October 12, 2010 in Business

Briefcase

 

Daimler recalling more than 100,000 Mercedes-Benzes

Daimler AG said Monday it was recalling more than 100,000 Mercedes-Benz vehicles in the United States and the United Kingdom to prevent a loss of power steering fluid.

The National Highway Traffic Safety Administration said in a posting to its website Monday that the recall involved Mercedes-Benz C-Class vehicles from the 2010 model year and Mercedes-Benz E-Class vehicles from the 2010-2011 model years. The recall involves vehicles produced between June 2009 and late February 2010.

The problem: Daimler told the U.S. government that the loss of fluid could make it difficult to control the vehicle in a parking lot, where maximum power steering is required. The German automaker said in a statement that the gradual loss of fluid was generally followed by a whining noise from the power steering pump, which could make it difficult to steer while parking. Daimler said the vehicle remains steerable.

Contact information: Owners in the United States may contact Mercedes-Benz at (800) 367-6372. The recall is expected to begin this month.

Associated Press

IBM shares hit record high

IBM shares hit an all-time high Monday. Shares rode a slight market upswing, climbing as high as $139.94 before slipping back to $139.66, up 81 cents for the day. The previous high was $139.19, reached during the dot-com boom on July 13, 1999.

Why the increase: The rise comes after IBM shares spent much of this year going sideways as concerns about European government debt and a sluggish economic recovery in the U.S. weighed on markets. Broader factors aside, IBM’s rising share price reflects steadily climbing profits. Its second-quarter results marked the 30th straight period in which IBM has posted higher earnings per share than the year before. The company’s corporate customers have been opening up their wallets a little wider this year to upgrade their technology, something many companies decided to put off during the recession to save cash.

Associated Press

Gymboree agrees to buyout

Children’s clothing retailer Gymboree Corp. has agreed to be bought by asset management firm Bain Capital for $1.8 billion in what would be the sixth-largest private equity deal of the year.

Rising stock: Gymboree said Monday that the deal is for $65.40 per share, a 24 percent premium to Gymboree’s Friday closing stock price of $52.95. The retailer, based in San Francisco, has about 27.3 million shares outstanding. Gymboree stock surged 22 percent on the news.

Hefty premium: Sterne, Agee & Leach analyst Margaret Whitfield said in a note to investors that the offer is 57 percent higher than Gymboree’s closing price on Sept. 30, which was the last day before market rumors began swirling about the company.

Associated Press

Foreclosure stalls Chicago Spire

Plans to build the tallest tower in the nation are in the balance after a lender filed a foreclosure lawsuit against the Chicago Spire’s developer.

Legal battle: Crain’s Chicago Business is reporting that Anglo Irish Bank Corp. filed the $77 million lawsuit against Irish real estate developer Garrett Kelleher this month. The lawsuit alleges that Kelleher’s Shelbourne Development Ltd. has defaulted on loans that matured a year ago. Anglo Irish is expected to take possession of the 2.2-acre site overlooking Lake Michigan. The Irish government took over the bank last year.

Lofty plan: Ground was broken in 2007 for the 2,000-foot Chicago Spire designed by Santiago Calatrava. The site has been dormant since 2008.

Associated Press


Thoughts and opinions on this story? Click here to comment >>

Get stories like this in a free daily email