Tokyo - Sumitomo Mitsui Financial Group Inc announced a plan Wednesday to increase its capital by issuing preferred subscription securities and establishing a wholly owned subsidiary in the Cayman Islands.

The group, one of the three Japanese mega-banking groups, was expected to raise about 400 billion yen (4.14 billion dollars), according to media reports.

Sumitomo Mitsui plans to buy back about 283.75 billion yen in preferred securities issued in 1998 and 1999, which are not convertible to common shares, and redeem them on January 26.

Hong Kong - Cathay Pacific Airways said Wednesday that it has scrapped the traditional end-of-year bonus for all its Hong Kong staff in a cost-cutting measure sparked by the global economic crisis.

Chief executive Tony Tyler blamed the move on the difficulties the airline was facing because of fuel price hikes earlier this year and the worsening economic downturn.

Stockholm - Swedish heavy-vehicle maker Scania Wednesday said it has inked a deal to assemble trucks and buses with the government of Iraq.

The deal was announced in connection with a visit to Iraq by Swedish Trade Minister Ewa Bjorling and a delegation of Swedish businesses, including Scania and telecommunications equipment maker Ericsson.

According to Scania, production was due to begin during the third-quarter 2009.

Some 500 trucks were to be assembled at the plant in Iskandariyah, near Baghdad that was to employ 500 people.

Copenhagen - Overnight talks appear to have salvaged an attempt to sell off bankrupt low-cost carrier Sterling Airlines, liquidators and unions said Wednesday.

The news came after liquidators on Tuesday afternoon said they had ditched an attempt to sell the Danish-based Sterling Airlines as a single entity over union opposition.

However, talks resumed later and have breathed new life into the efforts to save 430 jobs, a third of Sterling's staff of some 1,100 employees.

Nuremberg, Germany - Japan's Kyocera Mita Corporation announced takeover plans Tuesday for the German office services company Triumph-Adler AG.

The Osaka-based company said it would submit an offer of 1.90 euros (2.40 dollars) per share in order to secure around 60-75 per cent of the German firm's share capital.

Kyocera Mita already has a 29.9-per-cent stake in Triumph-Adler AG, the announcement said, adding that Triumph-Adler would remain a listed company.

With Yang out, Microsoft may come back

On Monday many sources reveled that the resignation of Jerry Yang as chief executive of Yahoo might invite another offer from Microsoft.

Eric Jackson, an activist Yahoo shareholder who was among the investors angry with Yahoo's management for not accepting Microsoft's previous bid, reported, "I would expect Microsoft to come back within the next three or four months. I think Microsoft will come back because Microsoft needs Yahoo, despite what they've been saying publicly, and I think they know that."