Qwest shareholders would get 19 cents a share to settle
Thousands of Qwest shareholders between May 24, 1999, and July 28, 2002, would receive about 19 cents a share to settle a lawsuit connected to alleged accounting irregularities, according to a filing in U.S. District Court in Denver on Wednesday.
This month, a $400 million settlement was announced in the class-action suit against Denver-based Qwest, as well as against former executives and board members.
Attorneys could receive up to 24 percent of the settlement and more than $5 million in expenses, Wednesday’s filing said.
The suit claimed accounting fraud that resulted in the phone company’s restating $2.5 billion in revenue. Plaintiffs include individual investors and New England Health Care Employees Pension Fund of Connecticut.
Last year, Qwest paid a $250 million fine to settle Securities and Exchange Commission civil charges of accounting fraud.
GOLDEN
Mining firm reported as missing paperwork
Canyon Resources Corp., a Golden-based mining company, is in violation of listing requirements of the American Stock Exchange, according to a Wednesday filing with the Securities and Exchange Commission.
The listing violation occurred in September, when Canyon “inadvertently” failed to file necessary paperwork to issue 500,000 additional shares.
The offering was to finance the repurchase of crushing equipment. The company has filed the needed paperwork and expects to regain compliance soon, the filing said.
CHICAGO
United seeks to fly wounded troops
United Airlines is applying for certification to operate charter flights transporting wounded personnel for the Department of Defense, which would pay a retainer plus additional compensation.
United spokeswoman Jean Medina said the airline is preparing to fly as early as Dec. 10 but is not sure when flights will begin. United already operates military airlift command charters and civil reserve air fleet charters.
DETROIT
UAW fights Delphi plan to reward execs
The United Auto Workers union is asking a bankruptcy court judge to reject Delphi Corp.’s plan to reward executives with cash bonuses and stock options if the auto supplier emerges from bankruptcy.
“At a time when Delphi is proposing deep cuts in wages and benefits and contemplating a severe contraction of its domestic operations that could leave tens of thousands of employees – both hourly and salaried – without jobs, deep resentment and anger over a program valued at over $500 million can neither be understated nor should it be ignored,” the UAW said in a filing with the U.S. Bankruptcy Court for the Southern District of New York.
MOUNTAIN VIEW, Calif.
Google advertisers given more control
Google Inc., the most-used Internet search engine, is allowing advertisers to bid different prices for spots that appear on its search engine and those on other websites to give companies more control over ad placement and cost.
Advertisers previously paid a single price for ads on Google.com and those displayed on the pages of other websites, the Mountain View Calif.-based company said Wednesday.
RAPID CITY, S.D.
Two regional utilities may become one
Black Hills Corp. made an offer worth as much as $1.25 billion to acquire NorthWestern Corp., a deal that would combine utility owners of similar size that serve customers in Montana, South Dakota, Wyoming and Nebraska. Shares of NorthWestern rose as much as 11 percent.
The stock offer has a value of $33 to $35 a share, Black Hills, based in Rapid City, S.D., said Wednesday in a statement.
NEW YORK
Morgan Stanley pays millions to ex-execs
Former Morgan Stanley president Stephan F. Newhouse will receive $17.4 million from Morgan Stanley under a settlement, the financial-services company disclosed Wednesday.
In a filing with the Securities and Exchange Commission, Morgan Stanley said it signed settlements with executives who resigned in April.
Vikram Pandit, former president and operating chief of the institutional securities division, will receive $9 million, and John Havens, former head of the institutional equity division, will get $7.9 million.
TOKYO
Toyota speeds its effort to surpass GM
Toyota Motor Corp. is quickening its quest to unseat ailing rival General Motors Corp. as the world’s biggest automaker, with reported plans to start manufacturing up to 100,000 Toyota vehicles at a factory in Indiana.
Word of Toyota’s ramped-up production schedule comes just days after money-losing GM said it will close 12 facilities by 2008.
EL SEGUNDO, Calif.
Analysts: Microsoft loses $153 per Xbox
Microsoft Corp., the world’s largest software maker, loses at least $153 on each Xbox video- game console it sells, based on just the cost of components and assembly, iSuppli Corp. analysts said.
Parts such as processors and manufacturing cost $552.27 for every machine that retails at $399, El Segundo, Calif.-based iSuppli said in a statement Wednesday. Marketing and shipping costs aren’t included in the estimates.
NEW YORK
Apollo cuts stake in Sirius Satellite Radio
Sirius Satellite Radio Inc.’s largest shareholder, Apollo Management, cut its stake in the company to 7.2 percent after selling 21.4 million shares.
Apollo, based in Purchase, N.Y., sold the shares from Nov. 17 to Wednesday, according to a filing Wednesday with the Securities and Exchange Commission. It previously had 8.8 percent.
The announcement follows Apollo’s previous report that it might sell as many as 25 million shares.
BEDMINSTER, N.J.
Verizon sues to stop marketer’s messages
Verizon Wireless sued to stop a Florida marketer from sending unsolicited text messages to Verizon customers.
Verizon Wireless is suing Ormond Beach, Fla.-based Passport Holidays, which it says sent more than 98,000 so-called spam messages to Verizon customers last month.
The lawsuit was filed Monday in U.S. District Court in Trenton, N.J.
