IN BRIEF
Dubai World, MGM plan Middle East hotels
Dubai World, the state-owned investment group that agreed to invest as much as $5.1 billion in MGM Mirage, plans to open at least three hotels in the Middle East and Asia with its U.S. partner.
Dubai World plans "to take the brands of MGM for nongaming hotels in Dubai, Singapore and China," Chairman Sultan bin Sulayem said at the World Economic Forum in Davos, Switzerland.
Istithmar PJSC, an investment unit of Dubai World, agreed in September to pay $1.1 billion with partners City Developments Ltd. and Elad Group for rights to build a hotel and commercial development near Singapore's Raffles Hotel. A five-star hotel on that site will probably be an MGM project, bin Sulayem said. A Chinese site is "being investigated."
Las Vegas-based MGM Mirage, the casino operator majority owned by billionaire Kirk Kerkorian, is in talks with Dubai to collaborate on resorts in the Middle East, Singapore, Vietnam and Beijing, Chief Executive Terry Lanni said Oct. 30.
MGM opened a casino last month in Macau with businesswoman Pansy Ho, daughter of Chinese gambling magnate Stanley Ho.
NEW YORK
Banks, accounting firms for Countrywide sued
New York authorities are suing 26 banks and two accounting firms that did business with Countrywide Financial Corp., saying the companies failed to ensure the beleaguered mortgage company was being honest with investors.
The banks and accounting firms were added as defendants Friday in a class action lawsuit already pending against Countrywide in California.
Two of the lead plaintiffs, New York State Comptroller Thomas P. DiNapoli and City Comptroller William Thompson Jr., oversee several huge government pension funds that invested in Countrywide securities.
The long list of new defendants in the case includes underwriters and accounting firms that participated in the marketing of Countrywide securities. The lawsuit claims that the company made misstatements about its lending practices, artificially inflating the price of its securities.
DETROIT
Reorganization plan for Delphi approved
A federal bankruptcy judge has approved struggling auto parts maker Delphi Corp.'s reorganization plan, clearing the way for the company to emerge from Chapter 11 bankruptcy protection, Delphi said Friday.
U.S. Bankruptcy Judge Robert Drain in New York entered an order Friday confirming the plan, saying it had met all statutory requirements, Delphi said.
On Tuesday, Drain said he would approve the exit plan once Delphi drastically reduced cash bonuses for top executives, from a proposed $87 million to $16.5 million.
NEW YORK
FedEx said to be in talks to buy DHL business
FedEx Corp. reportedly is in talks to buy all or part of Deutsche Post AG's DHL delivery business in the U.S., in a deal that would help it challenge larger rival United Parcel Service.
Seeking to cut losses in the hypercompetitive domestic fast-delivery business, Deutsche Post may move to trim its DHL business in the U.S., without abandoning it completely, according to published reports on Friday.
Deutsche Post Chief Financial Officer John Allan was quoted by Frankfurter Allgemeine Zeitung, a German newspaper, as saying that a total sale of DHL in the U.S. is "very, very unlikely."
A deal could be in the works by May at the latest, according to the report.
A FedEx spokesperson declined comment.
NEW YORK
Stocks' momentum stalls; indexes drop
Wall Street ended a tumultuous week with a sharp decline Friday, backtracking following two days of stunning gains as investors turned cautious and cashed in some of their winnings. The Dow Jones industrial average still managed to record its first weekly advance of 2008, even as it fell more than 170 points on the day.
The week, which started with a 465-point drop in the Dow soon after the market opened Tuesday, showed that the stock market is still fractious but may be going through healthy process of trying to establish a bottom following weeks of sharp declines.
The Dow fell 171.44, or 1.38 percent, to 12,207.17. The Dow had been up more than 100 points in the early going.
Broader stock indicators also fell. The Standard & Poor's 500 index fell 21.46, or 1.59 percent, to 1,330.61. The technology-heavy Nasdaq composite index fell 34.72, or 1.47 percent, to 2,326.20.
CHAMPAIGN, Ill.
Caterpillar posts profit increase, sees growth
Construction-equipment maker and economic bellwether Caterpillar said Friday that it expects resilient overseas economies to drive strong sales and profit growth this year.
The company said its fourth-quarter earnings rose 11 percent on strong international sales, helped along by a weak U.S. dollar that makes American products more affordable.
The company earned $975 million, or $1.50 per share, in the three months ended Dec. 30, up from $882 million, or $1.32 per share a year earlier.
Revenue rose 10.4 percent to $12.14 billion from $11 billion.
Caterpillar predicts profits will grow by 5 percent to 15 percent in 2008, and sees revenue rising 5 percent to 10 percent year-over-year.
DALLAS
Airline unions bracing themselves for mergers
Airline labor unions are positioning themselves to be decision-makers and beneficiaries if speculation about consolidation in the industry comes true.
Pilots' union leaders at Continental Airlines said Friday they set up a special group to study possible deals involving their airline, and how they would respond to each potential combination.
At Northwest Airlines Corp., pilots and flight attendants say they would support a combination with another carrier if employees get an ownership share in the new company.
Northwest is reportedly in talks to be acquired by Delta Air Lines, which is also said to be negotiating with UAL Corp.'s United Airlines. The carriers have declined to comment.
NEW YORK
Treasury prices rally as traders seek safety
Long-term Treasury prices rallied Friday as investors turned cautious, turning away from stocks and toward safe assets.
The benchmark 10-year Treasury note gained 0.88 points to 105.44 with a yield of 3.58 percent, down from 3.71 percent in late trade Thursday.
Prices and yields move in opposite directions.
The 30-year long bond advanced 1.66 to 111.94 with a yield of 4.28 percent, down from 4.37 percent late Thursday.
