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PRESS DIGEST- New York Times business news - Aug 1
August 1, 2014 / 5:42 AM / 3 years ago

PRESS DIGEST- New York Times business news - Aug 1

Aug 1 (Reuters) - The following are the top stories on the New York Times business pages. Reuters has not verified these stories and does not vouch for their accuracy.

* Kabam, a video game start-up, said on Thursday that it has received a $120 million investment from Alibaba Group Holding Ltd IPO-BABA.N. The new round gives Alibaba a board seat and what is likely a significant stake in Kabam, which said it is now worth more than $1 billion. (nyti.ms/1u5mfCj)

* Tesla Motors Inc announced on Thursday that it had an agreement with Panasonic Corp to build a large-scale battery plant in the United States. The planned factory will produce batteries for Tesla's all-electric vehicles, as well as modules for the stationary storage market. The company said it estimated that the plant and its associated supplier complex, which it is calling the Gigafactory, would employ 6,500 people by 2020. (nyti.ms/1puMaSP)

* Federal authorities are sounding alarms about a wide range of fraudulent schemes involving a popular prepaid money card product. Thousands of consumers have been lured into sending money through the card, called MoneyPak. For online fraudsters, the reusable green-and-white paper card that can be used to quickly reload, or transfer, hundreds of dollars in cash onto another prepaid card is often the money conduit of choice.(nyti.ms/1xHXNHm)

* In February, General Motors Co hit a milestone of sorts when its sales incentives, as tracked by the research firm Edmunds.com, dropped below those of its domestic rivals. But since its safety crisis began to mount in the spring, the automaker has piled on cash incentives and cheap lease deals to invigorate sales of its passenger cars, particularly the smaller models, joining what some of its competitors have been doing as well. (nyti.ms/1rULfy8)

* Target Corp named Brian Cornell as its new chief executive on Thursday, bringing in an outsider to lead the company for the first time as it looked to right itself. Cornell was most recently the chief executive of PepsiCo's Americas Foods unit. (nyti.ms/1tAELVM)

* Lenders to Puerto Rico's electric power authority are giving the beleaguered utility another two weeks before it has to make past-due payments on its lines of credit. PREPA owes money on two main credit lines - a roughly $250 million line from Citigroup Inc and a $550 million line from a syndicate of banks. (nyti.ms/1kaduGz)

* Iliad SA, France's fourth-biggest mobile company, said on Thursday that it had made a $15-billion bid for a majority stake in T-Mobile US Inc, a company that is roughly 60 percent bigger than it in market value. Under the terms of the deal, Iliad said it would offer $15 billion for a 56.6 percent stake in T-Mobile US. The French company said it valued the remaining stake in T-Mobile US at $40.50 a share, based on unspecific cost savings totaling $10 billion to be created from the deal. (nyti.ms/UECYjx)

* Shares in Synchrony Financial, the North American retail finance unit being spun off by General Electric Co , opened largely unchanged on Thursday after it raised about $2.9 billion in its initial public offering. Synchrony Financial, which handles private-label credit cards for major retailers like Gap Inc and Wal-Mart Stores Inc, ranks as the largest IPO this year in terms of money raised. (nyti.ms/1obvsrU)

* David Johnson, a former executive at the mortgage finance giant Fannie Mae, is joining FTI Consulting Inc as its chief financial officer. He will take over the role on Aug.25. (nyti.ms/1s9rNfJ)

* Four years after federal regulators passed new rules aimed at curbing overdraft fees, the Consumer Financial Protection Bureau is still finding problems with the high fees that banks charge customers when they overdraw their accounts. In a new report released, the agency said overdraft fees continue to pile up for many bank customers, particularly among young people. (nyti.ms/WQzA6R)

* The Food and Drug Administration announced on Thursday that it would start regulating medical laboratory testing, saying that tests used to make important treatment decisions must be vetted and validated before they go into use. (nyti.ms/1ADV4TH)

* Microsoft Corp has suffered a setback in its efforts to block United States federal prosecutors from seizing a Microsoft customer's data that is stored overseas. Judge Loretta Preska of the United States District Court for the Southern District of New York on Thursday upheld a magistrate judge's ruling that the company must turn over the customer's emails held in a Microsoft data center in Ireland. Microsoft plans to appeal the ruling. (nyti.ms/UEEJNO)

Compiled by Rishika Sadam in Bangalore; Editing by Biju Dwarakanath

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