General Motors will spend $1.4 billion to acquire a 20 percent stake in Japan's Fuji Heavy Industries, maker of Subaru vehicles. GM will gain access to Fuji's technical know-how on all-wheel-drive transmissions for sport-utility vehicles and its distribution network in Japan.
The Consumer Product Safety Commission unanimously voted to issue a federal safety standard for multipurpose lighters, generally butane-filled devices used to light charcoal and gas grills, pilot lights and camping stoves. Citing 237 fires since 1988, started with these lighters by children younger than 5, the panel wants to make the devices child-resistant, as is required of cigarette lighters.
Hechinger's sale of 34 additional stores and lease contracts to Kimco Realty of New Hyde Park, N.Y, was approved. The deal with bankrupt Hechinger brings the real estate investment trust's holdings to 63 Hechinger and Builders Square locations. In addition to the $118 million analysts say Kimco paid for the lease designation rights for all the stores, it paid $57 million for the property at seven stores, and for one ground lease.
American Airlines' 3 percent fare increase for business-class passengers was matched by United Airlines, Continental Airlines and US Airways.
FreeMarkets, which hopes to become to industrial companies what online auctioneer eBay is to retail customers, said its shares rose 483 percent to $280 in the first day of trading, with 7.8 million shares changing hands. The company, with a market share of $9.51 billion, sold an 11 percent stake yesterday at $48 a share.
The American Family Publishers sweepstakes, known for the mailers that proclaim in bold type "You Are A Winner!," is getting a new slogan: "No Purchase Necessary." American Family Enterprises, the bankrupt company that runs the sweepstakes, agreed in a $33 million settlement to change its marketing to make it clear that consumers don't have to buy magazine subscriptions or other merchandise to win big prizes.