AUTOMOTIVE: With subsidy, Ford to reopen plant

Detroit —- Ford Motor Co. said Monday that it will reopen an engine plant in Windsor, Ontario, after getting a $16.5 million grant from the province's government. Ford closed the Essex Engine Plant in November, affecting about 650 jobs, as part of a broad restructuring that will shutter 16 facilities by 2012. Ford spokeswoman Kerri Stoakley said Ford plans to invest $165 million in the plant and hire 300 workers to make the new engines.

DEALS: Monsanto to buy Dutch seed firm

St. Louis —- Monsanto Co. has reached a deal to buy Netherlands-based De Ruiter Seeds Group BV for roughly $863 million. De Ruiter produces seeds for the greenhouse market, selling vegetable crops such as tomatoes, cucumbers and melons.

Insurance group rejects Flowers' bid

London —- British insurance group Friends Provident PLC rejected a $6.9 billion takeover bid from J.C. Flowers, sending its shares higher amid hopes the U.S. private equity firm would swiftly improve its offer. Friends said in a statement that the proposal "significantly undervalues" its business and refused to negotiate. It was Flowers' third approach.

HP to acquire Australian firm

Hewlett-Packard Co. is buying an Australian software maker whose products help businesses manage their records and comply with industry regulations. Under the terms outlined Monday, HP will pay $3.10 per share for privately held Tower Software. The total price isn't being disclosed.

FINANCIAL: Interest rates mixed in auction

Washington —- Interest rates on short-term Treasury bills were mixed in Monday's auction. The Treasury Department auctioned $24 billion in three-month bills at a discount rate of 1.440 percent, up from 1.200 percent last week. Another $21 billion in six-month bills was auctioned at a discount rate of 1.500 percent, down 1.550 percent last week. Separately, the Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable-rate mortgages, rose to 1.60 percent last week from 1.35 percent the previous week.

LEGAL: Calif. home buyers sue D.R. Horton

D.R. Horton Inc. home buyers in California claim they were coerced into financing their homes through one of the home builder's subsidiaries or they would lose their deposits. The builder refused to deal with competitors of its Horton Mortgage business, five home buyers said in a complaint filed Friday in San Diego. The buyers seek to represent other U.S. residents who bought a home from Horton during the past four years and who financed their purchase with a Horton Mortgage loan.

REGULATORY: EPA changes lead paint rules

Washington —- Contractors will have to take additional precautions when renovating buildings where children could be exposed to lead dust from old paint, the Environmental Protection Agency said Monday. The new regulation brought a sharp response from Democrats in Congress, including presidential candidate Barack Obama, who said it leaves children unprotected. They promised legislation for more stringent action. The EPA "has missed an important opportunity," said Obama in a statement, by limiting the regulation to homes with children under 6.

RETAILING: Advertising group takes on Wal-Mart

Wal-Mart Stores Inc. needs to change its advertising to avoid suggesting its shoppers save an annual $2,500 per family, the advertising industry's self-regulatory body said in a report Monday. But the report also accepted Wal-Mart's claim that its efficiency and size drive down consumer prices across the entire economy, generating that $2,500 savings regardless of where consumers shop. The National Advertising Division of the Council of Better Business Bureaus singled out what it called "implied claims" in the retailer's ads that consumers who shop at Wal-Mart can realize that much in savings while people who shop elsewhere do not. Wal-Mart said in response it never meant to imply the savings were only for its shoppers.

TECHNOLOGY: Yahoo site targets women 25-54

Yahoo Inc. on Monday launched a site for women ages 25 to 54, calling it a key demographic underserved by current Yahoo properties. The site, Shine, is aimed largely at giving the struggling Internet company additional opportunities to sell advertising targeted to the key decision-maker in many households. Yahoo said advertisers in consumer-packaged goods, retail and pharmaceuticals have requested more ways to reach those consumers.

Feds ban IBM from contract bids

Washington —- IBM Corp. has been temporarily banned from receiving future contracts with federal agencies, the Environmental Protection Agency confirmed on Monday. The suspension went into effect last Thursday "while the agency reviews concerns raised about potential activities involving an EPA procurement," the agency said in an e-mailed statement. Under a reciprocal agreement among federal agencies, when one issues a ban, the others follow it. Armonk, N.Y.-based IBM has federal contracts worth at least $1.3 billion, or about 1 percent of its 2007 revenue.

TELECOM: AT&T to cut termination fees

AT&T Inc. will begin charging customers less to cancel service, depending on how much time remains on their contracts. Rather than charging a flat $175 to disconnect users, AT&T will reduce that fee by $5 after each month of service for customers who sign one- and two-year contracts.

TRANSPORTATION: Feds propose tougher railcars

Washington —- Following a string of train accidents in recent years, railroad tank cars carrying hazardous materials must be replaced, rebuilt stronger and travel at slower speeds over half of the nation's tracks under new federal proposals. The Transportation Department's proposed rule requires tank cars carrying poison inhalation hazard commodities to be equipped with puncture-resistance protection to prevent penetration at speeds of 25 mph for side impacts and 30 mph for head-on collisions.

United mechanics vote in Teamsters

United Airlines mechanics, facing a possible sale of the carrier's maintenance division, voted to leave their current union and switch to the Teamsters. Workers at UAL Corp.'s United voted 4,113 to 2,631 to make the change from the Aircraft Mechanics Fraternal Association, the International Brotherhood of Teamsters said Monday.

UTILITIES / ENERGY: Gas prices hit record as oil falls

New York —- Gas prices at the pump surged to a record Monday even as crude oil accelerated its slide amid a broad-based commodities sell-off. The average price for a gallon of regular unleaded rose to $3.287, according to AAA and the Oil Price Information Service. Gasoline prices are expected to keep rising as the summer driving season brings with it greater demand for the fuel. On Monday, however, light, sweet crude for May delivery dropped $4.04 to settle at $101.58 a barrel on the New York Mercantile Exchange, adding to a decline of nearly $2 a barrel on Friday.