Pittsburgh Post-Gazette from Pittsburgh, Pennsylvania • Page 7

Jun 01 2009 Post-Gazette By Don Hammonds Pittsburgh Post-Gazette hrysler won a big victory yesterday when a federal bankruptcy judge approved the sale of most of the Detroit assets to Fiat Group SpA. Although there will still be details to work before the company can actually emerge from bankruptcy reorganization, the approval moved the company closer to a successful conclusion. One potentially large stumbling block still must be cleared up. An appeal filed by a trio of Indiana state pension and construction funds claims the ruling by Judge Arthur Gonzalez sets aside the rights of the secured lenders while doling out assets to others. Judge Gonzalez said in his ruling late Sunday that a speedy sale the centerpiece of a restructuring plan backed by President Barack automotive task force was needed to keep the value of Chrysler from deteriorating and would provide a better return for its stakeholders than if it had chosen to liquidate.

material delay would result in substantial costs in several areas, including the amounts required to restart the operations, loss of skilled workers, loss of suppliers and dealers who could be forced to go out of business in the interim, and the erosion of consumer Judge Gonzalez wrote in his opinion. The sale to Fiat means Chrysler could be out of bankruptcy within the original time frame of 30 to 60 days. plan gives a 55 percent stake of the new company to a union- run trust for retirees. Fiat gets a 20 percent stake that could grow to 35 percent. The U.S.

and Canadian governments get smaller pieces. President Obama yesterday expressed elation, saying it the way for the new Chrysler to successfully emerge from bankruptcy as a new, stronger, more competitive company for the E-mail: Phone: 412-263-1567 Web: Editor: Brian Hyslop business by the numbers gasoline prices (aVER GE EER I EER .) $2.533 Foreign eXcHange EuR 1.4171 0.7056 CI 0.9181 1.0892 KeY raTes pRI RE: 3.25 dI RE: 0.50 I 12 RG RI 2009: tRER I REs: 3-month: 0.150 6-month: 0.290 10-yE 3.68 30-yE bond: 4.53 I ond: 0.00 E.E. ond: 0.70 DOW JOS 500 SD OO 1,828.68 942.87 8,721.44 Tracks stock prices of local publicly traded companies 204.52 $68.58 CD MeTals Gold (troy oz) $978.60 SilvEr (troy oz) $15.725 CoPPEr (pound) $2.3190 Aluminum (pound) $0.6675 PlAtinum (troy oz) $1220.60 local sTocKs STOCK OS CH EE 15.43 9.83 GEnG 26.24 EGtC 38.61 EaG Eo 15.40 RsVFI 1.83 27.50 31.98 RI I 10.18 19.19 sE 21.75 KER 43.50 mE 27.45 bEE 19.64 CK 34.11 8.74 31.73 CG 11.90 43.57 STOCK OS CH 10.46 dE 8.28 dICK 18.65 mRE 32.90 EQ 38.90 13.88 47.16 ERIEIn 35.88 FC 6.77 FE ExC 57.88 FEdInV 25.76 7.47 ER 30.32 34.21 FF I 3.76 hEI 37.11 4.04 IGECp 5.61 II-VI 25.17 KEE 20.00 Ko ER 27.34 lInnE 19.98 1.71 STOCK OS CH 13.44 I 29.42 mI Es 24.11 13.62 nI RCE 11.06 bC 19.47 VaC 5.84 44.34 46.04 RKVFn 10.00 I I 16.37 bC 14.66 GR 29.00 yC 27.34 ERwE 9.28 ER oFI 39.85 GR 5.32 EE 36.82 VsI 15.14 VI 23.21 EC 36.64 wE 16.75 wE I 27.73 For uP-to-tHe-minute stock mArket ListinGs AnD otHer FinAnciAL news, visit WiDelY HelD sTocKs STOCK OS CH I 24.64 CE 2.64 I 139.35 bK Fa 11.21 CI 19.50 CI IGR 3.69 dIE 25.03 71.76 GEnE EC 13.86 hEE 36.00 In 16.50 I 108.37 RGCh 36.11 55.78 mICR 21.40 oR 19.92 pFI ER 14.76 pR CtG 53.36 VERI 29.25 50.59 Business TUESDAY, JUNE 2, 2009 A-7 Page gates law firm opens 1st office in Middle east Gates has opened its first middle eastern office in Dubai, united Arab emirates. the Pittsburgh-based law firm now has 33 offices worldwide. neal Brendel, a partner in the Pittsburgh office, will relocate to Dubai.

Also joining there is Paul De cordova, formerly of Ashurst, a London- based law firm; and richard Dollimore, formerly an associate in London office. cisco, Travelers in Dow, gM, citigroup out Dow Jones co. said yesterday that it would add cisco systems the largest maker of computer networking hardware, to the 30-stock industrial average, replacing General motors corp. the change takes effect monday. the automotive giant filed for bankruptcy protection yesterday.

And travelers cos. also will join monday, with citi- group inc. leaving, as the Dow added back a major insurer after dumping American international Group inc. in sep- tember. the government has, through bailout money, become a major citigroup shareholder and reduced its role as a publicly held company.

Foundation settles supply lawsuit with arcelorMittal Linthicum Heights, based Foundation coal says settled a lawsuit over a supply contract with steel- maker Arcelormittal. Foundation said yesterday that Arce- lormittal had agreed to take volumes of coal from its kingston operation in southern west virginia to settle the suit. nova raises half of funds required for credit line nova chemicals corp. said its requirement to raise a total $100 million in financing by June 1 was deferred. nova has raised $50 million of the total and expects to satisfy the balance after it is acquired by international Petroleum investment co.

that deal is expected to close around the end of this month. the financing requirements are terms of revolving credit line. astraZeneca, Merck collaborate on cancer drugs Drug developers AstraZen- eca PLc and merck co. said yesterday that they would jointly develop a combination treatment for cancer. the companies said they would combine efforts with mk-2206 and AZD6244, both of which are still in very early development.

they said in a statement that pre-clinical studies the laboratory phase of development indicate the combination has potential as an anti-cancer drug. the drug candidates are currently in separate early-stage studies involving people. prudential declines Tarp funding; to issue stock Prudential Financial inc. said yesterday that it would not take funds from the financial rescue program, but that it was planning to raise $1.25 billion on its own through a common stock offering. the newark, n.J.-based life insurance and financial services firm said it would not participate in the treasury troubled Asset relief Program.

Last month, the government said it would allow Prudential and five other major insurers to tap the program for additional capital. also in business newark, n.J.-based life insurance and financial services firm Prudential Financial inc. said it take funds from the tArP financial rescue program, but that it was planning to raise $1.25 billion on its own via a common stock offering. business briefs By mark Belko Pittsburgh Post-Gazette When Delta Flight 188 lifts off for Paris tomorrow evening, there may be no happier guy on the plane than Randall Dearth, the Lanxess Corp. chief executive officer and president.

With that takeoff, and hopefully many more to come, Mr. Dearth will be leaving behind the grind, the delays, the frustrations of trying to make connections through Chicago or Newark, N.J., or other chaotic and clogged East Coast airports to get to Europe. been he said. But no more. For the first time since November 2004, nonstop transatlantic service will return to Pittsburgh International Airport with the launch of the Delta flight, backed by up to $9 million in potential subsidies.

For employees at Lanxess, whose parent company is head- quartered in Germany, and many other business travelers with overseas connections, it come soon enough. At Lanxess, about 400 people each year either travel from Pittsburgh to Germany or vice versa. In the past, that has meant trips through Chicago or the East Coast to get overseas or to get into Pittsburgh. And with them has come con- gestion, delays, lost productivity, and, every once in awhile, not getting there at all. Mr.

Dearth said there have been several times when Lanxess was expecting visitors from Europe who never made it. In all, the company estimates it will save more than $250,000 a year through better productivity with nonstop service from Pittsburgh. Mr. Dearth said Lanxess lost about a day and a half of productivity from employees who had to make connections to get to Europe. flight, for us, is he said.

get no argument from John Friel, Medrad CEO and president. Last year, employees in his company, an affiliate of Bayer AG, made 381 round trips to Europe, and 137 so far this year. Mr. Friel said making connections adds at least two to three hours to the flight under the best of circumstances. On flights home, travelers may not get back to Pittsburgh until late evening.

Now the Delta flight SEE PAGE A-8 Fliers to Europe can say adieu to delays Nonstop flights to Paris resume How to acquire some French style. magazine, Page C-1. Luca Press Fiat logo is seen on a car window in milan, italy. By Ann Belser Pittsburgh Post-Gazette Allegheny County enjoyed some of the lowest levels of unemployment in the state in April with a jobless rate that declined slightly from level. The numbers, officially being released today, show that in the seven counties that make up the Pittsburgh Metropolitan Statistical area, the seasonally adjusted unemployment rate of 7.3 percent has risen from April 2008 to this April by 2.6 percentage points.

Both Allegheny County and the city of Pittsburgh showed declines. Allegheny seasonally adjusted unemployment rate fell by one-tenth of a percentage point over the month from 6.6 percent to 6.5 percent. The city of rate, which is not seasonally adjusted, fell from 6.8 percent in March to 6.2 percent in April. Only two counties in the state had lower levels of unemployment: Chester at 6 percent and Centre at 5.6 percent. Beaver unemployment rate also showed a slight decrease, dropping from 8.2 percent to 7.9 percent.

Other local areas were not as fortunate. Armstrong County, which SEE JOBSS, PAGE A-8 County April jobless rate falls By madlen read the Associated Press NEW YORK The stock market began June with a strong rally, thanks to another wave of benign economic data. But some investors are nervous that the month, traditionally a weak one for stocks, may not end as well. Traders homed in yesterday on better- than-expected readings on manufacturing, consumer spending and construction spending. The Dow Jones industrial average and other major indexes rose more than 2 percent, and the Standard 500 index and Nasdaq composite rose to their highest levels this year.

The economic data suggested the decline was moderating, but did not show a rebound. Construction spending rose in April, but personal spending was down slightly. Personal incomes were flat and U.S. manufacturing activity contracted for the 16th straight month in May, although at a slower pace. Yesterday also brought General Motors bankruptcy filing, the fourth-largest in U.S.

history. The filing come as a shock, but it did serve as a reminder of the heavy involvement in corporate America following the takeovers of American International Group Inc. and the mortgage giants Fannie Mae and Freddie Mac. Separately, a trend that had ruffled investors last week falling Treasury prices and surging yields resumed yesterday, but the stock market shrugged it off. A spike in long-term Treasury yields could drive interest rates on consumer loans higher, potentially threatening an economic recovery.

Despite the appearance that stocks are resuming their climb on hopes for an economic turnaround, a number of analysts think the market has come too far, too SEE OS, PAGE A-8 Stocks rally after positive economic data SEE HRYSR, PAGE A-8 Sale of Chrysler assets to Fiat Judge moves carmaker closer to exit from bankruptcy court APRIL 2008 Jobless rate: 7.3% Selected communities Rates are sea-sonally ad-justed ex-cept for selected com-mu-nities Cambria 8.7% Greene 7.5% Indiana 7.3% Lawrence 8.9% Somerset 8.6% Other counties: Bethel Park 4.9% McCandless 4.7% McKeesport 9.4% Mt. Lebanon 4.4% Penn Hills 5.7% Pittsburgh 6.2% Plum 6.0% Ross 5.2% Shaler 5.7% West Mifflin 7.0% Source: Pennsylvania Department of Labor and Industry Armstrong 9.8% Butler 7.3% Beaver 7.9% Allegheny 6.5% Fayette 8.9% Washington 7.6% Westmoreland 8.1% on THe Web read Private sector commentary and letters to the business editor at.