Business Briefing, April 30

Rocky staff and wire reports

Published April 29, 2008 at 8 p.m.

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NATIONAL

Countrywide posts $893 million loss in first quarter

Countrywide Financial Corp. said Tuesday it lost $893 million in the first quarter, as rising loan defaults amid a deepening housing downturn forced the nation's largest mortgage lender and servicer to sharply increase its provision for loan losses and book other credit-related charges.

The company said its loss amounted to $1.60 a share for the quarter ended March 31. A year earlier, it earned $434 million, or 72 cents a share. Revenue plunged 72 percent to $679 million from $2.4 billion a year earlier.

BULLISH IBM IBM Corp. increased its dividend payout 25 percent Tuesday, reflecting the technology company's confidence that it can thrive even with an uncertain economy.

At IBM's annual shareholder meeting, the board of directors upped the quarterly dividend to 50 cents per share. For the past four quarters it had been 40 cents per share. The move comes two weeks after the Armonk, N.Y.-based company reported a 26 percent jump in profit and raised its earnings forecast for the year. The company also plans to spend $12 billion buying back its shares in 2008.

FREE CHECK CASHING Wal-Mart says it won't charge a fee to cash customers' economic stimulus checks.

The world's largest retailer said Tuesday that no purchase will be required. Wal-Mart typically charges up to $3 to cash payroll or government checks.

Wal-Mart Stores Inc. says customers can also, without charge, load the stimulus checks onto the company's Wal-Mart MoneyCard, which acts as a prepaid debit card. The company's Sam's Club warehouse stores will also cash the checks at no charge.

TAKEOVER APPROVED Shareholders of Macrovision Corp. and Gemstar-TV Guide International Inc. have approved Macrovision's takeover of Gemstar for about $2.3 billion in cash and stock, the companies said Tuesday.

The deal calls for Macrovision to pay $6.35 per share, or 0.2548 Macrovision shares for every one Gemstar share.

CITIGROUP OFFERING Citigroup Inc., trying to raise more money to offset two straight quarters of losses, said Tuesday it is selling about $3 billion of its common stock in a public offering.

The New York-based bank said the offering will include an overallotment option to buy more shares.

UAL PILOTS CONCERNED United Airlines pilots are "enormously concerned" about a possible pairing with US Airways that they say would be a bad move for United.

Pilots' union leader Steve Wallach says that United has its own problems and issues, but the problems of Arizona-based US Airways Group Inc. run even deeper.

He says the group doesn't view a marriage with US Airways as "anything remotely resembling a solution."

GRAND THEFT AUTO Take-Two Interactive Software Inc. may sell as many as 14 million copies of its new Grand Theft Auto IV video game worldwide, boosted by good reviews, UBS AG analyst Ben Schachter said. Schachter changed the forecast from 10.5 million after the game received perfect scores in 24 of 31 ratings on the Web site Metacritic.com.

COMCAST SPEEDIER Comcast Corp. said it has increased Internet speeds up to 16 megabits a second at no additional cost for its business customers. The upload speed is up to 2 megabits a second.

LOCAL

Rival telcos oppose easing wholesale price regs for Qwest

Denver business and residential customers could pay up to $241.7 million more annually for telecommunications services if federal officials ease Qwest wholesale price regulations, rival telcos charge.

QSI Consulting came up with the figure based on a projected 21 percent increase in retail rates; the study was commissioned by XO Communications and endorsed by other competitive telcos.

Steve Davis, Qwest senior vice president of policy, said the study has no basis in fact.

"The fundamental issue in the proceedings is whether Qwest should be required to continue selling telecom facilities to XO and other competitors at below cost prices in a competitive market," Davis said in a statement.

OPX LICENSED The University of Colorado Technology Transfer Office has licensed OPX Biotechnologies Inc. to develop microbial strains for biorefining and biofuels applications.

The Boulder microbe-engineering company is associated with the research lab of Ryan Gill at CU.

Gill's lab is funded by Silicon Valley venture capital firms Mohr Davidow Ventures and X/Seed Capital. Gill is a co-founder of OPX and serves on the company's Scientific Advisory Board.

SMASHBURGER EXPANSION Richard E. Schaden, founder and chairman of Quiznos and Consumer Capital Partners, announced a $15 million investment in Smashburger Development Co. to support its planned national expansion.

The Denver-based chain plans to expand to 15 to 20 locations in four new markets in 2008.

THIS JUST IN...

* The Colorado State Association of Health Underwriters awarded Barry Teeters, principal of Assured Benefit Solutions, its Distinguished Service Award.

* The United States Green Building Council's Colorado Chapter appointed Megan Christensen, director of community development and sustainability for Lend Lease Communities, to its board of directors.

* Denver-based United Western Bank appointed John M. Falbo to senior vice president of energy banking.

* William Keefe joined the Denver office of Fulbright & Jaworski LLP as counsel.

* Pam Rodgers joined Alliant National Title Insurance Company of Longmont as vice president and Texas agency manager.

* Colorado Construction magazine named BleekerVigesaa General Contractors one of the top 50 general contractors in Colorado for 2008.

* CU Service Network added Bellco Credit Union, headquartered in Greenwood Village.

* Citywide Banks hired Gregory P. Boushelle as senior vice president of its commercial banking team .

* American Appliance selected Philosophy Communication Inc., a Denver-based marketing and public relations agency, to develop its brand identity, including logo and tagline.

* University of Colorado Denver professor Robert W. Schrier received the Lifetime Achievement Award from Castle-Connolly, a health care research company.

* Mutual of Omaha Bank appointed Jim Van Buskirk as vice president of mortgage lending for Colorado.

* The Aurora Business Development Center will host a seminar titled "Smart Marketing" from 1Â?4 p.m. Thursday. Information: 303-326-8690.

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