The widely prescribed diabetes drug Avandia is linked to a greater risk of heart attack and possibly death, a new scientific analysis revealed, and the U.S. government issued a safety alert Monday.

The Food and Drug Administration urged diabetics taking the pill to talk to their doctors, but stopped short of forcing a sharper warning label on the drug sold by GlaxoSmithKline PLC of London.

More than 6 million people worldwide have taken the drug since it came on the market eight years ago. Pooled results of dozens of studies revealed a 43 percent higher risk of heart attack, according to the review published by the New England Journal of Medicine.

Experts said the overall risk was small and cautioned people not to stop taking the drug on their own but to talk to their doctors.

The company downplayed the report of heart risks, saying the analysis by Dr. Steven Nissen and statistician Kathy Wolski at the Cleveland Clinic is not definitive scientific proof.

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GE TO SELL PLASTICS DIVISION

NEW HAVEN, Conn. — General Electric Co. said Monday it will sell its plastics division for about $11.6 billion in the latest move to reshape one of the world's largest companies.

GE said it would use the proceeds from the sale to petrochemicals manufacturer Saudi Basic Industries Corp. primarily to increase its planned 2007 stock buyback program. It now expects to buy back $7 billion to $8 billion in stock, up from the previous plan of $6 billion.

The deal is expected to create a net gain, after taxes, of $1.5 billion for the Fairfield-based conglomerate.

GE Chairman and Chief Executive Jeff Immelt called the long-expected divestiture "another important step" in the company's strategy to sell slower growth businesses, such as insurance, so that it can invest in high-growth, high-technology businesses, like healthcare and water processing technology.

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GAS PRICES HIT ANOTHER HIGH

NEW YORK — Retail gasoline prices climbed to another record Monday, while crude oil futures jumped above $66 per barrel amid concerns about gasoline supply heading into the peak summer driving season.

A gallon of regular unleaded costs an average of $3.196 across the country, up from $3.178 on Sunday, according to AAA and Oil Price Information Service. Prices are up 33.7 cents from a month ago and 30.4 cents from a year ago, as demand remains strong, and a spate of planned and unexpected refinery shutdowns have constricted supply.

The U.S. Energy Information Administration reported last week that gasoline inventories — while increasing to 195.2 million barrels for the week ended May 12 — are still well below the average for this time of year. The nation's peak driving season, meanwhile, is set to begin this long Memorial Day weekend.

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ALLTEL SIGNS DEAL TO BE SOLD TO INVESTMENT FIRMS

LITTLE ROCK, Ark. — A pair of investment firms have agreed to acquire Alltel Corp., the fifth-biggest U.S. wireless company and owner of the nation's largest geographic network, in a deal worth $24.8 billion.

The telecommunications company announced Sunday that it had signed an agreement to be acquired by TPG Capital, formerly Texas Pacific Group, and GS Capital Partners, a subsidiary of Goldman Sachs. The investors also agreed to take on Alltel's $2.7 billion in debt.

The deal, if approved by shareholders and regulators, is expected to close during the fourth quarter of this year or the first three months of 2008, Alltel said.

Alltel has about 12 million cell-phone customers, mainly in the South, West and Midwest. That ranks it fifth in number of customers, after Cingular, Verizon, Sprint and T-Mobile, but the company's service "footprint" is larger than any of those rivals, Ford said.

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CHINA CAUTIOUS ON INVESTMENT DEALS ABROAD

BEIJING — A Chinese state fund that is buying a $3 billion stake in U.S. private equity firm Blackstone Group LP wants to avoid political backlashes when it makes other investments abroad, an official involved in the deal said Monday.

The new fund, created to invest a portion of Beijing's mountain of foreign reserves overseas, is expected to buy minority stakes in companies rather than pursuing outright takeovers, said Jesse Wang, chairman of government-owned Jianyin Investment Co., which represented Beijing in the deal with Blackstone.

Chinese companies have been uneasy about foreign acquisitions since the uproar in 2005 over state-owned oil company CNOOC Ltd.'s attempt to acquire U.S. oil and gas producer Unocal Corp. CNOOC dropped its bid after American critics said it might endanger energy security.

The Blackstone deal, announced Sunday, marked the start of China's effort to diversify how it invests its $1.2 trillion in reserves, held now in U.S. Treasury securities and other safe but low-yielding assets.

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EMI TAKEOVER COULD SPARK BIDDING WAR

LONDON — EMI Group PLC, home to the Beatles and Coldplay, agreed to a 2.4 billion pound ($4.7 billion) takeover by a private equity group on Monday, but the deal raised speculation of an all-out bidding war for the struggling music company.

EMI, which has long flirted with Warner Music Group Corp., said that Terra Firma Capital Partners' offer was the best among a number of proposals it received.

However, analysts said that the 265 pence ($5.23) per share offer from Terra Firma could flush out a higher offer from Warner Music, already reportedly looking at EMI's books, as well as other potential bidders.

EMI's shares soared on news of the offer, which was made just before the closing bell on the London Stock Exchange, finishing 8.5 percent higher at 269 pence ($5.30).

Unlike a tie-up with Warner Music, a private equity deal would be untroubled by regulatory hurdles and could be completed much more quickly.

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EXECUTIVE CHANGES INSTITUTED AT PFIZER

NEW YORK — Pfizer Chief Executive Jeffrey Kindler proved even those at the top aren't immune to an ongoing companywide transformation late Sunday in announcing the departure of Research and Development President John LaMattina and Chief Financial Officer Alan Levin.

The news comes as the world's largest drug maker seeks to cut 10,000 jobs, or 10 percent of its workforce, amid a tepid sales outlook in the near term. Kindler, the architect of the company's transformation, became Pfizer Inc.'s CEO and chairman last year. The 10,000 job cuts were first announced in January.

LaMattina, 57, will retire from the company by the end of the year, Pfizer said. He has been with the company since 1977, and was tasked with keeping Pfizer's product line vital as head of R&D.