CONSUMER SAFETY

CONSUMER SAFETY

Maryland Confirms Fifth E. Coli Case

Maryland health officials confirmed the state's fifth illness associated with spinach contaminated with E. coli bacteria. Nearly 200 people nationwide have had digestive ailments after eating packaged, fresh spinach from California, and at least three people have died. Two more suspected cases are pending in Maryland, including that of a woman who died.

MORTGAGE FINANCE

Fannie Investigators Withhold Documents

Fannie Mae's lead investigator into its $10.8 billion in accounting errors said he would withhold interview records and other documents from Ohio Attorney General Jim Petro and investors who are seeking to prove fraud. Former senator Warren Rudman said investigators are acting on their "own privilege as a law firm that wants to protect work product and things we don't think plaintiffs are entitled to." Rudman said his firm, Paul, Weiss, Rifkind of the District, is not acting on behalf of Fannie Mae.

MERGERS & ACQUISITIONS

Sun Capital Withdraws Bid for Talk America

Sun Capital Securities Group, a minority shareholder in Talk America Holdings, withdrew its conditional proposal to buy the telecom-services provider. The move allows Talk America to be bought by Cavalier Telephone of Richmond at a lower price. Sun Capital had bid $9 per share; Cavalier bid $8.10.

STOCKs

Nasdaq Gives ePlus Extension on Listing

Herndon's ePlus was granted a Nasdaq listing extension as it tries to complete reports that are delayed because of a probe into stock option grants. The stock would continue to be listed on the condition that ePlus files late financial reports by Jan. 15.

EARNINGS

DiamondRock Hospitality of Bethesda, a real estate investment trust that owns hotels, reported funds from operations of $19.3 million (27 cents a share) in the third quarter, up from 9.6 million (19 cents) in the comparable period a year earlier. DiamondRock had a profit of $6.5 million (9 cents) in the quarter ended Sept. 8, almost three times its profit of $2.2 million (4 cents) a year earlier. Revenue increased 76 percent, to $114.9 million.

Millennium Bankshares of Reston, the parent of Millennium Bank, said third-quarter profit was $1 million (11 cents a share), up from $518,000 (6 cents). Net interest income was virtually flat at $3.3 million.

Virginia Financial of Culpepper said third-quarter profit rose to $5.1 million (47 cents a share) from $4.7 million (43 cents). Income from interest accounts rose 3.5 percent, to $15.2 million.

Compiled from reports by Washington Post staff writers, the Associated Press and Bloomberg News.