Business Desk
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
WALL STREET
STOCKS REBOUND, DOW GAINS 111 POINTS Stocks rebounded yesterday, with the Dow Jones industrial average climbing more than 110 points. The jump pulled Wall Street out of a two-week decline that had wiped out the year’s gains in every major index.
Stocks gained momentum in late afternoon trading after a largely lackluster session marked by mixed reactions to the Labor Department’s Consumer Price index inflation data. Consumer-level inflation grew in May at an annual rate of 2.4%, making another Federal Reserve rate hike a near certainty and putting an end to traders’ fretting about the possibility.
– Associated Press
MERGERS AND ACQUISITIONS
BAYER WINS SCHERING WITH SWEETENED $21.5B BID Bayer AG won a 21.5 billion contest for Schering AG, the world’s largest maker of birth-control pills, after German rival Merck KGaA accepted a sweetened offer for its stake.
Schering investors will get $112 a share, or $3.75 more than Bayer’s original bid in March, after Darmstadt-based Merck agreed to sell its 21.8% holding. Investors who have tendered their shares or commit to doing so today will get that price, Bayer said in a statement.
– Bloomberg News
IN THE COURTS
LAWMAKER ASKS FOR PROBE OF FANNIE MAE EXECS A senior House lawmaker has asked the Justice Department to investigate whether Fannie Mae’s then chief executive and finance chief lied to Congress in sworn testimony in 2004.
Richard Baker, a Republican of Lousiana, chairman of the House panel that oversees the government-sponsored mortgage finance company, disclosed yesterday that he had made a perjury referral regarding former Fannie Mae chief executive Franklin Raines and former chief financial officer Timothy Howard.
– Associated Press
AIRLINES
UNITED AIRLINES ELIMINATING 1,000 JOBS CHICAGO – United Airlines will eliminate at least 1,000 salaried and management jobs by the end of the year as part of its efforts to reduce costs, CEO Glenn Tilton said yesterday.
The employees to be laid off from the nation’s second-largest airline represent about 11% of its 9,400 salaried workers and nearly 2% of the company’s work force of approximately 57,000.
– Associated Press
