Your update of the most important business news from dozens of respected news sources, selected by the editors of BusinessWeek.

Early Edition August 13 2008 at 02:51 AM Chi-Chu Tschang and Harry Maurer

Russian Steelmaker to Pay $3.5 Billion for U.S. Company

Steelmaker Novolipetsk Steel has become the latest Russian company to make a major acquisition in the U.S. The London-listed Novolipetsk has announced a $3.53 billion deal for John Maneely Co., the largest independent tubular-steel manufacturer in the U.S. The Carlyle Group is a member of the group that currently owns John Maneely, which has 11 factories in the U.S. and Canada.

Other Russian companies recently making deals in the U.S. include steelmaker OAO Severstal, which purchased West Virginia-based Esmark Inc. for $775 million earlier this year. Not including the Novolipetsk deal, which is still subject to Washington approval, Russian investment in the U.S. this year so far totals more than $4.2 billion.

Source: Wall Street Journal

Japanese Economy Shrinks

Japan's economy contracted at an annualized rate of 2.4% in the second quarter, the government announced Wednesday. It's the first decline in a year and is another indication that the world's second-largest economy is feeling the strain of high oil prices.

Source: Associated Press

Best Buy to Become First Independent iPhone Retailer

The biggest consumer electronics chain in the U.S., Best Buy, will begin selling the iPhone in September. The Richmond, Minnesota-based retailer, which has 965 stores nationwide, will become the first retailer other than AT&T and Apple to offer the iPhone.

Source: Star Tribune

Aussie Company in $3.1 Billion U.S. Bio Deal

CSL, the world's second-largest maker of blood plasma products, announced it will buy Talecris Biotherapeutics for $3.1 billion from Cerberus Partners and Ampersand Ventures. The Australian company, which also earns royalties from Merck for the cervical cancer vaccine Gardasil, reported a 30% increase in profits to 702 million Australian dollars ($608 million).

Source: Australian

Next up for Russia: Ukraine?

Now that Russia has punished Georgia, Kremlin leaders may now be ready to target another pro-American neighbor that wants to join NATO, Ukraine. "The Moscow authorities will use this opportunity to remind Ukraine of the damages of allying itself with NATO,'' said Geoffrey Smith at Renaissance Capital investment bank in Kiev.

Source: Bloomberg

Letter Shows UBS Execs Knew of Risky Activity

Peter Kurer, chairman of UBS, wrote to other executives last year about concerns that several bankers with the Swiss financial giant were in possible breach of U.S. securities law. The Justice Department, now investigating UBS, has the letter. UBS said Kurer investigated the allegations and introduced measures to ensure employees implemented procedures properly.

Source: Financial Times

Indian Olympic Hero Got Boost from Mittal

Abhinav Bindra is the toast of India after winning the country's first-ever Olympics individual gold medal. The air rifle expert has received financial help from Lakshmi Mittal, chairman of ArcelorMittal, the world's largest steelmaker. In 2005, Mittal set up the Mittal Champions Trust, a $10 million fund to support India's Olympic athletes.

Source: BusinessWeek

Nobody Wants SUVs Anymore

Demand for gas-guzzling SUVs has collapsed, leaving automakers, dealers, and consumers are all stuck with unwanted vehicles. According to Edmunds.com, last month the average selling price for new SUVs was 20% lower than the sticker price. Automakers are offering discounts of $10,000 to clear dealers' lots so they can stock up on more fuel-efficient cars.

Source: New York Times

Yahoo Ready to Put Former Viacom, Nextel Execs on Board

As part of a deal with Carl Icahn to settle the investor's proxy battle with Yahoo, the Internet company is in the final stages of approving the appointments of Frank Biondi, former CEO of Viacom, and John Chapple, former CEO of Nextel Partners, to its board of directors. Both are on a list of nominees submitted by Icahn. Yahoo is likely to name them to the board by the end of the week, according to a person familiar with the situation.

Source: Reuters

Conversation of the Day: The Frozen Economy

Reader Candace writes:

"The kind of trade and investment we have schemed for isn't helping the masses. It's a global freight train to the bottom of the resource pile."

Tell Us: Can the U.S. Freeze Locally, Thaw Globally?