AUTOMOTIVE

VW to start hiring for Tenn. plant

Chattanooga —- Volkswagen AG is ready to start hiring for its new Chattanooga assembly plant, starting with about 50 jobs related to purchasing and the start of construction. VW spokeswoman Jill Bratina said Friday that the automaker will seek applicants for the "very specialized" jobs in weekend newspaper ads. Bratina said Volkswagen is focused on first hiring about 50 people for "purchasing ... suppliers for construction and other elements" for the $1 billion plant. She said from those applicants the company plans an Aug. 6 "invitation event" in Chattanooga. Volkswagen also plans an "open house in the middle of September" in Chattanooga.

DEALS

Zentiva rebuffs takeover offer

Prague, Czech Republic —- The board of Zentiva NV, a Czech maker of generic drugs, said Friday it has recommended that its shareholders reject a takeover offer from French pharmaceuticals maker Sanofi-Aventis SA. On July 11, Sanofi-Aventis, which already owns 24.9 percent of Zentiva, made a cash offer of $2.74 billion for the rest. Zentiva's board said in a statement Friday that the offer was "not in the best interests of Zentiva, its shareholders and all its other stakeholders." Sanofi-Aventis said it had "taken note" of Zentiva's statement.

Republic Services rejects offer

In a stinging letter Friday, garbage disposal company Republic Services Inc. rejected a $6.19 billion unsolicited takeover offer from larger rival Waste Management Inc. Republic, the nation's third-largest waste hauler, instead wants to stick with an agreement to buy No. 2 Allied Waste Industries Inc., a deal worth $6.07 billion when it was unveiled in June. "Republic is not for sale," James O'Connor, chairman and chief executive at Republic Services, wrote to David Steiner, CEO of Waste Management. "Although we are always cognizant of our fiduciary duties, Republic has not put itself up for sale as a result of entering into a strategic merger with Allied Waste Industries Inc." Republic said it does not expect Waste Management's all-cash offer of $34 a share to be more favorable to its stockholders, and that terms of the earlier agreement prevent it from giving information to or entering talks with its new suitor, the nation's largest garbage collector and landfill company. Waste Management said it is "disappointed" and mulling its next step.

Drug maker Teva to buy rival Barr

In the latest drug consolidation, Teva Pharmaceutical said Friday that it will buy rival generic drug maker Barr Pharmaceuticals for nearly $7.5 billion in a move that will boost Teva's dominance. The deal continues a wave of consolidation among generic drug makers, driven in part by expected growth in the industry from impending brand-name patent expirations worth billions of dollars a year. Israel-based Teva Pharmaceutical Industries Ltd. said acquiring New Jersey-based Barr Pharmaceuticals Inc., the world's No. 4 generic drug maker, will expand its presence in other key markets, from Russia to Eastern and Central Europe, as well as the United States. "This was the 12th attempt to acquire Barr, and the third by Teva," Barr's chief executive, Bruce Downey, told analysts during a conference call. "This is the right price, the right time and the right opportunity." Barr shareholders will receive $39.90 in cash and 0.6272 of a Teva American Depositary Receipt for each share they own, a total of $66.50 per share. Teva also is offering to assume $1.5 billion of Barr's debt. Barr shares finished at $46.82 Wednesday, before reports that a deal was in the works.

ECONOMY

Mexico raises key interest rate

Mexico City —- The Bank of Mexico is raising interest rates for the second time in less than a month, trying to slow inflation. The bank decided Friday to increase a key rate by a quarter-point to 8 percent. It raised the rate to 7.75 percent on June 20. The rate hikes are designed to help slow inflation, which hit a pace of 5.26 percent in June, its highest level in nearly four years. The bank also said it was considering raising its inflation predictions for 2008 to about 3.5 percent from 3 percent.

Bankruptcies soar over '07 levels

Driven by a sour economy and skittish consumers, U.S. business bankruptcies jumped 17 percent in the second quarter, according to an analysis by McClatchy Newspapers. Commercial filings for the first half of 2008 are up 45 percent from last year, as the national climate for commerce continues to deteriorate amid rising energy and food costs, mounting job losses, tighter credit and a reticence among consumers to part with discretionary income. From April through June, 15,471 U.S. businesses called it quits, according to data from Automated Access to Court Electronic Records, an Oklahoma City bankruptcy management and data company. States that saw the biggest increase in filings were Delaware, Montana, Oregon, Maryland and Connecticut.

FINANCIAL

Freddie files to raise capital

Mortgage financier Freddie Mac took a step toward issuing common and preferred stock to help bolster its balance sheet Friday when the Securities and Exchange Commission accepted its registration statement filed earlier in the day. Freddie has committed to raising at least $5.5 billion in capital amid a turbulent time for it and fellow mortgage giant Fannie Mae. The pair have been hit hard by mounting losses tied to the downturn in the mortgage market, and the government was forced to step in over the weekend to reassure Wall Street of the companies' solvency. "We have committed to [the Office of Federal Housing Enterprise Oversight] to raise $5.5 billion of new core capital through one or more offerings, which will include both common and preferred securities," Freddie said in a statement. "The timing, amount and mix of securities to be offered will depend on a variety of factors, including prevailing market conditions, and is subject to approval by our board of directors."

Freddie chief's pay $19.8 million in '07

Freddie Mac Chairman and Chief Executive Richard Syron pocketed nearly $19.8 million in compensation last year, according to a Securities and Exchange Commission filing Friday, even though the mortgage company's stock lost half its value in 2007. If Syron stays at the helm of Freddie Mac through the end of next year, he will receive nearly $20 million in stock awards if the board determines he has met certain goals. This year, he is guaranteed to get $8.8 million in stock grants regardless of performance. For 2007, Syron received a $1.2 million salary, a $3.45 million bonus, including $1.25 million to remain at the company, and $771,585 in other compensation. He also received stock and options valued by the company at $14.3 million at the time they were awarded.

FDIC imposes new rules on banks

The Federal Deposit Insurance Corp. has implemented a rule for banks that will improve its ability to determine whether a customer's deposits are insured and speed up payouts in a bank failure. The U.S. banking industry called the new rule a burden. The FDIC is requiring the 159 banks with at least $2 billion in U.S. deposits, and either $20 billion in assets or 250,000 account holders, to keep records that will give quick access to customer information, the Washington-based regulator said in a notice to banks. "Given that few banks will fail, this rule will impose a lot of burden on a lot of banks for no reason," said Mark Tenhundfeld, senior vice president of regulatory policy at the American Bankers Association.

FOOD / BEVERAGE

Coke bottler to cut 5% of work force

Coca-Cola Bottling Company Consolidated, the second-biggest U.S. Coke bottler, said it will eliminate 350 positions, about 5 percent of its work force, to trim expenses. Job cuts will cost $4 million to $5 million in the third quarter, the Charlotte-based company said Friday in a regulatory filing.

LEGAL

Pepsi unit faces lawsuit in Peru

Pepsi-Cola Co. must face a $300 million lawsuit filed by an insolvent Peruvian bottler, a federal appeals court in New York ruled, reinstating a case dismissed more than five years ago. The court on Thursday for the second time since 2004 reinstated the 2000 suit by Compania Embotelladora Del Pacifico SA, or CEPSA. A trial court judge twice threw out CEPSA's claims against the unit of PepsiCo Inc. The U.S. Court of Appeals for the 2nd Circuit revived a suit in which Purchase, N.Y.-based Pepsi is accused of breaching CEPSA's contract for exclusive rights to bottle soft drinks in some areas of Peru.

More Bear Stearns charges likely

New York —- Prosecutors say they expect to bring more criminal charges against two former Bear Stearns hedge fund managers already charged with lying to investors about the collapse of the subprime mortgage market. At a hearing in Brooklyn federal court on Friday, prosecutor Patrick Sinclair said Ralph Cioffi and Matthew Tannin probably would get hit with additional charges in the fall, though he declined to specify what kind. Both men have pleaded not guilty to conspiracy and fraud charges and were released on bond.

MANUFACTURING

Sony Ericsson to cut 2,000 jobs

Stockholm, Sweden —- Mobile-phone maker Sony Ericsson will slash 2,000 jobs worldwide to cut costs. Sony Ericsson spokeswoman Lisa Canning in London said Friday that the job cuts will be made within the next 12 months.

REGULATORY

SEC investigates Honeywell

Honeywell International Inc. disclosed Friday that the Justice Department is investigating allegations the company and other makers of automotive filters colluded to fix prices. Honeywell, which said in a regulatory filing it is "fully cooperating" with the probe, said the Justice Department subpoenaed some of its employees and those of other companies named in a private class-action antitrust lawsuit filed in March by S&E Quick Lube Distributors Inc.

TECHNOLOGY

Legg Mason backs Yahoo's CEO

Legg Mason Capital Management Inc. Chairman Bill Miller is backing Yahoo Inc. Chief Executive Jerry Yang in a fight for control of the board, saying a proxy contest with Carl Icahn would be disruptive. Legg Mason Capital Management is the third-biggest of Yahoo's institutional investors, with 4.4 percent of the outstanding shares, worth about $1.36 billion. Legg Mason is the first large institutional shareholder to publicly support the board, improving Yang's chances of staying in power. Icahn is trying to Yahoo to strike a deal with Microsoft Corp., which wants to buy Yahoo's Web search business.

TELECOM

Judge affirms lawsuit vs. AT&T

Kansas City, Mo. —- Class-action lawsuits alleging that AT&T engaged in a price-fixing conspiracy with other long-distance carriers will go forward after a federal judge refused to throw out the plaintiffs' antitrust claims. After denying AT&T's motion to grant it summary judgment last month, U.S. District Judge John Lungstrum on Thursday rejected AT&T's request to reconsider his order. The long-running case comprises dozens of class-action lawsuits that were filed nationwide and eventually consolidated before Lungstrum in federal court in Kansas City, Kan. The lawsuits allege that Sprint Nextel Corp. and AT&T conspired with each other and their one-time chief competitor, MCI, to overcharge customers when they passed on federal assessments, known as the Universal Service Fund fee.

TRADE

WTO details ruling against China

Geneva —- The World Trade Organization has made public the first official condemnation of Chinese commercial practices, an auto parts ruling that sides with the United States, the European Union and Canada. The verdict released Friday in Geneva finds that China was breaking trade rules by taxing imports of auto parts at the same rate as foreign-made finished cars. The Associated Press first obtained the findings in February. The sweeping decision rules against China on nearly every point of contention with the United States, the EU and Canada. It says China subjected foreign auto parts to less favorable treatment or higher charges than Chinese-made car parts. It ordered China to comply with WTO rules. China can still appeal.

UTILITIES / ENERGY

Russia's Gazprom to cut jobs

Moscow —- The Russian gas monopoly Gazprom said Friday that it will slash jobs at its Moscow headquarters as part of a cost-cutting plan. Energy industry analysts welcomed the decision of the state-controlled gas exporter, which has been criticized for failing to keep a lid on costs. Gazprom, which employs 436,000 people, saw its payroll costs rise 25 percent last year. Nearly 4,000 new jobs were added in 2007. Kommersant, a business daily newspaper, reported Friday that Gazprom planned to cut 10 percent of its staff at its Moscow headquarters, where 5,770 people work.