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Canada firm buys gas driller for $2B
Canada's Precision Drilling will buy Grey Wolf in a cash and stockdeal worth more than $2 billion, the companies said Monday,apparently ending an extended fight for control of the Houston gasdriller.
Grey Wolf shareholders had earlier spurned a rival offer from BasicEnergy Services, a wellsite services company in Texas, that wouldhave created a $2.9 billion company.
Under the new agreement, Precision will pay $1.12 billion in cashand 42 million shares valued at $896.7 million, based on Friday'sclosing stock price.
The new offer involves less cash but would give Grey Wolfshareholders a larger stake in the new company through a fattershare offering.
Real estate
Mortgage fraud jumps 42 percent
Reported incidents of mortgage fraud jumped 42 percent nationwide,with Florida reporting the highest number of cases, according toindustry data released Monday.
Properties in the Sunshine State accounted for nearly a quarter ofall mortgage-fraud incidents, the Mortgage Asset Research Institute(MARI) said. California ranked second, followed by a three-way tiefor third among Illinois, Maryland and Michigan.
The report is based on data submitted by MARI subscribers aboutloans that were originated in the first quarter of this year andhave since been classified as fraudulent.
The most common mortgage-fraud cases included misrepresentingincome, employment history and debt and assets.
Mortgage fraud has represented about $1 billion in losses over thepast decade, the Mortgage Bankers Association has said.
Semiconductors
AMD selling chip-making unit
Advanced Micro Devices (AMD) will sell its unit that makes chipsfor digital TV sets to fellow chip maker Broadcom for $192.8million in cash, the companies announced Monday.
AMD is selling the unit as part of a program to reduce debt andimprove profitability, said Dirk Meyer, president and chiefexecutive. The company is a distant second to Intel in its mainmarket of computer processors, and competition has intensified.
The unit has about 530 employees. They will be invited to joinBroadcom.
Aviation
Delta draws $1B on credit line
Delta Air Lines said it drew on a $1 billion revolving credit lineto boost its cash holdings as it prepares to acquire NorthwestAirlines by year's end.
Delta borrowed the full amount of its $1 billion revolver, ChiefFinancial Officer Ed Bastian said today in a memo to employees. TheAtlanta-based carrier had $3.7 billion in liquidity at the end ofJuly, he said.
Delta also extended a credit-card-processing agreement with Visaand MasterCard to 2011. The accord was set to expire in October anddoesn't require cash holdbacks or collateral.
Automotive
Mondragon heads Ford of Canada
The Canadian arm of Ford has appointed David Mondragon as presidentand chief executive officer.
The move announced Monday is effective Sept. 1, when the companyintroduces its expanded 2009 model lineup.
The 47-year-old Mondragon assumes leadership of Ford of Canada asthe company accelerates plans to introduce more new fuel-efficientvehicles. During his 23-year career, Mondragon has served in avariety of leadership roles within Ford's sales and marketingorganization.
He replaces Barry Engle, who announced last week that he is leavingthe company to serve as president and CEO of New HollandAgricultural Equipment.
Compiled from The Associated Press and Bloomberg News