IN BRIEF

LOS ANGELES

Sources say Simon Property may up bid for General Growth

Two sources say shopping mall operator Simon Property Group Inc. is considering raising its $10 billion buyout offer for rival General Growth Properties Inc. as early as this week.

The two people, who are familiar with a letter sent by Simon this week to General Growth, say Simon anticipates boosting its offer above that of a deal put forth by a group of investors that includes two of General Growth's biggest creditors.

That means a new Simon offer would have to value General Growth above $15 a share. Simon's initial offer valued the Chicago-based company at about $9 a share. Shares closed Tuesday at up 20 cents, or 1.48 percent, at $13.69

Chicago-based General Growth, which owns several major Las Vegas malls, sought shelter from creditors last April. It was the largest real estate bankruptcy in U.S. history.

WASHINGTON

Blizzards in Northeast, South slow homebuilding in February

Housing construction fell in February as winter blizzards held down activity in the Northeast and South. The decline highlighted the challenges facing builders as they struggle to emerge from the worst housing slump in decades.

The Commerce Department said Tuesday that construction of new homes and apartments fell 5.9 percent in February to a seasonally adjusted annual rate of 575,000 units, slightly higher than the 570,000 that economists were expecting. January activity was revised up to a pace of 622,000 units, the strongest showing in 14 months.

Economists characterized the February dip as weather-related, although they said any housing rebound this year is likely to be modest at best, given a variety troubles ranging from record home foreclosures to high unemployment.

BRUSSELS

Greece taken off credit watch list for possible downgrade

Greece won some respite from financial market pressure Tuesday as ratings agency Standard & Poor's took the country off credit watch for a possible downgrade -- a day after eurozone governments laid out a vague blueprint for possible loans to help the indebted country.

S&P's announcement that it was no longer considering a downgrade of Greece's credit rating after it made bigger budget cuts is the strongest sign yet that markets may see less chance of the country failing to repay its debts.

A Greek default would be a serious blow for Europe's currency union, showing that eurozone countries are unable or unwilling to lend their own money to one of their members.

DETROIT

Brake snags force recall of Honda Odysseys, Elements

Honda Motor Co. will recall more than 410,000 Odyssey minivans and Element small trucks because of braking system problems that could make it tougher to stop the vehicle if not repaired.

The recall includes 344,000 Odysseys and 68,000 Elements from the 2007 and 2008 model years.

Honda said in a statement that over time, brake pedals can feel "soft" and must be pressed closer to the floor to stop the vehicles. Left unrepaired, the problem could cause loss of braking power and possibly a crash, Honda spokesman Chris Martin said.

The National Highway Traffic Safety Administration has reported three crashes due to the problem with minor injuries and no deaths, Martin said. Honda notified the administration of the recall on Monday, he said.

HARTFORD, Conn.

General Electric says it will raise its dividend in 2011

General Electric Co. says it will increase its dividend in 2011, two years after the industrial and commercial conglomerate reduced it to save money as its financial arm struggled in the recession.

The company also sees potential for retiring its preferred stock and opportunities for stock buybacks.

GE, one of the original members of the Dow Jones industrial average in 1896, cut its quarterly dividend in 2009 to 10 cents per share from 31 cents. It has remained at 10 cents per share since then.

The dividend cut, GE's first since the Great Depression, was intended to save $9 billion a year.

LOS ANGELES

Former executive testifies
in KB Home backdating case

A former executive of KB Home testified Tuesday against former chairman and Chief Executive Bruce Karatz, who is accused of bilking shareholders out of millions of dollars by backdating stock options.

Prosecutors contend that Karatz illegally backdated stock options. A stock option allows an employee to purchase the company's stock at a preset price at a future date. If the shares are trading above that price, the employee can then sell the shares and pocket the profit. The perk is designed to encourage employee performance that contributes to the company's financial success.

Backdating involves issuing stock options retroactively to coincide with low points in the share price, thus boosting payouts. It can be illegal if it is not properly accounted for and disclosed to investors.

ATLANTA

Regulators call for new software in Boeing 777 jets

The Federal Aviation Administration wants new software installed on Boeing 777s to prevent crews from inadvertently engaging the autopilot before takeoff.

The problem can result in a high-speed rejected, or aborted, takeoff and increase the chance of a runway overrun.

Boeing says the problem is rare -- just nine reported instances of a rejected takeoff because of inadvertent engagement of the autopilot during the 777's 15-year service history. Two incidents occurred in January. There have been no runway overruns or injuries associated with the issue.

The airworthiness directive is to be published in the Federal Register today . The rule, which applies to certain model 777-200, 777-200LR, 777-300, 777-300ER and 777F series airplanes, takes effect 15 days later.

ATLANTA

Continental drops free food, expects to save $35 million

Attention coach passengers. Continental Airlines, which used to boast about giving away hamburgers and barbecue while rivals passed out tiny bags of pretzels, is changing its tune on food.

Continental plans to launch a food-for-sale program that mirrors what other carriers are doing.

A spokesman said Monday that the airline, based in Houston, expects a $35 million annual benefit.

Delta Air Lines, American Airlines, US Airways and United Airlines are among carriers that charge for food on flights.

Continental passengers on some international routes, on domestic flights over six hours and those who sit in first or business class on routes worldwide will continue to get free food. Snacks will still be free for all.

The changes take effect in the fall. Menu choices and prices will be disclosed later.