LOCAL BRIEFING

Thursday, January 3, 2008

STOCKS

Analyst Cuts Sallie Mae Estimates

Shares of Sallie Mae, the largest provider of U.S. student loans, fell to their lowest level in seven years after Friedman, Billings, Ramsey cut its profit estimates for the largest U.S. student-loan provider. Reston-based Sallie Mae lost 78 cents, to $19.36.

Sallie Mae faces an "uncertain" funding environment and a "thinned bench of executive talent," analyst Matt Snowling wrote in a note to investors. Snowling, who kept a "market perform" rating on the educational lender, reduced his 2008 profit forecast and 2009 earnings estimate.

MORTGAGE FINANCING

Freddie Mac's Debt Rises Sharply

Freddie Mac increased its debt last month by the most in 3 1/2 years. Debt outstanding rose $30 billion, or 4 percent, according to data posted on the McLean company's Web site. Short-term borrowing drove the increase, climbing $34.8 billion, to $199.4 billion.

ENERGY

Pepco Unit Sells Virginia Business

Pepco Holdings closed the $44 million sale of the Virginia operations of its Delmarva Power subsidiary to A&N Electric Cooperative and Old Dominion Electric Cooperative.

LEGAL

Dog-Chew Dispute Settled

MGP Ingredients, the biggest U.S. supplier of wheat gluten, received $8 million after settling a patent-infringement lawsuit against Mars over ingredients in snacks for dogs.

McLean-based Mars and its S&M NuTec unit, maker of Greenies chews, were sued by MGP in 2006. MGP accused S&M, a former customer, of breaching a 2005 supply agreement for a formula with secret ingredients made by MGP. Mars, which bought S&M in 2006, contended that it came up with a new formula for Greenies. MGP said the formula wasn't new and claimed S&M used trade secrets and violated its patent for some of the ingredients.

MEDIA

Media General Hires Lobbyist

Media General of Richmond hired Dow Lohnes Government Strategies to lobby the federal government on a new rule to loosen media ownership, according to a recent disclosure form.

The firm lobbied the Federal Communications Commission on a proposed rule to weaken restrictions on media ownerships to allow broadcasters in the 20 largest U.S. markets to also own newspapers in those markets.

Eric S. Kessler, former chief of staff for Rep. John D. Dingell (D-Mich.), is among those registered to lobby for the company.

EXECUTIVES

Foundation Coal Names President

Foundation Coal Holdings of Linthicum Heights named Kurt D. Kost president and chief operating officer. Kost has been with the coal producer and its predecessor companies since 1980.

Trex Appoints President, CEO

Trex appointed Ronald W. Kaplan as president, chief executive and a director.

Andrew U. Ferrari, who had been chief executive of the Winchester company, was appointed chairman. He replaced Anthony J. Cavanna, who will continue as a director and interim chief financial officer.

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