Business digest 08/24/06

Inventory of unsold homes at record high

WASHINGTON -- Sales of previously owned homes plunged in July to the lowest level in 2 1/2 years and the inventory of unsold homes climbed to a new record high. The National Association of Realtors reported Wednesday that sales of existing homes and condominiums dropped by 4.1 percent in July from June to a seasonally adjusted annual rate of 6.33 million. That was the lowest level since January 2004. Economists were forecasting the pace of sales to fall to 6.55 million. The inventory of unsold homes in July rose to a record high of 3.86 million. That represents a supply of homes still available for 7.3 percent of a month. That is the longest period to exhaust the supply of home since the spring of 1993.

Ford shares surge amid talk of alliance

DEARBORN, Mich. -- Shares of Ford Motor Co. surged more than 4 percent Wednesday, following a report that chairman and chief executive Bill Ford had approached Nissan-Renault CEO Carlos Ghosn about joining the global alliance. The report in The Wall Street Journal cited "a person well-positioned to know." Ford spokesman Oscar Suris said Wednesday that the company would not comment on what he called "speculation."

IBM continues roll of acquisitions

BOSTON -- With revenue growth sluggish at IBM Corp., Big Blue is buying its way to getting bigger. The company's recent acquisition roll continued Wednesday with a deal to spend $1.3 billion in cash for Internet Security Systems Inc., which performs network monitoring and analysis services for companies. IBM has now picked up three public companies this month. Two weeks ago, it sealed a $1.6 billion pact for FileNet Corp. On Aug. 3 IBM agreed to spend $740 million for MRO Software Inc.

-- From wire reports