Nasdaq in longest losing streak since 1994
New York: U.S. stocks dropped, and the Nasdaq Composite Index went into its longest losing streak since 1994, amidst concern that the Federal Reserve will keep raising interest rates.

Stocks slumped after a private report hinted at an economic slowdown and a Fed official said a rise in consumer prices makes the central bank less likely to pause.

The Nasdaq fell 15.48, or 0.7 percent, to 2180.32, for an eighth straight decline. The Standard & Poor's 500 Index lost 8.51, or 0.7 percent, to 1261.81, a three-month low. The Dow Jones Industrial Average fell 77.32, or 0.7 percent, to 11,128.29, an encore to a 200-point drop a day ago.

The S&P 500 has fallen 4.8 per cent since the Fed on May 10 lifted the benchmark lending rate for a 16th straight time, the biggest drop over any seven trading days since March 2003.

Consumer prices increased more than economists expected last month, the government said yesterday, triggering the biggest single-day drop in stocks since January.
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Mittal ready to sell assets to gain regulatory approval
Rotterdam: Mittal Steel Co., the world's largest steel producer, has said that it would sell assets in Europe and the U.S. to win regulatory approval for its hostile $25.7 billion takeover of rival Arcelor SA.

According to an offer document posted on its Web site two Arcelor steel mills in Europe and one Mittal mill in North America would be sold unless Arcelor's Canadian assets are purchased by a third-party.

Arcelor, based in Luxembourg, acquired Canada's Dofasco Inc. in March and transferred it to a Netherlands-based trust. The move was intended to prevent Mittal, should its takeover succeed, from selling Dofasco to Germany's ThyssenKrupp AG. Mittal received U.S. antitrust clearance for the bid May 12 on the proviso that it sells Dofasco to ThyssenKrupp. According to Mittal, its lawyers are working on a way around the transfer should Arcelor managers refuse takeover talks.

Mittal's planned purchase of Arcelor would be the biggest in the steel industry and create a producer three times as large as its nearest rival. Meanwhile Arcelor, trying to fend off the bid, has said that it will seek shareholder approval to buy back as much as a fourth of its stock.

Under EU rules, companies can be forced to divest assets to gain merger approval. The European Commission, the EU's antitrust enforcer, analyzes whether a combined company would hurt competition by gaining too much market power. On May 10, the commission extended its review of Mittal's bid by two weeks after Mittal offered concessions to overcome competition concerns.

The regulator said it will rule by June 7. Mittal received U.S. antitrust clearance today.
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Dell dumps Intel for AMD
San Francisco: Dell has announced that it will begin using chips from AMD by the end of the year. Dell had been the last major PC maker to use processors only from Intel, the world's largest chip supplier.

Dell said it plans to introduce multiprocessor server computers using Opteron chips by the end of the year. Analysts said that the announcement might be indicative of the fact that Dell has concluded AMD might have a better solution even after Intel launches its next generation.

Struggling to regain market share and kick-start profit growth, Intel is overhauling its product line-up this year, promising chips that use less power and deliver more performance.

According to some analysts, Dell switching loyalties may not be a big blow to Intel as long as its new products live up to expectations.
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