Wall Street Rumors - May 15, 2008

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

CBS Agrees to Buy CNET
CBS Corp. (NYSE:CBS), agreed to acquire online news provider CNET Networks Inc., (NASDAQ:CNET), for about $1.8 billion, just as CNET’s battle with dissident shareholders was heating up.

IAC to Buy Lexico to Boost Its Ask.com
As part of its efforts to bolster its Ask.com search engine, IAC/InterActiveCorp, (NASDAQ:IACI), plans to buy Lexico Publishing Group LLC, the owner of Dictionary.com, Thesaurus.com and Reference.com.

Senate Nears Mortgage Deal
WASHINGTON – Senate lawmakers are close to a deal that would expand a government program to insure hundreds of billions of dollars in refinanced mortgages, top lawmakers said Thursday.

GE May Shed Storied Appliance Unit
General Electric Co., (NYSE:GE), is preparing to sell or divest itself of its century-old appliances business, one of the best-known American consumer brands, as Chief Executive Jeffrey Immelt seeks to revive his weakened conglomerate.

Icahn Pushing Yahoo Back to Microsoft
Billionaire investor Carl Icahn is launching a proxy contest to unseat Yahoo Inc.’s, (NASDAQ:YHOO), board of directors, according to a person close to the matter, a move aimed at pressuring the Internet company to reach out to Microsoft Corp., (NASDAQ:MSFT), to restart sale discussions.

Blackstone Has $66.5 Million Loss as LBO Fees Drop
May 15 (Bloomberg) — Blackstone Group LP, (NYSE:BX), manager of the world’s largest private-equity fund, reported a first-quarter loss of $66.5 million as leveraged
buyouts evaporated and the value of companies it owns declined.

U.S. Industrial Production Dropped More Than Forecast
May 15 (Bloomberg) — Industrial production in the U.S. fell more than forecast in April, as the slowdown in consumer spending prompted car and appliance makers to cut back.

Deutsche, Banks Selling $4 Billion of Boots LBO Loans
May 15 (Bloomberg) — Deutsche Bank AG, (NYSE:DB), Citigroup Inc., (NYSE: C), and Royal Bank of Scotland Group Plc, (NYSE: RBS), are selling at least 2 billion pounds ($3.9 billion) of loans that funded the leveraged buyout of Alliance Boots LTD, (LON: AB)the first deal frozen when credit markets began seizing up in July.
Ltd.,

Chrysler Beating Cash, Operating Goals, Nardelli Says
May 15 (Bloomberg) — Chrysler LLC, the third-largest U.S. automaker, is ahead of its 2008 goals for generating cash and running the business, and will post a “significantly lower” loss than in 2007, Chief Executive Officer Robert Nardelli asaid.

Petrobras Hires 80% of Deepwater Drilling Rigs, Drives Up Costs
May 15 (Bloomberg) — Petroleo Brasileiro SA, (NYSE: PBR), Brazil’s state-controlled oil company, leased about 80 percent of the world’s deepest-drilling offshore rigs to explore prospects including the Western Hemisphere’s biggest discovery in decades.

Sina Shares Leap After Strong Results
China-based Internet media company Sina, (Nasdaq: SINA), said its first-quarter revenue jumped 39% year over year and exceeded its forecast, lifting its shares early Thursday.

Comcast Buys Social-Networking Site Plaxo
Comcast (NASDAQ: CMCSA), will acquire social networking site Plaxo in a move aimed at unifying social media across the Internet and television.