Securities and Exchange Commission Chairman William H. Donaldson has reached a settlement of a lawsuit accusing him, Aetna and current Aetna Chairman John Rowe of hiding accounting misstatements when Donaldson led the company from February 2000 to April 2001, court records indicate. A lawyer for Donaldson, Rowe and Aetna, investor lawyers and an Aetna spokesman did not return telephone calls seeking comment. An SEC spokesman had no immediate comment.
CNNfn, a business-news channel that struggled to attract viewers, quit broadcasting yesterday, a Time Warner spokeswoman said. Time Warner, the world's largest media company, said Oct. 28 that it planned to shut down CNNfn, which had been available to 30 million homes in North America.
Members of Washington hotel workers' union Unite Here Local 25 rallied in front of several downtown hotels to protest the lack of a new contract three months after the old one expired Sept. 15. The workers called on the 14 major hotels they are negotiating with to meet their demands to be treated better, to protect health benefits for current and future workers, and for a contract that will expire the same year as those in other cities.
(Katherine Frey -- The Washington Post)
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INTERNATIONAL
European Union Trade Commissioner Peter Mandelson said he is open to negotiating an end to a standoff with the United States over rival planemakers Boeing and Airbus. Washington has threatened to bring suit at the World Trade Organization meeting next month over what it and Boeing see as unfair subsidies that reduce Airbus's cost of developing new planes. Meanwhile, Airbus and the E.U. counter that Boeing receives the similar assistance by way of military contracts and tax incentives.
Airbus's new A380, the world's biggest passenger jet, will exceed its development budget by $1.93 billion, according to the aircraft maker's majority owner. EADS said the program to build the 555-seat passenger jet will cost 15 percent more than the originally projected $10.7 billion. Costs rose as Airbus struggled to lower the plane's weight and meet a March test-flight deadline. Airbus also forecast that airlines will need 1,902 jumbo planes over the next 20 years -- more than double the forecast of rival aircraft maker Boeing.
LOCAL BUSINESS
Host Marriott, the Bethesda-based real estate investment trust, is selling most of its stake in 120 Courtyard hotels to an institutional investor for $92 million. Host and hotel operator Marriott International bought the hotels in 2000 in a litigation settlement.
Williams Industries, a Manassas-based heavy construction firm, said it lost $577,000 (16 cents per share) on revenue of $12.5 million in its first quarter, which ended Oct. 31. In the same period a year ago, the company reported a profit of $227,000 (6 cents) on revenue of $13.6 million. Williams attributed the loss to declines in its manufacturing segment, which produces bridge girders and other components used in highway construction.
EARNINGS
Best Buy, the country's largest electronics retailer, said third-quarter earnings rose 21 percent, to $148 million from $122 million during the same period a year ago. Revenue for the quarter ended Nov. 27 was $6.65 billion, up from $6.03 billion.
Lehman Brothers Holdings' fourth-quarter income climbed 22 percent on a surge in its merger and acquisition business. The brokerage's profit for the quarter ended Nov. 30 was $585 million, compared with $481 million during the same period a year ago. Revenue increased 25 percent, to $2.9 billion from $2.3 billion.
Bed Bath & Beyond said third-quarter earnings rose to $121.9 million, from $100.5 million a year ago, as it opened 34 stores. Sales for the period ended Nov. 27 rose to $1.31 billion, from $1.2 billion. Same-store sales were up 3.1 percent.
Compiled from reports by the Associated Press, Bloomberg News, Dow Jones News Service and Washington Post staff writers.
