UPDATE 1-Archeus sues GlobeOp over fund's demise

(Reuters) - NEW YORK, July 3 - Archeus Capital Management LLC, a
hedge fund firm which collapsed last year, sued its former fund
administrator GlobeOp Financial Services LLC in a New York court
late Monday, claiming GlobeOp contributed to its failure.




New York-based Archeus, whose assets shrank from $3 billion
in May 2005 to about $700 million by October 2006, blamed
GlobeOp for "colossal failures" in reconciling billions of dollars
in trades in the Animi funds that were managed by Archeus. The
suit, filed in New York State Supreme Court, seeks at least $465
million in damages.


Read more at Reuters.com Mergers News

REFILE-Local.com says Hearst Comm has 22.4 pct stake in co

(Reuters) - In an April 6 filing with the U.S. Securities and Exchange
Commission, the U.S.-based Web search services provider had
reported that Hearst had a 13.8 percent stake in the company,
as of March 29.





Read more at Reuters.com Mergers News

UPDATE 2-Private equity bosses favour simpler UK tax system

(Reuters) - LONDON, July 3 - Four top private equity bosses on
Tuesday embraced a simpler UK tax regime amid broad criticism of
the industry that has focussed on their personal tax rates,
which can fall under 10 percent.




One of them even said during questioning by legislators that
raising the tax rate on private equity executives would probably
not have a harmful effect.


Read more at Reuters.com Bonds News

Sales slide for Ford, Chrysler; Nissan jumps

(Reuters) - Ford's overall monthly sales, including sales into commercial fleets, were down 8 percent, although the No. 2 U.S. automaker eked out its first monthly gain in showroom sales since October.




Sales for Chrysler Group were down 1 percent in one of its last months in operation as a unit of DaimlerChrysler AG . Chrysler is being taken private by Cerberus Capital Management in a $7.4 billion deal expected to close as early as this month.


Read more at Reuters.com Business News

Emerging debt-Prices track stocks higher, spreads tighten

(Reuters) - Emerging debt markets started their recovery on Monday,
after losses of more than 2 percent in June, as yields of the
benchmark 10-year Treasury notes fell below the key level of 5
percent, encouraging investors to take on risk.




The upward trend remained on Tuesday, even as 10-year
Treasuries yields rose slightly to about 5.04 percent. Trading
volumes were light, though, as the debt market will have an
early close before the U.S. Independence Day holiday on
Wednesday.


Read more at Reuters.com Bonds News

Anaren, Apple, Continental, Massey Energy: U.S. Equity Movers Final

(Bloomberg) -- The following is a list of companies
whose shares had unusual price changes on U.S. exchanges. Stock
symbols are in parentheses after company names. U.S. stock
markets ended trading at 1 p.m. today and will be closed tomorrow
for the Independence Day holiday.

Anaren Inc. (ANEN US) fell 90 cents, or 4.8 percent, to
$17.71. The maker of microwave communications gear said in a
statement that it may restate financial results for the second
and third quarters of 2007 because of accounting errors at its
Chinese subsidiary.


Read more at Bloomberg Stocks News

Copper Futures Rebound in New York on Concern Strikes Will Grow in Chile

(Bloomberg) -- Copper futures rose in New York,
erasing earlier losses, on concern striking workers will increase
protests in Chile, the world's largest source of the metal.

Contract workers at Chile's state-owned Codelco, the world's
largest copper producer, said yesterday that protests will worsen
unless the company negotiates. The price of copper gained
2 percent last week as labor unrest that began June 25 cut
Codelco output.


Read more at Bloomberg Commodities News

Guns N' Roses rocker tries new tune as businessman

(Reuters) - But the 43-year-old musician doubles as a savvy investor, overseeing a diverse portfolio ranging from property and stocks to vintage guitars.




While he draws the line at donning a suit and tie, McKagan also runs the business affairs for his new band, Velvet Revolver, which just released its second album, "Libertad."


Read more at Reuters.com Business News

United Capital hedge funds not liquidating despite losses

(Reuters) - The funds hold most of the firm's assets under management,
which stood at about $619 million as of March.







Read more at Reuters.com Bonds News

Hog Futures Rise as Price Decline Spurs Purchases; Cattle Little Changed

(Bloomberg) -- Hog futures rose for the first time
in four sessions in Chicago as meatpackers increased purchases
after prices fell to the lowest in more than three months.
Cattle were little changed.

Futures fell 6.3 percent in the last two weeks of June on
concerns about growing animal supplies. The government last
week said the nation's hog producers expanded breeding herds
0.9 percent in the three months ended May 31 from the year-
earlier quarter -- more than some analysts expected -- as corn
costs held steady and profit improved.


Read more at Bloomberg Commodities News

Consol deal for Amvest gets US antitrust approval

(Reuters) - Consol said last month it had agreed to buy privately held
Amvest and some of its units for about $335 million to expand
its presence in the central Appalachian Basin.




The purchase would add about 200 million tons of low-sulfur
coal reserves to Consol's holdings, as well as four coal
preparation plants.


Read more at Reuters.com Mergers News

Sale of Home Depot unit gets US antitrust approval

(Reuters) - Home Depot said last month it had agreed to sell the supply
division to three private equity firms -- Bain Capital
Partners, Carlyle Group [CYL.UL] and Clayton, Dubilier & Rice
-- for $10.3 billion as it refocuses on its core retail
business.




Read more at Reuters.com Mergers News

Ford U.S. sales fall 8.1 pct in June

(Reuters) - Ford said car sales fell 24.6 percent while truck sales rose 2.9 percent.




Results for Ford -- which had sought to curb its lower-margin fleet sales to car rental companies -- include its import brands and some medium- and heavy-duty trucks and are not adjusted for an extra selling day in June 2007.


Read more at Reuters.com Business News

U.K. Stocks Gain, Paced by Anglo American, Xstrata; Greene King Rallies

(Bloomberg) -- U.K. stocks gained, paced by Anglo
American Plc and Xstrata Plc as base metals rallied in London.

United Utilities Plc climbed on speculation Britain's
largest publicly traded water company may be bought. British
Airways Plc advanced after the airline won approval to fly from
U.S. cities to Europe. Rolls & Royce Group Plc rose after the
engine maker said its customer base grew ``significantly.''


Read more at Bloomberg Stocks News

Oil off 10-month high, upward march seen resuming

(Reuters) - Oil steadied above $72 on Tuesday after hitting a 10-month high the previous session, and analysts predicted increasing crude oil demand from U.S. refiners and technical factors would soon push prices higher.

A weak dollar, which fell to a 26-year low versus the pound, has also boosted some commodities, notably copper and gold.


Read more at Reuters Africa

Gold, Silver Futures Drop on Speculation Euro Rally Versus Dollar to Stall

(Bloomberg) -- Gold and silver fell in New York on
speculation the euro's rally against the dollar will stall,
reducing the appeal of precious metals as alternative
investments.

Gold generally moves in tandem with the euro, which today
fell from a two-month high. Before today, gold had climbed 3.3
percent this year and the euro had risen 3.2 percent against the
dollar.


Read more at Bloomberg Commodities News

Treasuries Decline Most in More Than a Week as Demand for Risk Stabilizes

(Bloomberg) -- Treasuries declined the most in more
than a week as a drop in a measure of the perceived risk of
owning U.S. corporate bonds reduced demand for the safety of
government debt.

The CDX North America Crossover Index, made up of the debt
of 35 companies, fell for the first time in five days after
rising to a 10-month high yesterday, according to Deutsche Bank
AG.


Read more at Bloomberg Bonds News

Fox deal for Photobucket gets U.S. antitrust OK

(Reuters) - The purchase is part of News Corp.'s. plan to bolster its
Internet businesses. Photobucket lets its more than 42 million
users upload photos and videos, which can be pasted on their
own Web sites, blogs and social networks like MySpace.




Read more at Reuters.com Mergers News

Auto discounts deepen in June: analyst

(Reuters) - All of the six leading automakers offered bigger discounts in June than they had in May with the exception of General Motors Corp. , Edmunds said.




In a significant departure from usual practice, the three leading Japanese automakers all stepped up their discounting in the face of slack demand, Edmunds said.


Read more at Reuters.com Business News

Continental Air shares rally on revenue gain

(Reuters) - If the gains hold out until the market closes, it will have been the biggest one-day gain for Continental since November.




"We view this unexpected strength as sufficient not only to potentially boost Continental consensus estimates but legacy equities as well," said JP Morgan airline analyst Jamie Baker.


Read more at Reuters.com Business News

Bond prices ease on higher stock market

(Reuters) - Treasuries briefly trimmed their losses after weaker-than-forecast pending home sales data, but the move was fleeting, outweighed in part by gains in the stock market. Bond trading was razor-thin a day before the U.S. July 4 Independence Day holiday




Pending U.S. home sales in May fell more than analysts had expected to their lowest level in more than 5-1/2 years, according to data from the National Association of Realtors.


Read more at Reuters.com Hot Stocks News

Audi brand U.S. car sales drop 3.1 pct in June

(Reuters) - Sales of its revamped TT sports coupe and roadster model
line increased by almost fivefold to nearly 500 units, while its
massive Q7 premium sports utility vehicle enjoyed a 26.7 percent
increase in sales on the year.




In the first six months of 2007, Audi sales rose 13.0
percent to 45,711 units.


Read more at Reuters.com Market News

U.S. Refiners Increase Output of Gasoline, Work Around Equipment Failures

(Bloomberg) -- Refineries are working around plant
bottlenecks to boost gasoline output as government statistics
show they are running at their lowest rate in 19 years.

They are making more gasoline away from the crude processing
units that usually are key to their production, blending in
ethanol and processing cheaper refined products such as vacuum
gasoil. Crude units at plants including BP Plc's Whiting,
Indiana, facility have been down for months for repair.


Read more at Bloomberg Energy News

UPDATE 1-GE's WMC subprime unit says sells $3 bln in loans

(Reuters) - BOSTON, July 3 - General Electric Co.'s
subprime lending arm WMC Mortgage sold about $3 billion in
nonprime loans in the second quarter, lowering the volume of
loans on its books to about $1.5 billion, a company spokesman
said on Tuesday.




The loans sold included a mix of first and second liens,
said GE Money spokesman Michael Ettlemyer.


Read more at Reuters.com Bonds News

Mexico's Bolsa Gains on Debt Rating Outlook, Led by America Movil and ICA

(Bloomberg) -- Mexico's Bolsa index rose for a fifth
day as investors bet the country's credit rating will lbe raised by
Standard & Poor's, reducing government borrowing costs and fueling
spending.

The benchmark Bolsa index advanced 234.41, or 0.8 percent, to
31,655.10 as of 10:56 a.m. in New York, led by America Movil SAB,
Latin America's biggest mobile-phone company.


Read more at Bloomberg Stocks News

Brazil's Real Strengthens on Expectations Export Trade to Continue Robust

(Bloomberg) -- Brazil's currency gained for a second
day on bets the country's trade surplus will continue surprising
analysts on the upside as exports rise.

``The trade data released yesterday was reassuring because
even with the appreciation of the real, exports are very
strong,'' said Reginaldo Galhardo, currency director of Treviso
Corretora, a Sao Paulo brokerage. He predicts the real will
trade at about 1.90 per dollar by the end of the year amid
increasing inflows from purchases of local financial assets by
foreign investors.


Read more at Bloomberg Currencies News

Wheat Farmers May Face Grim Harvests After U.S. Immigration Measure Dies

(Bloomberg) -- The immigration bill that was killed
by the U.S. Senate focused on the nation's 12 million illegal
aliens. To many farmers, the issue is more about such people as
Thomas Murphy, an Irishman who leads a crew of combine operators
from the U.K., cutting wheat across a swath of the Great Plains.

Murphy's crew and 2,500 other skilled, legal immigrants who
come from places such as South Africa, Australia and New Zealand
to cut grain are among the most productive workers in the U.S.,
gathering one-third of all the wheat in a $7.7 billion market.


Read more at Bloomberg Exclusive News

Copper Falls From 7-Week High in New York on Concern Gains Were Overdone

(Bloomberg) -- Copper fell from a seven-week high in
New York on concern gains may have been exaggerated.

The metal rose 2 percent last week as strikes in Chile, the
world's biggest copper producer, threatened global supplies.
Labor unrest is a ``short-term'' threat to copper and prices will
fall as demand slows, Jochen Hitzfeld, a Munich-based analyst at
UniCredit SpA, wrote in a report yesterday.


Read more at Bloomberg Commodities News

Ford shares slide after debt plan

(Reuters) - Ford shares were down 34 cents to $9.30 in morning trading on the New York Stock Exchange after reaching a session low of $9.26.




The stock had gained 13 percent in the last four weeks.


Read more at Reuters.com Hot Stocks News

Danone in talks on $7.2 bln biscuit sale to Kraft

(Reuters) - Kraft's offer for Danone's biscuit division, which includes the LU, Prince and Tuc brands, will give the U.S. food giant a stronger foothold in Europe and in emerging markets and access to an extra 36 factories worldwide.




It will allow Danone to focus on the health range in its fast-growing dairy and drinks business, pay off some 2.9 billion euros of debt and raise cash for future possible acquisitions.


Read more at Reuters.com Mergers News

U.S. Stocks Advance on Factory Orders, Takeover Speculation; Apple Climbs

(Bloomberg) -- U.S. stocks rose for a second day
after factory orders fell less than forecast and Kraft Foods
Inc.'s $7.2 billion takeover bid for a unit of Groupe Danone SA
fanned speculation mergers will extend this year's rally.

Wendy's International Inc., the third-biggest hamburger
chain, advanced after billionaire investor Nelson Peltz said he
may make a bid for the company. Apple Inc. rose after Goldman,
Sachs & Co. said the iPhone sold twice as fast as forecast.


Read more at Bloomberg Stocks News

Intercontinental Exchange May Improve $10.9 Billion Bid for Board of Trade

(Bloomberg) -- Intercontinental Exchange Inc., one of
two bidders vying for the Chicago Board of Trade, said it is
prepared to improve its $10.9 billion offer for the second-
largest U.S. futures exchange.

Intercontinental has raised its bid twice since March in an
attempt to sway shareholders to reject a $9.8 billion offer from
the Chicago Mercantile Exchange. Atlanta-based Intercontinental
has said it will pay Board of Trade members about $800,000 each
to settle a disputed ownership privilege, or so-called exercise
right, with the Chicago Board Options Exchange.


Read more at Bloomberg Energy News

Fannie Mae sells $4.5 bln in bills

(Reuters) - Settlement is July 3 and July 5.




Read more at Reuters.com Bonds News

RLPC-UPDATE 1-ServiceMaster $1.15 bln issue postponed-sources

(Reuters) - The company had been forced to increase the interest rate
on its LBO loan twice last week. ServiceMaster is one of a
growing list of highly leveraged so-called covenant-light deals
which had been forced to improve terms as investors began to
reassess credit risk.




Creditors are also resisting payment-in-kind notes that
allow companies to defer interest payments in favor of issuing
more debt.


Read more at Reuters.com Bonds News

Mexican stocks jump as investors bet on debt rating

(Reuters) - The benchmark IPC stock index rose 0.86 percent to
31,691 points. The peso currency weakened
slightly, giving up 0.05 percent to 10.7671 per dollar.




S&P raised the outlook on Mexico's BBB sovereign debt
ratings to "positive" from "stable" on Monday, citing growing
prospects for tax reform and a lighter external debt burden.


Read more at Reuters.com Bonds News

Pending home sales lowest since September 2001: NAR

(Reuters) - The National Association of Realtors said its Pending Home Sales Index, based on contracts signed in May, fell 3.5 percent to 97.7 from a downwardly revised level of 101.2 in April. The May index is the lowest since 89.8 in September 2001.




Wall Street analysts polled ahead of the report were expecting the May index to rise 0.2 percent.


Read more at Reuters.com Economic News

Egypt shares rise, OT gains over cash influx news

(Reuters) - Egyptian shares rose on Tuesday as the well-watched CASE30 index hit a closing year high led by gains in Orascom Telecom (OT) after it said it would receive a $793 million cash influx, traders said.

OT shares rose 3.8 percent to 77.75 Egyptian pounds after the firm said on Monday it had received the cash from Hutchison Telecom following Hutchison's sale of its Indian subsidiary Hutchison Eassar in May.


Read more at Reuters Africa

US stock indexes rise on M&A; data eyed

(Reuters) - Wall Street started a holiday-shortened session slightly higher on Tuesday, boosted by the latest takeover news, ahead of data on the manufacturing and housing sectors.

Kraft Foods Inc. is in exclusive talks to buy Danone's biscuit and cereal unit for 5.3 billion euros in cash, the companies said. For details, see ID:nL03276080. Kraft's shares fell 1.3 percent to $35.10.


Read more at Reuters Africa

Canadian Stocks Rise on Takeover Speculation, After Deals by BCE and Aur

(Bloomberg) -- Canadian stocks rose on takeover
speculation after BCE Inc., Canada's biggest phone company, was
sold for C$34.2 billion ($32.1 billion) in the largest leveraged
buyout.

The speculation was fanned by an agreement by Teck Cominco
Ltd. to buy Aur Resources Inc. for C$4.1 billion. The Standard &
Poor's/TSX Composite Index rose 117.92, or 0.9 percent, to 14,024.
49 as of 9:45 a.m. in Toronto.


Read more at Bloomberg Stocks News

RBS group says doesn't know many of key ABN facts

(Reuters) - A U.S. regulatory filing by Spain's Santander for the first time showed details of the shareholder agreement it has with RBS and Belgian-Dutch Fortis to buy ABN, which was signed on May 28.



The agreement said the trio acknowledge "they do not know many of the key facts relating to the ABN AMRO Group, including the precise identity and ownership of the acquired businesses."


Read more at Reuters.com Government Filings News

Petrobras, Porto Seguro and Votorantim Celulose: Brazilian Equity Movers

(Bloomberg) -- Brazil's main stock index rose for a
fifth day, led by state-controlled oil company Petroleo Brasileiro
SA.

The Bovespa Index of the most-traded stocks on the Sao Paulo
exchange gained 362.46, or 0.7 percent, to a record 55,733.67 as of
9:32 a.m. New York time.


Read more at Bloomberg Stocks News

Kroger says labor contract ratified by union

(Reuters) - The three-year contract covers more than 3,100 Kroger associates at 27 stores in the Toledo metropolitan area, the company said in a statement.






Read more at Reuters.com Government Filings News

Wall St set to open higher on M&A; data eyed

(Reuters) - Kraft Foods Inc. is in exclusive talks to buy Danone's biscuit and cereal unit for 5.3 billion euros in cash, the companies said. Kraft's shares rose 1.8 percent in Europe.




The market will close early at 1 p.m. ahead of Wednesday's U.S. Independence Day holiday when financial markets will be closed all day.


Read more at Reuters.com Business News

RPT-Buyout head likens subprime woes to private equity

(Reuters) - LONDON, July 3 - Debt financing for leveraged
buyouts could be on the verge of drying up, a senior UK private
equity executive warned on Tuesday, drawing parallels to the
collapse of the U.S. subprime mortgage market.




"It could be very close. It could be a year or two forward.
It's very hard to call," said Jon Moulton, the managing partner
of buyout firm Alchemy, in remarks to a Treasury committee
investigating the private equity industry. "It is near future."


Read more at Reuters.com Bonds News

US STOCKS-Indexes edge up at open on M&A news

(Reuters) - The Dow Jones industrial average was up 9.92 points,
or 0.07 percent, at 13,545.35. The Standard & Poor's 500 Index
was up 2.33 points, or 0.15 percent, at 1,521.76. The
Nasdaq Composite Index was up 3.38 points, or 0.13
percent, at 2,635.68.




Read more at Reuters.com Bonds News

Uphill struggle for Gulf investors in N.Africa

(Reuters) - Arab Gulf petrodollars are flooding into North Africa, helping investment-starved economies create jobs and help overcome poverty.

On paper, that is.


Read more at Reuters Africa

UPDATE 1-Piper Jaffray to buy investment bank for $50 mln

(Reuters) - The consideration will be paid in about 90 percent cash and
about 10 percent stock at the time the transaction closes,
which is expected in the third quarter.




Piper, a middle-market investment bank, sees deal adding
modestly to its earnings in 2008.


Read more at Reuters.com Mergers News

UPDATE 1-Walgreen June same-store sales rise 5.1 percent

(Reuters) - CHICAGO, July 3 - Walgreen Co. , one of the largest U.S. drugstore chains, on Tuesday posted a 5.1 percent rise in June sales at stores open at least a year as sales of general merchandise grew at a faster clip than sales of prescription drugs.



Pharmacy sales were pressured by the introduction of cheaper generic drugs and a calendar shift, Walgreen said.


Read more at Reuters.com Mergers News

U.S. workers' confidence falters in June - Hudson

(Reuters) - "It appears worker sentiment caved under the pressure of
the weak housing market, high energy prices and inconsistent
job growth," said Robert Morgan, president of talent management
at Hudson Highland Group , a job recruitment company,
in a statement.




After hovering between 32 percent and 33 percent for four
straight months, the number of workers who said their employer
had plans to hire declined to 30 percent in June, the Hudson
survey said.


Read more at Reuters.com Economic News

Treasuries Are Little Changed as Stocks Rally in Europe, U.K. and Japan

(Bloomberg) -- Treasuries were little changed as
stock markets in the U.K., Germany and Japan rallied.

Benchmark 10-year U.S. note yields fell yesterday below 5
percent for the first time in more than three weeks on concern
over weakness in the subprime mortgage sector and terror
threats. Deutsche Bank AG said in a research note that U.S. and
European bonds are expensive relative to share prices.


Read more at Bloomberg Bonds News