General Motors (GM) Bond Deal Fails, Bankruptcy Looming

The next chapter in the history of General Motors Corp. (NYSE: GM) is likely to be about bankruptcy. And that would leave the U.S. and Canadian governments as company’s majority owners.

The largest of the U.S. Big Three automakers yesterday (Wednesday) announced that it failed to persuade the required 90% of its bondholders to swap $27 billion in debt for stock, pushing the venerable GM several steps closer to a bankruptcy filing.

The rejection by bondholders is the latest chapter in the ongoing saga of GM’s desperate attempts to reorganize as it faces a government-imposed Monday (June 1) deadline to restructure or…

Global Investing News

Foreclosures Continue Falling; Chinalco Invests $19.5 Billion in Rio; 4Q Profit Falls for Viacom; Coca-Cola Beats Expectations; GM May to Bail on China Venture; Australia Senate Nixes Senate 

• Widespread foreclosures caused home prices to fall in 134 U.S. metropolitan areas. Foreclosure filings eclipsed 250,000 in January, their tenth straight month above that figure, Bloomberg reported.

• Aluminum Corps of China Ltd. (ADR: ACH), China’s state-owned aluminum group, will invest $19.5 billion in debt-heavy Australian mining company, Rio Tinto PLC (RTP). More than $12 billion will be spent on mining assets and the rest will buy bonds convertible into shares, Reuters reported. The…

Global Investing Roundups

DHL Withdraws From U.S.; China ‘Stimulates’ Railway and Steel Industries; YouTube to Show Full-Length Flicks; McDonald’s October Sales Solid; DB Analysts Says GM Stock Worthless; Fannie Mae to Tap Fed Fund; Starbucks Profit Down 97%; U.S. Cotton Production Declines by a Third

• U.S. job cuts and slashed stateside budgets have forced express mailer DHL Express, a subsidiary of Deutsche Post AG, from the U.S. Market, Reuters reported. With the move, Deutsche Post AG cut 9,500 jobs (on top of 5,400 from earlier this year). It was also an early Christmas present for rivals United Parcel Service Inc. (UPS) and FedEx Corp. (FDX), who’ve also taken…

GM Announces Second Round of Cost Cuts in Six Weeks as U.S. Economy Continues to Slump

General Motors Corp. (GM) yesterday (Tuesday) announced a series of cost-saving measures aimed at fighting waning domestic sales fueled by a weak U.S. economy and the soaring cost of fuel.

“We are responding aggressively to the challenges of today’s U.S. auto market,” GM Chairman and Chief Executive Officer Rick Wagoner said in a General Motors company statement announcing the cuts.

“We will continue to take the steps necessary to align our business structure with the lower vehicle sales volumes and shifts in sales mix,” he added, “We remain committed to bringing to market great products that target changing consumer preferences for more fuel-efficient…

Global Investing Roundups

Bear Stearns Shareholders Approve JPMorgan Sale; Sears Expects More Pain After Loss; Weak Economy Emboldening Costco; Pacific Rim GDP Growth; Staff Reduction at GM;

–Shareholders of The Bear Stearns Cos. Inc. (BSC) approved the government-assistant $2.3 billion acquisition by JPMorgan Chase & Co. (JPM), Bloomberg reported. The all-stock deal is expected to close today (Friday), though shareholders who sought more than the buyout’s price of $10-a-share may file suit.

–Shares of Sears Holdings Corp. (SHLD) – owner of Sears and K-Mart department stores – dropped 3.6% yesterday (Thursday) as the company posted a net loss of $56 million, or 43 cents a share, for…