AP Business Highlights

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On Monday March 8, 2010, 6:08 pm EST

Toyota disputes critic who blames electronics

WASHINGTON (AP) -- Toyota gave detailed evidence Monday that it says disproves claims that electronics may cause the unwanted acceleration that led to the recall of more than 8 million cars and trucks.

Toyota was attempting to counter tests by an Illinois engineering professor who said Toyota engines could rev without a driver pressing on the gas. The automaker says mechanical problems, not electronics, are to blame.

Chris Gerdes, director of Stanford University's Center for Automotive Research, and a consulting firm, Exponent Inc., said the professor had tampered with wiring to create electronic glitches that could never occur on the road.

AIG sells Alico unit to MetLife for $15.5 billion

CHARLOTTE, N.C. (AP) -- American International Group Inc. said Monday that it will sell its American Life Insurance Co. division for $15.5 billion to MetLife Inc. The government-approved deal, AIG's second big asset sale in two weeks, will give the insurer more cash to repay the billions of bailout dollars it still owes the government.

The purchase expands MetLife's presence in Japan and high-growth markets in Europe, the Middle East and Latin America. American Life Insurance, known as Alico, operates in more than 50 countries. MetLife currently offers services in 17 countries.

It also moves AIG closer to repaying taxpayers. As of Dec. 31, the company owed the Treasury and the Federal Reserve Bank of New York nearly $130 billion. AIG's bailout package was originally worth up to $182.5 billion.

Stocks trade flat after more corporate dealmaking

NEW YORK (AP) -- Stocks ended mixed after a new round of mergers and acquisitions raised some hope for the economy.

Financial shares rose after insurer American International Group Inc. reached a deal to sell one of its major foreign divisions to MetLife Inc. for $15.5 billion. Meanwhile, health care stocks fell after President Barack Obama called for passage of health care legislation.

The modest moves in the overall market follow a jump in stocks Friday. The government's February jobs report was stronger than expected. The Dow Jones industrial average fell 13.68, or 0.1 percent, to 10,552.52.

Arrow Energy gets $3 billion takeover bid

SYDNEY, (AP) -- Arrow Energy Ltd., a major owner of natural gas assets in northern Australia, said Monday that a company jointly owned by Royal Dutch Shell and PetroChina has sent it a takeover bid worth $3.3 billion Australian dollars ($3 billion).

Nearly half of Shell's production of oil and equivalents comes from gas, so Arrow is a natural target for Europe's largest oil company -- and Shell already owns a 10 percent stake of Arrow's operations outside Australia.

Shell confirmed it was considering acquiring the Australian company, and said talks were in an early stage.

Fed expands eligibility for repurchase program

WASHINGTON (AP) -- The Federal Reserve said Monday it's making more financial institutions eligible for a program to drain some of the unprecedented liquidity it added to markets during the credit crisis.

The move is intended to make the program, under which the Federal Reserve Bank of New York temporarily sells some of its securities, more effective.

The New York Fed said Monday that domestic money market mutual funds with net assets of $20 billion are eligible for the transactions, known as "reverse repurchase agreements." That's when the Fed sells securities from its portfolio with an agreement to buy them back later.

H&R Block 3Q profit rises despite fewer returns

KANSAS CITY, Mo. (AP) -- H&R Block Inc. says its fiscal third quarter profit rose 7 percent, as lower costs offset a revenue drop that stemmed from handling fewer returns.

For the three months ended Jan. 31, the nation's largest tax preparer earned $50.6 million, or 15 cents per share, compared with $47.4 million, or 14 cents per share, in the year-ago quarter.

Revenue fell 6 percent to $934.9 million from $993.4 million last year.

Wall Street was expecting profit of 14 cents per share, on revenue of $949.6 million.

ABC returns to Cablevision, but talks go on

NEW YORK (AP) -- Cablevision and ABC were negotiating a deal Monday that tentatively ended a dispute over fees and restored millions of viewers' access to the Academy Awards telecast in New York, New Jersey and Connecticut shortly after the broadcast began.

The two sides, who had been hammering at each other for days in the media, said a deal had been reached Sunday night, nearly 15 minutes into the Oscar awards broadcast.

Neither side released details about the deal, and it was unclear how permanent it would be.

McDonald's key sales figure rises in February

OAK BROOK, Ill. (AP) -- Strong overseas growth for McDonald's Corp. in February outweighed U.S. sales that barely nudged upward as the world's largest fast-food chain posted a 4.8 percent increase in sales at restaurants open at least a year.

The results come on the heels of January's 2.6 percent rise and were a welcome return to steady growth after back-to-back months of declines in the key sales figure late last year.

Sales at restaurants open at least a year are a key indicator of performance because they measure growth at existing locations rather than newly opened ones.

UK agency probes Kraft-Cadbury deal

LONDON (AP) -- Campaigners to save British jobs at Cadbury have made a complaint to regulators that Kraft Inc. misled employees during its takeover of the chocolate maker after it backtracked on plans to keep a factory open.

Amoree Radford, who led a campaign to preserve the Keynsham factory in Somerdale, western England, said she had lodged an official protest with the Takeover Panel.

The Takeover Panel, which regulates mergers and acquisitions in Britain, declined to comment on whether it had opened an investigation.

Retail gasoline prices match 2010 high

Motorists are well down the road to higher pump prices as warmer weather and the driving season approach.

Average retail gasoline prices, continuing a surge that started last month, have now matched their 2010 high on the way to prices that many analysts believe will top $3 per gallon this spring.

The nationwide average retail gasoline price rose 0.6 cents Monday to $2.753 per gallon, virtually identical to the high water mark of $2.7583 reached on Jan. 14, according to AAA, Wright Express and Oil Price Information Service.

Prices have risen 9.2 cents in the last month and are now 80.6 cents higher than levels of a year ago.

By The Associated Press

The Dow Jones industrial average fell 13.68, or 0.1 percent, to 10,552.52. The Standard & Poor's 500 index slipped 0.20, or less than 0.1 percent, to 1,138.50. That breaks a streak of six straight advances.

The Nasdaq composite index rose 5.86, or 0.3 percent, to 2,332.21, its highest close since September 2008.

Benchmark crude for April delivery rose 37 cents to settle at $81.87 a barrel on the Nymex. Earlier in the session, it peaked at $82.41.

In other trading in April contracts, heating oil rose 0.81 cent to settle at $2.1055 a gallon. Natural gas fell 6.6 cents to settle at $4.527 per 1,000 cubic feet. During the trading day, natural gas touched a new 52-week low at $4.458 per 1,000 cubic feet.

In London, Brent crude gained 58 cents to settle at $80.47 on the ICE futures exchange.

 

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