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Aug 30, 2016

DealBook | Today's News - August 30, 2016: Truck of Takata Airbag Parts Explodes, Apple Faces Taxes, Mondelez Abandons Hershey.

The New York Times

  By Amie Tsang

A woman was killed in her home and four other people were injured when a truck carrying Takata airbag parts crashed and detonated in Texas last week. The blast demonstrated just how potent the explosives used to activate Takata airbags are, creating an explosion so immense that the victim’s remains were not found for two days.
It also highlights how risky it is to transport the airbag inflater explosives — the focus of the largest auto safety recall in history. An internal document provided by a former Takata employee shows that drivers operating these trucks over their 36-hour journey are required to wear fire-resistant clothing, steel-toed boots with rubber soles, safety goggles and helmets.
The company is expected to face intense scrutiny over its packaging and shipping. And this is not the first accident involving the chemical used in Takata airbags — in 2006, blasts at its plant in Monclova, Mexico, caused by the chemical forced hundreds of workers and residents to evacuate.
Decision Time for Apple’s Taxes
The big day has come, and a big bill has arrived with it. The European Union’s competition authority announced its ruling on Apple’s tax dealings and demanded that Apple pay back taxes to the Irish government. How much? $14.5 billion.
The ruling is unlikely to improve trans-Atlantic relations, after American officials accused their European counterparts of overstepping their reach and campaigning against American corporate success.
Mondelez Gives Up on Wooing Hershey
Mondelez, the maker of Oreos, is passing on chocolate for the moment. Hershey chocolate, anyway.
The company said it was abandoning its effort to buy Hershey after its $23 billion offer was rebuffed. The companies talked but were unable to work it out even after Mondelez raised its offer from $107 for each share to $115. Hershey did not want to take anything less than $125, people with knowledge of the talks said.
It was a rather bitter end for investors: Hershey shares tumbled almost 12 percent in after-hours trading. Mondelez gained about 3 percent.
Coming Up
The latest data from the Conference Board’s consumer confidence index and the Standard & Poor’s/ Case-Shiller Home Price Index will be published.
Contact amie.tsang@nytimes.com

 
Deals
Chinese-Owned Zhongwang Enters U.S. Aluminum Market
By REUTERS
Zhongwang, backed by the Chinese aluminum magnate Liu Zhongtian, is buying Aleris in a bet on United States automotive aluminum.
Sycamore Partners Confirms Bid for Teenage-Focused Retailer
By REUTERS
The private equity firm Sycamore Partners confirmed its bid after a judge issued an opinion rejecting an attempt by the retailer, Aeropostale, to block an offer and blame its bankruptcy on Sycamore.
 
Banking
Goldman Appointment Attracts Protest
By THE FINANCIAL TIMES
More than 76,000 people have signed a petition asking for punitive measures to be taken against José Manuel Barroso, the former president of the European Commission, for taking the job of nonexecutive chairman of Goldman Sach’s investment bank in London.
Warsaw Tries to Woo London Bankers
By THE FINANCIAL TIMES
Mateusz Morawiecki, Poland’s deputy prime minister, will visit London armed with a package of incentives to offer senior executives at some of the biggest banks in the city.
Activists Circle U.S. Lenders
By THE FINANCIAL TIMES
For any activist, the banking sector in the United States is a target-rich environment. Almost eight years after the financial crisis, many banks are still not making the double-digit return on equity which has long been seen as an acceptable threshold for profits.
 
Moves and Appointments
Pipe is stacked at the southern site of the Keystone XL pipeline in Cushing, Okla.
Williams Companies Appoints 3 New Directors
By LESLIE PICKER
The new slate will be up for election in November and will probably face pivotal decisions on the embattled pipeline operator’s future.
David Drummond, who leads corporate development and investment initiatives at Alphabet, working in Google’s offices in Washington in 2013. Mr. Drummond stepped down from Uber’s board as the two tech giants’ agendas increasingly overlap.
Uber and Alphabet’s Rivalry Heats Up as Director Chooses Sides
By MIKE ISAAC
David Drummond’s having a hand in each company became untenable as the two converge on mapping technologies, ride sharing and autonomous cars.
Ansys Names Chief Executive
By LESLIE PICKER
Ajei S. Gopal, who has been on the board of Ansys for more than five years, will assume the lead role in January, succeeding James E. Cashman.
Leader of K.K.R. China Leaves to Start Own Firm
By THE FINANCIAL TIMES
David Liu, co-head of private equity and head of K.K.R. China, is leaving to set up his own firm as investors are expecting K.K.R. to start raising money for its third Asia fund.

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Legal and Regulatory
White Collar Watch
In 2011, Robert Khuzami of the Securities and Exchange Commission announced charges against top executives from Fannie Mae and Freddie Mac.
Prosecution of Financial Crisis Fraud Ends With a Whimper
By PETER J. HENNING
The Securities and Exchange Commission settled its last remaining case against a former Fannie Mae chief executive, accepting a token payment.
Representative Carolyn B. Maloney is requesting a host of information related to granular trading data.
Congresswoman Presses Regulators on Volcker Rule Data
By VICTORIA FINKLE
Representative Carolyn B. Maloney requested two years of information that could help inform the debate over the rule’s impact on the financial system.
Firms Say Goodbye to Flattering Financial Reports
By THE WALL STREET JOURNAL
Among the companies in the Standard & Poor’s 500-stock index reporting results since the start of July, 81 percent have given prominence to figures that conform to generally-accepted accounting principles, an increase from the 52 percent that did so when reporting first-quarter results, according to an Audit Analytics analysis conducted for The Wall Street Journal.
Duke Withdraws Claim Against Aubrey McClendon’s Estate
By THE WALL STREET JOURNAL
Duke University said that it had withdrawn a claim for about $10 million that it made against the estate of the oil entrepreneur Aubrey McClendon, who died before he could make good on pledges the North Carolina college said that he made to his alma mater.
 
Health Care
Mylan Tries Again to Quell Pricing Outrage by Offering Generic EpiPen
By ANDREW POLLACK
Critics are still not mollified after the pharmaceutical maker introduced a generic competitor to its own branded product, EpiPen, at half the price.
Public Health
A health insurance signup event in Los Angeles in November 2014. Among the problems for the Obamacare marketplaces is that not enough people have signed up.
Obamacare Marketplaces Are in Trouble. What Can Be Done?
By REED ABELSON AND MARGOT SANGER-KATZ
A look at four major challenges the Affordable Care Act is facing and some possible solutions.
F.D.A. Issues Emergency Approval for Drug Maker’s Zika Test
By REUTERS
The Food and Drug Administration issued emergency authorization for a Zika diagnostics test from Roche, a Swiss drug maker, as the regulator moved to fight the disease’s spread.
 
Business
Breakingviews
A sears store in Salem, N.H. Sears shares have lost nearly 90 percent of their value since 2007.
Edward Lampert and His White Whale, Sears
By KEVIN ALLISON
What Mr. Lampert, who controls Sears, once called an “enormous undertaking” to revive the company, once America’s biggest retailer, has become an increasingly forlorn pursuit.
Japan’s Top Government Spokesman Signals Readiness to Stem Yen Gains
By REUTERS
The chief cabinet secretary, Yoshihide Suga, said the government was watching market moves carefully and was ready to respond “appropriately.”
Mitsubishi Motors Said to Have Overstated Fuel Economy on Eight More Models
By REUTERS
The company would most likely withdraw the affected vehicles from the market to revise its catalogs, and compensation to customers was a possibility, a Japanese newspaper said.
Greeks watching television coverage of a rally in July last year in a cafe in Athens. The government opened TV broadcasting to unregulated private entities in the 1980s.
Greece Cracks Down on ‘Triangle of Corruption’ in TV
By NIKI KITSANTONIS
The leftist government plans to auction off four new TV licenses on Tuesday, spurring a sharp debate and struggle for media power.