Business news in brief

Less 1, Mississippi casinos' take stable

JACKSON, Miss. -- Gambling revenue tumbled in Mississippi's river region in the first month after Harrah's Tunica Hotel & Casino closed, but the trend didn't worsen much. Meanwhile, Gulf Coast casinos posted their best June in years.

State figures show casinos statewide took $174 million from gamblers in June, up less than 1 percent from June 2013.

The 18 river casinos took $78.7 million, down 12 percent from a year earlier. The 12 coastal casinos take was $95.7 million, up 13 percent from June 2013.

Revenue statewide fell 4 percent over the past 12 months. Mississippi's overall casino take is down about 25 percent from 2007's peak.

Overall revenue has fallen from the year earlier in 21 of the past 24 months.

The numbers exclude Choctaw Indian casinos, which don't report to the state.

-- The Associated Press

Caterpillar dealer sales decline slows

Caterpillar Inc., the biggest maker of construction and mining equipment, said dealer machinery sales fell at a slower pace in three months through June.

The decline was 10 percent compared with the same period a year earlier, the Peoria, Ill.-based company said Wednesday in a filing. Sales were down 12 percent in the three months through May.

For Caterpillar's resource-industries segment, sales dropped 38 percent, compared with a 46 percent decline in the three months through May.

For construction industries, sales growth slowed to 3 percent in the most recent three months, from 4 percent in the period through May. Within that segment, the decline in Asia- Pacific sales accelerated to 17 percent.

Caterpillar shares dropped $1.68, or 1.5 percent, to close $108.38. They have gained 20 percent in 2014.

Caterpillar is to report second-quarter earnings today before the start of trading.

-- Bloomberg News

792,300 Jeep SUVs in ignition recall

Chrysler said Wednesday that it is recalling 792,300 Jeep SUVs because of possible problems with ignition switches as the automotive industry continues to take a closer look at car starters during General Motors' recall crisis.

The Auburn Hills, Mich., automaker is recalling 2006-07 Jeep Commanders and 2005-07 Grand Cherokees "out of an abundance of caution" because of concerns about the ignition switch.

An outside force, usually attributed to contact with the driver's knee, may move ignition keys from the "on" position, causing the engine to stall. Chrysler said it is unaware of any injuries related to the ignition switches on its Jeep SUVs.

Last month, Chrysler announced a recall for 2008 and 2009 Chrysler Town & Country's and Dodge Grand Caravans to repair ignition switches that also can slip out of position.

General Motors has been under intense scrutiny from the National Highway Traffic Safety Administration, congressional investigation committees and the U.S. Department of Justice for failing to recall about 2.6 million cars with potentially defective ignition switches for years after some of its engineers and attorneys learned about the problem.

In GM's case, there have been at least 13 fatalities linked to the defective ignition switch.

The automaker said customers with questions can call Chrysler Group's Customer Information Center at (800) 853-1403.

-- Detroit Free Press

IMF cuts U.S. economic-growth outlook

WASHINGTON -- The International Monetary Fund has shaved its forecast for U.S. economic growth this year, mostly because of a sharp contraction in the first quarter.

But the global lending organization still expects that growth accelerated in the April-June quarter and will remain healthy for the rest of this year and next.

The IMF projects growth will be just 1.7 percent this year, down from a 2 percent estimate in June. That would make 2014 the weakest year since the recession ended in June 2009.

The IMF's outlook is more pessimistic than the Federal Reserve, which expects growth of at least 2.1 percent. But it matches most other economists.

The fund also urged the U.S. government to take steps to boost growth, including encouraging more Americans to find jobs and lifting productivity.

-- The Associated Press

Suit fights Lorillard deal for Reynolds

A Lorillard Inc. investor sued to block its $25 billion acquisition by Reynolds American Inc., saying the deal substantially favors the buyer.

Reynolds, the maker of Camel and Pall Mall cigarettes, said July 15 that it would acquire its rival for cash and stock, valuing Greensboro, N.C.-based Lorillard at $68.88 a share. The takeover would leave the 400-year-old U.S. tobacco industry with two competitors, Reynolds and Altria Group Inc., controlling 90 percent of the market.

The proposed deal is the product of a flawed process and provides little benefit to stockholders, the investor, Vincent Valentino, said in a complaint made public Wednesday in Delaware Chancery Court.

"To the detriment of the company's shareholders, the terms of the merger agreement substantially favor Reynolds and are calculated to unreasonably dissuade potential suitors from making competing offers," Valentino said in the complaint. He is seeking to represent all Lorillard shareholders.

British American Tobacco Plc will fund $4.7 billion of the transaction, allowing it to maintain a 42 percent stake in Winston Salem, N.C.-based Reynolds.

As part of the deal, British American Tobacco's U.K. rival Imperial Tobacco Group Plc will acquire brands such as Kool and Blu e-cigarettes for $7.1 billion. Lorillard shareholders won't benefit from that transaction, Valentino said.

The deal is "unfair and inadequate because, among other things, the intrinsic value of Lorillard is materially in excess of the amount offered," according to the complaint.

Bob Bannon, a spokesman for Lorillard, and David Howard, a spokesman for Reynolds American, didn't immediately return phone calls seeking comment on the lawsuit.

The case is Valentino v. Lorillard Inc., CA9932, Delaware Chancery Court (Wilmington)

-- Bloomberg News

Business on 07/24/2014

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