GM & Toyota
General Motors and Toyota both issued recalls overseas today. GM and its Chinese partner issued a 1.5 million car recall, one of the biggest recalls in China, the world’s largest auto market. The automaker said certain Buicks and Chevrolets may have defective fuel-pump brackets. This is an especially unwelcome hit for GM, which lost its spot as the top-selling brand in China to rival Volkswagen earlier this year. Meanwhile, Toyota is recalling 400,000 cars in Saudi Arabia because of concerns about unintended acceleration in some Toyota and Lexus models. Shares of GM fell almost 1.5% to $40.94, while shares of Toyota rose a fraction to $121.88.
Textron, the maker of Cessna planes, will buy Beechcraft in a $1.4 billion deal. Beechcraft exited bankruptcy earlier this year under the control of several hedge funds. The deal to combine the two small plane makers is an effort by Textron to counter its slump in jet sales. Shares of Textron were up 1% on the news to $36.61.
Shares of Ani Pharmaceuticals surged today on news that the drug maker bought the rights to 31 generic drugs from Teva Pharmaceuticals. Teva will collect $12.5 million on the deal, plus a percentage of future sales. Ani’s stock popped, up 16% to $19.87.
Baidu was the top gainer in the Nasdaq 100 index today. The Chinese internet giant said it will pay about $32 million for a reading website from online game operator Perfect World. The news excited investors about the potential for the new unit, which could help expand Baidu’s consumer business. Shares rose almost 4% to $173.77.