BUSINESS BRIEFS
Two major banks said to be bidding for Wachovia
Associated Press
NEW YORK — At least two major banks were reportedly in talks yesterday to buy Wachovia Corp., the latest U.S. bank to become the focus of investor anxiety over mounting losses tied to toxic assets.
The New York Times reported on its Web site that Citigroup Inc. and Wells Fargo & Co. are bidding in a possible emergency takeover of Charlotte, N.C.-based Wachovia.
The Wall Street Journal also listed Spain's Banco Santander SA as a possible bidder.
Wachovia spokeswoman Christy Phillips-Brown would not comment on the reports, as did Citigroup spokeswoman Christina Pretto. Wells Fargo spokesmen could not be immediately reached for comment.
Wachovia's shares fell 27 percent in regular-session trading on Friday and shed another 15 percent in after-hours dealings as investor worries heightened.
Wachovia's current problems stem largely from its acquisition of mortgage lender Golden West Financial Corp. in 2006 for roughly $25 billion. With that purchase, Wachovia inherited a deteriorating $122 billion portfolio of pick-a-payment loans, Golden West's specialty, which let borrowers skip some payments.
INBEV VOTE TODAY ON ANHEUSER DEAL
BRUSSELS, Belgium — InBev SA shareholders will vote today on whether to approve the company's takeover of U.S. brewing giant Anheuser-Busch Cos. — a deal that would create the world's largest brewer.
InBev is also asking its shareholders to back a capital increase and the issuing of new shares to raise $10 billion for part of the deal, which was reached in July. It must be approved by three-quarters of the shareholders.
InBev said it needed an extra margin to cover any significant currency fluctuations until the company's board decides how many new shares to issue and at what price.
The deal, worth $52 billion, would unite the makers of Budweiser, Michelob, Bud Light, Stella Artois and Beck's and create the world's largest brewer, as well as the third-largest consumer product company. The new company's name would be Anheuser-Busch InBev.
BRITISH OIL FIRM WON'T GET IRAQ JOB
BAGHDAD — Iraq's Oil Ministry says it has dropped British oil company Premier Oil PLC from a group that qualified for the chance to develop the country's largest oil and gas fields.
A ministry official says the company failed to submit documents required for it to compete in a bid due to start next month.
As a result, yesterday it was dropped from a group of 35 foreign companies that qualified in June to bid for the development of eight enormous oil and gas fields.
Six state-run oil companies were later added to that group.
The official said that London-based Premier Oil can still seek future contracts to develop secondary fields in Iraq.
BANK-RUN RUMORS LEAD TO ARREST
HONG KONG — Hong Kong police have arrested a man for allegedly spreading rumors on the Internet about a bank run amid anxiety in the Chinese territory about the U.S. financial crisis, police said yesterday.
The man was arrested Saturday for allegedly using a computer with criminal or dishonest intent but has not been charged, police spokeswoman Odelia Tam said.
Police officers noticed Friday that the man left a message on an Internet discussion forum saying a run would occur on a local bank and urging people to withdraw their deposits, the Hong Kong government said in a statement late Saturday.
Last Wednesday and Thursday, hundreds of customers swarmed the Bank of East Asia's offices in Hong Kong and Singapore demanding cash withdrawals after an unconfirmed rumor questioned the bank's stability.
Bank of East Asia and the Hong Kong Monetary Authority have issued statements reassuring customers that deposits are safe.
