U.S. stocks fall on price, housing data
NEW YORK, Feb. 16 (UPI) -- U.S. stock indexes fell Friday after U.S. wholesale prices dropped and housing starts plunged.
The Dow Jones industrial average sank 14.58 points or 0.11 percent to 12,750.43. The broader Standard & Poor's 500 index lost 3.88 or 0.27 percent to 1,452.93. The technology-heavy Nasdaq Composite Index fell 10.48 or 0.42 percent to 2,486.62.
U.S. wholesale prices fell 0.6 percent, the biggest drop in three months, the U.S. Labor Department said.
U.S. home construction plummeted 14.3 percent to a seasonally adjusted 1.408 million annual rate, the lowest point in nearly 10 years, the U.S. Commerce Department said.
Japan's Nikkei index closed down 21.58 points or 0.12 percent at 17,875.65.
The 10-year U.S. Treasury note rose 10/32, or $3.13 for every $1,000 invested, yielding 4.67 percent. The 30-year bond was up 21/32, yielding 4.768 percent.
The U.S. dollar was at 118.99 yen from 119.22 yen at Thursday's close. The euro was at $1.3134 from $1.3145 late Thursday.
Report: American Air takeover target
FORT WORTH, Texas, Feb. 16 (UPI) -- American Airlines parent AMR Corp. is a possible buyout target by Goldman Sachs Group Inc. and British Airways PLC, a published report said Friday.
BusinessWeek said the investment group proposed buying AMR of Fort Worth, Texas, for between $9.8 billion and $11.1 billion, or $46 to $52 per share.
It is uncertain that a bid will lead to a deal, BusinessWeek said.
AMR declined to comment. Goldman Sachs was not immediately available for comment. A British Airways spokesman the company does not "comment on rumor or speculation."
AMR shares rose 4 percent in mid-morning trading on the New York Stock Exchange after closing at $38.05 Thursday.
Compass Bank agrees to $9.6B buyout
BIRMINGHAM, Ala., Feb. 16 (UPI) -- Southern U.S. bank Compass Bancshares Inc. said Friday it agreed to be taken over by Spain's Banco Bilbao Vizcaya Argentaria SA for $9.6 billion.
The deal will make the Spanish bank one of the top 20 U.S. operators and give it a strong presence in Texas, which the bank has identified as an expansion market because of its close financial ties to Mexico, BBVA said.
BBVA said it would give Compass shareholders 2.8 of its shares or $71.82 in cash for each Compass share -- a 16-percent premium on Compass' average closing price over the past 10 days.
Compass shares closed at $66.37 on the Nasdaq Stock Market Thursday, up $4.59 or 7.43 percent.
The transaction, subject to regulatory and shareholder approvals, has been approved by the by both banks' boards, the banks said. They did not say when they expected the deal to close.
The Wall Street Journal reported Friday another bidder could emerge.
BBVA has been expanding in the United States since 2004, buying smaller Texas and other Sunbelt banks.
Allstate said to seek Calif. exit
SACRAMENTO, Feb. 16 (UPI) -- Allstate Corp., which stopped covering homeowners in hurricane-prone U.S. states, may stop writing policies in California too, a state official says.
"Their strategy is an exit strategy," said Lt. Gov. John Garamendi, who oversaw Allstate rates for the last four years as insurance commissioner. "They've said they want to get out of the homeowners business in a market that is competitive, healthy and profitable."
He told The Los Angeles Times such a move was "stupid."
Allstate spokesman Mike Siemienas said the company would not "speculate on what future actions we're going to take."
Citing California's potential for natural disasters, Allstate has requested a 12 percent rate increase at a time when most home insurers are cutting rates.
Allstate said it needed the rate increase to build its reserves to pay future claims arising from the wildfires and earthquakes.
"The costs of protecting against losses have gone up dramatically," Allstate spokesman Rich Halberg said. "They are costs that we believe should be reflected in rates."
