• The U.S. Federal Reserve released its Beige Book yesterday (Wednesday), a look at the economic conditions in the central bank’s 12 regions. Overall economic activity was slower in April and May. “Three Districts described economic activity as softer, weaker, or lower, with an additional four Districts reporting slower, sluggish, or modest economic growth. The remaining five Districts of Philadelphia, Cleveland, Atlanta, St. Louis, and San Francisco described activity as stable or little changed in recent weeks,” the report read. While it is clear the economy is slowing, it has yet to experience a true contraction, clearing the way for the Fed to intensify its focus on inflation rather than recession.

• Japanese drugmaker Daiichi Sankyo Co. said it will buy a controlling stake (50.1%) of India’s biggest pharmaceutical company, Ranbaxy Laboratories Ltd., (OTC:RBXLY) for up to $4.6 billion, Bloomberg reported. The addition of the fast-growing generic-brand company reflects the shifting tides in the pharmaceutical industry, as brand-medicine providers are losing considerable market share to generic drug providers.

• As retail sales have soured in the past year, U.S. liquidator retailer Big Lots Inc.’s (BIG) Chief Executive Steve Fishman said the company is “highly motivated” to expand its stores by up to one-third, Reuters reported. The Columbus-based company currently has 1,353 in 47 states, and expansion is contingent on the real estate market cooling down for better location prices, Fishman said.

• U.S. corn futures climbed more than 4% to a record high for the fifth consecutive trading session yesterday (Wednesday) as flooding expanded in the Midwest, the Associated Press reported. July 2009 Corn contracts soared to a record $7.56-1/4, surpassing the record of $7.35 set in during Asian trading hours. By midday, U.S. corn for July 2008 delivery had hit $7.03-1/4 per bushel. Corn prices on the Chicago Board of Trade have surged 80 percent over the past year.

• Caterpillar Inc. (CAT) yesterday (Wednesday) declared a regular cash dividend of 42 cents per share, a 17% increase to its prior payout of 36 cents per share, The Associated Press reported. The dividend is payable Aug. 20 to stockholders of record on July 21.

• Four Russian billionaires who co-own the troubled joint venture TNK-BP will take legal action against their partner BP PLC (BP) in two separate cities – Stockholm and Moscow, Reuters reported. The decision comes in the wake of failed discussions concerning the fate of TNK-BP President Robert Dudley. The Russians said they decided to act after BP failed to agree to a set of specific demands by a Wednesday deadline. One of these was that the venture’s American manager should be fired.

• Shares of Martha Stewart Living Omnimedia Inc. (MSO) dropped 6% after President Chief Executive Officer Susan Lyne announced her resignation yesterday (Wednesday). Two high-level executives will replace her, MarketWatch reported. The stock lost 48 cents to close at $7.50.

• Office supply giant Staples Inc. (SPLS) has finally come to an agreement with Corporate Express NV (ADR: CXP) to purchase the Dutch firm for $4.8 billion. Corporate Express Chief Executive Officer Peter Ventress will become president of Staples International, a new position that will oversee Staples’ business outside of the United States and Canada. He will report to Ron Sargent, Staples’ president and CEO, The East Bay Business Times reported.

Source: Global Investing Roundups: Thursday, June 12th, 2008

• Lowe’s Cos. Inc. (LOW) coughed up a rough first quarter, reporting a 18% decline in profit as the declining U.S. housing market and weakened dollar cut customer spending. The No. 2 home-improvement retailer in the United States also lowered its full-year outlook and revisiting plans for store expansion, MarketWatch reported.

• Billionaire investor Warren Buffett told AFP that he’s backing Barack Obama for the presidency. Buffett said he’d offer support to either Obama or Hillary Clinton, but leaned in favor of the Illinois senator. “I will be very happy if he is elected president,” Buffett said.

• Microsoft Corp. (MSFT) is once again trying to team up with Yahoo Inc. (YHOO) though the renewed talks have not yet escalated to another takeover attempt. The Associated Press reported that discussions were revived Sunday, but Microsoft refused to offer up any specifics about the nature of the deal being explored except to say it involved bolstering the companies’ position in the online search and advertising markets.

• Office supplies retailer Staples Inc. (SPLS) yesterday (Monday) launched a hostile $2.34 billion bid for Corporate Express NV (CXP), as the Dutch office supplier was unwilling to negotiate, Reuters reported. Corporate Express rejected Staples’ $12 (8 euros) a share offer last week saying it significantly undervalued the company. Based on 182.848 million Corporate Express shares outstanding, the equity value is worth $2.26 billion (1.46 billion euros). Including net debt, the value is $4.3 billion (2.8 billion euros), Staples said.

• News Corp. (NWS) said yesterday (Monday) that it raised its stake in Premiere AG, a German pay-TV operator, to 25%, the Associated Press reported. News Corp., which previously owned 22.7% of the company, has been increasing its stake in Premiere since January, when it bought a 14.5% stake the from cable operator Unitymedia. Premiere has more than 4 million subscribers in Germany and Austria.

• Video game maker Take-Two Interactive Software Inc. (TTWO) once again rejected rival Electronic Art Inc.’s (ERTS) $2 billion hostile takeover offer. Due in part to the strength of Take-Two’s release of Grand Theft Auto 4, management recommended that shareholders not accept EA’s offer, Reuters reported.

• Pacific Ethanol Inc. (PEIX) shares more than doubled yesterday (Monday) as first quarter results beat expectations. The ethanol producer lost $35.2 million, or 90 cents per share, compared to earnings of $3 million, or 5 cents per share, for the same period the year prior, The Associated Press reported. But if not for a one-time charge of 96 cents, the company would have posted a first-quarter profit of 6 cents per share. Shares gained $1.94, an increase of 60%, to close at $5.14.

• Shares of for-profit education firm DeVry Inc. (DV) dropped yesterday (Monday) on news that the federal government is investigating the firm’s recruitment policies, The Associated Press reported. DeVry stock shed $2.47, a 4.36% decline to close at $54.20. DeVry has pledged to cooperate fully with the investigation.

Source: Global Investing Roundups: Tuesday, May 20th, 2008