AIG’s board weighing its stance on lawsuit
NEW YORK – American International Group Inc. says its board of directors will weigh whether to take part or try to block a shareholder lawsuit against the U.S. over the government’s $182 billion bailout of the insurer.
AIG said that its directors will take up the matter today and expects they will have a decision by the end of the month.
Starr International Co. Inc., the investment firm of ex-AIG CEO Maurice Greenberg, filed the lawsuit on behalf of the firm and AIG shareholders.
The complaint asserts that the government didn’t provide shareholders just compensation when it took a nearly 80 percent stake in the insurer as part of its 2008 bailout.
Dish Network makes offer for Clearwire
NEW YORK – Satellite TV provider Dish Network is offering to buy wireless network operator Clearwire – which agreed to sell itself to Sprint in December – for $3.30 per share, or $5.15 billion.
Clearwire Corp. said it will discuss the unsolicited offer with Dish. However Sprint, which owns 51 percent of Clearwire, said it would have to sign off on Dish’s offer and that it does not intend to do so.
Under the proposed deal, Dish Network Corp. would buy about 24 percent of Clearwire’s spectrum assets for $2.2 billion, and Clearwire would build and manage a wireless network for Dish. Dish would also provide up to $800 million in additional financing to the struggling Clearwire.
In December, Sprint Nextel Corp. offered to buy the remaining 49 percent of the Bellevue company for $2.90 per share. It later raised the offer to $2.97 per share, or $2.2 billion. Sprint is the third-largest U.S. cellphone company, and it depends on Clearwire to provide high-speed Sprint 4G data services on some of its phones.
Dish Network confirmed it made the offer and said it is looking forward to discussions with Clearwire.
Alcoa forecasts higher demand for aluminum
NEW YORK – Alcoa Inc. said Tuesday that fourth-quarter earnings met Wall Street’s expectations, and it sees slightly higher demand for aluminum this year.
The sluggish global economy has weakened prices for aluminum used in everything from airplanes to soda cans. But Alcoa sees demand growing 7 percent in 2013, up from a 6 percent gain in 2012, with the best prospects in aerospace but slower improvement in demand for autos, packaging, and building and construction materials.
In the fourth quarter, Alcoa’s net income was $242 million, or 21 cents per share. That includes one-time gains like income from selling a hydroelectric project.
Chevy adopting slogan for global branding
DETROIT – Chevrolet is dropping its “Chevy Runs Deep” slogan and replacing it with the new tagline “Find New Roads,” saying that it’s better geared toward drivers outside the U.S.
The General Motors Co. brand pointed to its significant overseas expansion over the past several years, noting that it’s developing products for sale in more than 140 markets around the world.
“Find New Roads will enable the whole company to rally around a consistent theme for the brand, and at the same time serve as an external message that works in all markets,” GM marketing chief Alan Batey said in a statement.
“Find New Roads” will be used in the brand’s advertising starting in the U.S. this quarter.