Brazilian President Dilma Rousseff says Foxconn Technology may spend $12 billion over the next to five to six years to expand production in the country, in what would be the Taiwanese company's biggest investment overseas. Taipei-based Foxconn confirmed it is considering the move but declined to comment on its value. Investing in Brazil may help Foxconn scale back its reliance on manufacturing in the southern Chinese city of Shenzhen, where wages are climbing. The proposed facility would produce tablet computers and could create 100,000 jobs, according to Brazilian officials. Brazil plans to offer tax incentives to tablet makers in a bid to attract high-tech manufacturing.
Cisco Systems: Ditching Flip Cameras
San Jose-based Cisco Systems (CSCO) is closing its Flip video-camera unit and cutting about 550 jobs as part of a reorganization of its consumer businesses. The move is part of a plan by CEO John Chambers to restore lost investor credibility and sharpen the company's focus. Cisco's gross margin, a measure of profitability, narrowed to 64 percent last fiscal year from 70 percent in 2003, to some extent because of a push into consumer products. Cisco shares, as of Apr. 12, have fallen 34 percent in the past year.
Daimler/Robert Bosch: An Electric-Car Motor Partnership
Daimler (DAI), the world's No. 2 maker of luxury cars, says it will team up with Robert Bosch, the world's biggest maker of auto parts, to build motors for electric vehicles. The two Stuttgart (Germany)companies are negotiating a 50-50 joint venture to start production next year. Daimler says it will install motors from the venture in Smart and Mercedes cars starting in 2012. Bosch will sell the motors to other carmakers. Daimler rival BMW plans to introduce its i3 battery-powered city car in 2013.
Goldman Sachs: Target of a Fraud Suit
Goldman Sachs (GS) faces a lawsuit from two of Marvell Technology's (MRVL) co-founders, who allege the investment bank tricked them into selling company shares now worth $141.5 million. The chip company's CEO, Sehat Sutardja, and former COO Weili Dai say Goldman in 2008 claimed a regulatory rule (which didn't exist) required them to sell a chunk of stock. At the time, Goldman held millions of shares of Marvell stock. A spokeswoman for Goldman did not return a call or an e-mail requesting comment on Apr. 13.
Banks to Make Amends: Settlement on Botched Foreclosures
The 14 largest U.S. mortgage servicers must pay back homeowners for losses from foreclosure proceedings that were mishandled after the real estate bust, according to a consent decree released on Apr. 13. The banks, including JPMorgan Chase (JPM) and Wells Fargo (WFC), did not admit wrongdoing but agreed to review all loans that went into foreclosure in 2009 and 2010 and to make improvements to their practices. The deal is the result of state and federal investigations into the business practices of the mortgage industry.
On the Move
— Hochtief: Frank Stieler elected CEO, effective May 12.
— Renault: COO Patrick Pélata resigns following a bungled corporate espionage probe.
— UBS (UBS): Stephen Cummings to join as chairman of Americas investment banking.