DealBook: A Fateful Road Trip for Detroit's Big Three

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Edited by Andrew Ross Sorkin

TODAY'S TOP HEADLINES | Wednesday, December 3, 2008 M & A: EDF Goes Nuclear on Warren Buffett's Deal BANKING: Merrill Plans to Halve Bonuses, Report Says PRIVATE EQUITY: Yahoo Buyout May Be Unlikely HEDGE FUNDS: Highbridge Said to to Limit Redemptions OFFERINGS: Vietnam to Sell Stake in Lender in I.P.O. VENTURE CAPITAL: Hawaii Endorses Electric Car Plan LEGAL: Auditors Urge Treasury to Add Bailout Controls TOP STORY A Fateful Road Trip for Detroit's Big Three Hoping to avoid another drubbing over their use of corporate jets, the chief executives of Detroit's Big Three automakers will be driving to Washington this week to present their bailout and survival plans. General Motors, increasingly desperate for a federal bailout to stave off financial collapse, told Congress on Tuesday that it was willing to drastically shrink every aspect of its operations to ensure its long-term survival. Go to Article from The New York Times» Go to Item from DealBook» Go to Related Article from The New York Times» Ford and G.M. also plan to sell their corporate jets as they seek to combat what the business world refers to as "optics" -- or, as most people call it, things that look bad. Symbolism aside, DealBook notes that one academic study has linked C.E.O.'s riding corporate jets to market underperformance. Go to Article from The New York Times» Go to Article from TheStreet.com» Go to Item from DealBook» Read More Add a comment ADVERTISEMENT Back to Top MERGERS & ACQUISITIONS Electricite de France, hoping to torpedo a rival bid from Warren E. Buffett, unveiled a $6.5 billion offer to buy 50 percent of Constellation Energy Group's nuclear assets and some other assets. Go to Article from Reuters via The New York Times» Go to Article from Bloomberg News» Go to Press Release from EDF» Go to Previous Item from DealBook» Read More Add a comment British Airways surprised Iberia and American Airlines, with which it is in partnership talks, with news Tuesday that it was also discussing a merger with the Australian carrier Qantas. Go to Article from The New York Times» Go to Previous Item from DealBook» Read More Add a comment Chevron may sell refineries as it continues to focus its downstream business on Asia-Pacific markets, a company vice president said on Tuesday during a presentation to Wall Street analysts. Go to Article from Reuters via The New York Times» Read More Add a comment Edward S. Rogers Jr., who built Canadian media giant Rogers Communications through a series of acquisitions, died on Tuesday at the age of 75. Go to Article from The New York Times» Read More Add a comment Back to Top INVESTMENT BANKING Merrill Lynch, which is set to merge with Bank of America, plans to cut year-end bonuses in half, with some traders and investment bankers facing steeper cuts, Bloomberg News reported. Go to Article from Bloomberg News» Go to Article from Reuters via The New York Times» Read More Add a comment Goldman Sachs is looking to name Gerald Corrigan, a former head of the Federal Reserve Bank of New York, as chairman of its newly created bank holding company, The Financial Times reported. The Wall Street Journal reported that Goldman is considering launching an Internet banking operation. Go to Article from The Financial Times» Go to Article from Reuters via The New York Times» Go to Article from The Wall Street Journal» Go to Article from Reuters via The New York Times» Read More Add a comment The fourth quarter will prove to be "ugly" for Goldman Sachs and Morgan Stanley, with meaningful write-downs as markets continue to be challenging, an analyst at J.P. Morgan Securities said. Go to Article from Reuters via The New York Times» Read More Add a comment The Federal Reserve has extended the life of key programs aimed at busting through credit clogs and restoring stability to financial markets. Go to Article from The Associated Press via The New York Times» Read More Add a comment As further details emerge on Citigroup's government bailout, the bank's chief executive, Vikram Pandit seems to have pulled off a truly fantastic deal, Breakingviews says. Go to Article from Breakingviews via The New York Times» Read More Add a comment Barclays Capital announced its new mergers and acquisitions leadership team on Monday, with most of the spots going to veterans of Lehman Brothers. Go to Item from DealBook» Read More Add a comment Scott Freidheim, the former co-chief administrative officer and executive vice president of Lehman Brothers, will become an executive vice president at Sears Holdings. Go to Item from DealBook» Read More Add a comment Upheaval in the financial industry has left Manhattan with large swaths of empty office space. Go to Article from The New York Times» Read More Add a comment Citigroup has put two corporate planes up for sale through a Maryland-based airplane broker, CityFile reported. Go to Item from CityFile» Read More Add a comment Back to Top PRIVATE EQUITY Yahoo's shares rose 7 percent Tuesday following a report that Jonathan Miller, the former chief of AOL, had been talking to private equity and sovereign wealth funds to raise $28 billion to $30 billion to buy Yahoo. But people in private equity circles said a buyout of Yahoo was highly unlikely in the current environment. Go to Article from The New York Times» Go to Item from DealBook» Read More Add a comment Carl C. Icahn has filed a lawsuit against the Realogy Corporation, which is owned by his longtime friend Leon D. Black, as the activist investor seeks to block the real estate brokerage company's $1.1 billion debt refinancing deal. Go to Article from The New York Times» Go to Item from DealBook» Read More Add a comment The Carlyle Group, the private equity firm that helped instigate the current round of bidding for Lehman Brothers's Neuberger Berman unit, has decided not to bid after all, Bloomberg News and Reuters reported. Go to Article from Bloomberg News» Go to Article from Reuters» Read More Add a comment The chairman of China's sovereign wealth fund, the China Investment Corporation, said that China had no plans for more investments in Western financial institutions, nor did it have any plans to "save" the world through economic policies. Go to Article from The New York Times» Read More Add a comment Singapore's state-owned investment company Temasek Holdings said it sold electricity generator PowerSeraya to Malaysia's YTL Power International for 3.8 billion Singapore dollars ($2.5 billion). Go to Article fro The Associated Press via The New York Times» Go to Press Release from Temasek» Go to Previous Item from DealBook» Read More Add a comment Senior architects of Terra Firma's buyout of EMI are to lose their jobs after the firm was forced to inject more cash into the British music group, The Financial Times reported. Go to Article from The Financial Times» Read More Add a comment Houghton Mifflin Harcourt, which is owned by an Irish private equity group, suffered another setback as the publisher of its adult trade division has resigned. Go to Article from The New York Times» Read More Add a comment Back to Top HEDGE FUNDS Highbridge Capital Management, the hedge fund company owned by JPMorgan Chase, is limiting client withdrawal requests to avoid selling assets at distressed prices, Bloomberg News reported. Go to Article from Bloomberg News» Go to Article from The Wall Street Journal (Subscription Required)» Read More Add a comment Paulson & Company's founder, John Paulson, talked to Bloomberg News about his views on the financial meltdown for an article about the best-performing hedge funds so far in 2008. Go to Article from Bloomberg News» Read More Add a comment Ramius Capital is threatening to replace as many as four directors of Orthofix International, a maker of orthopedic equipment, as part of a broad-based plan to push up the company's stock price. Go to Item from DealBook» Read More Add a comment The Sears Holdings Corporation, led by hedge fund billionaire Edward S. Lampert, said Tuesday that hefty charges and weak results at its department stores and Kmart locations drove the retail chain to post a third-quarter loss that was much wider than expected. Go to Article from Bloomberg News» Go to Article from The Associated Press via The New York Times» Go to Article from The Wall Street Journal (Subscription Required)» Read More Add a comment Back to Top I.P.O. / OFFERING Vietinbank, Vietnam's state-run bank and the country's fourth-largest lender by assets, will sell 4 percent of its total capital in an initial public offering late this month, the stock exchange said. Go to Article from Reuters via Forbes» Read More Add a comment Stocks fell Wednesday in Europe, after a mixed session in Asia, as a leading technology company issued a dire warning about the business outlook. Go to Article from The New York Times» Read More Add a comment Back to Top VENTURE CAPITAL The State of Hawaii and the Hawaiian Electric Company on Tuesday endorsed an effort to build an alternative transportation system based on electric vehicles with swappable batteries and an "intelligent" battery recharging network. Go to Article from The New York Times» Go to Press Release from Better Place via MArketWatch» Go to Previous Item from DealBook» Read More Add a comment Sweden's Chemrec, which is working on gasification technology to turn the byproduct from paper and pulp mills into biofuels and biochemicals, says it has raised $20 million to bring its technology to commercialization. Go to Article from GigaOm via The New York Times» Read More Add a comment UTest, a marketplace where companies can "crowdsource" the testing of their software, has raised $5 million in a second round of funding. Go to Article from VentureBeat via The New York Times» Read More Add a comment Back to Top LEGAL Government auditors urged the Treasury Department on Tuesday to act more quickly to develop the internal controls and hire the professional staff necessary to ensure that its $700 billion financial rescue package is operating effectively and ethically. Go to Article from The New York Times» Go to Report from the Government Accountability Office» Read More Add a comment The American International Group and the U.S. government have reached an agreement to clear the insurer of its obligations on about $53.5 billion in toxic mortgage debt, the giant insurer said in a regulatory filing on Tuesday. Go to Article from Reuters via The New York Times» Go to S.E.C. Filing from A.I.G.» Read More Add a comment General Electric said it expects fourth-quarter profits to be at the low end of its previous guidance and mapped out its plans for shoring up GE Capital. Go to Item from DealBook» Go to Item from DealBook» Read More Add a comment The Deal Professor checks in on new developments at the Big Three automakers, Prosper, Pilgrim's Pride and other companies. Go to Item from The Deal Professor» Read More Add a comment A senior Broadcom executive claims two degrees from the University of California, Irvine -- but the school says that the man, Vahid Manian, never graduated. Go to Article from Bloomberg News» Go to Fraud Discovery Institute Report (PDF)» Go to Mr. Manian's Broadcom Biography» Read More Add a comment The Internal Revenue Service is debating how to settle tax disputes with scores of wealthy American clients who use offshore private banking services sold by UBS and other foreign banks, The New York Times reported. Go to Article from The New York Times» Read More Add a comment In another sign of the strain that the financial crisis is putting on the European Union, regulators agreed Tuesday to revise again the guidelines that had been holding up some government aid to banks, after pressure from France and Germany. Go to Article from The New York Times» Go to Revised Guidelines from the European Commission (PDF, In French)» Read More Add a comment The mayor of Birmingham, Ala., has been arrested on multiple charges of corruption stemming from the issuance of bonds and debt swap agreements that could lead to the largest municipal bankruptcy in American history. Go to Item from DealBook» Go to Article from The New York Times» Read More Add a comment Simpson Thacher & Bartlett, a New York-based law firm that often advises in marquee mergers and buyouts, has named five new partners. Go to News Release from Simpson Thacher» Go to Item from DealBook» Read More Add a comment Get home delivery of The New York Times for as low as $3.15 a week.

SEARCH DEALBOOK SITE DealBook | E-mail Preferences Help | Advertising Opportunities Bank of Russia nears decision time on the rouble December 3, 2008 Citi reaps fantastic deal in Fed bailout December 3, 2008 Detroit humbly asks for outrageous federal largesse December 2, 2008 What's a Wall Street Chief Worth? With taxpayers' money on the line, creating packages that pay enough -- but not too much -- becomes an even thornier problem. More» Bracing for Bonus News London's financial workers expect their bonuses to drop as much as 70 percent from last year, according to a survey. More» Video: Fixing the Big Three Andrew Ross Sorkin talked about taking a tough-love approach to bailing out G.M., Ford and Chrysler in an appearance on "Charlie Rose". More» Tracking the Bailout The New York Times tracks how the $700 billion Troubled Asset Relief Program is being doled out to banks, insurance companies and more. More» What G.M. Really Needs Instead of getting a bridge loan that will just disappear, General Motors should be revamped in a government-sponsored bankruptcy filing. More» Video: Griffin on Capitol Hill Kenneth Griffin of Citadel testifies before a House committee on the role of hedge funds in the financial markets. More» Revolving Door The latest hires, promotions and departures at Kirkland & Ellis, Fannie Mae, BlackRock and more. More» The Rescue Squad DealBook's special section looks at the people reshaping Wall Street and what the new landscape might look like. More» The Deal Professor A blog-within-a-blog that looks at mergers, private equity and corporate governance through a legal lens, written by Steven M. Davidoff, a professor at the University of Connecticut School of Law and a former lawyer at Shearman & Sterling. More» Lehman's Fall Full coverage of Lehman Brothers' dramatic slide into bankruptcy protection. More» The Bear Bailout Full coverage of the proposed takeover of the troubled investment bank -- and the crisis that led to the sale. More» DealBook for BlackBerry Get one-click access to DealBook to read the latest deal news throughout the day. Visit mobile.nytimes.com/bbinstall directly from your BlackBerry or by sending the text message "db install" to 698698. More information on DealBook for BlackBerry. News By Industry Airlines / Autos Basic Industries Consumer Goods Energy / Utilities Financial Services Food & Beverage Healthcare Media Real Estate Retail / Leisure Technology Telecom Tools & Resources GET QUOTES Look Up Symbol RESEARCH SUITE Portfolio Company Research U.S. Markets International Markets Mutual Funds SEND A TIP OR FEEDBACK E-mail us at dealbook@nytimes.com Dealboard

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