Stocks in the news: GM, DOW, ROH, F, NFS, FRE

Posted Dec 30th 2008 8:15AM by Melly Alazraki
Filed under: Deals, Ford Motor (F), General Motors (GM), Dow Chemical (DOW)

General Motors Corp. (NYSE: GM) shares traded 11% higher in premarket action (7:23 am) after the government said Monday it will provide GMAC Financial Services LLC, GM's ailing financing arm, $5 billion from the $700 billion TARP fund. The Treasury also said it will lend up to $1 billion to GM so it can help GMAC raise more capital.

Dow Chemical Co. (NYSE: DOW) over the weekend got news that Kuwait will no longer pursue a $17.4 billion joint venture with the company. Following the news, Moody's Investors Service and Standard & Poor's downgraded their credit ratings on DOW. Still, after tanking over 17% Monday, DOW shares traded 3.3% higher in premarket (7:38 am).

Rohm & Haas Co. (NYSE: ROH), which was purchased by DOW and has $13 billion of debt on its books, may also be downgraded following the DOW news. The venture money was going to help pay the debt once DOW took over ROH early next year. DOW could be scrambling to keep the takeover of ROH alive. ROH shares gave back over 16% Monday, and traded 3% higher in early premarket action.

Ford Motor Co. (NYSE: F) shares gained over 8% in premarket trading (7:46 am) despite news Monday billionaire investor Kirk Kerkorian sold his remaining shares in the auto maker. The Wall Street Journal writes about plans of Ford to offer two Lincoln models next year that can park themselves.

Nationwide Financial Services Inc. (NYSE: NFS) - The Wall Street Journal reported that Nationwide Mutual Insurance Co. will close a $2.48 billion deal on Jan. 1 to buy back the 34% of NFS that it doesn't currently own.

Freddie Mac (NYSE: FRE) named Raymond Romano as is its new chief credit officer and shares gained over 5% in premarket trading.

Tags: dow, f, fre, gm, inthenews, nfs, roh