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On Monday October 4, 2010, 5:47 pm EDT

Sanofi-Aventis launches Genzyme takeover battle

PARIS (AP) -- France's Sanofi-Aventis on Monday launched an $18.5 billion hostile takeover attempt for Genzyme Corp., escalating the battle after the U.S. biotech company's management twice rejected its offer.

At $69 per share, it's the same as the friendly bid Paris-based Sanofi-Aventis offered for Genzyme privately in July and publicly in August. Genzyme rejected the offer both times.

Genzyme, based in Cambridge, Mass., urged shareholders Monday to take no action, saying in a press release its board would review the offer, together with its independent consultants, and advise shareholders within 10 business days.

Oil industry has yet to adopt lessons of BP spill

NEW ORLEANS (AP) -- Oil industry and government officials could get caught flat-footed again by another deep-water blowout in the coming months because they have yet to incorporate many of the lessons learned during the BP disaster, experts inside and outside the business tell The Associated Press.

In interviews with the AP, environmental experts, industry veterans and government officials also said the industry needs better technology and more thorough testing and analysis to prevent blowouts from happening in the first place.

And despite an overhaul of the federal agency that regulates the industry, there are lingering doubts about whether the government can effectively police Big Oil at the same time it relies on the industry for revenue.

Govt sues 3 biggest credit cards, settles with 2

WASHINGTON (AP) -- The Justice Department on Monday sued the three largest U.S. credit card companies for anticompetitive practices and reached a proposed settlement with two of them, MasterCard and Visa.

In papers filed in federal court in Brooklyn, the department and various state attorneys general sued all American Express, Visa and MasterCard, saying they were attempting to insulate themselves from competition. At the same time, the Justice Department filed a settlement it has reached with Visa and MasterCard. Court approval of such settlements is usually a formality.

Under the settlement, Visa and MasterCard agree not to prohibit merchants from offering customers discounts or rebates for using a particular kind of card. Visa and MasterCard also must allow merchants to express preferences for the use of a low-cost card within a network or other form of payment.

Stocks fall at the beginning of a busy week

NEW YORK (AP) -- Stocks fell Monday as investors took a pause from a historic rally in September and held back ahead of a busy week of economic and earnings reports.

The Dow Jones industrial average lost nearly 80 points after factory orders fell slightly more than expected in August and contracts for new homes remained far below last year's pace.

Analysts say the market was due for a pullback following a 10.4 percent gain in the Dow last month. The monthlong rally has come on relatively low volume, a sign that many investors are still waiting on the sidelines.

Toyota says most recalled US cars and trucks fixed

WASHINGTON (AP) -- Toyota has repaired most of the 5.6 million cars and trucks it has recalled in the U.S. for flaws that could trigger unwanted acceleration, citing progress in rebuilding its reputation for safety.

The automaker has been working to improve quality controls as it deals with sliding market share following its massive recalls. The world's largest automaker said in a report Monday that it had aggressively responded to safety problems at the urging of its president, Akio Toyoda, and top company officials.

Toyota has recalled more than 10 million vehicles worldwide over the last year for a wide range of problems, including some that have nothing to do with unwanted acceleration.

August factory orders decline 0.5 percent

WASHINGTON (AP) -- Orders to U.S. factories fell in August, reflecting a big drop in demand for commercial aircraft. But outside of the volatile transportation sector, orders rose for the first time since March.

Factory orders fell 0.5 percent in August, the third drop in the past four months, the Commerce Department said Monday. Orders had been up 0.4 percent in July.

Meanwhile, a real estate trade group reported that the number of people who signed contracts to buy homes rose in August for the second straight month but remained far below last year's pace.

Taken together, the new reports on manufacturing and housing were viewed as further evidence that the economy is continuing to plod along at a modest pace.

Pending home sales rise 4.3 percent in August

WASHINGTON (AP) -- The number of people who signed contracts to buy homes rose in August for the second straight month but remained far below last year's pace. The weak economy and fears that prices will fall are keeping many consumers away from the housing market.

The National Association of Realtors said Monday that its seasonally adjusted index of sales agreements for previously occupied homes rose 4.3 percent to a reading of 82.3. That's still more than 20 percent below the pace in the same month a year earlier.

Economists surveyed by Thomson Reuters had expected the index would rise to 81.4.

Boston Properties buys Boston tower for $930M

BOSTON (AP) -- Boston's tallest skyscraper and one of the city's most recognizable landmarks is being sold to real estate tycoon and newspaper publisher Mortimer Zuckerman's company for $930 million, the firm said Monday.

Boston Properties agreed to acquire the iconic John Hancock Tower and Garage from a partnership between Normandy Real Estate Partners and Five Mile Capital Partners.

The company is paying $289.5 million in cash and is assuming $640.5 million in debt in the deal. The transaction is expected to close in the fourth quarter.

Twitter co-founder Evan Williams steps down as CEO

SAN FRANCISCO (AP) -- Twitter co-founder Evan Williams is stepping aside as the short-messaging service's CEO. He will turn the job over to Dick Costolo, who has been steering Twitter's operations for the past year.

The privately held company announced the change in command Monday.

Costolo, an early investor in Twitter, joined the company as chief operating officer a year ago to help manage Twitter's rapid growth.

Williams will remain at Twitter and focus on developing new products.

By The Associated Press

The Dow Jones industrial average fell 78.41, or 0.7 percent, to close at 10,751.27

The Standard & Poor's 500 index fell 9.21, or 0.8 percent, to 1,137.03. The Nasdaq composite index fell 26.23, or 1.1 percent, to 2,344.52.

Benchmark crude for November delivery lost 11 cents to settle at $81.47 a barrel on the New York Mercantile Exchange. Earlier in the day it rose to $82.38, the highest level since Aug. 6.

In other Nymex trading, heating oil fell 0.91 cent to settle at $2.2847 a gallon, and gasoline rose 0.72 cent to settle at $2.0933 a gallon. Natural gas dropped 7 cents to settle at $3.727 per 1,000 cubic feet

In London, Brent crude gave up 47 cents to settle at $83.28 per barrel on the ICE Futures exchange.

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