Hess plans new Ohio wells
New York-based Hess Corp. on Tuesday said it intends to drill five Utica Shale wells in eastern Ohio in early 2016.
The company also intends to complete 14 Utica Shale wells in the first quarter 2016.
Those projects will cost about $45 million.
After those wells are complete, Hess intends to release its Ohio drilling rig and drilling will be halted because of low commodity prices.
The company said it intends to spend $2.4 billion on capital and exploratory projects in 2016. That is a 40 percent reduction from the $4 billion spent in 2015. That includes $470 million for shale development in Ohio and North Dakota.
Hess has been trying to sell its leased lands in Ohio.
Lockheed separating unit
Lockheed Martin is separating its information systems and global solutions unit, combining it with the engineering company Leidos so that it can focus on its remaining aerospace and defense business.
The division has about $5 billion in sales and more than 16,000 employees globally.
Its shares dropped more than 3 percent in morning trading Tuesday.
Lockheed Martin Corp. will receive a special one-time payment of $1.8 billion. The Bethesda, Md., company’s shareholders will receive about 77 million Leidos shares with an estimated value of $3.2 billion.
Existing shareholders of Leidos Holdings Inc. will continue to hold the remaining outstanding shares.
Reston, Va.-based Leidos is expected to pay its shareholders a special dividend of about $1 billion.
AIG selling off its brokerage
Insurer AIG is selling its broker-dealer segment, starting an initial public offering for its mortgage-insurance division and slashing expenses after coming under pressure from activist investor Carl Icahn.
Icahn has been pushing New York-based AIG to break itself into three separate companies.
AIG shares rose more than 2 percent in morning trading Tuesday.
American International Group Inc. said that it will sell AIG Advisor Group to private equity firm Lightyear Capital LLC and Canadian pension investment manager PSP Investments. Terms were not disclosed. The transaction is expected to close in the second quarter.
Chinese group bids on Terex
Shares of heavy-lifting equipment maker Terex Corp. soared Tuesday after the company announced it had received an unsolicited takeover offer of $30 per share from China’s Zoomlion Heavy Industry Science and Technology Co.
The bid would value Westport, Conn.-based Terex — once a major employer in Hudson — at about $3.3 billion. Terex said it signed a confidentiality agreement with Zoomlion and its board is reviewing the proposal.
Terex said in August it would merge with Finnish company Konecranes PLC. Terex said Tuesday that its board had not changed its recommendation to combine with Konecranes.
Ford recalls Ranger pickups
Ford is recalling nearly 391,000 Ranger pickups because the driver’s air bag inflators can explode with too much force and cause injuries.
The recall covers trucks from the 2004 through 2006 model years in the United States and Canada.
It comes just days after the government announced that a South Carolina man was killed when an inflator exploded in December.
The government says automakers will recall another 5 million vehicles equipped with faulty inflators made by Takata Corp. of Japan. Other automakers are expected to announce more recalls soon; 14 auto and truck makers have now recalled about 24 million vehicles due to the Takata inflators.
Compiled from staff and wire reports.