Business news in brief

QUOTE OF THE DAY

“We expect consumer spending to be significantly stronger in the second quarter.”

Chris Christopher, Global Insight director of consumer economics Article, 1D

Tesla to add shields to halt battery fires

DETROIT - The U.S. government’s auto safety watchdog has closed an investigation into Tesla electric-car battery fires after the company said it would install more shields beneath the cars.

The shields - an aluminum bar, a titanium plate and another piece of aluminum - will supplement a quarter-inch-thick aluminum plate on the Model S, the only model that Tesla sells. They’re designed to stop road debris from penetrating the car’s battery pack.

The National Highway Traffic Safety Administration began investigating the Model S last year after two battery fires that were caused by road debris. In each case, one near Nashville, Tenn., and another near Seattle, debris punctured the aluminum shield and the battery, touching off fires. Drivers were able to safely pull off the road and escape without injury, but the cars were destroyed.

Tesla Chief Executive Officer Elon Musk said in a statement Friday that the company will retrofit Model S cars sold in the U.S. with the new shields at no cost to owners.

Charter continues Time Warner pursuit

Charter Communications Inc. urged Time Warner Cable Inc. investors Friday not to endorse a takeover by Comcast Corp., signaling it’s not backing down in its pursuit of Time Warner Cable without a fight.

Comcast, which outbid Charter this year with a $45 billion stock offer, is too susceptible to regulatory hurdles because it’s the biggest in the cable industry, Charter said in a filing. Time Warner Cable, meanwhile, refused to engage with Charter to develop a merger deal, Charter said.

Charter, the fourth-largest U.S. cable firm, had offered to buy Time Warner Cable - the No. 2 company - for $37 billion in cash and stock, a bid rejected as too low by Time Warner Cable Chief Executive Officer Rob Marcus. Although Comcast’s shares have declined about 10 percent since the acquisition agreement was announced, they would need to drop another 8 percent to fall to the levels of Charter’s proposal.

Comcast’s merger offer was worth $158.82 a share when it was announced Feb. 13 before the market opened. That figure has fallen to $142.77 as Comcast’s stock has declined.

“We are fully committed to our merger with Comcast, which we believe is in the best interests of shareholders,” Time Warner Cable said Friday. John Demming, a Comcast spokesman, said the company declined to comment.

Memphis buys minor-league ballpark

MEMPHIS - Memphis has taken over ownership of minor league baseball stadium AutoZone Park from Fundamental Advisors LP, an asset manager that gained control of the venue after a bond default four years ago.

Memphis issed about $24 million of debt last week through a local financing authority to fund the purchase of the park, home of the Memphis Redbirds. Major League Baseball’s St. Louis Cardinals acquired the Triple-A team as part of the agreement, according to a statement Friday from the 2013 National League champions.

The Memphis Redbirds Baseball Foundation had been operating the Redbirds and the park under a forbearance agreement with creditors since defaulting in 2010 on bonds. Also in 2010, Fundamental bought $58 million of the debt at 42 cents on the dollar, becoming the sole bondholder, according to a company statement in November.

City Council members had debated buying the ballpark, reaching an agreement in January. Memphis will lease the stadium to the Redbirds, the release said.

  • Bloomberg News

Cyprus ends daily bank-withdrawal limits

NICOSIA, Cyprus - Cyprus has scrapped all limits on daily cash withdrawals from banks in a significant loosening of capital controls that were imposed after the country’s financial rescue deal a year ago.

A new Financial Ministry decree also increased the amount of money that a person can move within Cyprus to $68,800 from about $27,500. The amount for companies doubled to $275,180.

Friday’s decree also allows people to open new accounts in any bank as long as they’re a fixed-term deposit of about $6,900 or more.

Cypriot authorities imposed the controls to head off a bank run because a key clause of its rescue involved the seizure of almost half of uninsured deposits in the country’s largest bank and the closure of its second-largest lender.

  • The Associated Press

Labor panel targets Kellogg factory

MEMPHIS - The National Labor Relations Board has issued a complaint against Kellogg Co. related to a lockout of more than 200 employees at its Memphis facility.

In a news release, the board said Kellogg violated the National Labor Relations Act by reportedly insisting on an impasse on bargaining proposals related to wages and benefits and by locking out the workers “in furtherance of its bad-faith bargaining position.”

The complaint alleges Kellogg failed to provide requested information that would help the Bakery, Confectionery, Tobacco Workers and Grain Millers union assess Kellogg’s bargaining proposals.

The complaint comes five months after contract negotiations between the company and the union broke down.

Workers have picketed outside the plant since then.

A hearing is set for May 5 in Memphis.

Kellogg is based in Battle Creek, Mich.

  • The Associated Press

Mercedes to double China plant capacity

Daimler AG and joint-venture partner Beijing Automotive Group Co. will spend about $1.37 billion to more than double Mercedes-Benz production capacity at their Beijing plant to keep pace with rising demand.

The factory, which builds the C-Class and E-Class sedans and GLK sport utility vehicle, will be able to produce more than 200,000 vehicles in 2015 and may be expanded further if sales continue to surge, the Stuttgart, Germany-based car maker said in a statement Friday. The plant will add assembly of the GLA compact SUV next year.

Mercedes deliveries in China surged 57 percent in the first two months of 2014. The investment outlined Friday is part of a $5.5 billion Chinese spending project that will include expanding the model lineup. Daimler and Beijing Automotive will also increase engine production at their Beijing plant from the initial annual capacity of 250,000 as auto sales rise.

“We are deeply rooted in China,” Daimler Chief Executive Officer Dieter Zetsche said in the statement. “The Chinese automobile market continues to have great potential. We want to participate in this growth.” - Bloomberg News

Business, Pages 28 on 03/29/2014

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