IBT Staff Reporter

The London Stock Exchange is to buy its Italian counterpart for 1.6 billion euros ($2.15 billion), the two exchanges confirmed in a statement on Saturday, the latest step in a global consolidation of exchanges.

The European Union will work to overhaul its 27-nation treaty to replace an EU constitution it rejected in 2005.

A Russian bank has received $25 million of North Korean funds which had been frozen in a Macau bank account, removing an obstacle to a deal over North Korea's nuclear program, Russia's Foreign Ministry said on Saturday.

Drought affecting large swathes of China has left more than 8 million people short of water, and many livestock have died of hunger, the official Xinhua news agency said.

Arise, ye who refuse to be slaves! go the stirring words that open China's national anthem.

Bear Stearns Cos. Inc. (NYSE: BSC) on Friday said it would provide up to $3.2 billion in financing for a struggling hedge fund it manages, raising concern about other funds that invested in bonds linked to subprime mortgages.

Blackstone Group LP (NYSE: BX) units rose 13 percent in their first day of trading on Friday, as the first major U.S. private-equity firm went public and minted billions of dollars of new wealth for its founders.

Stocks tumbled on Friday, wrapping up their worst week since a global sell-off in February amid fears that trouble at two Bear Stearns hedge funds may signal worse problems lie ahead for credit markets.

U.S. Treasury debt prices rose on Friday, halting a two-day decline, as nervous investors dumped stocks and shifted into government bonds as fears of the subprime mortgage problems reverberated through financial markets.

Visa, the world's largest credit card network, unveiled details of a planned restructuring on Friday as it prepares by early next year to follow smaller rival MasterCard Inc. in becoming a public company.

Shares of Macy's Inc.rose as much as 10 percent on Friday and its options volume surged on speculation that the retailer, whose same-store sales have been disappointing in recent months, was ripe for a takeover.

Most major global equity indexes fell and safe-haven Treasuries rose on Friday as concerns lingered before the weekend that troubles in U.S. credit markets might spread.

Lear Corp., which has faced criticism for accepting billionaire Carl Icahn's $36-per-share buyout offer, delayed a shareholder vote on the deal until July 12, the auto parts maker said on Friday.

Furniture retailer Pier 1 Imports, Inc. reported a wider than expected fiscal first quarter loss Thursday. It also said it may need to close down more stores than originally planned.

Shares of AES Corp. rose on Friday after they received an upgrade to buy from hold from Citigroup, which said the power company's weak recent share performance and good outlook provide an entry point for investors.

Goldman Sachs’ (NYSE: GS) real estate fund, Whitehall, has agreed to acquire hotel owner Equity Inns, Inc. (NYSE: ENN) in a deal worth $1.27 billion, not including debt, the companies announced Thursday.

Media companies fear that video recording software will facilitate piracy and rob them of lucrative advertising revenue just as they are making more TV shows, movies and video available online.

Researchers at a U.S. company trying to push the margins of stem cell research said on Friday they had grown human embryonic stem cells using a non-controversial method that did not harm the embryos.

A dispute over the place of competition policy in a European Union reform treaty was resolved at a summit on Friday after free-marketeers reached an agreement with France.

Pearson Plc (NYSE: PSO) and General Electric Co. (NYSE: GE) dropped plans on Thursday to propose a bid that would have rivaled News Corp.’s $5 billion offer for Down Jones & Co., Inc. (NYSE: DJ), publisher of the Wall Street Journal.

Yahoo Inc. said Thursday that it will acquire the college and high school sports website Rivals.com, bolstering its current top rated sports offerings.

Shares of Cognos, Inc. (TSX: CSN) fell more than 2 percent on Friday, a day after Canada’s largest software developer forecast a second fiscal quarter profit short of analysts’ estimates.

Congo is ready to cancel more than half its timber contracts to protect the world's second biggest tropical forest but it wants more aid from foreign governments to help do so, the environment minister said.

UK oil major BP Plc agreed to sell its interest in the Siberian Kovykta gas field to state-controlled Gazprom at a knock-down price on Friday, as the Kremlin continues to tighten its grip over Russia's oil and gas industry.

Asia is set to overtake Europe's early lead in adopting mobile television broadcasting as Europe struggles to find available airwaves for broadcasts, industry executives at an Asian trade fair said this week.

Cablevision Systems Corp. said on Thursday it will have the capability to carry more than 500 channels of high definition television programming by year-end as competition mounts from satellite TV and telephone operators.

Bear Stearns Cos., trying to prevent the collapse of two of its hedge funds, may take over about $3.2 billion of the funds' loans to prevent creditors from seizing more assets, Bloomberg reported on its Web site on Friday.

Video game publisher Take-Two Interactive Software Inc. said on Thursday it has suspended plans to sell Manhunt 2 after the title was slapped with restrictive ratings for its extreme violence.

Key trade representatives from the U.S. , EU Brazil, and India could resume talks.