Business briefs, November 3

Published November 3, 2006 at midnight

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NATIONAL

Computer Associates exec gets 12 years

The former chief executive of Computer Associates International Inc. was sentenced to 12 years in prison and fined $8 million on Thursday for his role in a massive accounting fraud scandal at one of the world's largest software companies.

Sanjay Kumar, 44, had faced up to 20 years behind bars after pleading guilty in April to obstruction of justice and securities fraud charges at the company, which since has been renamed CA Inc.

Suit accuses Symantec of cheating customers

Symantec Corp., the world's largest security-software maker, was accused in a lawsuit of cheating customers who renew subscriptions early for programs such as Norton AntiVirus.

The company urges users to renew with "pop-up" notices, according to the complaint filed Oct. 26 in state court in Santa Clara, Calif. For those who do, subscription terms are based on the renewal date, rather than the original date of expiration, depriving users of paid-for service, the suit said.

Chris Paden, spokesman for Symantec, didn't immediately return a call seeking comment.

Anadarko, Chevron swap properties

Anadarko Petroleum Corp., a U.S. oil and natural gas producer, agreed to trade its exploration properties in the Canadian Arctic to Chevron Corp. for a 12.5 percent stake in seven Gulf of Mexico blocks.

Anadarko also closed the $4.08 billion sale of its Canadian subsidiary to Canadian Natural Resources Ltd. Anadarko is selling assets and refocusing its exploration and production strategy after acquiring Kerr-McGee Corp. and Denver-based Western Gas Resources Inc. in August for a combined $21 billion.

Microsoft to release Windows Vista Nov. 30

Microsoft Corp. has announced it will release Windows Vista, the business version of the long-anticipated update to its flagship operating system, at an event at the Nasdaq Stock Market on Nov. 30.

Interstate Bakeries to settle SEC investigation

Interstate Bakeries Corp., the bankrupt maker of Twinkies and Wonder bread, said Thursday it has agreed to settle a long-standing federal investigation into its record-keeping and accounting practices.

The company also said it has been ordered by the Securities and Exchange Commission's Division of Enforcement to file a year and a half of delinquent quarterly and annual reports by Dec. 31 or its stock, already trading on the over-the-counter market, could be delisted.

The company, which has a plant in Denver, is not admitting or denying the allegations and would not pay any fines.

Northwest launches sale, United matches

Northwest Airlines Corp. launched a holiday fare sale on Thursday, including a handful of "Super Bargain Days" aimed at filling its planes during November and December.

The cheapest fares require travel on Thanksgiving or the day after, with a return trip the following Wednesday. The other "Super Bargain Day" falls on Christmas.

UAL Corp.'s United Airlines matched Northwest's holiday fare sale, spokeswoman Robin Urbanski said. Southwest Airlines Co. is locked in its own fare war against American Airlines, selling one-way tickets to and from Dallas for as little as $39.

LOCAL

AirCell wins license for plane phone service

Louisville-based AirCell said the Federal Communications Commission has officially granted the frequency license that will enable the company to provide exclusive high-speed Internet services on U.S. planes beginning in early 2008.

AirCell won the FCC's spectrum auction in June with a bid of $31.3 million, but a foiled terrorist attack in the United Kingdom in August cast some doubt on whether electronic devices would be allowed on planes in the future.

Anschutz's AEG buys award show producer

Phil Anschutz's AEG purchased Ken Ehrlich Productions, producer of live award shows such as the Grammys, MTV Movie Awards and the Emmys.

Financial terms weren't disclosed. The deal gives AEG's concert business another source of live entertainment for its venues, which include the 7,250-seat Nokia Theater slated to open in Los Angeles next year.

Wachovia Capital settles conflict charges

Wachovia Capital Markets LLC of Charlotte, N.C., will pay $287,000 to settle charges by Colorado regulators of conflicts of interest between Wachovia's research analysts and investment bankers.

The settlement resolves a 28-month, multistate investigation of Wachovia. Regulators alleged Wachovia research analysts participated in presentations with potential investment banking clients and Wachovia considered whether companies were potential clients in determining whether to provide research coverage.

The company neither admitted nor denied the allegations.

Business owners' group supports wage measure

Let Justice Roll, a group campaigning for the constitutional amendment to raise Colorado's minimum wage, released a statement from business owners in favor of ballot issues here and in five other states.

The statement calls the $5.15 federal minimum wage "inadequate" and says, "A fair minimum wage shows we value both work and responsible businesses."

There are 17 Colorado signers, including Lalania Carrillo and Faatma Mehrmanesh of the Karma Cafe; Linda Franklin of Sew Far Sew Good Tailors in Littleton; Ron Gamino of Gamino Printing Co. in Denver; Dylan Norton of Durango Doughworks; and Jerry Powell of Color Graphix in Denver.

Wild Oats to sell brands in northeast markets

Boulder-based Wild Oats Markets Inc. announced a deal with Schenectady, N.Y.-based Price Chopper Supermarkets to sell Wild Oats brands in all 115 of its stores in six Northeastern states.

Price Chopper is the first independent grocery retailer to sign such an agreement with Wild Oats, which has had a push to expand its line of branded foods and sells some of the products online at Amazon.com.

Online grocer Peapod also offers some Wild Oats branded products.

Royal Gold posts 43% jump in quarterly profit

Denver-based Royal Gold, Inc. on Thursday said net income jumped 43 percent in its fiscal first quarter to $5 million, or 21 cents a share, on revenue of $9.7 million. That compares with net income a year earlier of $3.1 million, or 14 cents a share, on revenue of $6.8 million.

Higher revenues were largely derived from increased production and higher gold prices, the company said.

ECONOMY

Lackluster sales could spur price wars

A disappointing sales performance and outlook from Wal-Mart Stores Inc. on Thursday raised the possibility of price wars this holiday season - a boon to consumers but a troubling prospect for the entire retail industry.

The world's largest retailer, whose sales were dragged down by a failed women's fashion strategy that went too trendy and by disruptions from a store remodeling program, said Thursday it will be using price as a weapon in such areas as toys and electronics to drive holiday sales.

Among other retailers reporting lackluster results were BJ's Wholesale Club Inc. and Pacific Sunwear of California Inc.

Department stores scored again with robust results from such companies as Federated Department Stores, J.C. Penney Co. Inc. and Saks Inc.

The International Council of Shopping Centers-UBS sales tally rose 3 percent in October, less than the 4 percent gain in September. The tally is based on same-store sales, or sales opened at stores opened at least a year.

• The productivity of American workers slowed to a standstill in the summer, while wages were rising at the fastest clip in more than two decades - a combination likely to raise inflation concerns at the Federal Reserve.

The Labor Department reported Thursday that productivity, the amount of output per hour of work, showed no change in the July-September quarter, while labor costs rose by 3.8 percent. For the past year, wages and other labor costs are up by 5.3 percent, the fastest increase since 1982.

While rising wages and benefits are good news for workers, they raise concerns about inflation, especially at a time when productivity is slowing. If companies decide to pass on their higher payroll costs by boosting the price of their products, that could translate into higher inflation.

The flat productivity reading in the third quarter was the poorest showing since a 0.1 percent decline in productivity in the final three months of last year. Over the past four quarters, productivity has risen by 1.3 percent, the weakest showing since a 1.1 percent rise in early 1997.

• Orders to factories for manufactured products rose 2.1 percent in September, the most in six months, but virtually all of the strength came in orders for commercial aircraft.

The Commerce Department said orders for long-lasting durable goods were up 8.3 percent, offsetting a 4.6 percent drop in demand for food, gasoline and other nondurable products. The increase in durable goods, which was revised up from an initial estimate last week of a 7.8 percent gain, reflected a huge 189.7 percent surge in demand for commercial aircraft.

• The number of newly laid off workers filing claims for unemployment benefits unexpectedly shot up last week to the highest level in more than three months. A total of 327,000 fired employees filed benefit claims, up by 18,000 from the previous week.

THIS JUST IN...

• DCP Midstream Partners LP has completed its acquisition of Gas Supply Resources from Duke Energy Field Services for about $77 million.

• Denver-based ProLogis, a provider of distribution facilities and services, said Thursday its board declared a fourth-quarter dividend of 40 cents per common share, payable on Nov. 30 to shareholders of record on Nov. 15.

• DH Capital LLC, an investment banking firm in Boulder, announced it served as exclusive financial adviser to Boston Datacenters on its sale to Hosted Solutions LLC.

• Floor & Decor Outlets of America has opened two new stores in the metro area, in Highlands Ranch and Arvada.

• Liberty-Greenfield, a Denver-based corporate real estate advisory firm, will host the opening of the 2 0/20 Foresight office, where clients can develop workplace and market strategies.

• Christopherson & Co. Communications received the Chamber Champion award from the Denver Metro Chamber of Commerce to recognize its continuing membership development branding campaign.

• Dr. Richard D. Krugman, dean of the University of Colorado School of Medicine, has begun a one-year tenure as chairman of the Association of American Medical Colleges Executive Council.

• Denver-based consumer show producer Industrial Expositions Inc. will feature Bob Dallmeyer at a breakfast seminar from 8:30 to 11 a.m. Tuesday at the Denver Merchandise Mart. Call 303-892-6800 or see www.bigasalloutdoors.com.

• Golden-based Good Times Restaurants Inc. has added Alex Sterling to its marketing team.

• Greeley-based UAP Holding Corp. said Marc Becker, a partner and officer of certain affiliates of Apollo, plans to resign as a director of the company.

Compiled from News staff, The Associated Press, Bloomberg News, Scripps Howard News Service.

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