News from Reuters

Reuters Canada Business Summary

07/07/08

GM may be mulling thousands of job cuts

(Reuters) - No. 1 U.S. automaker General Motors is planning to cut thousands of white-collar jobs and is considering whether it should sell or stop production of more of its brands, The Wall Street Journal said, citing people familiar with the matter. Both moves are part of a broader re-evaluation of the company's strategy and of its ability to meet an internal projection of returning to profitability in 2010, the people told the paper.

Angiotech to form new company, offer notes

TORONTO (Reuters) - Angiotech Pharmaceuticals Inc said on Monday that it planned to create a new subsidiary and raise more than $300 million in a notes offering as it struggles to reduce its cumbersome debt. The specialty pharmaceutical and medical device company said it will create Angiotech Pharmaceutical Interventions, which will focus on the company's business other than its TAXUS coronary stent system.

InBev seeks to replace Bud board

BRUSSELS (Reuters) - InBev upped the pressure on reluctant bid target Anheuser-Busch Cos Inc on Monday with a plan to replace the U.S. rival's board of directors that has rejected its $46.3 billion takeover offer. Belgium-based InBev filed a preliminary consent solicitation statement with the United States Securities and Exchange Commission that would lead to Anheuser shareholders voting on the board's future.

Paris keeps ECB under pressure pre-eurozone talks

PARIS (Reuters) - France said on Monday it hoped the latest rise in euro zone interest rates was a one-off, setting the stage for a meeting where European Central Bank chief Jean-Claude Trichet will explain the move in person to the bloc's finance ministers. While politicians acknowledge that high fuel and food prices are a serious problem, Paris and Madrid, with some support from Berlin, fear ECB rate rises will do little to tame inflation and a lot to compound a downturn in economic activity.

Proxy firm urges Grey Wolf holders to reject deal: report

PHILADELPHIA (Reuters) - A proxy advisory firm urged shareholders of drilling services provider Grey Wolf Inc to reject a takeover bid from Basic Energy Services Inc , The Wall Street Journal reported on Sunday. RiskMetrics Group Inc, formerly known as Institutional Shareholder Services, questioned the rationale behind the deal and criticized Grey Wolf for weighing a rival bid from Precision Drilling Trust , the newspaper said in its electronic edition.

Oil slips to $143 with dollar, Iran on radar

LONDON (Reuters) - Oil retreated to around $143 a barrel on Monday, taking a pause from a record-breaking rally that has lifted prices by almost 50 percent to prices this year. Investors were eyeing mixed signals from Iran, the world's fourth-largest oil exporter, in its dispute with the West over its nuclear work, and a rise in the value of the dollar against other major currencies.

Buyout spats bruise many, damage trust

NEW YORK/PHILADELPHIA (Reuters) - Spats over the last remaining leveraged takeovers forged during the private equity boom have mostly been resolved, but Wall Street banks, buyout firms and the companies they target have been left more than a little bruised. A crucial issue for future deals is private equity firms, banks and buyers finding ways to protect themselves and ensure others can't easily pull out of deals or litigate.

Russia Metalloinvest picks IPO organizers: report

MOSCOW (Reuters) - Metalloinvest, the Russian iron ore and steel company controlled by billionaire Alisher Usmanov, has picked organizers for an initial public offering planned for autumn, Kommersant business daily reported on Monday. The newspaper quoted sources as saying that Metalloinvest had appointed Merrill Lynch, Credit Suisse and Deutsche global as coordinators of the offering and Russian banks VTB and Renaissance Capital as joint bookrunners.

Futures point to slightly higher open

NEW YORK (Reuters) - Stock futures pointed to a slightly higher opening on Monday as oil prices retreated from last week's record highs, helping ease inflation worries. Traders returning from the three-day July 4 holiday weekend will monitor a three-day meeting in Japan of central bankers and finance ministers from the Group of Eight industrialized nations in the hopes they will address the effect of soaring energy costs and the slumping dollar on the global economy.

Some auto makers to fight steel surcharges: report

(Reuters) - Some auto makers are threatening to fight surcharges steelmakers are trying to impose on agreed supply contracts in a bid to curb the impact of spiking steel prices and bolster their weak finances, The Wall Street Journal said, citing people familiar with the matter. The auto makers are looking to fight the additional charges in court, saying that financial terms of a contract cannot be altered, they told the paper.

© Reuters Limited. All Rights Reserved.
Reproduction or redistribution of Reuters content, including framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.