Wall Street Rumors – June 27, 2008

Daily rumors covering the global markets. Subscribe to the update feed here.

Global Oil-Supply Worries Fuel Debate in Saudi Arabia
 Sadad al-Husseini and Nansen Saleri raced up the ranks at Saudi Aramco, the world’s most powerful oil company, working together for years to squeeze more crude from Saudi Arabia’s massive fields. Today, the two men have staked out opposite sides of a momentous industry debate.

Oil Prices Hits $142 a Barrel
 Oil prices climbed to a record $142 a barrel Friday as the U.S. dollar’s protracted slump prompted investors to flock to oil as a hedge against inflation.

Stock Futures Edge Higher, Pointing to Cautious Recovery
 U.S. stock futures edged up slightly Friday, pointing to a cautious recovery after tumbling near bear-market territory in the previous session, even as crude-oil futures reached new heights.

Countrywide CEO Helped Many Get Loans
 As the mortgage market was wobbling a year ago, Angelo Mozilo, chief executive of Countrywide Financial Corp., (NYSE:CFC) intervened to help the daughter of a casino manager and her fiancé borrow to buy a home in Nevada. Countrywide gave them loans despite problems that ordinarily would have disqualified them, said a person familiar with the transaction.

Anheuser Spurns InBev Takeover Bid
 The takeover bid for America’s dominant brewer took a hostile turn Thursday, as Anheuser-Busch Cos. (NYSE:BUD) rejected InBev NV’s (EBR:INB) $46.35 billion offer and InBev took steps to unseat the brewer’s 13-member board.

Yahoo Alters Product-Development Strategy
 Yahoo Inc. (NASDAQ:YHOO) announced a reorganization plan that seeks to centralize its product development and increase global revenue, in an effort to beat back concerns about the Internet giant’s ability to compete as an independent company.

GM Shares Plunge to 53-Year Low
General Motors Corp.’s (NYSE:GM) shares sank to a 53-year low Thursday on concerns about liquidity, equity dilution and a potential dividend cut, heightening speculation that the auto maker doesn’t have enough cash to finance its turnaround.

Lehman’s Fuld, McDade to Forgo Their 2008 Bonuses (Update1)
  June 27 (Bloomberg) — Lehman Brothers Holdings Inc. (NYSE:LEH) Chief Executive Officer Richard Fuld and President Herbert “Bart” McDade will forgo 2008 bonuses, the biggest chunk of their pay, after the fourth-biggest U.S. securities firm reported its first quarterly loss since going public.

AIG Poised to Absorb $5 Billion Losses From Securities-Lending
  June 27 (Bloomberg) — American International Group Inc. (NYSE:AIG) plans to absorb losses for a dozen insurance units after their securities-lending accounts suffered $13 billion of writedowns tied to the subprime-mortgage collapse during the past year.

Sony Ericsson Says Profit Will Drop as Sales Weaken
  June 27 (Bloomberg) — Sony Ericsson Mobile Communications Ltd., the smallest of the world’s top five mobile-phone makers, said declining sales of higher-priced handsets and delays to new products wiped out second-quarter earnings.

TPG, KKR Join Private Equity Push to Money Managers
Kohlberg Kravis Roberts & Co. are among private equity firms capitalizing on the credit crunch to invest in money managers, a trend that may accelerate as more cash-strapped companies exit the business.

Intuit to Cut 7% of Workforce
SAN FRANCISCO — In a sign of the economy’s harsh impact on software firms catering to the domestic market, Intuit (NASDAQ:INTU) announced Thursday that it will cut 575 jobs, or 7% of its workforce, and take a restructuring charge.

Accenture’s Profit Climbs
SAN FRANCISCO — Profit at Bermuda-based Accenture (NYSE:ACN) took a big jump during its third quarter, the company reported Thursday.