Report: GM knew of faulty ignitions

Report: GM knew of faulty ignitions

DETROIT

General Motors officials did not comment Wednesday on a report that said the company knew about faulty ignition switches in its 2005 Chevrolet Cobalt a decade before it recalled the compact car.

USA Today, citing depositions from a civil lawsuit, reported GM knew in 2004 the Cobalt’s ignition switch could shut off, potentially causing power steering, brakes and airbags to fail.

Earlier this month, the company recalled 778,619 of its 2005-2007 Chevrolet Cobalts and 2007 Pontiac G5 compact cars in North America.

The recalled Cobalt models were manufactured at the GM plant in Lordstown.

Judge strikes down law allowing pipeline

LINCOLN, Neb.

A Nebraska judge on Wednesday struck down a law that allowed the Keystone XL pipeline to proceed through the state, a victory for opponents who have tried to block the project that would carry oil from Canada to Texas refineries.

Lancaster County Judge Stephanie Stacy issued a ruling that invalidated Nebraska Gov. Dave Heineman’s approval of the route. Judge Stacy agreed with opponents’ arguments that a law passed in 2011 improperly allowed Heineman to give TransCanada eminent-domain powers within the state. The judge said the decision should have been made by the Nebraska Public Service Commission, which regulates pipelines and other utilities.

The ruling could cause more delays in finishing the pipeline. State officials who defended the law are likely to appeal to the Nebraska Supreme Court.

Facebook buys app for $19 billion

NEW YORK

Facebook is buying mobile messaging service WhatsApp for $19 billion in cash and stock, by far the company’s largest acquisition and bigger than any that Google, Microsoft or Apple have ever done.

The world’s biggest social-networking company said Wednesday that it is paying $12 billion in Facebook stock and $4 billion in cash for WhatsApp. In addition, the app’s founders and employees — 55 in all — will be granted restricted stock worth $3 billion that will vest over four years after the deal closes.

The deal translates to roughly 9 percent of Face-book’s market value. In comparison, Google’s biggest deal, Motorola Mobility, stood at $12.5 billion, while Microsoft’s largest was Skype at $8.5 billion. Apple, meanwhile, has never done a deal above $1 billion.

The price stunned Gartner analyst Brian Blau. “I am not surprised they went after WhatsApp, but the amount is staggering,” he said.

Vindicator staff/wire reports