AIRPORTSPhoenix Tests X-Ray MachineThe Phoenix airport became the first in the United States to test new X-ray technology that can see through people's clothes and show the body's contours. The Transportation Security Administration adjusted the equipment to make the image look something like a line drawing, while still detecting concealed weapons. During the testing, the machine will be used as only a voluntary backup screening measure.
EXECUTIVESSRA Names New CEO SRA International's chief executive, Renato A. DiPentima, 66, is retiring as of April 1, the Fairfax company said. DiPentima has been with the technology firm 12 years and served as chief executive and president since 2004. He is being replaced by Stanton D. Sloane, 55, who has been vice president of one of Lockheed Martin's largest technology groups. DiPentima will remain on SRA's board. Circuit City CFO LeavingCircuit City Stores said Chief Financial Officer Mike Foss will leave the company in April. Foss has been with Circuit City for three years and will remain on the board until its annual meeting in June. He will become finance chief of Petco Animal Supplies, according to a Petco spokesman.
BIOTECHGene Logic Considers Spinoff Gene Logic, a Gaithersburg firm that works with pharmaceutical companies to develop new drugs, said it hired outside financial advisers to examine whether it should spin off its genomics division. The company will also consider alternatives for the unit in hopes of boosting the parent firm's value. LEGALJustice Dept. Probes KB HomeKB Home said federal prosecutors are investigating its stock-option practices that led to the resignation of its chief executive in November. The home builder, which previously disclosed a Securities and Exchange Commission investigation of its past stock-option grants, said that the Justice Department also is looking into these practices but said KB Home isn't a target. Enron Investors' Case DelayedThe trial over Enron investors' $40 billion lawsuit against the company's former lenders was delayed one week, to April 16. The delay was granted after the judge refused to put off the case indefinitely.
MARKETSHome Lender Shares FallShares of home lenders, including NovaStar, New Century Financial and Countrywide, tumbled after reports of mounting losses on mortgages to borrowers who can't keep up with payments. Lender Impac Mortgage Holdings reported a loss for the second straight quarter, and its shares slid than 3 percent. The damage spread to investment banks that buy mortgages and repackage them into securities, including Lehman Brothers Holdings and Bear Stearns. H&R Block's stock rose 1.9 percent on word from chief executive Mark Ernst that efforts to find a buyer for its mortgage unit are still on track.
MERGERS AND ACQUISITIONSCaremark Must Disclose MoreCaremark Rx, the target of a $25.7 billion takeover offer from CVS, was ordered by a Delaware judge to disclose more information to shareholders within 20 days before they can vote on the sale. He also refused to invalidate a $675 million breakup fee aimed at protecting the deal. Chancery Court Judge William B. Chandler III said that Caremark shareholders can seek an appraisal of their shares' value and be told how much the company's bankers will reap in fees from the CVS sale.
INVESTINGE.U. Seeks Hedge Fund DialogueThe European Union's financial services commissioner, Charlie McCreevy, plans to talk to senior U.S. officials next month about how the two regions could work together on new guidelines for hedge funds.