BUSINESS BRIEFS
Rescue plan for Ambac Financial appears likely
Associated Press
NEW YORK — A plan to bail out struggling bond insurer Ambac Financial Group Inc. could be announced Monday or Tuesday, CNBC reported yesterday, citing bankers working on the deal.
There is a consortium of banks — including Citigroup Inc., UBS AG, Wachovia Corp. and Royal Bank of Scotland Group PLC — working with New York's insurance department on a possible solution to Ambac's problems, a person familiar with the discussions told the Associated Press.
BRITISH BANKERS GET PRISON TIME
HOUSTON — Three British bankers were sentenced yesterday to just over three years in prison for a fraudulent scheme with former Enron chief financial officer Andrew Fastow.
David Bermingham, Giles Darby and Gary Mulgrew each was sentenced to 37 months.
Each pleaded guilty in November to one count of wire fraud as part of a plea agreement over a financial scam in 2000.
LAWSUIT FILED TO SEAL GM DEAL
DETROIT — The United Auto Workers and General Motors Corp. have taken a big legal step toward shifting billions in retiree healthcare costs from the automaker to an independent trust fund. The union and attorneys representing several retirees sued GM on Thursday to get court approval of the change. It would cover about 500,000 GM retirees and spouses, plus current UAW workers when they retire.
The lawsuit is not a hostile action. GM will not contest its major points and joined the UAW and retirees in filing a settlement agreement that would govern how the trust would be run.
SHAREHOLDERS SUE YAHOO DIRECTORS
DOVER, Del. — Two Detroit pension funds are suing Yahoo Inc. and its board of directors, saying they breached their duties to shareholders in trying to thwart a takeover by Microsoft Corp.
The suit was filed Thursday by lawyers representing Detroit's police and fire retirement system and general retirement system, as well as "all other similarly situated public shareholders."
Microsoft on Feb. 1 offered a takeover bid of $31 per share, a 62 percent premium over Yahoo's stock price at that time.
FERRARI SETTING UP JAPAN SUBSIDIARY
TOKYO — The Italian sports car maker Ferrari will set up its first wholly owned Japanese subsidiary in July to import its luxury cars and boost its presence in that giant economy, officials said.
Japan's overall auto market is shrinking, with domestic sales falling to a 35-year low last year as the nation faced high gasoline prices, limited income growth and shrinking demand. But the country still remains a lucrative market for luxury goods.
CHC HELICOPTER BOUGHT FOR $1.48B
VANCOUVER, British Columbia — A U.S. private equity fund will buy CHC Helicopter Corp. for $1.48 billion in what the companies described as the largest oilfield services buyout ever.
First Reserve Corp., a private equity firm, said CHC's board unanimously approved the all-cash deal. CHC shares soared nearly 40 percent, or $8.43, to $29.93 after the announcement.
