SEC ponders commission ban

0 Comments | Oakland Tribune, Feb 11, 2004

The U.S. Securities and Exchange Commission, reacting to trading scandals in the $7.4 trillion mutual fund industry, plans to propose barring payment of extra commissions to brokers who promote a company's funds. At a meeting in Washington today, the SEC also will vote on a final rule that would require mutual funds to disclose their portfolio holdings quarterly and tell investors twice a year the amount of fees they are being charged.

GM tests fuel cell

General Motors Corp., which intends to sell vehicles powered by low-pollution fuel cells in the U.S. by 2010, started up the first of 400 fuel cells planned for a test at a Dow Chemical Co. plant in Texas. The project "really accelerates our fuel-cell development program by allowing us to put what is effectively 400 vehicles in one location," said Timothy Vail, director of market development for fuel cells at the Detroit-based automaker, in an interview. The automaker with its May agreement with Dow gained a way to refine its fuel cells before placing them in cars.

News Corp. expects higher profit

Rupert Murdoch's News Corp., which gained control of the DirecTV satellite system last quarter, will probably report quarterly profit rose more than 50 percent, fueled by growth at cable networks such as Fox News Channel. Sydney-based News Corp., the world's fifth-biggest media company, today will report net income of $365 million, or 28 cents a share, for the second fiscal quarter ended Dec. 31, according to the average estimate of seven analysts polled by Thomson Financial. The company earned $239 million, or 24 cents, in the same period a year earlier.

Diet drinks, juices boost Coke

Coca-Cola Co. Chief Executive Douglas Daft boosted fourth-quarter profit by tapping U.S. consumers' health concerns with new fruit juices and promotions for diet drinks. Coca-Cola, the world's largest soft-drinks maker, may say today that earnings rose to $1.1 billion, or 45 cents a share, from $930 million, or 38 cents, according to 19 analysts surveyed by Thomson Financial. Coca-Cola grouped its diet sodas in a single spot in supermarkets and debuted Premium Heart Wise, an orange juice designed to lower cholesterol.

Disney studies Eisner succession

Walt Disney Co.'s board has adopted "more formal and frequent, and extremely detailed" practices to improve succession planning for Chief Executive Michael Eisner, a director said in letters released in a filing with U.S. regulators. Eisner met with the Burbank-based company's board in January, Presiding Director George Mitchell said in the letters to Institutional Shareholder Services and the Council of Institutional Investors that were filed with the U.S. Securities and Exchange Commission. The board of Disney, the second-biggest U.S. media company, plans to meet again in April to discuss succession, Mitchell said.BLOOMBERG NEWS SERVICEOrbitz reports loss, revenue up

Orbitz Inc., an online travel agency mainly owned by the five biggest U.S. airlines, reported a net loss of $14.6 million, including a $26.5 million non-cash expense for the restructuring of stock options. The Chicago-based company, which sells airline, hotel and rental car reservations using the Internet, said the loss was 40 cents a share, compared with net income of $3.84 million, or 10 cents, in the last quarter of 2002. The company sold shares for the first time on Dec. 16. Sales rose 35 percent to $69.7 million, from $51.5 million.

Cingular bid wins backing

Cingular Wireless LLC, the second-largest U.S. mobile-telephone company, received support from the Communications Workers of America union for its attempts to acquire AT&T Wireless Services Inc. The CWA, which represents 700,000 industry workers, urged members and retirees who hold AT&T Wireless shares to support a sale to Cingular. CWA members include employees of Cingular and its parents, SBC Communications Inc. and BellSouth Corp. SBC and BellSouth have made an offer of $11 a share, or about $30 billion, to acquire AT&T Wireless, which last month put itself up for sale and asked potential buyers to submit bids by Friday.

Time Warner cuts bond sale

Time Warner Telecom Inc., a telephone company part-owned by Time Warner Inc., cut its bond offering by half to about $400 million, said people familiar with the sale who declined to be identified. Time Warner Telecom is selling $150 million to $200 million of 10- year senior notes and $200 million to $250 million of seven-year floating-rate notes, the people said. Last week, the Littleton, Colo.- based company said it planned to sell $800 million of debt. Time Warner Telecom has said it will use proceeds from the bond sale for capital spending and to pay bank debt. Bob Meldrum, a spokesman for the company, didn't immediately return a call for comment.BLOOMBERG NEWS SERVICE