• Microsoft is in talks with Time Warner, News Corp., and several other potential partners to launch a new bid to take over Yahoo. [WSJ]
  • The New York State Court of Appeals ruled that ex-NYSE chief Dick Grasso can keep his $139.5 million severance package. [NYT]
  • Blockbuster has withdrawn its $1 billion bid for Circuit City. [MarketWatch]
  • Starbucks announced it will close an extra 500 stores and eliminate 7% percent of its employees. [WSJ]
  • Lehman stock has fallen to an eight-year low. [NYP]
  • AIG gave its deposed chief executive Martin Sullivan a $47 million severance package. [FT]
  • Skadden Arps clocked in as the top M&A legal adviser in the first half of 2008, besting Sullivan & Cromwell. [Bloomberg]
  • Sales of new cars hit a 10-year low in June. [NYT]