The group of Wall Street banks raising funds for the sale of Chrysler Group postponed a $12-billion debt offer after investors balked at its terms, leaving them on the hook for most of the financing and raising fresh questions about the strength of the credit market. Bankers will have to front about $10-billion as a loan to keep Chrysler's sale to Cerberus Capital Management on track, the Associated Press reported. The buyout shop and DaimlerChrysler AG will be on the hook to fund the other $2-billion. With the financing secured, Cerberus and DaimlerChrysler said they expect the sale of the Auburn Hills, Mich., carmaker to be completed soon. DaimlerChrysler will hold a stake of less than 20 percent in Chrysler once the deal is completed, ending a stormy nine-year combination of the two automakers.
Facebook judge wants more info
A federal judge on Wednesday delayed ruling on whether to throw out a lawsuit filed against the founder of Facebook.com, saying he needed more information about allegations that Mark Zuckerberg stole the ideas of the creators of a rival social-networking Web site. Judge Douglas Woodlock gave ConnectU founders Cameron Winklevoss and Tyler Winklevoss - who are twin brothers - and Divya Narendra until Aug. 8 to flesh out their allegations against Zuckerberg, which include fraud, copyright infringement and misappropriation of trade secrets. The lawsuit also asks the court to give control of the company and its assets to ConnectU's founders.
China is pacing world's growth
Led by China's booming economy, stronger-than-expected global financial growth continued in the first half of 2007, the International Monetary Fund said Wednesday. The IMF projected global growth of 5.2 percent for 2007 and 2008, up 0.3 percentage points from 4.9 percent in its April outlook. China's economy sped up in the second quarter of 2007 to its fastest growth rate since 1995 - 11.9 percent. The figures put China on track for a fifth year of double-digit growth and to replace Germany as the world's third-largest economy.
TAMPA BAY AREA
There's no waiting for new homes
There's still plenty of slack on the new-home market in the Tampa Bay area. Inventory of finished vacant single-family homes stood at 9,300 at the end of June, the firm Metrostudy reported Wednesday. In fairness, investors have bought some of those builders' homes but Metrostudy puts them in the sold column only when a person moves in. The contraction continues with housing starts running at their lowest level since 1997. Part of builders' troubles stems from the sluggish market for existing homes. Many people signed contracts to buy new houses but canceled when their old houses failed to sell.
MADE ITS LIST, CHECKED IT TWICE
Target Corp., the nation's second-largest retailer, will start selling Sony Blu-ray high-definition DVD players in time for this year's holiday shopping season, dealing a potential blow to the rival HD DVD format.