By KERA News & Wire Services
Dallas, TX – General Motors Co. says it will acquire auto financing company Fort Worth Based AmeriCredit Corp. so it can increase leasing and make more loans to buyers with low credit scores.
The Detroit automaker says it will pay $3.5 billion to buy all of AmeriCredit's stock at $24.50 per share - a 24 percent premium over Wednesday's close.
It expects the deal to close in the fourth quarter.
GM CEO Ed Whitacre said Thursday the deal will make GM more competitive in auto financing. GM executives have said their sales have been hurt by a lack of subprime and lease financing.
The company says that Ally Financial - formerly known as GMAC - will continue to finance GM's dealer inventory and make loans to buyers with good credit.
GM says it is not considering a purchase of Ally's auto financing unit.
Continental posts 2Q profit on big jump in revenue
Continental Airlines Inc. is adding to the evidence that U.S. airlines are making a strong recovery from the recession.
Continental said Thursday its net income in the second quarter was $233 million, nearly a mirror image of its $213 million loss a year ago.
Continental's per-share earnings beat analysts' expectations, and revenue jumped by nearly one-fifth compared with a year ago.
The Houston company is combining with United's UAL Corp. to form the world's biggest airline.
New Mexico man accused of stealing 200 cattle
A New Mexico man is accused of stealing 200 head of cattle from an Arizona ranch, packing them into trailers, then moving them out of state. Authorities recently brought charges against 34-year-old Jason Kirby of Datil, N.M.
Kirby allegedly moved 202 head of cattle, worth an estimated $200,000, across two states with the intention of selling them to a buyer in Texas.
An Arizona grand jury indicted Kirby on charges of fraudulent schemes, trafficking in stolen property and two counts of theft.
Arizona Department of Agriculture investigators say Kirby was hired to tend the cattle on a piece of land near Superior in eastern Arizona.
Kirby faces a pretrial conference Monday.