HSBC, Pfizer, Philips: Business news in brief on Monday May 16

HSBC to cut 840 jobs; Philips to launch sale of shares in lighting division; Pfizer in $5.2bn deal

HSBC was fined £1.2 billion by US authorities in 2012 in a settlement

Barclays to sell secret London gold vault

Barclays has sold its metals business, including a secret gold bullion vault in London which can hold up to 2,000 tonnes of gold. ICBC Standard, China’s biggest bank, expects the purchase to be completed in July. Barclays decision to exit the business comes as US and EU regulators investigate whether 10 banks, including Deutsche Bank and Barclays manipulated prices of precious metals such as silver and gold.

HSBC to cut 840 jobs

HSBC started to lay off 840 of its IT staff on Monday in a first wave of redundancies under its plan to cut 8,000 jobs in the UK by the end of next year. The bank has told staff that it is moving the IT roles to sites in India, China and Poland by the end of March next year. The majority of the branches affected by the latest announcement are based in London, Sheffield and Tankersley.

Philips to launch sale of shares in lighting division

Philips, the Dutch electronics firm, on Monday said it aims to raise at least €694 million (£574 million) by selling a 25 per cent stake in its lighting division in an initial public offering of shares. The company said it would offer 37.5 million shares priced between €18.50 and €22.50. Final pricing is expected on May 26.

Pfizer in $5.2bn deal

Pfizer is buying Anacor, a Californian healthcare firm, in a deal worth $5.2 billion. The news comes just a month after the US administration rejected its planned $150 billion merger with Allergan in a deal that would have moved Pfizer from the US to Ireland in a bid to lower its taxes. Anacor shares surged more than 55 per cent to $99.48 in late morning trading on Monday, above the offer price of $99.25 per share in cash.