Aetna to sell subsidiaries

HARTFORD, Conn.-Aetna is selling its financial services andinternational businesses to Dutch insurance and banking giant INGGroup for $5 billion, allowing the nation's largest health insurer tofocus on its ailing health care business. The deal also vaults ING toa leadership position in American, Latin American and Asian-Pacificinsurance and financial services markets. The acquisition would makeING the largest life insurance and annuity broker in the UnitedStates in terms of premiums and the No. 6 insurer in terms of assets.The combined group will have annual insurance sales of $20.2 billionin the United States, managing $176 billion in assets.

Mortgage rates hit 8.21 percent

WASHINGTON-Mortgage rates rose this week. The average interestrate on 30-year fixed-rate mortgages climbed to 8.21 percent,compared with 8.09 percent last week, according to a survey releasedThursday by Freddie Mac, the mortgage company. Fifteen-yearmortgages, a popular option for refinancing, also rose to 7.93percent this week from 7.80 percent the previous week.

Fingerhut debt hurts Federated

CINCINNATI-Federated Department Stores Inc. warned Thursday thatunpaid consumer debt in its Fingerhut unit, which sells throughcatalogs and the Internet, hurt the company's second-quarterearnings. The resulting losses will reduce earnings before interestand taxes by $150 million, or 43 cents per share, for the quarter.Federated also warned that the problem might cost an additional $200million to $250 million this fall. Federated bought Fingerhut Cos. ofMinneapolis for $1.7 billion last year to boost its direct-to-customer sales business, which previously consisted of Bloomingdale'sby Mail and Macy's by Mail direct mail catalogs and the Macys.comInternet site. Fingerhut was known for expertise in direct marketingand handling orders through catalogs and the Internet.

Bertelsmann to buy CDNow

FRANKFURT, Germany-Bertelsmann is buying the struggling Internetmusic retailer CDNow for $117 million, giving the German mediaconglomerate an established brand name in online music sales. ForCDNow, the deal ends a search for a merger partner that began inMarch when a deal with the direct-sales music club Columbia Housefell apart. CDNow has suffered the fate of many Internet companiesthis spring, seeing its stock tumble to a fraction of its offeringprice as investor enthusiasm dwindled. The all-cash deal is worth $3for each CDNow share.

Nissan to expand Tenn. plant

DECHERD, Tenn.-Japanese-owned Nissan Motor Co. plans to spend $1billion to expand a plant that supplies its only vehicle assemblyfactory in the United States. Nissan said Thursday it will add500,000 square feet to the plant in Decherd, a rural community 80miles southeast of Nashville, for production of six-cylinder andeight-cylinder engines. The move is aimed at increasing production atNissan's assembly plant in Smyrna, near Nashville, where the companymakes the Altima sedan, the Xterra sport-utility vehicle and theFrontier pickup.

Franchisees plot BK buyout

NEW YORK-A group of Burger King franchisees has hired advisers tocreate a proposal for a buyout of the No. 2 restaurant chain from itsBritish parent, Diageo PLC, the president of the chain's franchisegroup said. The National Franchisee Association, which represents themajority of the chain's franchises, said Burger King should operateas a private, stand-alone company. A full buyout would be better thana public offering because the market hasn't been favorable torestaurant stocks, said Steve Lewis, franchise group president.Burger King said in a statement that Diageo remains committed toexploring a partial offering of the unit "as the option in the bestinterest" of shareholders.