Stocks fell for a second day in a row as deal news was slow but highlighted by General Motor Corp.'s sale of its Saab Automobile AB unit. A surge of late-day selling pushed the Dow to close down 107, or 1.25%, to 8,505 while the Nasdaq decreased 20, or 1.11%, to 1,796.
The Swedish carmaker Koenigsegg Automotive AB has reached an agreement to acquire GM's Saab Automobile AB unit for an undisclosed sum. In
the auction run by Deutsche Bank AG (NYSE:DB), Koenigsegg beat out industry
heavyweights including Italy's Fiat SpA, which also bid for Adem Opel GmbH, and
Ira Rennert's Renco Group Inc.
Meanwhile, shares of Sara Lee Corp. (NYSE:SLE) decreased 8 cents, or .09 %, to $8.78 as it reportedly requested its adviser, Goldman Sachs Group Inc. (NYSE:GS), block Stephen Schwarzman's Blackstone Group LP (NYSE:BX) and Henry Kravis' Kohlberg Kravis Roberts & Co. from participating in the auction of its household and personal-care business -- International Household & Body Care. The target is expected to get bids between $2 billion and $3 billion. Sara Lee wants a strategic buyer to acquire the entire unit. Possible bidders include Unilever plc, Reckitt Benckiser Group plc, S.C. Johnson & Son Inc. and Colgate-Palmolive Co. (NYSE:CL).
Lastly, shares of News Corp. (NYSE:NWS) fell 34 cents, or 3.47%, to $9.47 as its unit MySpace announced it will reduce its staff by 30%, cutting its U.S. staff to 1,000. - Gerald Magpily
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