PRESS DIGEST - Wall Street Journal - July 19

July 19 | Fri Jul 19, 2013 1:18am EDT

July 19 (Reuters) - The following are the top stories in the Wall Street Journal. Reuters has not verified these stories and does not vouch for their accuracy.

* Detroit filed for federal bankruptcy protection, making the automobile capital and one-time music powerhouse the country's largest-ever municipal bankruptcy case. ()

* Detroit's bankruptcy filing will unleash a fierce fight among more than 100,000 creditors over who will get paid-and how much. ()

* Dell is scrambling to save a proposed $24.4 billion buyout, launching an aggressive push to win over investors who have been cool to the deal ahead of a rescheduled vote on July 24. ()

* Microsoft took a $900 million charge on its high-profile Surface RT tablet, contributing to fourth-quarter results that sharply missed revenue and profit expectations. ()

* Google Inc's profit and sales continued to climb, but deceleration in the growth of its main business of selling search ads reignited concerns about the impact of mobile devices. ()

* Morgan Stanley on Thursday posted better-than-expected second-quarter earnings despite a steep rise in interest rates, and surprised investors with a plan to repurchase company shares for the first time since the financial crisis. ()

* Activist investor Nelson Peltz thinks PepsiCo's salty snacks go better with the sweet snacks at Mondelez than soda and Gatorade. Wall Street has its doubts. ()

* British investigators recommended temporarily disabling emergency transmitters on Boeing 787 Dreamliners and launching a broad safety review of such devices, after a fire erupted last Friday on an Ethiopian Airlines jet. ()

* Samsung is close to signing deals for its devices with two U.S. government agencies, signs that the South Korean company's push into the government sector traditionally dominated by BlackBerry is gaining some traction. ()

* Exxon Mobil Corp has agreed to pay a $100,000 penalty and take steps that could cost $20 million to prevent spills of wastewater from gas-drilling operations, settling allegations it violated the Clean Water Act, the Justice Department and Environmental Protection Agency said. ()

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PRESS DIGEST-New York Times business news - July 19

July 19 | Fri Jul 19, 2013 1:22am EDT

July 19 (Reuters) - The following are the top stories on the New York Times business pages. Reuters has not verified these stories and does not vouch for their accuracy.

* Wall Street's big banks are still opposing aspects of the Dodd-Frank financial reform law and do not like a proposal to set aside more capital to cover future losses. ()

* Detroit, the cradle of America's automobile industry and once the nation's fourth-most populous, filed for bankruptcy on Thursday, the largest American city ever to take such a course. ()

* American aviation officials said they would review recommendations by British authorities to disconnect batteries in the emergency transmitters on all Boeing 787s. ()

* China will impose tariffs that could exceed 50 percent on materials imported from the United States and South Korea used to build solar panels. ()

* While the Federal Energy Regulatory Commission and JPMorgan are negotiating a settlement, Blythe Masters, a top bank executive, is not expected to face a separate action. ()

* Dell Inc bought itself six more days to win backing for its proposed $24.4 billion sale to its founder, but the fight for additional support remained tough. ()

* Morgan Stanley shares rose more than 4 percent on Thursday after the firm announced it planned to buy back a chunk of its own stock. ()

* BlackRock Inc said on Thursday that it booked record profits and revenues in the second quarter at a time when rising interest rates caused big losses for many bond investors. ()

* The SEC used Jonathan Egol's appearance as an opportunity to introduce emails and documents that could damage Fabrice Tourre's defense. ()

* The Apache Corp agreed to sell its business in the Gulf of Mexico's shelf for about $3.75 billion to a company owned by the private equity firm Riverstone Holdings. ()

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UPDATE 1-Investor Kawa to take over Conergy's sales ops

Fri Jul 19, 2013 4:02am EDT

* Conergy filed for insolvency two weeks ago

* No details on transaction price

* Shares up 13 percent

FRANKFURT, July 19 (Reuters) - U.S.-based investor Kawa plans to buy most of Conergy AG's global sales operations, the German solar group said on Friday, two weeks after it filed for insolvency.

Kawa intends to acquire two of Conergy's German entities - Conergy Deutschland GmbH and Conergy Services GmbH - as well as subsidiaries in North America, Singapore, Thailand, Australia, Spain, Italy, France, Greece, Cyprus and Britain.

Conergy said its production subsidiaries Mounting Systems GmbH and Conergy SolarModule GmbH were not part of the transaction, which is expected to be finalised in the next four weeks.

"We are excited about this potential transaction with Conergy, a global leader in the downstream solar industry," said Daniel Ades, managing partner at Kawa.

"The solar PV (photo voltaic) market is growing exponentially as costs approach grid parity and Conergy is uniquely positioned to capitalise on this opportunity globally."

The parties did not disclose the transaction price.

Sources previously told Reuters Conergy was close to striking a deal with Kawa.

Once Europe's largest solar company, Conergy - along with many of its Western peers - came under intense pressure from plunging equipment prices in recent years, caused by a global glut of solar panels and cells.

This has forced a large group of former sector heavyweights, including Q-Cells and Solon, to file for insolvency.

Conergy - whose shares were up 13 percent at 0752 GMT - had sales of 473.5 million euros ($619.9 million) last year, but an operating loss of 83 million.

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UPDATE 1-US Airways shareholders approve merger with American

Fri Jul 12, 2013 12:42pm EDT

* Antitrust approval required

* Rival carriers want merged airline to shed slots- CEO

July 12 (Reuters) - US Airways Group Inc shareholders approved the carrier's plan to merge with AMR Corp's American Airlines, clearing another hurdle to the deal that would create the world's largest carrier.

Of nearly 132.8 million shares voted, 132.3 million were in favor of the merger, the company announced on Friday after its annual meeting in New York.

US Airways said 257,757 shares were cast against the merger, and 256,523 abstained.

The $11 billion merger deal was announced in February and the companies expect to complete it by the end of September. The new American Airlines will be based in Dallas-Fort Worth.

The merger must still be approved by antitrust regulators. The U.S. Justice Department, along with attorneys general from 19 states, is considering whether the merger would harm competition. Some states involved in the probe worry that they could lose an airline hub because of the transaction. Others are concerned about potential curbs to service in smaller cities, sources have said.

RIVALS SEEK SLOT DIVESTITURES

US Airways Chief Executive Doug Parker told the shareholder meeting on Friday that rivals such as JetBlue Airways and Southwest Airlines were pushing hard to influence regulators to require the merged carrier to shed takeoff and landing rights, especially at Reagan National Airport just outside Washington, D.C. That airport has been a focal point of the regulatory probe of the merger.

Parker, who will be CEO of the new American Airlines, added that should the combined carrier be required to give up such slots at Reagan National, it would be forced to cut service to small cities.

"We will as stewards of our shareholders' resources divest those (slots) that are the least lucrative, and that flying is going to be to small communities," Parker said during the annual meeting, which was broadcast over the Internet.

Parker said the share of slots that the new American would have at Reagan National would be about 67 percent, a figure that trails the share of key rivals at other major U.S. airports.

For example, he said Delta Air Lines, which bought Northwest Airlines in 2008, has a 78 percent share of slots at Atlanta's airport and an 83 percent share in Detroit.

"We don't see any reason certainly from a matter of law perspective that we should be asked to divest by the Department of Justice," Parker said.

In May, 104 members of Congress asked U.S. regulators to allow American and US Airways to keep all their slots at Reagan National in the merger. In a letter to the U.S. Transportation and Justice departments, the lawmakers argued that requiring divestitures would cut service to smaller cities such as Bangor and Portland, Maine.

Reagan National is used regularly by members of Congress to fly to and from their home districts.

Southwest and JetBlue did not immediately respond to requests for comment.

The American-US Airways merger would be the fourth major U.S. industry tie-up since Delta's 2008 acquisition. United Airlines and Continental merged in 2010, and Southwest bought discount rival AirTran in 2011.

About 50 airport workers participated in a protest outside the US Airways annual meeting that was organized by the Service Employees International Union, complaining about low pay and benefits.

Shares of US Airways were up 2.4 percent to $17.78 in afternoon trading, while AMR was up 2.9 percent to $4.99.

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Brazil's oil regulator to analyze OGX's Tubarão Azul offshore field

RIO DE JANEIRO, July 12 | Fri Jul 12, 2013 1:36pm EDT

RIO DE JANEIRO, July 12 (Reuters) - Brazil's oil regulator ANP said on Friday that it would analyze the economic viability of the Tubarão Azul offshore oil field, where concession holder OGX Petroleo e Gas is considering shutting down.

ANP said that if it decides the field is viable, it will require OGX to submit a timeline for development. If OGX does not want to make further investments, the field could be re-auctioned, the regulator said.

Earlier this month, OGX said it was considering ending production from Tubarão Azul, its only producing offshore field, in 2014. Output from the field has not met company or market expectations.

ANP director Magda Chambriard said the agency would analyze the field's three wells and, if it finds the field economically viable, it would require OGX "to resubmit a timeline for developing the field."

If OGX disagreed and did not consider Tubarão Azul worth investing in further, "it would have to return the field," and the ANP could then attempt to re-auction it, she said.

Brazilian billionaire Eike Batista, who has built his shipbuilding, mining and energy empire around OGX, is facing increasing pressure as lenders focus on the growing credit risks of his operations.

OGX shares were trading at 0.52 reais on Friday. The stock peaked at 23.39 reais in December 2010.

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Praktiker shareholder mulls taking over bank loans - paper

FRANKFURT, July 13 | Sat Jul 13, 2013 7:03am EDT

FRANKFURT, July 13 (Reuters) - A leading shareholder of insolvent German home improvement retailer Praktiker is considering buying out banks in a move to save the company, Germany's leading tabloid newspaper reported on Saturday.

"An insolvency is not the end. Together with other investors we are considering buying the loans held by banks," Isabella de Krassny told Bild.

She and her husband Alain de Krassny together own about 15 percent of Germany's No. 3 DIY chain, according to Thomson Reuters data.

Praktiker could return to profitability if costs were cut substantially, de Krassny told the paper. "Procurement expenses could be cut by 80 million euros ($104 million)annually with better contracts," she said, adding administrative costs could easily be halved.

Despite filing for insolvency, Praktiker will carry on trading from all its stores pending a review to see if it can be restructured, its insolvency administrator said on Friday.

Praktiker, a household name in the country, filed for insolvency on Thursday after talks with creditors failed, triggering fears of heavy job losses.

The group has been weighed down by growing debts, which posted a year-on-year increase of more than a quarter to 535 million euros by the end of March. At the same time, its liquid funds shrank by almost 29 percent to 51.3 million euros.

Praktiker stores selling paints, tools and gardening products are a familiar sight in Germany's out-of-town shopping centres. But years of under-investment had left the stores looking tired and made them vulnerable to competition from rivals with more up-to-date shops and service. ($1 = 0.7661 euros) (Reporting by Arno Schuetze; Editing by Mark Trevelyan)

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US Airways shareholders approve merger with American Airlines

July 12 | Fri Jul 12, 2013 10:03am EDT

July 12 (Reuters) - US Airways Group Inc shareholders approved the carrier's plan to merge with AMR Corp's American Airlines, clearing another hurdle to the deal that would create the world's largest carrier.

US Air Chief Executive Doug Parker announced during the company's annual meeting on Friday that a sufficient number of shares were cast in favor of the merger, based on preliminary results. The meeting, held in New York, was broadcast over the Internet.

The $11 billion merger deal was announced in February and the companies expect to complete it by the end of September, said Parker, who will be chief executive of the new American Airlines, which will be based in Texas.

The merger must still be approved by antitrust regulators and by the bankruptcy court overseeing the restructuring of AMR, which filed for Chapter 11 protection in November 2011.

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UPDATE 1-US Airways shareholders approve merger with American

Fri Jul 12, 2013 12:42pm EDT

* Antitrust approval required

* Rival carriers want merged airline to shed slots- CEO

July 12 (Reuters) - US Airways Group Inc shareholders approved the carrier's plan to merge with AMR Corp's American Airlines, clearing another hurdle to the deal that would create the world's largest carrier.

Of nearly 132.8 million shares voted, 132.3 million were in favor of the merger, the company announced on Friday after its annual meeting in New York.

US Airways said 257,757 shares were cast against the merger, and 256,523 abstained.

The $11 billion merger deal was announced in February and the companies expect to complete it by the end of September. The new American Airlines will be based in Dallas-Fort Worth.

The merger must still be approved by antitrust regulators. The U.S. Justice Department, along with attorneys general from 19 states, is considering whether the merger would harm competition. Some states involved in the probe worry that they could lose an airline hub because of the transaction. Others are concerned about potential curbs to service in smaller cities, sources have said.

RIVALS SEEK SLOT DIVESTITURES

US Airways Chief Executive Doug Parker told the shareholder meeting on Friday that rivals such as JetBlue Airways and Southwest Airlines were pushing hard to influence regulators to require the merged carrier to shed takeoff and landing rights, especially at Reagan National Airport just outside Washington, D.C. That airport has been a focal point of the regulatory probe of the merger.

Parker, who will be CEO of the new American Airlines, added that should the combined carrier be required to give up such slots at Reagan National, it would be forced to cut service to small cities.

"We will as stewards of our shareholders' resources divest those (slots) that are the least lucrative, and that flying is going to be to small communities," Parker said during the annual meeting, which was broadcast over the Internet.

Parker said the share of slots that the new American would have at Reagan National would be about 67 percent, a figure that trails the share of key rivals at other major U.S. airports.

For example, he said Delta Air Lines, which bought Northwest Airlines in 2008, has a 78 percent share of slots at Atlanta's airport and an 83 percent share in Detroit.

"We don't see any reason certainly from a matter of law perspective that we should be asked to divest by the Department of Justice," Parker said.

In May, 104 members of Congress asked U.S. regulators to allow American and US Airways to keep all their slots at Reagan National in the merger. In a letter to the U.S. Transportation and Justice departments, the lawmakers argued that requiring divestitures would cut service to smaller cities such as Bangor and Portland, Maine.

Reagan National is used regularly by members of Congress to fly to and from their home districts.

Southwest and JetBlue did not immediately respond to requests for comment.

The American-US Airways merger would be the fourth major U.S. industry tie-up since Delta's 2008 acquisition. United Airlines and Continental merged in 2010, and Southwest bought discount rival AirTran in 2011.

About 50 airport workers participated in a protest outside the US Airways annual meeting that was organized by the Service Employees International Union, complaining about low pay and benefits.

Shares of US Airways were up 2.4 percent to $17.78 in afternoon trading, while AMR was up 2.9 percent to $4.99.

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Brazil's oil regulator to analyze OGX's Tubarão Azul offshore field

RIO DE JANEIRO, July 12 | Fri Jul 12, 2013 1:36pm EDT

RIO DE JANEIRO, July 12 (Reuters) - Brazil's oil regulator ANP said on Friday that it would analyze the economic viability of the Tubarão Azul offshore oil field, where concession holder OGX Petroleo e Gas is considering shutting down.

ANP said that if it decides the field is viable, it will require OGX to submit a timeline for development. If OGX does not want to make further investments, the field could be re-auctioned, the regulator said.

Earlier this month, OGX said it was considering ending production from Tubarão Azul, its only producing offshore field, in 2014. Output from the field has not met company or market expectations.

ANP director Magda Chambriard said the agency would analyze the field's three wells and, if it finds the field economically viable, it would require OGX "to resubmit a timeline for developing the field."

If OGX disagreed and did not consider Tubarão Azul worth investing in further, "it would have to return the field," and the ANP could then attempt to re-auction it, she said.

Brazilian billionaire Eike Batista, who has built his shipbuilding, mining and energy empire around OGX, is facing increasing pressure as lenders focus on the growing credit risks of his operations.

OGX shares were trading at 0.52 reais on Friday. The stock peaked at 23.39 reais in December 2010.

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PRESS DIGEST - Wall Street Journal - July 11

July 11 | Thu Jul 11, 2013 12:58am EDT

July 11 (Reuters) - The following are the top stories in the Wall Street Journal. Reuters has not verified these stories and does not vouch for their accuracy.

* A review of stock trades by corporate insiders before their companies filed for bankruptcy found the trading veering heavily toward selling instead of buying. ()

* Federal Reserve Chairman Ben Bernanke sought to reassure markets that while the Fed could start winding down bond buying later this year, officials aren't abandoning their broader commitment to easy-money policies. ()

* A rise in long-term interest rates is creating challenges and opportunities for the large U.S. banks as they struggle to overcome lackluster loan demand, a weak economy and a slew of new regulations that are crimping profits. ()

* Regulators are slapping brokerage firm Newedge USA with a record $9.5 million fine for failing to adequately police computer-driven trading clients that sought to manipulate markets for nearly four years. ()

* The liquidators of two Bear Stearns hedge funds sued the major credit-rating firms for allegedly misrepresenting the accuracy of their ratings. ()

* Apple Inc colluded with five major U.S. publishers to drive up the prices of e-books, a federal judge ruled Wednesday in a stern rebuke that threatens to limit the technology company's options when negotiating future content deals. ()

* Chinese Premier Li Keqiang repeated his commitment to steer clear of stimulus for the world's second-largest economy, even as the government reported contracting exports. ()

* A shift in consumer tastes to tablets continues to take its toll on the personal computer industry, with China's Lenovo Group Ltd emerging as sales leader in a shrinking market. ()

* Wal-Mart said it was scrapping plans to build three stores in Washington, D.C., after the city council passed a bill that would require big retailers to pay starting wages that are 50 percent higher than the city's minimum wage. ()

* Google is expected to allow its Motorola hardware unit to spend upward of $500 million to market the Moto X phone expected to be sold by the four largest wireless carriers this fall. ()

* Tribune plans to separate its broadcasting and publishing businesses into two companies, the latest U.S. media conglomerate to pursue to pursue a strategy of building focus around its more profitable TV business. ()

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