IN BRIEF
Group expects 75 at power-rate protest
Organizers of a rally to protest higher local power rates say they expect at least 75 people to attend their demonstration next week.
The Thursday event is scheduled for 7 p.m. outside the headquarters of electric utility NV Energy, at 6226 W. Sahara Ave.
Organizers are asking participants to bring signs registering their feelings about NV Energy's requested increase in power-use costs, which would average 13.6 percent overall and 16.7 percent for single-family homes.
The Nevada Public Utilities Commission wrapped up evidentiary hearings in the case and is considering the rate request now, with a decision expected June 24.
WASHINGTON
Government granting $7.5 billion to GMAC
The government is providing auto lender GMAC with $7.5 billion in fresh aid to enable it to make new loans for General Motors Corp. and Chrysler LLC vehicles.
The Treasury Department announced the investment on Thursday, saying it would help provide a reliable source of financing to auto dealers and customers looking to buy vehicles.
GMAC Financial Services received $5 billion from the government's $700 billion financial bailout program in December. In return, the government received 5 million shares of GMAC, and told the company it must extend financing services to Chrysler, which filed for bankruptcy protection April 30.
Analysts suggest fresh government aid, along with the merger of Chrysler's financial arm, would make GMAC a lending powerhouse that would give GM and Chrysler a huge advantage over their competitors.
A U.S.-controlled GMAC would have the power to offer better loan terms to buyers of GM and Chrysler cars and trucks as a way of steering business to the troubled automakers.
NEW YORK
Xerox poised to name black woman as chief
Xerox Corp. said Thursday that Chief Executive Anne Mulcahy will retire July 1, to be succeeded by Ursula Burns, the printer and copier maker's president. She will make Xerox the largest U.S. company to be headed by a black woman.
The move has been in the works since Burns, 50, became heir-apparent and company president in April 2007.
No company in the Fortune 500 has ever had a black woman as CEO, according to Daniel Kile, a spokesman for the magazine.
Mulcahy, 56, will continue as chairwoman of the Xerox board.
General Motors exec leaks price for Volt
General Motors Corp. Vice Chairman Bob Lutz told TV talk show host David Letterman that the automaker's battery-powered Chevrolet Volt model will probably cost about $40,000 when it arrives next year.
"Our best estimate is around $40,000 -- and then you take off the government credit for a total of about $32,000," said Lutz on the show that aired on CBS.
GM, facing bankruptcy unless it reorganizes by June 1, has spent about $1 billion on Volt, a car that travels 40 miles on lithium-ion batteries before tapping its gasoline tank. The batteries are recharged through a household electrical outlet.
GM hadn't previously said how much it would charge for the car, schedule to arrive in showrooms in late 2010.
NEW YORK
Quarterly profit falls 13.7 percent for Gap
Gap Inc. reported that its first-quarter profit fell 13.7 percent as the clothing chain faced sluggish consumer demand during the recession, but the results narrowly beat Wall Street estimates.
The San Francisco-based chain, which operates Banana Republic and Old Navy stores as well as The Gap, said Thursday that it earned $215 million, or 31 cents per share, for the three months that ended May 2, down from earnings of $249 million, or 34 cents per share, a year earlier.
Revenue fell 7.4 percent to $3.13 billion, from $3.38 billion.
Analysts had forecast profit of 30 cents per share on revenues of $3.14 billion.
Joining unions to get easier for FedEx staff
FedEx Corp. truck drivers, package handlers and other employees would be able to join unions more easily under legislation the U.S. House approved Thursday.
Workers in FedEx's Express unit could vote locally to join unions under the plan rather than having to hold a national election to gain representation.
The labor provision was included by U.S. Rep. James Oberstar, D-Minn., in broader $53.5 billion legislation to finance the Federal Aviation Administration through fiscal 2012.
The 277-136 vote sets up a clash in the Senate between FedEx and larger competitor United Parcel Service Inc., which says the legislation would even the playing field with UPS's union work force.
UPS workers organize under the National Labor Relations Act, which allows local organizing. FedEx operates under the national organizing standard used for airlines.
CHICAGO
Warner Bros. bids to buy Midway Games
Warner Bros. Entertainment Inc. has made a $33 million bid for the majority of U.S. assets held by "Mortal Kombat" video game franchise owner Midway Games Inc., which filed for bankruptcy earlier this year.
The companies said Thursday they have a "stalking horse" agreement, essentially the opening bid in a court-supervised auction for the company's assets.
The deal would not include the entire company. Burbank, Calif.-based Warner Bros., a subsidiary of Time Warner Inc., would take over Midway's development studios in Chicago and Seattle along with the "Mortal Kombat" line, but not studios in San Diego or Newcastle, Britain.
Midway filed for bankruptcy in February after media mogul Sumner Redstone sold off his majority stake in the company, leaving it unable to meet debt obligations.
NEW YORK
Insurer AIG will split chairman, chief roles
American International Group Inc. on Thursday said the chairman and chief executive hand-picked to lead the company when it was rescued by the government last fall will step down.
The company also said its board agreed with a recommendation from Edward Liddy, who took over the insurer in September, to separate the chairman and CEO roles.
Liddy, in an interview, said splitting the roles reflects not only the evolving standard for public companies, but practical matters as the giant insurance company moves to split off businesses and restructure.
AIG will be splitting off as many as three companies, Liddy explained, and the chairman will have to pick leadership for each.
NEW YORK
Treasury prices decline amid stimulus questions
Treasury prices dropped Thursday as Standard & Poor's raised questions about the ability of governments to stimulate the economy with public spending.
The benchmark 10-year Treasury note fell 0.41 points to 97.94. Its yield jumped to 3.35 percent from 3.20 percent late Wednesday.
The 30-year bond fell 0.84 points to 98.88. Its yield rose to 4.31 percent from 4.16 percent.
