MAJOR PAPERS:

• The Wall Street Journal reported that probes by the U.S. Justice Department and the Securities and Exchange Commission center on whether American International Group Inc (NYSE: AIG), as well as its financial products division, which has been the source of controversy and profits, intentionally inflated the value of contracts linked to subprime mortgages.
• According to a person familiar with the matter, the Financial Times reported that South Korea's LG Electronics may consider a bid for General Electric Company's (NYSE: GE) appliance business.

• Exxon Mobil Corporation (NYSE: XOM) will sell the remaining gas stations it owns to gasoline distributors, according to the Associated Press. However, the distributors will continue to pay to use the Exxon and Mobil brand names.
• Xinhua reported that MetLife Inc (NYSE: MET) is seeking permission from Chinese regulators to combine its two ventures in China. The insurer said it believes the move will allow it to compete more effectively in the Chinese market.

Newspaper wrap-up: LG Electronics could bid for GE unit originally appeared on BloggingStocks on Fri, 13 Jun 2008 09:10:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• UBS AG (NYSE: UBS) won't comment on write-down estimates, but according to the Wall Street Journal, investors are expecting it as prices for mortgage securities have significantly gotten worse over the past several weeks as evidenced by Lehman Brothers Holdings Inc (NYSE: LEH) profit warnings.
• Yesterday Lehman's stock fell 8.7% as the firm announced a projected $2.8B second quarter loss and a $6B capital raise. Options activity indicated a lessening volatility, the Wall Street Journal reported, a sign that perhaps the worst may be over.
• According to a person familiar with the matter, the Financial Times reported that China's Qingdao Haier has approached investment banks to advise it on a bid for General Electric Company's (NYSE: GE) appliance business.

• A brief filed by plaintiffs in a shareholder lawsuit against Yahoo! Inc (NASDAQ: YHOO) and its directors claimed that an employee severance plan put in place to protect workers after a merger with Microsoft Corporation (NASDAQ: MSFT) should be repealed immediately. The New York Times reported that the plaintiffs believe the plan could skew the outcome of a proxy battle between Yahoo! and Carl Icahn for control of the company.

Newspaper wrap-up: UBS facing more write-downs? originally appeared on BloggingStocks on Tue, 10 Jun 2008 08:40:00 EST. Please see our terms for use of feeds.