Central bank warns on private equity

The Dutch Central Bank (DNB) is warning financial institutions to be aware of private equity companies. ‘The increase in private equity financing in recent years has heightened the financial risks,’ the bank said in its regular financial stability overview.

‘Banks, pension funds and insurers are exposed to the risks brought by private equity because of the nature of their investments and services.’ In particular, leveraged buyouts increase companies’ sensitivity to interest rates, the bank said.
Dutch postal group TNT is launching an even slower version of snail mail with its new ‘next week’ delivery service. TNT says the service targets corporate customers who want to deliver large volumes of mail at the lowest possible price and are not too worried about delivery dates.
Telecom company KPN has denied Belgian media reports that it is in talks with Belgacom on forming an alliance. Belgacom is 50% state-owned. Alliance talks between the two companies floundered five years ago.
Brewer Heineken saw net profit rise 25% in the first six months of this year, far more than analysts had expected. In particular the launch of Premium Light in the US had done better than forecast.

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