Subsidiaries

At its bankruptcy filing last June, General Motors Corp. announced drastic cutbacks in its domestic and international operations but kept its South American subsidiary off the auction block. In a recent interview at the regional headquarters here of what is now General Motors Co., GM-Mercosur President Jaime Ardila explained why. Simply put, he said GM's Brazil operation, the company's third-largest after those in the U.S. and China, is the company's "most valuable asset" in profitability and growth potential.

German software maker SAP said Monday that it would shut down TomorrowNow, a subsidiary that provided support for Oracle Corp. software and was accused of stealing information from Oracle. Bryan, Texas-based TomorrowNow was formed by former engineers at PeopleSoft Inc., with the idea of providing less expensive software support to PeopleSoft customers. SAP bought TomorrowNow in 2005, about the same time that Redwood City, Calif.-based Oracle completed its $11.1-billion purchase of PeopleSoft.

Bargain hunters could snag some good deals by buying parts of troubled American International Group Inc.'s profitable subsidiaries in California and around the world, market analysts predicted Wednesday. Top-earning units that could be up for grabs in the state include 21st Century Insurance Co. of Woodland Hills, the state's seventh-largest automobile insurer, and International Lease Finance Corp. of Century City, which owns more than 950 commercial airliners. AIG also is the No.

Eastman Kodak Co. said Wednesday that it was selling its health-imaging business, created after the discovery of X-rays in 1895, to Canadian investment firm Onex Corp. for as much as $2.55 billion as the picture-taking pioneer bets its future on digital photography and commercial printing. Kodak said it planned to pay down about $1.15 billion in debt and funnel the rest of the proceeds into unspecified digital ventures as profits from its storied film business rapidly erode.

Ford Motor Co., seeking to raise cash after a $12.7-billion loss last year, agreed to sell its auto service contract unit to a private equity fund. Ford's Automobile Protection Corp. will be bought by Trident IV, a fund managed by Stone Point Capital, the automaker said. Automobile Protection sells extended warranties and service contracts to buyers of new and used vehicles. Terms weren't disclosed.

The U.S. Supreme Court ruled Tuesday that units of national banks were largely exempt from state regulation, a decision critics said would further erode the ability of California and other states to enforce consumer-protection laws. The 5-3 decision involved a dispute between the state of Michigan and Wachovia Corp.'s mortgage loan subsidiary. But consumer groups said banks could use the ruling to run a variety of enterprises unrelated to banking -- and outside the scrutiny of state regulators.

General Electric Co. is close to an agreement to sell its plastics division to Saudi Arabia's biggest industrial company for about $11 billion, the Wall Street Journal reported. The suitor, Saudi Basic Industries Corp., is one of the largest non-oil companies in the Middle East and has manufacturing and research facilities around the world. It had been bidding against Dutch plastics giant Basell, the Journal reported on its website. A spokesman for GE declined to comment.

KB Home said Thursday that it was in talks to sell its thriving French unit to a private equity firm for more than $800 million, a deal that would infuse the beleaguered home builder with cash and allow it to shed another vestige of its former leader's legacy. Westwood-based KB Home, which is one of the largest builders in the United States, is unique among its peers because it also constructs houses in France.

KB Home, the Westwood-based builder that has had two years of falling profit, said Wednesday that it agreed to sell its French subsidiary, Kaufman & Broad, to PAI Partners for 601 million euros ($812 million). PAI, a Paris-based buyout firm, will pay 55 euros a share for a 49% stake in Kaufman & Broad, the largest home builder in Paris, KB Home said. PAI also will buy stock owned by Kaufman & Broad Chief Executive Guy Nafilyan to own more than 50% of the company.

Viacom Inc. said Wednesday it will sell its Famous Music publishing unit to Sony/ATV Music Publishing, the song catalog co-owned by pop star Michael Jackson. The deal is estimated to be worth $370 million in cash, people familiar with the talks said. Famous Music's catalog of more than 125,000 songs and sound cues includes music by Eminem and Shakira as well as soundtracks from "The Godfather" and "Mission: Impossible." Famous was founded to publish songs from movies.