WALL STREET

LANGONE NAMES FORMER CSFB CEO AS ‘POINT PERSON’ FOR NYSE BID

Billionaire Kenneth Langone named John Mack, the former chief executive officer of Credit Suisse First Boston, to help lead a potential offer for the New York Stock Exchange, the world’s biggest stock market.

“John Mack will be the point person going forward,” said a spokesman for Mr. Langone, Jim McCarthy. A message left for Mr. Mack, 60, who exited CSFB last June and formerly served on the NYSE’s board, wasn’t immediately returned.

A bid by Mr. Langone, an NYSE seat-holder and former board member, would disrupt a proposal by the NYSE to buy Archipelago Holdings, an electronic securities market, to become a publicly traded, for-profit company. Mr. Langone could gain control of an institution that ousted his friend, the former NYSE chairman and chief executive, Richard Grasso, in September 2003.

Mr. Langone regards the Big Board’s bid for Chicago-based Archipelago as unfavorable for the NYSE’s 1,366 seat-holders, who own the exchange, Mr. McCarthy said. Mr. Langone is seeking funds from securities firms to back his takeover attempt for the 212-year-old NYSE, according to people familiar with the matter, who declined to be identified.

– Bloomberg News

INTERNATIONAL

AIR CANADA PLACES $6 BILLION ORDER WITH BOEING

Fresh out of bankruptcy, Air Canada will spend at least $6 billion to burnish its image and operations by purchasing new Boeing aircraft that are more modern and fuel efficient than its current planes.

The agreement includes firm orders for 18 777s and 14 787s – Boeing’s newest jet, the Dreamliner. Air Canada, which emerged from bankruptcy protection in October, has options and purchase rights for 46 more 787s and 18 more 777s.

Boeing valued the firm orders at about $6 billion at list prices and said it would be the largest deal so far for its new Dreamliner model, assuming Air Canada buys all 60. The 787 Dreamliner, which seats between 217 and 289 passengers, is scheduled to debut in 2008.

– Associated Press

NATIONAL

GENERAL MOTORS RECALLING MORE THAN 2 MILLION VEHICLES

General Motors Corporation is recalling more than 2 million vehicles, including nearly 1.5 million sport utility vans and pickup trucks that have problems with their seat belts.

The company said yesterday a few minor injuries were associated with the six separate recalls and owners would be notified of the problems by mail.

Among the vehicles affected were 1.48 million SUVs and pickups from the 2003-2005 model years, including the Chevrolet Silverado Crew Cab, Suburban, Tahoe, Avalanche; Cadillac Escalade, Escalade ESV, Escalade EXT; GMC Sierra Crew Cab, Yukon XL, Yukon; and the Hummer H2s.

– Associated Press

ENERGY

VALERO TO BUY PREMCOR FOR $6.9B IN CASH, STOCK

Valero Energy agreed yesterday to buy Premcor for $6.9 billion in cash and stock to become the largest American refiner as record prices for gasoline and other fuels boost profits.

Valero, currently the third-biggest refiner in the country, will pay $3.4 billion in cash and issue $3.5 billion in stock, the companies said in a statement. Holders of Premcor can sell each of their shares for 0.99 of a Valero share or $72.76 in cash, 23% more than Friday’s closing price.

The purchase, which will push Valero past ConocoPhillips and Exxon Mobil in American refining capacity, is the biggest takeover yet for Chief Executive William Greehey, who spent more than $7.5 billion from 1998 up to this latest deal on acquisitions. Rising demand for fuel to run cars, trucks, and factories pushed national refining margins to a record last year.

– Bloomberg News