Shanghai Auto tie-up may create Chinese car champion

(Reuters) - Shanghai Automotive Co. said on Friday that parent groups of the two companies had signed a letter of intent to discuss ways of achieving a "complete union" between the firms through business cooperation and restructuring.




China's central government and local authorities are pushing the tie-up as a way to build Shanghai Auto into a comprehensive auto maker that can compete with European, Japanese and U.S. giants at home and eventually overseas, industry sources and analysts said.


Read more at Reuters.com Business News

France's Renault, India's Bajaj in initial talks

(Reuters) - "If concluded favourably, this could lead to a long-term
partnership between Renault and Bajaj for the development of the
business so conceived," it said.




On Thursday, a Renault spokeswoman said the company had
contacted Bajaj about a $3,000 car but no decision had been
taken.


Read more at Reuters.com Mergers News

U.S. Stocks Drop, Giving S&P 500 Worst Weekly Loss Since 2002; Alcoa Falls

(Bloomberg) -- U.S. stocks tumbled, giving the
Standard & Poor's 500 Index its steepest weekly drop in 4 1/2
years, after turmoil among borrowers prompted investors to flee
riskier assets.

The S&P 500 lost the most since September 2002, while the
Dow Jones Industrial Average's weekly slump was the biggest since
March 2003. Chrysler and Alliance Boots Plc failed to find buyers
for $20 billion of buyout loans, fueling concern the engine that
drove stocks to all-time highs -- a record pace of takeovers --
will sputter.


Read more at Bloomberg Stocks News