Hibernia deal suffers hit from Katrina
Credit card company Capital One cut the amount it was to pay for New Orleans-based Hibernia Corporation by about $500 million after assessing the impact of Hurricane Katrina on Hibernia's business in Louisiana, where it is the state's largest bank. Before the hurricane struck, Capital One had agreed to pay $5.5 billion for Hibernia. Sixty of Hibernia's 321 branches remained shut in Katrina's wake, with 21 sustaining significant damage, but Capital One's decision to downsize its offer was said to be mostly a result of the large number of commercial and consumer loans in Louisiana that are likely to be written off.
Endesa rebuffs hostile takeover bid
The board of Spanish power producer Endesa has rejected a hostile bid of €22.6 billion from Spain's Gas Natural on the basis that it was too low and did not reflect the real value of the company. The chief executive of Gas Natural, Rafael Villaseca, says the company will not make a bigger offer.
Hedge fund group bids for UK retailer
Goldman Sachs and a consortium of six hedge funds are said to have bid to take UK discount retailer Peacock private in a deal worth £400 million ($720 million).