With a pit crew like this…
As GM’s resident guru, Bob Lutz, was telling CNBC he was guardedly optimistic that a short-term loan will be made available to the auto industry, the global picture clouded considerably. The chief of Italian carmaker Fiat told a magazine the company was too small to survive alone, Sweden was reported mulling a rescue package for Volvo and Saab, and Toyota, the world’s biggest car maker, was said to be eyeing spending cuts of up to 40 percent.
Fiat’s chief, Sergio Marchionne, went a little further, prognosticating that Chrysler will disappear and that only six big players will be left around the world when the dust settles.
White House and congressional negotiators are working on an emergency rescue for the struggling industry, but passage of even a slimmed-down lifeline is far from certain. Sen. Richard Shelby, the top Republican on the Senate Banking Committee, has threatened a filibuster to block any bailout, according to Politico.com. The Senate is due back in session today.
Shelby, an Alabama Republican who has spoken out against the proposed “bridge loan” emergency package, indicated he was ready for battle. “This is a bridge loan to nowhere,” said Shelby, appearing on “Fox News Sunday” with Sen. Carl Levin of Michigan, a Democrat. Senate Banking Committee Chairman Christopher Dodd, who is leading efforts to craft bailout legislation, told CBS that GM Chairman Rick Wagoner should resign. Levin, whose state is home to the major automakers, said he was confident there would be a deal but was less certain a filibuster could be avoided.
Deals of the day:
* San Miguel will buy a majority stake in Petron from the Ashmore Group for about 32.8 billion pesos ($675 million) after the British investment company completes a deal with the Philippine government, San Miguel’s president said.
* U.S. energy producer Arch Coal expects production in 2009 to be flat or slightly lower while overall output for the U.S. coal industry will slow, and also sees plenty of opportunity for acquisitions amid the economic downturn.
* Hedge Fund firm Centaurus is likely to sell its minority stake in French IT services group Atos Origin, but not in the immediate future, sources close to the matter said.
* Belgian-Dutch financial services group Fortis has upped the selling price of its Belgian insurance unit, which French peer BNP Paribas agreed to buy, a Dutch newspaper said. * One potential investor has already cast its eye over Latvian bank Parex, which the state has had to rescue, an official at the country’s bank supervisory body was quoted on as saying.
* Investment group Evolve Capital said it had offered 10.7625 pence a share to buy niche investment bank Blue Oar in a deal that would value the company at 17.9 million pounds ($26.3 million).
* British mid-sized broking firms Ambrian Capital and Panmure Gordon & Co said they have held talks regarding a possible merger between the companies.
* Qantas Airways warned investors its proposed $5.6 billion merger with British Airways faced major obstacles over the terms of the deal and stressed there was a reasonable chance talks would fail.
* French healthcare diagnostics group BioMerieux said it had acquired privately held PML Microbiologicals, a U.S-based provider of culture media and microbiological products.
* Peabody Energy, the most valuable U.S. coal miner, said it is eyeing potential investments in the western regions of China, the country that is expected to drive much of the global growth in demand for coal.
* Swiss drugmaker Roche Holding is still committed to its $43.7 billion bid to buy out U.S. biotech group Genentech, its chief executive was quoted as saying in an interview. * Santos, Australia’s third-largest oil and gas firm, was considering potential initiatives but talk of a possible bid from China National Petroleum Corp (CNPC) was pure speculation, the company said.