IBT Staff Reporter

Investors sold European stocks and bought government bonds and gold as trading got underway for the second half of 2007 on Monday, driven by security concerns after weekend bomb plots in Britain and higher oil prices.

Manor Care Inc., the largest U.S. operator of homes for the elderly, said on Monday it agreed to be acquired by Carlyle Group for $4.9 billion, becoming the latest health care provider taken off the public market by a private equity buyer.

Stock index futures rose on Monday, boosted by takeover news in the telecommunications sector and before a report on manufacturing activity that could give clues on the outlook for profits.

Bank of America Corp. said on Monday it completed its $3.3 billion purchase of the U.S. Trust business from Charles Schwab Corp., and is defying analyst concern that it would have trouble retaining many of U.S. Trust's ultra-wealthy clients.

Two government funds in the United Arab Emirates denied on Monday they were looking to acquire either Jaguar or Land Rover, the British luxury car brands of U.S. automaker Ford.

Reddy Ice Holdings Inc., a maker of packaged ice, said it agreed to be acquired by certain funds managed by hedge fund GSO Capital Partners LP in a deal with a total value of about $1.1 billion.

After more than 100 years as a niche player in Japan, the world's largest financial firm is expanding its retail operations.

The battle to take over Canada's biggest telephone company, BCE Inc., may not be over yet, with other suitors saying they are considering their options, The Globe and Mail reported on Monday.

Wesfarmers Ltd., which owns Australia's largest hardware chain, has agreed to buy retailer Coles Group Ltd. for A$20.7 billion ($17.7 billion) in cash and stock, in the country's biggest takeover.

Austrian biotech firm Intercell won a deal to sell shares and rights to its vaccine technology to drugmaker Novartis for 270 million euros ($363 million), pushing its stock to all-time highs on Monday.

McDonald's Corp will convert its British delivery fleet to run on biodiesel made from its own recycled cooking oil, the firm said on Monday in a statement.

Apple Inc.old about 525,000 iPhones at Apple and AT&T Inc. stores in the first weekend since its June 29 launch, the Los Angeles Times reported on Monday, citing an analyst.

Morgan Stanley has applied to buy up to 10 percent of Chinatrust, Taiwan's largest credit card issuer, local media reported on Monday.

General Motors Corp. said on Monday its 2 billion yuan ($263 million) engine plant in south China will begin production in August.

Bear Stearns Cos. may take until July 16 to tally losses at two struggling hedge funds that invested in risky mortgage-related securities, The Wall Street Journal Online reported on Monday.

Russia capped its journey from communism to capitalism on Sunday with the opening of a $1,000-a-night luxury hotel on the site of an old Soviet hostelry best known for its surly service and bugged telephones.

Chinese President Hu Jintao swore in Hong Kong's leader for a new term on Sunday and reminded the territory that the motherland comes first, as the city embarked upon its second decade under Beijing's rule.

Big Japanese firms remained upbeat about business conditions in June, a Bank of Japan survey showed on Monday, underscoring the view that the central bank may raise rates as early as August but will stick to a gradual pace of credit tightening.

Risks for the already sluggish performance of emerging debt markets this year are on the rise as liquidity starts to dry up this week, leaving investors warier of risky assets, which have already been shaken up by the U.S. subprime mortgage crisis.

Asian countries were warned on Monday against complacency that another Asian financial crisis could not hit the region.

About 2 percent of people who bought the keenly-awaited iPhone, launched on Friday by Apple Inc., have been experiencing delays in activating their service, a person familiar with the matter said on Sunday.

Universal Music Group, the world's largest music company, has declined to sign a long-term deal with Apple Inc.'s iTunes music store, leaving open the possibility for exclusive deals with other services, an industry source said on Sunday.

Honda Motor Co. is keen for its share of rapidly-growing markets like India and China to increase, its chairman said on Sunday, but Japan's second biggest auto maker is not in a hurry to enter the new battleground for very cheap small cars in India.

Japanese government bond futures rose to a three-week high on Monday after the Bank of Japan's June tankan survey generally matched forecasts, reinforcing market views that a rate hike could come as early as August.

Nintendo Co. Ltd.'s Wii game console outsold Sony Corp.'s PlayStation 3 by a ratio of over 6 to 1 in June in Japan, a game magazine publisher said, solidifying Nintendo's leading position.

The LU biscuits division of French food group Danone is due to meet trade union representatives on Tuesday to discuss possible changes at LU, a trade union source said, amid rumors the unit might be sold.

Even if a U.S. jury deliberating the fate of Conrad Black decides to acquit him, the toppled media mogul is likely to spend a lot more time in court.

Global Tower Partners, a U.S. wireless tower operator, is to be bought by a consortium of infrastructure funds managed by members of Australia's Macquarie Group in a deal valued at $1.4 billion.

Euroyen futures gave up early gains on Monday after the Bank of Japan's June tankan survey generally matched forecasts, reinforcing market views that the central bank may raise interest rates as early as August.