Tuesday, September 25, 2007

INVESTING

Fannie Mae of the District may sell preferred stock for the first time in almost three years. The company, which may sell the shares this week, last sold preferred shares in December 2004, after the discovery of accounting mistakes that would total $6.3 billion. Freddie Mac of McLean plans to sell $500 million in fixed-rate, non-cumulative perpetual stock today.

Newsweek magazine, owned by The Washington Post Co. of the District, plans to split its Web site from MSNBC.com to increase control over advertising sales and editorial content. Newsweek's publisher Greg Osberg said the new site would begin in mid-October. Newsweek.com plans to continue sharing content with MSNBC. The new contract with MSNBC replaces a seven-year agreement that expired in June. The Post Co. is investing in its Web sites to attract advertising revenue lost at its flagship newspaper and at Newsweek.

The federal government fined Coventry Health Care of Bethesda $264,000 for improperly marketing federally subsidized health-care plans to the elderly and disabled. A spokesman for the Health and Human Services Department sent Bloomberg News an e-mail about the penalty, which was mentioned at an insurance industry conference in the District. State health regulators and patients have told congressional committees that elderly people who are not competent, cannot read or do not speak fluent English have been pressured into joining the plans, known as Medicare Advantage. Medicare expects to spend $76.3 billion on the program this year.

Pepco Holdings of the District said expansion projects, rate increases and robust markets would drive the electric and gas utility's growth over the next five years. Pepco, in a filing with the Securities and Exchange Commission, said rate increases could offset billions of dollars it plans to spend for transmission lines and energy management programs from 2007 through 2011. The projects would expand service areas of its Pepco, Delmarva Power and Atlantic City Electric subsidiaries. Pepco said retail electric supply would be the biggest growth factor for its non-regulated Pepco Energy Services, which serves commercial and industrial customers. Pepco's regulated businesses account for 66 percent of operating income, while non-regulated account for 34 percent.

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