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A Mercedes dealership in the Gulf: Daimler is selling a stake to Abu Dhabi Ali Haider/epa/Corbis

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Rolling the Dice in Vegas

The stakes just got a whole lot higher for MGM Mirage's controlling shareholder, Kirk Kerkorian. Dubai World, an investment arm of the Dubai government, sued MGM, its partner in a massive and troubled project on the Las Vegas Strip. The $8.6 billion CityCenter would be the largest playground in the gaming mecca, comprising three hotels, two condo towers, a shopping mall, and a casino resort. Its roulette wheels are due to start spinning at the end of the year. In the suit, Dubai World blames its partner for cost overruns and asks the court to free it from future funding obligations. Auditors had previously questioned MGM's ability to meet its financial commitments. An MGM spokesman said the Dubai World suit is "completely without merit" and that MGM "is ready, willing, and able to fund its share of the costs to complete CityCenter."

—Edited by Harry Maurer & Cristina Linblad

Oil Patch Marriage

There's oodles of oil in Canada. Unfortunately, much of it is mixed with sand, making for high-cost fields where the sludgy stuff is dug up from the ground and processed in large, expensive separating facilities. That helps explain why two Canadian oil giants, Suncor and Petro-Canada, agreed on Mar. 23 to merge in a $15.5 billion deal. Both companies have large holdings in the oil sands, but the plunge in crude prices over the past year—even given the recent bounce-back to about $52 a barrel—has put them under pressure. The deal has experts predicting a new round of consolidation in the oil patch. Sanford C. Bernstein analyst Ben Dell figures that the stock market is now valuing oil companies at just $10-$12 per barrel of reserves, half their historical norm.

—Edited by Harry Maurer & Cristina Linblad

Innovation Nations

The U.S. is a world-beater when it comes to innovation, right? Think again. According to a study by Boston Consulting Group and the National Association of Manufacturers, the U.S. barely makes it into the top 10 most innovative countries. It ranks a lowly No. 8, behind the likes of Hong Kong, Singapore, and Switzerland. The study ranks 110 countries based on factors such as tax policies, education systems, infrastructure, and number of patents issued. (Boston Consulting Group and National Association of Manufacturers)

Innovation-Friendly Countries

1. Singapore
2. South Korea
3. Switzerland
4. Iceland
5. Ireland
6. Hong Kong
7. Finland
8. U.S.
9. Japan
10. Sweden

Data: Boston Consulting Group

—Edited by Harry Maurer & Cristina Linblad