News In Brief
GE Capital has agreed to acquire Franchise Finance Corporation of America (FFCA) in a $1.4 billion cash deal, the companies announced. GE Capital, based in Stamford, Conn., is a subsidiary of General Electric and offers such services as credit cards, life and auto insurance, and specialized financing. Scottsdale, Ariz.-based FFCA provides real-estate financing for operators of chain restaurants, convenience stores, and automotive-parts and -service outlets. FFCA will operate under the same name as a division of GE Capital Commercial Equipment Financing.
Meatpacking giant IBP Inc. filed a lawsuit to force Tyson Foods, the world's top poultry producer, to complete the $3.2 billion takeover that the companies announced Jan. 1. The suit, filed in Chancery Court in New Castle County, Del., came one day after Tyson filed its own litigation. The latter's suit seeks to terminate the deal because Dakota Dunes, S.D.-based IBP acknowledged an investigation had found potential manipulation of financial records, theft, and mismanagement in one of its divisions. Tyson, which won a bidding war with Smithfield Foods to acquire IBP, is based in Springfield, Ark.
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