UnitedHealth to Take More Charges
UnitedHealth Group has to take "significantly greater" charges to resolve the accounting for its stock options timing than the $286 million it had expected. It does not yet know the size of the charges. UnitedHealth also said every financial statement it has made since 1994 should not be relied upon, adding that problems with the way it handled stock options existed as late as the end of 2005. It is also delaying the filing of its third-quarter financial results with the Securities and Exchange Commission.
UnitedHealth executive G. Mike Mikan was named chief financial officer after Patrick Erlandson resigned that post.
Delphi Delays Quarterly Results
Delphi has delayed filing its third-quarter financial statement because it may have improperly accounted for foreign-currency hedges. Any revisions to earnings reports will not affect cash flow, Delphi said in a regulatory filing.
Separately, Delphi, its unions, creditors and former parent General Motors met with U.S. Bankruptcy Judge Robert D. Drain in New York over Delphi's request to scrap existing labor contracts. Drain delayed the case until Nov. 17.
NYSE to Cut 500 Jobs
NYSE Group, the operator of the New York Stock Exchange, said it will cut more than 500 jobs, or about 18 percent of its workforce, to trim $200 million in expenses within two years.
It said the reductions will help eliminate services duplicated after last year's acquisition of electronic exchange Archipelago. As the NYSE attempts to transform itself into an electronic marketplace, it is scaling back the need for floor specialists.
Deutsche Bank Loses Hertz IPO
Deutsche Bank, Germany's largest bank, lost its role as underwriter for Hertz Global Holdings' initial public offering because it sent unauthorized e-mails to about 175 institutional accounts. Hertz said the e-mails could leave the company open to legal action. Hertz's owners, including the Carlyle Group of the District, are expected to sell 28 percent of Hertz's stock to the public Wednesday.
Ford Unit Settles Bias Claims
Ford's Primus credit unit settled a nationwide class-action lawsuit that claimed the lender discriminated against black purchasers of cars. Under the agreement, Primus must limit how much dealers can mark up interest rates and offer a minimum of 200,000 preapproved offers of credit to black consumers. The car buyers, who were suing as a group, said Primus allowed dealers to charge black customers higher interest than white customers on car loans, adding an average of $387 to the cost of a car, said their attorney, Edwin Lamberth.