BUSINESS BRIEFS
White House reviewing status of GM, Chrysler
Advertiser News Services
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WASHINGTON — The White House said yesterday it was trying to determine "how to be the best partner" for the struggling U.S. auto industry as its auto task force met yesterday to review the status of General Motors Corp. and Chrysler LLC.
Cabinet-level members of the panel, led by Treasury Secretary Timothy Geithner and White House economic adviser Larry Summers, were at the White House to review restructuring plans from GM and Chrysler, which are surviving on $17.4 billion in loans.The government could recall its loans if GM and Chrysler fail to sign deals for debt restructuring and other concessions from stakeholders by March 31. GM and Chrysler are seeking $21.6 billion in additional financing to execute turnaround plans submitted last month.
Meanwhile, GM. shares fell to their lowest point in more than 75 years yesterday, as investors fretted that the ailing automaker may be forced to file for bankruptcy protection despite government help. GM shares hit a low of $1.27 in late morning trading before rebounding to close down 41 cents, or 22 percent, at $1.45.
The low point matched a split-adjusted low set May 4, 1933, according to the Center for Research in Security Prices at the University of Chicago.
H&R BLOCK'S TAX WORK FALLS SLIGHTLY
KANSAS CITY, Mo. — H&R Block Inc. is bracing for what could be a make-or-break final stretch of this year's income tax season.The nation's largest tax preparer reported better-than-expected earnings for its fiscal third quarter yesterday. But it also said the number of tax returns prepared by its network of retail offices, online and through its software products fell 1.8 percent through the end of February from a year ago.
ROCHE UPS TENDER BID FOR GENENTECH
NEW YORK — Swiss drug developer Roche boosted its hostile tender offer for Genentech Inc. to $93 per share yesterday, raising the total offer value to $45.7 billion, after its initial offer failed to pick up much support from shareholders.For weeks, Genentech's board had been calling Roche's $86.50 bid too low, with much of Wall Street saying shareholders likely wouldn't bite at the offer.
Roche said it received tenders for only 500,000 shares in the tender offer, a fraction of the 44 percent the company needs to take control of Genentech.
WELLS FARGO CUTS DIVIDEND BY 85%
NEW YORK — Following the lead of other major banks, Wells Fargo & Co. said yesterday it will slash its dividend by 85 percent to shore up its capital base.The bank, which is still digesting the acquisition of Wachovia Corp., said cutting its quarterly payout from 34 cents a share to 5 cents would result in $5 billion in annual savings.
Wells Fargo also disclosed improved mortgage lending figures for the first two months of the year and said it hoped to pay back $25 billion in government rescue funds as soon as possible.
