IN BRIEF
Las Vegas Sands draws money from credit line
Las Vegas Sands Corp., the world's largest casino operator by market value, has drawn down S$2 billion ($1.4 billion) from its credit line for the building of a Singapore casino, it said in a statement Wednesday.
The company is paying an interest margin of 3.6 percentage points more than the 30-day Singapore dollar swap offer rate, it said in the statement.
Las Vegas Sands got its initial funding for the gambling resort in Singapore at a time when the credit markets are roiled by rising borrowing costs due to concern about losses in U.S. subprime mortgages. The Singapore dollar one-month rate is at 1.5 percent, 2.5 percentage points lower than the one-month London interbank offered rate, a benchmark for U.S. dollar borrowings.
"The credit facility, which is the largest private Singapore dollar-denominated financing ever completed, will provide flexible and cost effective financing" for the gaming-resort, Sheldon Adelson, chairman of the casino company, said in the statement.
SAN FRANCISCO
Oracle pays $8.5 billion to buy BEA Systems
Oracle Corp. said Wednesday it would acquire BEA Systems, a company it has pursued for three months, in a deal valued at $8.5 billion.
The deal price represents a premium of nearly 27 percent over Oracle's original offer but is below the $21 that BEA claimed it was worth when the two companies kicked off a highly public battle over the merger.
Under the new deal, Oracle will pay $19.375 a share cash for the maker of middleware, which is software that helps other software applications operate with database platforms such as those Oracle sells.
PHOENIX
Jury decides Apollo misled its shareholders
Apollo Group, the for-profit company that owns the University of Phoenix, fraudulently misled investors in 2004 about its student recruitment policies, a federal jury decided Wednesday. The panel ordered the company to pay shareholders about $280 million.
Jurors said Apollo officials "knowingly and recklessly" made false statements in a press release, a filing with the Securities and Exchange Commission, and four conference calls with market analysts. By doing so, jurors said, Apollo violated federal securities laws.
The verdict, which comes after a two-month trial in U.S. District Court in Phoenix, specified that the company pay certain investors $5.55 a share.
NEW YORK
Fed report, Intel profits send stocks skidding
Wall Street staggered through another volatile session Wednesday, closing mostly lower after a Federal Reserve report showed some economic growth at the end of 2007 and after Intel Corp.'s disappointing profit report.
The Dow Jones industrial average fell 34.95, or 0.28 percent, to 12,466.16.
Broader stock indicators also declined. The Standard & Poor's 500 index fell 7.75, or 0.56 percent, to 1,373.20, and the Nasdaq composite index finished down 23.00, or 0.95 percent, at 2,394.59.
SAN FRANCISCO
Ex-Brocade chief gets 21 months in prison
U.S. District Judge Charles Breyer on Wednesday sentenced Gregory Reyes, the former chief executive of Brocade Communications Systems, to 21 months in prison and fined him $15 million.
Reyes was the first executive to go to trial.
It was the harshest penalty yet in a tempest that has rattled Corporate America since 2006 -- and a sign that the courts consider the latest twist on securities fraud an offense deserving of substantial prison time.
Airbus tops Boeing for deliveries in 2007
Airbus SAS held onto its rank as the world's biggest planemaker, beating Boeing Co. in 2007 deliveries and narrowing the gap in orders.
The Toulouse, France-based manufacturer handed over 453 aircraft, 19 more than the year before and 12 more than Boeing, Chief Executive Officer Tom Enders said today. Net orders rose to 1,341 versus 1,413 at Chicago-based Boeing, both records.
Airbus built more planes as it endured delays and losses from the A380 double-decker and A350 widebody. Boeing is facing similar holdups with its 787 Dreamliner. Both companies forecast dwindling demand this year.
NEW YORK
Oil supply data send energy futures lower
Oil futures fell Wednesday, at times dropping below $90 a barrel after the government said crude oil supplies jumped unexpectedly last week.
In its weekly inventory report, the Energy Department's Energy Information Administration said crude oil inventories rose by 4.3 million barrels last week, the first increase since the week ended Nov. 9. Analysts surveyed by Dow Jones Newswires on average expected a decline of 300,000 barrels.
Light, sweet crude for February delivery fell $1.78 to $90.12 a barrel on the New York Mercantile Exchange after falling as low as $89.26 earlier. It was the first time since Dec. 19 the price of crude fell below $90.
ATLANTIC CITY
Ivanka Trump OK'd to serve on board
The state Casino Control Commission gave final approval Wednesday to Ivanka Trump serving on the board of directors of Trump Entertainment Resorts, which operates three casinos here.
The 26-year-old daughter of Donald and Ivana Trump received temporary approval in July, pending completion of an investigation into her background and finances.
Ivanka Trump serves as vice president of development and acquisitions of the Trump Organization LLC, and is assuming a greater role on "The Apprentice," the reality show on which her father fires someone each week.
She graduated from the University of Pennsylvania's Wharton School.
NEW YORK
Ambac Financial cuts dividend; shares sink
Bond insurer Ambac Financial Group on Wednesday cut its dividend by two-thirds, replaced its chief executive and said it would write down $5.4 billion from its portfolio.
Ambac also said it plans to raise $1 billion with new stock and other instruments, part of a critical effort to maintain its "AAA" financial strength rating.
Penn National sets date to close buyout
Penn National Gaming, the owner of 19 casinos and racetracks, seeks to complete its $6.1 billion buyout by Fortress Investment Group and Centerbridge Partners late in the second quarter.
The buyers are seeking regulatory approval from the states where Penn National does business, and are scheduled to appear before the New Jersey Racing Commission next month, Wyomissing, Pa.-based Penn National said in a regulatory filing.
Starbucks will stop selling organic milk
Starbucks Corp. will stop selling organic milk at its stores next month, The Wall Street Journal reported Wednesday.
The Seattle coffee giant has stocked organic milk at U.S. shops since 2001. Starbucks spokesman Brandon Borrman told the Journal the original reason for offering it was to cater to customers who wanted milk from cows that weren't given recombinant bovine growth hormone.
Earlier this month, Starbucks finished switching to serving milk only from cows that weren't given the artificial hormone, which helps cows produce more milk.
NEW YORK
Treasury prices decline amid stock strength
Treasury prices fell Wednesday after the stock market showed strength in some sectors.
The benchmark 10-year Treasury note fell 0.38 points to 104.41 with a yield of 3.71 percent, up from 3.68 percent in late trade Tuesday. During trade on Tuesday, the 10-year yield dropped to its weakest level in almost four years.
