Search

In response to political pressure in the U.S. to fix the damage caused by the largest oil spill in that country's history, BP PLC is considering reducing or postponing its second-quarter dividend due to be announced July 27. Citing the oil company's economic value in Great Britain and the United States, the U.K. has taken steps to mediate a resolution between the U.S. government and BP.

It is speculated that, in an effort to avert bankruptcy, General Motors Corp. is negotiating with creditors the exchange of debt for equity. The offer gives debtholders an alternative to losses from unsecured loans, as creditors could potentially cash out at a later date at a more attractive stock price. GM has an estimated debt of $43.3 billion at an annual interest cost of about $2.9 billion.

Citigroup Inc. of the United States is planning a restructuring that may include 15,000 job cuts with a loss of $1 billion. Charles Prince of the financial services group is orchestrating management changes.

Although plans for an alliance between General Motors Corp., Renault S.A., and Nissan Motor Company Ltd. have failed, large automobile manufacturers will continue talking about such alliances. Rick Wagoner, CEO of General Motors, will now concentrate on returning the company to profitability.

Billionaire Kirk Kerkorian plans to invest more heavily in General Motors, increasing both his ownership (to 12%) and his influence . Mr. Kerkorian is in favor of an alliance with Renault S.A., while CEO Rick Wagoner Jr. is opposed to such a partnership.

Negotiations between Chief Executive Rick Wagoner, General Motors Corp. of the United States and Chief Executive Carlos Ghosn, Regie Nationale des Usines Renault of France and Nissan Motor Co. of Japan occurred yesterday just outside of Paris at Renault headquarters. The automobile giants are considering a threeway alliance.

Robert Willumstad, former president of Citigroup Inc., has been appointed chair of insurance company American International Group Inc. This appointment, following the previous appointment of CEO Martin Sullivan, marks a change in governance for AIG, with the top position split into two separate jobs.

Although Ford Motor Co. and General Motors Corp. have abandoned talks of a partnership, such discussions show the current state of the automobile industry. The companies will instead focus on their own restructuring.

Carlos Ghosn, CEO of Renault and Nissan Motor Co., has intensified his efforts to establish a partnership with General Motors. Rick Wagoner, CEO of General Motors, is expressing a more cautious attitude towards the partnership. General Motors is the top automobile manufacturer in the United States.

The possibility that insurance company, American International Group Inc., may be seeking to pay a $1 billion settlement to civil-fraud investigations being conducted by state and federal authorities is discussed. The insurer and its former chief executive, Maurice R. Greenberg, allegedly misled regulators and investors by using improper accounting practices and misrepresenting financial results.

American International Group Inc. is suing former executive Maurice R. 'Hank' Greenberg for control of approximately $20 billion worth of shares. The shares represent nearly 12 percent of the insurance company.

Citigroup Inc. of the United States is seeing a management shake out with Chief Executive Officer Charles O. Prince. Mr. Prince has taken a longterm perspective concentrating on internal controls, improving the banking giant's reputation and keeping on top of regulatory relations. Citigroup Inc. is planning some divestments of life-insurance and asset-management units.

The management style of Martin Sullivan, chief executive officer of American International Group Inc., is discussed and compared to that of his predecessor and mentor, the recently ousted Maurice Greenberg. Special attention is given to Sullivan's handling of both internal and external investigations into the accounting scandal that led to Greenberg's dismissal.

Warren Buffett of Berkshire Hathaway Inc. has given evidence concerning a contentious deal with American International Group Inc. at the United States Securities and Exchange Commission in New York. Mr. Buffett said he asked the top executive of a Berkshire Hathaway Inc. insurance unit several times about the American International Group Inc. deal in question but did not receive details.

Chief Executive Officer Maurice Greenberg of American International Group Inc. has resigned over mounting pressure from regulators over a deal with Berkshire Hathaway Inc. that could have been considered misleading to American International Group Inc. investors.

The practice at express delivery service FedEx and its subsidiary FedEx Ground of hiring contract workers as drivers of its trucks is discussed. A case brought by FedEx drivers against the company raises issues long confronted by U.S. firms that prefer to hire independent contractors rather than employees for whom they are required to provide benefits such as health care, paid leave, and pensions.

Jeffrey W. Greenberg, Marsh and McLennan Companies Inc. resigns and Michael G. Cherkasky appointed, avoiding criminal charges in insurance commission fees investigation by Attorney General Eliot Spitzer.

I Pinco Pallino, a children's fashion house founded in Italy in 1980, has had its clothing lines become popular with wealthy Americans.