to buy 75 percent of Volkswagen during the course of the year, as it seeks more operating control of Europe’s biggest carmaker.

A native of Dresden who made his way to Western Germany after World War II, Mr. Merckle parlayed a family business in chemicals into one of the biggest pharmaceutical concerns in the world. Ratiopharm, a maker of generic medicines that was a recognized brand itself, became the pride of the family. Other businesses included Phoenix, a pharmaceutical wholesaler; and HeidelbergCement, a building materials supplier that in 2007 acquired a British rival, Hanson, to become a leading global player. Forbes estimated Mr. Merckle’s fortune at $9.2 billion in 2008, making him No. 94 on its list of the world’s richest people. The financial crisis began taking its toll on HeidelbergCement last year as the debt incurred to buy Hanson became more burdensome.

Ebola alert shuts Angolan border

There is no absolute cure for ebola. Image: BBC.co.uk / Media Images / SPL

BBC News / Africa | Story last updated Tuesday, January 9, 2009 | 05:05 GMT

The authorities in Angola say they have closed part of the border with the Democratic Republic of Congo to prevent the spread of the deadly Ebola virus.

Angolan officials said all movement of people from northern Luande Norte province to DR Congo would be stopped. The outbreak in DR Congo was the first in Africa in several months and the fourth in DR Congo since 1976. It is believed to have infected at least 40 people of which more than ten have died. "We are suspending all movement of people and trade with the DRC in the province of Lunda Norte", said Angolan Health Minister Jose Van Dunem.

Reuters news agency reported Mr Van Dunem as saying that no cases of Ebola had been diagnosed in Angola so far but that the Angolan military and police were on the alert for signs of the virus in the north-east border region. Ebola is a highly infectious fever which causes vomiting, diarrhoea, and internal and external bleeding. The disease kills 80% of those it infects and there is no known cure.

Russia halts gas supplies to south-east Europe

WELT ONLINE / English News | Tuesday, January 6, 2009 10:15

Earlier on Tuesday Bulgaria's Economy Minster said all Russian gas supplies via Ukraine to Bulgaria, Turkey, Greece and Macedonia had been halted as a result of the Moscow-Kiev price row. Picture: AFP

All supplies of Russian gas via Ukraine to Bulgaria, Turkey, Greece and Macedonia were halted on Tuesday due to a dispute between Moscow and Kiev over gas prices, officials in Sofia said. Turkish Energy Minister Hilmi Guler confirmed that supplies to his country had been completely cut.

Also affected was Romania where Russian gas supplies were reduced by 75 percent from contracted levels, the state-controlled Transgaz pipeline operator said. "We are in a crisis situation,“ Bulgaria’s economy ministry said in a statement. Russia ordered on Monday a reduction in gas flow to Europe via Ukraine, a measure it said was to stop its neighbour from stealing fuel. Ukraine said the move would jeopardise supplies to Europe which is facing freezing temperatures. The gas row has raised new questions about Russia’s reliability as an energy supplier and rekindled Western suspicions -- still fresh after Russia’s war with Georgia last year -- that the Kremlin bullies its pro-Western neighbours.

"Russia and Ukraine must find an urgent solution because the energy systems of dozens of countries are at risk,“ Economy and Energy Minister Petar Dimitrov told national radio. Sofia said the gas flow to Bulgaria as well as the transit to Turkey, Greece and Macedonia had been suspended as of 3.30 a.m. (0130 GMT). Turkey’s Guler said his country had raised supplies of Russian gas delivered via a pipeline which passes under the Black Sea to 48 million cubic metres per day from 40 million. A source at Ankara’s Iranian embassy said Iran might increase its gas flows to Turkey -- which has started to use liquid natural gas sources and natural gas stores -- to cover the shortfall. Iran supplies about a third of Turkey’s gas.

Indian soldiers stand guard outside the Taj Mahal Hotel in Mumbai in late November. Image: Google hosted news / AFP

India hands evidence on Mumbai attacks to Pakistan

AFP | Monday, January 5, 2009

NEW DELHI (AFP) — India on Monday handed to Pakistan what it said was evidence linking the country to the Islamic militants who attacked Mumbai in November, India's foreign minister announced. The government also said it was launching a major diplomatic offensive to maintain international pressure on Islamabad, which has so far rejected New Delhi's demands to extradite a list of terror suspects. "We have today handed over to Pakistan evidence of the links with elements in Pakistan of the terrorists who attacked Mumbai on 26th November," Pranab Mukherjee told reporters. "What happened in Mumbai was an unpardonable crime. As far as the government of Pakistan is concerned, we ask only that it implement the bilateral commitments that it has made at the highest levels to India, and practises her international obligations," he added.

Mukherjee's deputy, Shivshankar Menon, passed the evidence to Pakistan's high commissioner (ambassador) in New Delhi and later pointed a finger of blame at the country's "establishment." "It's hard to believe that something of this scale that took so long in preparation... could occur without anybody anywhere in the (Pakistan) establishment knowing," he told reporters. Islamabad confirmed that it had received the dossier, and Prime Minister Yousuf Raza Gilani again said he would take action if "credible evidence" was provided. The material includes details of the interrogation of Mohammed Ajmal Amir Iman -- also known as Mohammed Ajmal Kasab -- who was the lone surviving gunman and who India says is a Pakistani national.

It also details the militants' communications with "elements" in Pakistan during the attack, recovered weapons and other equipment, retrieved global positioning system data and satellite phones. "It is our expectation that the government of Pakistan will promptly undertake further investigations in Pakistan and share the results with us so as to bring the perpetrators to justice," Mukherjee said. New Delhi would share the evidence with foreign ministers around the world and would brief foreign ambassadors in New Delhi, the minister said. The November 26-29 assault on India's financial capital left 172 dead, including nine attackers. Indian officials say the banned Pakistan-based militant group Lashkar-e-Taiba trained and equipped the 10 militants who stormed Mumbai.

Israel rebuffs a series of calls for ceasefire

Israel has rebuffed a series of international mediation efforts and vowed to press on with its military campaign for as long as Hamas continues to fire rockets from the Gaza Strip.

The Telegraph.co.uk | Monday, January 9, 2009

An Israeli soldier sits next to artillery shells. Photo: REUTERS

By Damien McElroy in Jerusalem
Last Updated: 7:54PM GMT 05 Jan 2009
President Nicolas Sarkozy of France arrived in Israel on a personal mission to broker a ceasefire. An EU delegation, consisting of the French, Czech and Swedish foreign ministers, also visited Jerusalem. After meeting Mahmoud Abbas, the Palestinian leader, Mr Sarkozy declared that "violence must halt" and was later due to attend a dinner with Ehud Olmert, the Israeli prime minister. The EU delegation was politely rebuffed by Tzipi Livni, the foreign minister and a contender for the premiership in Israel's election due on Feb 10. She said the time for a ceasefire was not at hand. Miss Livni appeared to complain that the European delegation had not understood the fundamental change in Israel's outlook. "Before the military operation, Hamas targets Israelis whenever it likes and Israel shows restraint," she said. "This is no longer going to be the equation. When Israel is targeted, Israel is going to retaliate."

While Israel and Hamas each hope to emerge from the conflict with the upper hand, a cessation of violence is a distant prospect. America has conspicuously refused to put pressure on Israel but growing concern over conditions within Gaza could yet propel Israel to settle on terms with Hamas. "We don't want a band aid here," said one Israeli official. "We want a durable, lasting peace that ensures peace and calm." Tony Blair, the international envoy in the Middle East, predicted that pressure on Israel would increase as fighting stretched beyond a 10th day. "We are doing everything we possibly can to bring about an end to a situation of immense suffering and deprivation," he said. "I know over next few days there are going to be intensive diplomatic efforts. We will increase our efforts to bring about a resolution to this situation."

But foreign envoys have so far failed to find a plan that would satisfy Israel. Even if Hamas promised not to rocket Israeli territory, Israel would hold out for internationally backed "guarantees" that the group would be stripped of its capacity to attack. That would mean sealing the tunnels used to smuggle rockets into the Strip across the Egyptian border under international supervision and imposing a monitoring regime to thwart launches. The government is determined that the group does not replicate Hizbollah's successful efforts to restore its missile stocks in the aftermath of the 2006 war despite the deployment of a French and Italian-led peacekeeping force. Diplomats detected divisions between Hamas leaders inside Gaza and exiled politburo members in Syria. While the exiles indicated they were open to truce offers, the rhetoric from inside the territory was harshly hostile towards Israel.