In the news: Dollar General makes a rival bid for Family Dollar and Tesla extends its warranty
Monday headlines include: Dollar General bidding for Family Dollar, Apache finding oil in Australia, a judge appointing lead attorneys for a collection of General Motors ignition switch cases, Tesla extending its Model S warranty, and Morgan Stanley being ordered to pay Citigroup's Mexican unit $4.5 million.
As many market watchers had expected, discount retailer Dollar General ( DG ) made an offer for Family Dollar ( FDO ), to compete with an offer from Dollar Tree ( DLTR ). Dollar General is offering $78.50 per share in cash, compared to a cash-and-stock deal worth about $74.50 per share in cash and stock made by Dollar Tree. Dollar General said it expects to find about $500 million to $600 million in cost savings from combining the companies.
Energy exploration firm Apache Corp. ( APA ) said a new discovery in Australia's Canning Basin could signal a new oil "province" in the country. The Phoenix South-1 well found oil samples that lead the company to believe the field may hold up to 300 million barrels of oil.
U.S. district Judge Jesse Furman appointed three attorneys to lead lawsuits against automaker General Motors ( GM ) related to faulty ignition switches. Judge furman is overseeing more than 100 cases against the company. The attorneys who will lead the suits are Steven Berman, Elizabeth Cabraser and Robert Hilliard as co-lead counsels.
Automaker Tesla Motors (TSLA) said late Friday that it was increasing the warranty on its Model S sedan after Consumer Reports highlighted issues with the car. The drive-unit warranty now matches the battery pack's eight-year "infinite" miles coverage. The extension applies to Model S cars made since 2012. The company said the change will have a "moderately negative" effect on earnings in the near term.
A FINRA arbitration panel ruled Friday that Morgan Stanley (MS) must pay $4.5 million to Citigroup (C) unit Banamex. The arbitration panel found that Morgan Stanley allowed funds in a trust account for which Banamex was the trustee to be used to repay a third-part loan without Banamex's authorization. Banamex had sought more than $5.2 million.
This article was originally published on MarketIntelligeneCenter.com