Satellite company Intelsat Ltd. announced the completion of its sale to private investors for $5 billion, even though it lost one satellite and part of the capacity on another since the deal was proposed. Intelsat, which is based in Bermuda but operates out of Washington, was purchased by Zeus Holdings Ltd. Zeus, a group of four private-equity firms, first proposed to purchase the privately held company in August. Intelsat's shareholders received $18.75 a share at the deal's close. Its largest shareholder is Lockheed Martin Corp., which owns 24 percent of the company. The buyers are paying $3 billion in cash and assuming $2 billion in debt.
Riggs Parent's Debt Rating Lowered
Riggs National, parent company of Riggs Bank, had its subordinated debt rating lowered to CCC from B- by Fitch Ratings. All other ratings for Riggs and its subsidiaries remain unchanged. Fitch said the downgrade reflected increased concern that expenses resulting from the Justice Department's investigation into violations of anti-money-laundering regulations at Riggs could put pressure on the parent company's liquidity.
MORE NEWS
A federal appeals court invalidated the patent for the once-a-week version of Fosamax, a Merck osteoporosis drug that is used by 3 million people in the United States. Under the ruling, generic competition could begin as soon as early 2008, instead of 10 years later. The patent for the drug's daily versions already was due to expire in February 2008. Meanwhile, the Securities and Exchange Commission began a formal inquiry into Merck's handling of the arthritis drug Vioxx, which it withdrew from the market last year after studies showed it increased the risk of heart attacks and strokes.
Halliburton will wind down its operations in Iran and seek to separate from the parent company its engineering and construction subsidiary Kellogg Brown & Root, the largest U.S. contractor in Iraq, chief executive David J. Lesar said. Halliburton also reported that its fourth-quarter loss narrowed by 79 percent, to $201 million, from the comparable quarter a year earlier, helped by the wrap-up of the company's asbestos settlement. Revenue fell 5 percent, to $5.2 billion.
Interstate Bakeries said the Securities and Exchange Commission began a formal investigation into how it managed its compensation reserves. In September, Interstate filed for bankruptcy protection after it missed a deadline to file its annual report. The report was delayed as the company conducted an internal investigation into $40 million placed in reserve for workers' compensation claims. After that review, the baker said it would have to restate earnings for parts of 2003.
Employees at a Wal-Mart tire department in Loveland, Colo., may hold a union-representation election, the National Labor Relations Board ruled. No date was set for a vote.
Microsoft said Verizon Communications agreed to buy its television software as part of a plan to sell a combined telephone, Internet and cable-TV service later this year. Terms were not disclosed.
INTERNATIONAL
Molson shareholders approved a $3.4 billion merger with Adolph Coors Co. Coors shareholders will vote Tuesday.
EARNINGS
ChevronTexaco said its fourth-quarter profit was $3.4 billion, double what it was in the fourth quarter of 2003. Revenue rose 41 percent, to $42.7 billion. For all of 2004, ChevronTexaco earned $13.3 billion on revenue of $155.3 billion.
McDonald's said fourth-quarter profit more than tripled, rising 217 percent to $397.9 million. Revenue rose 10 percent, to $5.01 billion.
Tribune Co. said its fourth-quarter earnings declined 35 percent, to $214.7 million. Revenue rose 1 percent, to $1.48 billion.
Canon said profit rose 8 percent in the fourth quarter, to $782.8 million. Revenue was up 15 percent, to $950 million.
Archer Daniels Midland, the world's largest grain processor, said its fiscal second-quarter profit rose 42 percent, to $313.5 million. Sales fell 1.4 percent, to $9.06 billion.
Maytag reported a fourth-quarter loss of $14.1 million, compared with a profit of $23.9 million in the fourth quarter of 2003. Sales for the quarter fell 8.4 percent, to $1.16 billion.
Constellation Energy Group, owner of Baltimore Gas & Electric, said fourth-quarter profit rose 13 percent, to $134.9 million. Revenue rose 32 percent, to $3.29 billion.
Compiled from reports by the Associated Press, Bloomberg News, Dow Jones News Service and Washington Post staff writers.
