GM to sell Saturn to Penske, saving up to 13,000 jobs
General Motors Corp. has reached a deal to sell its Saturn auto unit to Penske Automotive Group, a dealership chain owned by former race-car driver Roger Penske. The bankrupt automaker said the deal to sell Saturn and its distribution network would save up to 13,000 jobs and hundreds of dealerships. It did not release financial terms of the arrangement. It's the latest in asset sales from the Detroit automaker. GM has had Saturn on the block since December 2008. If a deal to sell Saturn had not been made, GM planned to shut it down by year's end.
- Tribune Newspapers
Mattel fined $2.3 million over lead paint, official says
WASHINGTON -: Toy maker Mattel Inc. and its Fisher-Price subsidiary have agreed to pay a $2.3 million civil penalty for importing and selling toys with excessive levels of lead. The penalty is part of a settlement the companies reached with the Consumer Product Safety Commission, which announced Friday that the toymaker had knowingly violated a 30-year-old federal ban on lead paint in toys. The companies deny having willfully violated the ban. The penalty stems from a series of recalls by Mattel and Fisher-Price in 2007, when the companies recalled nearly 2 million popular Big Bird, Elmo, Dora and other toys because of excessive levels of lead paint.
- Associated Press
Coventry sells Medicaid unit to Magellan for $110M
NEW YORK -: Health insurer Coventry Health Care Inc. said Friday it will sell its fee-based Medicaid service business to Magellan Health Services Inc. for $110 million in cash. Bethesda-based Coventry said that the First Health Services Corp. business no longer fit its long-term strategy. The sale is expected to close in the third quarter. As part of the deal, Magellan Health has agreed to manage radiology services and provide cancer treatment management services in five Coventry markets. Magellan, which is based in Avon, Conn., provides health care outsourcing services. First Health Services is based in Glen Allen, Va., and provides pharmacy benefits management and other services for Medicaid programs. Coventry acquired the company in 2005.
- Associated Press
Small Illinois bank is 37th to fail so far this year
WASHINGTON - : Regulators have shut down Bank of Lincolnwood, a small bank in Illinois, marking the 37th failure this year of a federally insured bank. The Federal Deposit Insurance Corp. was appointed receiver of the failed bank, based in Lincolnwood, Ill., which had about $214 million in assets and $202 million in deposits as of May 26.
- Associated Press
