Late Edition September 10 2008 at 03:08 PM Andy Reinhardt and Cristina Lindblad
Lehman Details Plan to Shed Assets
With its back to the wall, Lehman Brothers on Wednesday, Sept. 10 moved to report its third-quarter results a week ahead of schedule, and detailed a plan to dispose of assets. A day after the investment bank saw nearly half of its market cap evaporate, Lehman announced that it will book a loss of $3.9 billion for the latest quarter, as a result of $5.6 billion in write-downs. Lehman's shares initially jumped on the news, but fell back to around $7.80 by early afternoon trading in New York.
In a conference call with analysts, Lehman CEO Richard Fuld also said that the bank is seeking to spin off the bulk of its commercial real-estate holdings into a new public company dubbed Real Estate Investments Global. The bank is also continuing to shop around a majority stake in its investment management division.
Source: BusinessWeek
Defense Dept Puts Tanker Contract on Hold
The U.S. Defense Dept., saying it has run out of time to conduct one of the largest, most politically contentious acquisitions in military history, announced on Sept. 10 that it would end the competition for a $35 billion contract for new aerial refueling tanker aircraft. The contract, initially won by Northrop Grumman and European Aeronautic Defense & Space, and successfully contested by Boeing, will now be decided by a new President and Congress next year.
Source: BusinessWeek
New Takeover Bid for ImClone
ImClone Systems, in a statement released on Sept. 10, revealed that it has received a $6.1 billion takeover offer from a "large pharmaceutical company". At $70 a share, that offer tops an unsolicited $60-a-share proposal from Bristol-Myers Squibb. In its statement, ImClone rejected Bristol-Myers' bid as too low.
Source: Bloomberg
In Surprise Move, OPEC Trims Production Quotas
Ministers gathered in Vienna for a meeting of the oil cartel surprised analysts and the markets by agreeing to a small but symbolic reduction in output, helping lift the price of crude back over $100 a barrel.
Source: BusinessWeek
Apple Event Fails to Dazzle
New iPod music players feature cosmetic changes and lower prices, but Steve Jobs didn't announce any of the game-changing innovations many have come to expect at Apple events. One positive development: A rapprochement with NBC that will see the broadcaster's popular shows return to Apple's online iTunes store.
Source: BusinessWeek, Los Angeles Times
Nokia and Microsoft in Sweeping Mobile E-Mail Deal
In a move aimed at combating the popular BlackBerry from Canada's Research In Motion, Finnish mobile phone giant Nokia said Sept. 10 it will make software available on dozens of its high-end models that lets them easily connect to Microsoft's ubiquitous corporate e-mail platform.
Source: Wall Street Journal
Is the U.S. Weighing Antitrust on Google-Yahoo Deal?
After examining the proposed advertising partnership between Google and Yahoo, the Justice Dept. surprised observers by hiring antitrust attorney Sanford Litvack to review the material, suggesting that federal action may be in the works.
Source: New York Times
Take That, Taxpayers: Federal Budget Deficit to Double
The weak economy and a big rise in government spending will result in a doubling of the federal budget deficit this year, to a near-record $407 billion, and the next president will likely inherit a half-trillion dollar shortfall in 2009.
Source: Washington Post
Airbus May Shift Work out of Eurozone
Under pressure to reduce costs and lessen its exposure to the strong euro, the Franco-German aircraft maker says it may source more components from suppliers outside the 15-country eurozone, though additional job cuts are not planned.
Source: New York Times
New Vodafone Chief Makes His Mark with Shakeup
Vittorio Colao, in office since July, made his first big moves at mobile telecom giant Vodafone, announcing a swath of management and organizational changes.
Source: Times of London
FedEx Expects to Beat Forecasts
Citing lower fuel costs, the freight and logistics giant said its earnings for the quarter ended Aug. 31 will far exceed Wall Street consensus. But with an eye to the economic slowdown, FedEx kept its full-year guidance unchanged.
Source: New York Times
CBS Chief Upbeat on Advertising
Les Moonves, CEO of broadcaster CBS Corp., told attendees at an investment conference that the market for local advertising will improve in the next two years.
Source: MarketWatch
Lance Armstrong Un-Retires Again to Tackle 2009 Tour
In a surprise move, the seven-time winner of the Tour de France says he wants to come out of retirement for the second time and win next summer's cycling race.
Source: Guardian
Conversation of the Day: Bartiromo Talks with Sarah Palin
Reader Richard Atha writes: "I believe Sarah will become our first female president after she becomes our first female vice president."
Read the Story and Tell Us What You Think
Hot Topic on the Business Exchange: Fannie Mae and Freddie Mac
The bailout of Fannie Mae and Freddie Mac has signaled an economic crisis for many. John A. Byrne and others are sharing their insights.
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