Mergers and Acquisitions Dominate Business Headlines Amid Economic Uncertainty

Business leaders have been shaking hands as major mergers and acquisitions shake the market, while US economic growth continues to outpace other major economies.

SunGard Data Systems agreed to be acquired by seven buyout firms led by Silver Lake Partners for $10.4 billion in cash, making it the largest private takeover since 1989. The deal comes as the dollar gains ground against major currencies, fueled by speculation that US economic growth will surpass Japan's and Germany's.

Meanwhile, AIG severed ties with Maurice Greenberg, who built the company into a global giant over four decades, amid a Securities and Exchange Commission investigation into transactions with reinsurance companies. Bank of America CEO Kenneth Lewis received a 13% raise last year, taking home $22.5 million.

Key Takeaways:

• SunGard Data Systems agreed to be acquired by seven buyout firms led by Silver Lake Partners for $10.4 billion in cash, the largest private takeover since 1989.
• The dollar gained ground against the yen and euro on speculation that US economic growth will surpass Japan's and Germany's, with US employers expected to add over 200,000 jobs for the second straight month in March.
• Fannie Mae said its regulator won't be able to assess its capital adequacy due to ongoing accounting problems, while Bank of America granted CEO Kenneth Lewis 500,000 stock options valued at $3.2 million.
• HCA Inc., the nation's largest for-profit hospital chain, plans to sell 10 acute care hospitals in six states and expects to post strong first-quarter income.
• Eastman Kodak Co. faces a second request for information about its proposed acquisition of Creo Inc. from the US Justice Department.
• A jury awarded $18.8 million to a smoker who said Philip Morris USA's smoking caused her lung cancer, alleging the company failed to adequately warn of the risks of smoking.

Statistics:

• The $10.4 billion acquisition of SunGard Data Systems is the largest private takeover since 1989.
• Fannie Mae's regulator won't be able to assess the company's capital adequacy due to ongoing accounting problems, which may affect last year's earnings and current capital holdings.
• Bank of America CEO Kenneth Lewis received a 13% raise last year, taking home $22.5 million.
• HCA Inc. plans to sell 10 acute care hospitals in six states, with 600 jobs to be cut over the next two years, expected to save the company $35 million to $45 million annually.
• Philip Morris USA has been ordered to pay $18.8 million to a smoker who said smoking caused her lung cancer.

Sources:

• "SunGard Data Systems Agrees to $10.4 Billion Takeover by Private Equity Firms" by Bloomberg News
• "Dollar Gains as US Economic Growth Outpaces Japan's, Germany's" by Bloomberg News
• "AIG Severs Ties with Maurice Greenberg Amid SEC Investigation" by Bloomberg News
• "Bank of America CEO Kenneth Lewis Received 13% Raise Last Year" by Bloomberg News
• "HCA Inc. Plans to Sell 10 Acute Care Hospitals, Cut 600 Jobs" by Bloomberg News
• "Eastman Kodak Co. Faces Second Request for Information on Acquisition" by Bloomberg News
• "Philip Morris USA Ordered to Pay $18.8 Million to Smoker Who Said Smoking Caused Lung Cancer" by Bloomberg News