Business Digest

BUSINESS DIGEST

October 05, 2007|By This column was compiled from dispatches by the Associated and Bloomberg News

Nation : Earnings

Sealy profit declines 27%

Sealy Corp. said third-quarter profit fell 27 percent. Net income declined to $21.5 million, or 22 cents a share, from $29.4 million, or 30 cents a share, a year earlier, the company said yesterday.

Acquisitions

Bain-3Com deal due security review

Bain Capital Partners will submit for a national security review its planned $2.2 billion buyout of network equipment maker 3Com Corp. to address concerns about a Chinese telecommunications company's minority stake. Bain Capital, a Boston-based private equity firm, released a statement late Wednesday that said "the deal presents no risks to national security." Government scrutiny was anticipated ever since the acquisition was announced Sept. 28 because of the less-than-20 percent stake held by Huawei Technologies, which has close ties to China's government.

Nov. 13 vote set on Sirius-XM deal

Shareholders of the nation's only two satellite radio companies are scheduled to vote Nov. 13 on Sirius Satellite Radio Inc.'s proposed multibillion-dollar acquisition of XM Satellite Radio Holdings Inc. The deal still requires approvals from the Federal Communications Commission and Justice Department, which are looking into the transaction for potential antitrust implications that some fear could lead to higher prices for consumers. The date of the shareholder vote was announced by Sirius in a Securities and Exchange Commission filing Wednesday. XM shareholders must vote in favor of the buyout, while Sirius investors must approve the issuance of shares and other related matters.

Investigations

Bear Stearns funds called probe target

Two Bear Stearns Cos. mortgage- related hedge funds that closed over the summer are the subject of a criminal investigation by federal prosecutors, The Wall Street Journal reported yesterday, citing unidentified people. According to the newspaper, the U.S. attorney's office in Brooklyn asked Bear Stearns for information related to the hedge funds, High-Grade Structured Credit Strategies fund and the High-Grade Structured Credit Strategies Enhanced Leverage Fund, whose failure cost investors $1.6 billion. No subpoenas have been issued in the probe, which is in its early stages, the Journal said.

World

: Automakers

DaimlerChrysler name change OK'd

DaimlerChrysler AG shareholders voted overwhelmingly yesterday to change their company's name to Daimler AG to reflect the sale of its U.S. Chrysler division - marking what Chief Executive Officer Dieter Zetsche portrayed as a new start after a tumultuous nine years together. The vote was 98.8 percent in favor at a special shareholders meeting in Berlin. The change is effective immediately, though it will take until early next year to change signs, stationery and 170,000 e-mail addresses.

Earnings

Research In Motion profit doubles

Smart phone maker Research In Motion Ltd. said yesterday that its fiscal second-quarter profit and revenue more than doubled, boosted by strong sales of its flagship BlackBerry products. For the quarter that ended Sept. 1, the Canadian company earned $287.7 million, or 50 cents per share, up from $140.2 million, or 25 cents per share, in the corresponding period a year earlier.

This column was compiled from dispatches by the Associated and Bloomberg News.

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