Business news in brief

Wal-Mart triples China food safety funds

Wal-Mart Stores Inc. has decided to increase its investment in food safety in China threefold over this year and next. The announcement came from the retailer this week.

Wal-Mart has operated in China for more than 18 years and has 402 stores, as well as a rapidly growing online grocery business with majority-owned Yihaodian. The plans to bolster public trust through increased food safety measures call for the company to spend $48.2 million through 2015, compared with an earlier level of $16 million.

Wal-Mart will use the additional money to increase testing and implement tougher standards for suppliers. Specifically, the retailer plans to double the amount of DNA testing on meat products and increase facility audits and inspections of primary producers by more than 30 percent from 2013.

The company also plans to test products at its distribution centers for compliance with safety and quality standards in a lab environment to ensure consistent quality control and improve record keeping through technology.

-- Cyd King

Bailed-out Cyprus back in bond market

NICOSIA, Cyprus -- Cyprus has raised $1.02 billion from international markets with its first public issue of bonds since last year's international bailout saved it from bankruptcy.

The Finance Ministry said Wednesday that an initial target of $678 million was oversubscribed four times.

That allowed authorities to raise an extra $339 million through the five-year bonds, which carried a 4.75 percent interest rate.

The ministry said the development sends "a strong signal of trust in the country" after its $13.6 billion bailout in March last year that decimated its banking sector and triggered a steep recession.

The country tested the markets in April, when it raised $136 million through six-year bonds issued through a private placement at an average interest rate of 6.5 percent.

-- The Associated Press

Shrimpers hopeful at start of season

BILOXI, Miss. -- Shrimp boats, captains and crews left ports Tuesday night so they could start trawling at Wednesday's 6 a.m. start of the season in Mississippi territorial waters.

Many of them were optimistic.

"They say this year is gonna be above average," said Timothy King, captain of a boat from Port St. Joe, Fla., near Apalachicola.

He's been shrimping in Mississippi waters for 10 years and said his best year was in 2009. Last year's haul was decent, though, he said.

"Supposed to be a real good opening," he said.

State Department of Marine Resources' Shrimp and Crab Bureau Director Rick Burris agreed.

"Based on our sampling, we've seen good numbers of brown shrimp," he said.

The cold winter and heavy rainfall in April and May slowed growth, he said, and pushed the season's start back to mid-June. Shrimp have to have a count of 68 per pound before the season can start, according to state law.

"But we're in a warming trend and the water's getting saltier, so they have started to grow," Burris said.

-- The Associated Press

L'Oreal agrees to buy NYX Cosmetics

L'Oreal SA, the world's largest cosmetics-maker, agreed to acquire NYX Cosmetics for an undisclosed price, bolstering its makeup offerings in North America, where its consumer-products unit has faltered.

NYX Cosmetics will continue to operate from its Los Angeles headquarters under the brand's current leadership team, Paris-based L'Oreal said Wednesday in a statement.

NYX, founded in 1999, sells $6 blush and $10 eyeliner in more than 70 countries, according to its website. The competitor to Estee Lauder Cos.'s MAC Cosmetics said it's one of the fastest-growing cosmetics company in the U.S. NYX's sales in the 12 months through May rose 57 percent to $93 million, L'Oreal said.

The personal-care market is consolidating as companies such as Germany's Henkel AG and Japan's Kose Corp. buy niche brands to widen their offerings. Since January, L'Oreal has acquired facial-mask-maker Magic Holdings International Ltd. and spa brands Decleor and Carita. Including the buyback of 8 percent of its stock held by Nestle SA, set to close this month, L'Oreal will have spent more than $5 billion on deals this year.

-- Bloomberg News

IRS eases rules on baring money abroad

The Internal Revenue Service is making it easier for some U.S. taxpayers to disclose offshore accounts.

The changes open the simplified version of the IRS voluntary disclosure program to people with larger tax debts, eliminate a questionnaire and require taxpayers to say that any violations weren't willful.

The IRS on Wednesday also announced higher penalties for taxpayers whose banks and advisers are under investigation for purportedly aiding tax evasion. The agency encouraged those taxpayers to enter a more complicated procedure that allows some protection from prosecution.

"If you're engaged in willful tax evasion, time is getting quite short for you to come in," Mike Danilack, an IRS deputy commissioner, said at a news conference in Washington. "Enforcement efforts in this area are continuing to thrive. We are very intent on stamping out noncompliance in this area."

Typically, taxpayers who come forward must pay back taxes and penalties. For the IRS, the voluntary disclosure program has provided a way to gather information about taxpayers and promote future compliance.

"This opens a new pathway for people with offshore assets to come into tax compliance," IRS Commissioner John Koskinen said in a statement.

Since the IRS began a voluntary disclosure program in 2009, more than 45,000 people have come forward, resulting in about $6.5 billion in back taxes, interest and penalties, the agency said.

-- Bloomberg News

Valeant unveils latest bid for Allergan

NEW YORK -- Valeant Pharmaceuticals International Inc. said Wednesday that it started a bid for Allergan, the maker of Botox.

The cash and stock offer values Allergan Inc. at $53 billion and expires Aug. 15.

Valeant, which is based in Canada, has teamed up with Bill Ackman's Pershing Square Capital Management to try to purchase Allergan. The two companies went public with their takeover attempt in April and have increased their offer several times. Allergan, of Irvine, Calif., said the latest offer is still too low.

Ackman is also moving to replace most of Allergan's board.

On Tuesday, Valeant said it planned to take a buyout offer directly to Allergan shareholders this week.

Allergan shares rose $1.88 to close Wednesday at $162.41. Valeant stock fell 44 cents to $118.43.

-- The Associated Press

Business on 06/19/2014

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