Nearly five months after a major software malfunction at Knight Capital roiled financial markets, the trading firm has agreed to sell itself to a competitor, Getco, in a cash-and-stock deal that the companies value at $1.4 billion. Knight shareholders can choose $3.75 per share in cash or one share of stock in the new holding company. The per-share price -- which is more than the $3.50 per share that Getco offered last month -- is a 13 percent premium to Knight's Tuesday closing price. But it's a fraction of the company's worth before the meltdown.
Housing starts slipped 3 percent last monthU.S. builders broke ground on fewer homes in November after starting work in October at the fastest pace in four years. The Commerce Department said builders began construction of houses and apartments at a seasonally adjusted annual rate of 861,000. That was 3 percent less than October's annual rate of 888,000, the fastest since July 2008. Still, the decline follows months of strong gains. Housing starts remain on track for their best year in four years, and the housing market overall appears to be sustaining its recovery.
Kodak to get $525M for patent portfolioEastman Kodak is selling its digital imaging patents for about $525 million, money the struggling photo pioneer says will help it emerge from bankruptcy protection in the first half of next year. Apple Inc., Google Inc., Samsung Electronics Co., Research In Motion Ltd., Microsoft Corp., China's Huawei Technologies, Facebook Inc. and Amazon.com Inc. are among the 12 companies paying to license the 1,100 patents, according to court filings. Kodak, which has been trying to make the sale happen for more than a year, wound up receiving substantially less money than had been expected.
Hyundai recalls Veloster coupes over sunroofHyundai is recalling 13,500 of its Veloster coupes because their big panoramic sunroofs can shatter and rain glass onto passengers. Shattering sunroofs also might be a problem in cars built by Kia, Hyundai's sister company. At least five people have suffered minor injuries when sunroofs in 2012 Velosters shattered, although no crashes have resulted. Hyundai said the sunroof's assembly may have been weakened during installation at the factory.
Corn futures fall as ethanol production dropsCorn futures tumbled to a five-month low after the government said production of ethanol fell and inventories rose last week. Production of ethanol in the U.S., mostly from corn, fell 13 percent in the week ended Dec. 14 from a year earlier, the Department of Energy said. Stockpiles last week rose to the highest since June and were up 18 percent from a year earlier. Ethanol producers are losing as much as 25 cents a gallon on the fuel, according to Northstar Commodity Investments Inc. Corn futures for March delivery declined 2.4 percent to close at $7.03 a bushel on the Chicago Board of Trade.
J.C. Penney hires former Abercrombie execJ.C. Penney hired a former Abercrombie & Fitch Co. executive to help with its stores' layout and design as Chief Executive Ron Johnson continues to lure alumni of the teen retailer. Brandon Tonniges is a director of visual merchandising, Joey Thomas, a J.C. Penney spokesman, said. Tonniges was a vice president in Abercrombie's brand senses division, which the teen retailer's website calls the "creative force" behind its store experience. Johnson is overhauling the 110-year-old department-store company by turning most of its stores into collections of branded shops and reducing sales events and coupons.
FROM NEWS SERVICES
