Titan Corp., the military communications systems company planning to be acquired by Bethesda-based Lockheed Martin, said it received notice that the Securities and Exchange Commission staff has recommended that civil charges be brought against it over allegations it paid foreign bribes. The Justice Department is conducting a criminal investigation into the same matter. Lockheed has lowered its purchase price and delayed closing on the deal until the investigations are resolved.
United Seeks Bankruptcy Extension
United Airlines said it won't be ready to emerge from bankruptcy this summer as planned and targeted fall as "more realistic." The world's second-largest airline asked a bankruptcy judge to extend by three months, until Sept. 30, the period in which it alone can file a reorganization plan. Soaring jet fuel costs have kept United unprofitable longer than expected and the airline is still waiting for the Air Transportation Stabilization Board to rule on its application for a $1.6 billion loan guarantee.
MGM Mirage offered to buy Mandalay Resort Group for about $7.65 billion, in a blockbuster deal that would create the world's largest gambling company, surpassing Caesars Entertainment and Harrah's Entertainment in revenue. MGM Mirage repeatedly has talked about growth opportunities, and Mandalay would fit the bill with its lucrative convention business and Las Vegas Strip properties, a source close to the negotiations said.
Sanjay Kumar, who stayed on as Computer Associates International's chief software architect after an accounting scandal forced him to resign as chairman and chief executive, left the company completely. Kumar's decision to leave was made "in the spirit" of putting the company's problems behind it, Chairman Lewis Ranieri said. Federal prosecutors and the SEC are investigating whether the $3 billion management software firm lied about the timing of contracts in order to meet earnings targets.
Home Depot agreed to buy as many as 24 stores for about $365 million from Kmart and convert them into its own name. The exact number of stores, locations, and amount to be paid will be decided in the next two months, said Kmart, which closed locations to exit from bankruptcy last year.
Continental, Delta and Northwest raised round-trip fares on some flights by as much as $40 because of high fuel costs. United Airlines last week canceled a $10 increase it said it had implemented for the same reason.
Salesforce.com said it halted its $85 million initial public offering last month because chief executive Marc Benioff may have disclosed information in a New York Times interview that wasn't in the company's SEC filing.
Free credit reports may be requested, starting in the western states in December and across the country by September, the Federal Trade Commission said. The program was mandated by a December 2003 law designed to help consumers catch identity theft or know their credit status before applying for a loan.
The Federal Aviation Administration said it's considering whether further flight reductions at Chicago's O'Hare International Airport will be necessary because of congestion during peak hours. The airport's two largest carriers, American and United, have agreed to cut flights, beginning Thursday, to help reduce delays.
Chrysler recalled 438,391 PT Cruisers because a power steering hose could leak and cause a fire under the vehicle's hood, the National Highway Traffic Safety Administration said. The recall covers 2001 through 2004 models with automatic transmissions and 2.4-liter engines that are not turbocharged. LOCAL BUSINESS
Freddie Mac's former chief executive, Leland C. Brendsel, last month netted $3.5 million from the sale of stock from expiring options that the company's regulator froze. McLean-based Freddie Mac will hold the money in a custodial account under terms of an agreement last June when Brendsel resigned after regulatory charges that he participated in manipulating the company's accounting. Brendsel is suing the Office of Federal Housing Enterprise Oversight for freezing more than $50 million in compensation.
Compiled from reports by the Associated Press, Bloomberg News, Dow Jones News Service and Washington Post staff writers