Headlines

Barclays Plc President Robert Diamond said in April that Barclays Global Investors was a “core institutional business.” Two months later, the U.K.’s third-largest bank is preparing to sell the asset-management unit to BlackRock Inc. for as much as $13 billion, Bloomberg reported. Barclays changed strategy after the bank shunned government funding, leaving its financial strength ratios lagging behind those of Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc.

Fiat SpA Chief Executive Officer Sergio Marchionne, who won his six-month battle to gain control of Chrysler LLC, has yet to prove he can rebuild the U.S. carmaker without losing sight of his original challenge: bolstering Fiat’s finances. The 56-year-old Fiat CEO is assuming the same role at Chrysler after the Turin, Italy-based carmaker and its partners yesterday bought most of Chrysler’s assets, creating the world’s sixth-largest auto producer. His first move was to reshuffle the U.S.

U.S. printing company R.R. Donnelley & Sons abandoned its offer to buy insolvent Canadian rival Quebecor World on Wednesday, adding it is "disappointed" with the outcome. In May, RR Donnelley had offered $1.35 billion in cash and stock for the company's assets, before sweetening the deal to about $1.5 billion earlier this month. However, RR Donnelley said Quebecor World had rejected the latest bid. Montreal-based Quebecor World, which is hoping to emerge from bankruptcy protection this summer, prints books, magazines, directories and advertising materials.

South Korean banks have chosen 33 companies for restructuring, including 22 firms that will be placed under debt restructuring programmes, the nation's financial watchdog said on Thursday. The Financial Services Commission said in a statement that the decision came after 18 domestic banks had scrutinised 433 companies to which financial services firms had lent more than 50 billion won ($40 million) each, Reuters reported. Banks may need to put aside a combined 830 billion won in additional provisioning charges to cover their exposure to the 33 companies, it added.

Canadian doormaker Masonite International Inc said on Tuesday it had completed a financial restructuring allowing it to emerge from bankruptcy protection in both the United States and Canada, Reuters reported. The company had filed for protection under Chapter 11 of the U.S. Bankruptcy Code, and the Companies' Creditors Arrangement Act (CCAA) in Canada, on March 16.

Tourism and travel company Thomas Cook Group PLC said Tuesday that it hasn't received an offer for the company and isn't engaged in acquisition talks after parent Arcandor AG filed for insolvency, Dow Jones Newswires reported. Investors bid up Thomas Cook's stock in anticipation that Arcandor's move would put the company in play. Arcandor has pledged shares in Thomas Cook to guarantee loans, Chief Executive Manny Fontenla-Novoa told reporters.

Li & Fung Ltd., which supplies retailers worldwide, declined in Hong Kong trading after client Arcandor AG, a German department-store operator, filed for insolvency, Bloomberg reported. Arcandor contributes about 5 percent, or $700 million, of Li & Fung’s sales, Managing Director William Fung said today. The Hong Kong company that’s the biggest supplier of clothes and toys to Wal-Mart Stores Inc. and Target Corp. said today it’s owed $5.4 million by Arcandor.

Administrators have been appointed to two South Australian car supply companies, after the Victorian operation went into liquidation earlier in the month, ABC News reported. A voluntary administrator has been appointed to Adelaide-based Trident Tooling and Trident Plastics. The companies are suppliers to Holden, Ford and Mitsubishi. The companies say a major customer has failed to make a payment. Read more.

Krungthai Card, Thailand's top credit card issuer, said on Wednesday it expected its debt defaults to rise to 5.0 percent of lending this year as customers fall behind on payments due to a weak economy, Reuters reported. The company also expected a 2009 net profit below last year's 520 million baht ($15.24 million) due to falling demand for new cards, KTC president Niwatt Chittalarn told reporters. "Most of our overdue debt is from customers in the SME sector and manufacturing who have problems with the slowing economy. That is delaying their debt repayments," Niwatt said.

Stayton Commercial Property Investments Ltd has gone into receivership, the West Yorkshire town’s Dewsbury Reporter said. The company, an arm of the Stayton Group, owns the ground floor and basement of Pioneer House in Dewsbury. It also owns commercial properties on Westgate, Market Street, Union Street and Church Street. A spokesman for Stayton Group said talks with the company's bankers were ongoing.