Time Warner Looking to Buy
Time Warner chief executive Richard D. Parsons said his company is interested in buying more cable systems after agreeing in April to acquire assets of bankrupt Adelphia Communications. "We want to continue to be consolidators," Parsons, left, said at a media conference. "We have a lot of firepower and a lot of ability to participate if we think it makes good sense." He cited Cablevision Systems as an attractive cable company.
Mack Won't Accept Pay Guarantee
Morgan Stanley chairman and chief executive John J. Mack said he's changing his employment agreement with the firm and no longer will accept a guarantee of $25 million a year in pay. Mack's pay will instead be based on the firm's performance, he said in a letter to employees.
Enron Broadband Trial Nears End
Testimony ended in the corporate fraud trial of five former Enron Broadband Services executives, and the judge said closing arguments will begin next week. The government sought to prove that the five executives deliberately misled investors, and the defendants all took the stand to say they believed what the company told analysts.
Accounting Board Probes Deloitte
Federal regulators are investigating Deloitte & Touche over a 2003 audit of Navistar International, according to the Public Company Accounting Oversight Board. The agency said Deloitte's work at Navistar may have failed to comply with at least five auditing standards. This is the first formal investigation to emerge targeting one of the Big Four accounting firms since the agency was created by the 2002 Sarbanes-Oxley Act.
Consumer Borrowing Falls in May
Borrowing by U.S. consumers unexpectedly fell in May by the most since December 1990.
Consumer credit, or non-mortgage loans to individuals, fell $3 billion, or 1.7 percent at an annual rate, to $2.127 trillion in May, the Federal Reserve said. Non-revolving debt, which includes car loans, fell $3.8 billion, the most in 13 years.
H&R Block's Report Delayed
H&R Block said it will miss the deadline to file its annual report with the Securities and Exchange Commission because it needs more time to finish restatements of 2003 and 2004 earnings. It said it will file a notice to extend the annual report deadline from July 14 to July 29.The tax preparer also plans to delay releasing its first-quarter results until Sept. 1 from Aug. 18.
Lea Fastow Released
Lea W. Fastow, wife of former Enron finance chief Andrew S. Fastow, was released shortly after midnight from a halfway house, ending a one-year term for failing to declare her husband's illegal kickbacks as income, her attorney said. She will be under supervision of a federal parole officer for another year.
Judge Approves Dynegy Deal
U.S. District Judge Simeon T. Lake III of Houston approved Dynegy's $468 million settlement, announced April 15, of a shareholder lawsuit accusing the company of accounting misdeeds.
Flash-Memory Suit Revived
The U.S. Court of Appeals for the Federal Circuit revived a patent infringement lawsuit by SanDisk over flash-memory cards used in electronics. SanDisk claimed that Ritek and two of its distributors infringed on a patent for memory cells.
Putin Pledges More Oil
Russia will increase oil exports, President Vladimir Putin said after the conclusion of the summit of Group of Eight leaders, adding that energy policy would be a key theme of Russia's G-8 presidency in 2006. He gave no timeline for the increase but described a series of new pipeline and railway projects underway to address Russia's energy transportation capacity.
Drug Patent Won't Be Broken
Brazil decided not to break the patent on a key AIDS drug after Abbott Laboratories agreed to significantly reduce the drug's price over the next six years, the Brazilian Health Ministry said. The Health Ministry had warned it would start producing a cheaper, generic version of Kaletra unless the U.S. manufacturer sharply cut its price for the Brazilian market.
As part of the agreement, Brazil will also have access to Kaletra's new formula, which is expected to be released in two years, the ministry said.
Pay-Disclosure Law Advances
German public companies must reveal how much they pay executives starting in 2007 to comply with a new law that brings the country's legislation in line with the United States and Britain. The upper house of parliament waived its right to object.
Compiled from staff and news service reports.