Posted Jun 8th 2009 11:30AM by Mark Fightmaster
Filed under: Rumors, Industry, Law
Three separate requests filed in Indiana by pension funds and consumer groups have asked the U.S. Supreme Court to stop the sale of Chrysler to a group led by Fiat. The groups filing the complaints hope to buy some time while challenging the deal. Some believe that this case could set a precedent for General Motors, which is trying to employ a similar "quick-sale" strategy as Chrysler. Late Friday, an appeals court stayed the closing of the sale until this afternoon, which gave the pension funds and opponents the weekend to make their plea to the Supreme Court.
The three pension funds argued that the sale of Chrysler unlawfully rewarded unsecured creditors, like the union rather than secured lenders. The funds hold roughly $42 million of Chrysler's $6.9 billion in secured loans. Lawyers for the pension funds argued, "the need for the court to review the profound issues presented by Chrysler's novel bankruptcy sale far outweighs the cost of delaying [a sale]."
Continue reading Indiana consumer groups want high court to block Chrysler sale
Posted Jun 1st 2009 6:00PM by Beth Gaston Moon
Filed under: Rumors, Cisco Systems (CSCO), General Motors (GM), Indices, Citigroup Inc. (C)

After weeks of speculation - Apple! Amazon! Nike! Toyota! -- all became clear today when
General Motors Corporation's (NYSE:
GM) exodus from the Dow Jones Industrial Average (
DJIA) made room for...
Cisco Systems, Inc. (NASDAQ:
CSCO). While perhaps not as sexy a name as, say,
Apple, Inc. (NASDAQ:
AAPL), it does add one more tech name to the venerable 30-stock average.
Wall Street Journal Managing Editor Robert Thomson released a statement noting that CSCO made the cut "because its communications and computer-networking products are vital to an economy and culture still adapting to the Information Age -- just as automobiles were essential to America in the 20th Century." So
there's the connection!
Continue reading Cisco, Travelers join the Dow
Posted Jun 1st 2009 1:50PM by Melly Alazraki
Filed under: Deals, Rumors, Bristol-Myers Squibb (BMY)

If you've been following
Elan Corp. (NYSE:
ELN) lately, you've probably come to take any story of a deal, takeover, sale with a grain of salt.
This morning, Elan shares soared over 16% after stories on
Reuters and the
Wall Street Journal over the weekend said it is in advanced talks to sell a minority stake to
Bristol-Myers Squibb (NYSE:
BMY).
Moreover, Elan was said to be in talks with a second suitor, but the status of those discussions was unclear. This, Reuters reported, could be the first move in a multi-step transaction to sell Elan outright.
While the shares are still up a healthy 12% by midday, now Bloomberg reports that according to UBS analysts,
Bristol isn't in talks to buy a stake in Elan.
Continue reading Elan: Yet another deal rumor -- Bristol eyeing a stake
Posted May 28th 2009 6:00PM by Michael Fowlkes
Filed under: Forecasts, Rumors, Competitive strategy, General Motors (GM), Employees, Recession, Financial Crisis
There has been a lot of debate over the past couple of months over General Motors Corporation (NYSE: GM). What would be best for the company? Government bailout money to help avoid bankruptcy, or should we allow the company to go through bankruptcy proceedings?
If you are on the side of the argument that thinks GM should enter bankruptcy, well, you are about to get exactly that. According to Bloomberg, General Motors plans to file for Chapter 11 bankruptcy on June 1.
Continue reading General Motors bankruptcy right around the corner
Posted May 27th 2009 5:20PM by Beth Gaston Moon
Filed under: Deals, Rumors

The latest white knight that may swoop in to rescue
Playboy Enterprises, Inc. (NYSE:
PLA) comes in the form of an eccentric British billionaire -- Richard Branson, chairman of Virgin Group, which includes Virgin Atlantic Airways, Virgin Media, and dozens of other businesses. I'm going to refrain now from making an obvious joke playing on the supposedly colliding notions of "Virgin" and "Playboy."
A UK newspaper is
saying this week that Branson could be interested in scooping up the house that Hefner built, potentially as part of his Virgin Media group. (
Update: Reuters reported the afternoon of May 28 that Virgin Media Group is not interested in buying Playboy). PLA shares, which hit a low of $1.15 in March, are currently trading at $3.18 -- up 6.7% today amid buyout hopes. The company's current market cap is about $106 million, making the beleaguered but iconic brand a relative bargain for the right buyer.
Continue reading Rumor mill: Playboy has a new suitor in the form of Richard Branson
Posted May 26th 2009 1:30PM by Mark Fightmaster
Filed under: Rumors, Consumer experience, Coca-Cola (KO)
I remember back in junior high school when the rumors circulated that Coca-Cola was actually laced with cocaine. Any one else remember that one? Well, those rumors are back, but they involve Red Bull Cola this time.
Red Bull Cola is roughly a year old and is supposed to supply the same "kick" that Red Bull gives -- but officials in Germany believe the kick comes from cocaine.
Here's the problem: the Austrian-based company, Red Bull GmbH, boasts that its cola is 100% natural and it uses the coca leaf. The use of the coca-leaf extract led to positive tests for cocaine when German officials scrutinized Red Bull Cola.
Actually, the head of the food safety department in Germany's federal ministry for consumer protection stated that it "examined Red Bull Cola in an elaborate chemical process and found traces of cocaine."
Continue reading Red Bull Cola, now with a refreshing kick of ... cocaine?
Posted May 13th 2009 5:00PM by Sheldon Liber
Filed under: Other issues, Rumors, Rants and raves, Market matters, Money and Finance Today, S and P 500, Recession, NASDAQ, Financial Crisis

The market is down again today and there are millions of people trying to figure out why. Some will tell you they know why and give you a plausible rationale. There may be bits of truth here and there but there is also an arbitrary nature too. If not arbitrary, then haphazard.
The market may be down because nobody in Washington - Obama, Benanke or Geitner - made a speech today pounding the drum for a brighter economic outlook.
It could be because oil prices have been slowly rising again as inventories are drawn down.
Continue reading Quick Take: Why is the market down today?
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