Automotive parts maker Lear Corp. (NYSE:LEA) is close to a Chapter 11 filing, possibly joining a number of car parts maker such as Visteon Corp. and Delphi Corp. that have filed for bankruptcy due to the troubles of the Big Three. Meanwhile, investors plunged back
into the market as the Dow increased 57.06, or 0.68%, to 8,504.76 while
the Nasdaq inched up 10.68, or .58%, to 1,845.72.
Shares of Lear dropped 2 cents, or 4%, to close at 48 cents. "Lear's board of directors concluded that in order to protect the
long-term business interests of the company, this protective action was
the fastest and most effective way" to reduce the company's debt, The Detroit Free Press reported Lear
said in a statement. The automotive parts company has been able to secure $500 million in
debtor-in-possession financing reportedly from a group led by J.P. Morgan Chase & Co. (NYSE:JPM) and
Citigroup Inc. (NYSE:C).
Dealmaking was relatively slow, led by one middle-market deal -- a divestment from Citigroup -- and another possible middle-market one involving three private equity firms showing interest in making an investment in United Spirits Ltd.
Citigroup is selling NikkoCitiTrust and Banking Corp. to Nomura Trust & Banking Ltd. for ¥19 billion ($197.1 million) in its quest to shore up its finances after receiving a $45 billion government rescue. The deal wasn't as lucrative as Citigroup would like as Nomura is paying 24% less than Mitsubishi UFJ offered under a deal that was scrapped in May, according to Bloomberg. Shares of Citi finished flat at $2.97.
Meanwhile, Kohlberg Kravis Roberts & Co., Blackstone Group LP (NYSE:BX) and Capital International have shown interest in buying a $250 million to $300 million stake in spirits maker United Spirits. The interest in a capital injection comes at a time when one of the industry's biggest alcoholic beverage company, Constellation Brands Inc. (NYSE:STZ), reiterated its fiscal 2010 outlook and
expects GAAP diluted earnings per share in the range of 97 centsto $1.07. The positive prospects for Constellation pushed shares of the Victor, N.Y.-based company up 93 cents, or 7.33%, to $13.61. - Gerald Magpily
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