|
Citigroup to shed nearly $500B in assets
NEW YORK -- Citigroup Inc.'s new chief executive, Vikram Pandit, plans to stick with a global banking model after months of intense review -- but only after shrinking the company by about one-fifth first. The three-year game plan, revealed Friday, includes getting rid of more businesses, mortgages, real-estate operations and jobs. The bank aims to shed between $400 billion and $500 billion of its $2.2 trillion in assets and grow revenue by 9 percent over the next few years as it tries to rebound from massive losses tied to deterioration in the credit markets. Blockbuster, Icahn review Circuit City books RICHMOND, Va. -- Circuit City Stores Inc. on Friday gave in to pressure from activist shareholders, essentially putting itself up for sale and agreeing to nominate dissident directors to its board. The electronics retailer announced it would open its books to Blockbuster Inc. and Blockbuster's largest shareholder, Carl Icahn. It did so after Icahn defused concerns over whether Blockbuster could finance the deal by saying he was prepared to buy the company if all else fails. Circuit City said Icahn's letter answered some questions related to the potential transaction, and that it would allow the video-rental chain to conduct due diligence in its takeover bid of just over $1 billion with plans for creating a huge chain that would sell electronic gadgets and rent movies and games. Fedex cuts 4Q profit forecast MEMPHIS, Tenn. -- FedEx is cutting its fourth-quarter guidance, blaming a steep increase in fuel costs. The Memphis, Tenn.-based shipping company says it now expects to post a fourth-quarter profit of $1.45 to $1.50 per share, down from its previous prediction of $1.60 to $1.80 per share. March U.S. trade deficit drops WASHINGTON -- The U.S. trade deficit narrowed sharply in March as demand for imports fell by the largest amount since the last recession was ending. Analysts forecast that trade would continue to be one of the economy's few bright spots this year. The March deficit totaled $58.2 billion, down 5.7 percent from February, the Commerce Department reported Friday. It was a much larger improvement than had been expected. Gates: Microsoft to go its own way JAKARTA, Indonesia -- Microsoft Corp. will focus on growing its own advertising and Internet search business after it withdrew its takeover offer for Yahoo Inc., Chairman Bill Gates said Friday. Microsoft has not presented an alternative strategy to compete with its dominant rival in the Internet business, Google Inc., since withdrawing a $47.5 billion bid for Yahoo Inc. last weekend. Analysts have been left wondering how the world's largest software maker will increase its share of that multibillion dollar market without a major tie-up. USDA: Wet weather slowing corn planting DES MOINES, Iowa -- Corn production this year could be down as much as 7 percent from the record-breaking heights of 2007, according to a U.S. Department of Agriculture report released Friday. The prediction is a foreboding sign for those hoping for a drop in prices. The USDA report projects farmers will harvest about 12 billion bushels of corn this year. About one-third of the harvest will be directed toward ethanol production, the USDA estimates. |
