Krispy Kreme to Miss Filing
Krispy Kreme Doughnuts, whose accounting is under investigation, said in a Securities and Exchange Commission filing that it does not expect to meet a Dec. 15 deadline to release its financial statements. The company said it is talking with its lenders about an extension.
Krispy Kreme has not reported earnings for four quarters as the SEC and federal prosecutors examine how the company accounted for the repurchase of franchises for its factory stores. Krispy Kreme in April arranged $225 million in loans to avert a bankruptcy filing. It agreed with the lenders to submit audited results by Dec. 15.
Southern Co. Sued Over Mirant
Employees of Southern Co., the third-largest U.S. utility owner by market value, sued the company, claiming that it mismanaged a retirement savings plan by investing in Mirant stock.
Southern bought what became $358 million worth of stock in its now-bankrupt power producing subsidiary Mirant with employee-savings-plan contributions. The lawsuit claims that managers of the savings plan breached their fiduciary duty to employees and retirees.
Refco Allowed to Sell Assets
Refco, the troubled futures trader, won a bankruptcy court judge's approval to liquidate some assets as part of a sale of its futures brokerage to Man Group. The company had filed for bankruptcy protection in October a week after former chief executive Phillip R. Bennett disclosed that he had hidden $430 million in debt. Bennett was indicted two weeks ago by a federal grand jury on securities fraud charges.
Refco asked that its bankruptcy be handled under Chapter 7 of the bankruptcy code, under which a court appoints a trustee to take over a business and sell its assets.
Nissan Considers Diesel Vehicles
Nissan Motor may put diesel engines in U.S. pickup trucks and sport-utility vehicles, chief executive Carlos Ghosn said.
Nissan would follow General Motors, Ford Motor and DaimlerChrysler's Chrysler unit in powering trucks with diesel, which emits less carbon dioxide than does gasoline. Diesel vehicles accounted for 3.4 percent of U.S. sales of cars, SUVs and pickups last year, according to R.L. Polk, an auto-market research firm.
Unions Oppose Delphi Plan
Delphi's plan to offer $88 million and a stake in the company to managers after it emerges from Chapter 11 bankruptcy protection was opposed by the United Auto Workers and three other unions, the Pension Benefit Guaranty Corp., and two company debt holders. The UAW said in court papers that the planned payments are "grossly excessive" and a waste of the company's assets.
Delphi wants permission from a bankruptcy judge to compensate 486 managers for staying with the auto-parts maker when a reorganization is completed or all of the company's assets are sold. A second part of the plan provides a 10 percent stake in a reorganized Delphi to 595 executives.
Hudson's Bay Rejects Zucker Bid
Hudson's Bay, Canada's biggest department-store chain, advised shareholders to reject a $712 million bid from U.S. investor Jerry Zucker.
The hostile bid offers too little money and other investors may offer more, the retailer said in a written statement.
Zucker, who holds 18.8 percent of Hudson's Bay stock, said in a regulatory filing Nov. 10 that he plans to close some money-losing Zellers discount stores and accelerate the company's strategy of refurbishing stores. The company reported that sales fell for the 10th consecutive quarter.
Nasdaq May Delist Taser Stock
Stun-gun maker Taser International said the Nasdaq Stock Market told the company that its stock could be delisted because it did not file its third-quarter financial report on time.
Taser said it will appeal the Nasdaq's decision.
The company's earnings and revenue have dropped sharply in recent quarters with concern about the safety of its stun guns. Taser's share price fell 90 cents to $6.50.
Canada Clears Georgia-Pacific Bid
Koch Industries won clearance from Canadian antitrust regulators for its $13.2 billion offer for Georgia-Pacific. The Canadian Competition Bureau issued an advance ruling certificate on the cash offer of $48 a share, Koch said in a written statement.
Koch on Nov. 13 agreed to buy Georgia-Pacific, the maker of Dixie paper cups and Brawny paper towels. The offer, 39 percent above Georgia-Pacific's closing price on Nov. 11, expires Dec. 15.
Microsoft Lures Smith From Cray
Microsoft hired Burton J. Smith, chief scientist at supercomputer manufacturer Cray, to bolster the software supplier's high-performance computing products development. Smith co-founded Tera Computer with James E. Rottsolk in the District in 1987. The company became Cray after Tera acquired that company's research unit from SGI in 2000.
Compiled from staff and news service reports.