Intelligencer Journal/Lancaster New Era
Hostess picks lead bid for Twinkies U.S. challenges beer merger Spending up 0.2%; income surges
NEW YORK (AP) -- Hostess formally has picked a lead bidder for its famous Twinkies.
The bankrupt company said late Wednesday that it has selected a joint offer from two investment firms -- C. Dean Metropoulos & Co. and Apollo Global Management LLC -- as the lead bid for its Twinkies and other snack cakes. The move had been anticipated.
Hostess says the two are teaming on a $410 million bid for the snack-cake business and five bakeries.
The "stalking horse" bid would set the floor for an auction process that lets competitors make better offers.
WASHINGTON (AP) -- The Justice Department filed a lawsuit Thursday to stop Anheuser-Busch InBev's proposed $20.1 billion purchase of Mexican brewer Grupo Modelo, which would unite the ownership of popular beers like Budweiser and Corona.
The government said the deal could lead to higher beer prices in this country because it would substantially reduce competition in the U.S. beer market, particularly in 26 metropolitan areas. It said the merged firm would control nearly half of the beer sales in the U.S.
In response, Anheuser-Busch InBev promised a court fight to preserve its deal.
Americans spent at least $80 billion on beer last year. ABI's Bud Light is the best-selling beer in the nation and Modelo's Corona Extra is the best-selling import.
WASHINGTON (AP) -- U.S. consumers increased their spending in December at a slower pace, while their income grew by the largest amount in eight years. Income surged because companies rushed to pay dividends before income taxes increased on high-earners.
The Commerce Department said Thursday that consumer spending rose 0.2 percent last month. That's slightly slower than the 0.4 percent increase in November.
Income jumped 2.6 percent in December from November, the biggest gain since December 2004. The main driver of the increase was dividend payments, which companies accelerated to beat the January rise in income tax rates.
Wages and salaries grew 0.6 percent.