IN BRIEF
Dubai World says it may not grow MGM stake
Dubai World, the government-owned investment group that owns more than 9 percent of MGM Mirage, said it won't "necessarily" increase its stake in the world's second-largest casino company after getting approval to do so.
Dubai World's Infinity World unit has an option to boost its holding in Las Vegas-based MGM to more than 10 percent after securing permission from the Michigan Gaming Control Board, the investment group said Wednesday in a statement.
The approval "does not mean that we currently have an intention to purchase more shares," Dubai World said, without elaborating.
Dubai World said last year that it would invest as much as $5.1 billion to buy 28.4 million shares, or about one-tenth of the casino company, and a 50 percent stake in CityCenter, a hotel and casino complex in Las Vegas. Dubai World Chairman Sultan Ahmed bin Sulayem said in August that Dubai has an option to increase its stake to as much as 20 percent.
The investment group also recently applied for a gaming license in Nevada, Frank Streshley, a senior analyst for the Nevada Gaming Control Board, said Tuesday.
MGM Mirage shares fell $3.32, or 5.74 percent, Wednesday to close at $54.48 on the New York Stock Exchange.
SEATTLE
Boeing will again delay Dreamliner
Boeing Co. announced another six-month delay for its 787 jetliner.
The aircraft maker pushed the jet's inaugural test flight into the fourth quarter of this year and its commercial service debut until the third quarter of 2009.
The latest delays -- the third time Boeing has pushed back initial delivery and the fourth time it's bumped the start of flight testing -- will likely cost the company billions of dollars in additional research and development spending and penalties from airlines that get their planes late.
RICHMOND, Va.
Cost-cutting leads to profit for Circuit City
The crucial holiday-shopping season didn't bring much cheer to Circuit City Stores, but its cost-cutting efforts helped the struggling electronics retailer swing a profit for its fiscal fourth quarter.
Circuit City, which is facing pressure from an activist shareholder seeking improved profitability, said it earned $4.85 million, or 3 cents per share, in the three months ended Feb. 29 versus a loss of $4.25 million, or 3 cents per share, a year earlier.
Analysts polled by Thomson Financial predicted a loss of 7 cents per share and Circuit City forecast a modest loss.
Revenue fell 8 percent to $3.65 billion.
Circuit City shares fell 6 cents, or 1.77 percent, Wednesday to close at $4.45 on the New York Stock Exchange.
CHICAGO
Ex-AT&T chief to be Motorola chairman
Former AT&T Chief Executive David Dorman will become Motorola's chairman next month as the struggling cell phone maker tries to fix its slumping fortunes and split itself into two companies.
Wednesday's announcement comes two days after Motorola ended a proxy fight with activist investor Carl Icahn, agreeing to seat two of his nominees on its board of directors.
Dorman, 54, will assume the nonexecutive position on May 5, after chairman and former chief executive Ed Zander retires at the company's annual meeting. He'll be in charge of the board but have no role in the day-to-day operations.
Motorola shares fell 18 cents, or 0.19 percent, Wednesday to close at $9.31 on the New York Stock Exchange
NEW YORK
Crude oil prices rise to top $112 per barrel
The upward trend in energy prices showed no sign of abating Wednesday as gasoline set yet another record at the pump and crude oil topped $112 a barrel for the first time in the futures market.
The national average price of a gallon of regular unleaded gasoline rose 1.2 cents to a record $3.343 a gallon, according to a survey of gasoline stations by AAA and the Oil Price Information Service. With the peak summer driving season still to come and gasoline following crude higher, the fuel may well reach the retail price of $4 a gallon that the Energy Department has been forecasting.
Light, sweet crude for May delivery rose $2.37 to settle at a record $110.87 a barrel on the New York Mercantile Exchange after earlier rising as high as $112.21. That beat a trading record of $111.80 set last month.
Zero Gravity sold for undisclosed price
Zero Gravity Corp., the company that operates flights that let Las Vegas tourists experience the sensation of weightlessness, has been sold for an undisclosed price.
Space Adventures Ltd., a Vienna, Va., space-tourism company, announced Monday it closed a deal in January to buy Florida-based Zero Gravity.
The company will continue flying Zero-G flights from Las Vegas.
Zero-G Chief Executive Officer Peter Diamandis, who also founded Space Adventures, will retain his position.
NEW YORK
Treasury prices higher as traders seek safety
Treasury prices rose Wednesday as a rise in worrisome assets at major Wall Street investment banks drew investors to the safety of government bonds.
The benchmark 10-year Treasury note rose 0.69 points to 100.22 with a yield of 3.47 percent, down from 3.56 percent late Tuesday, according to BGCantor Market Data. Prices and yields move in opposite directions.
The 30-year long bond rose 1.13 to 101.03 with a yield of 4.31 percent, down from 4.38 percent.
