IN BRIEF

SAN FRANCISCO

Hewlett-Packard in talks to buy EDS

Hewlett-Packard Co. is negotiating to buy information technology services provider Electronic Data Systems Corp. in a deal that could help the world's largest personal computer maker win more consulting contracts with large companies and government agencies.

Palo Alto, Calif.-based HP and Plano, Texas-based EDS confirmed the talks Monday shortly after The Wall Street Journal reported a deal could be reached as early as today.

Citing unnamed people familiar with the matter, the Journal said HP will pay $12 billion to $13 billion -- a price that translates to $24 to $26 per share.

Law enables opening for California bank

Imperial Capital Bank, a $3.6 billion institution based in La Jolla, Calif., is opening a branch in Las Vegas under a 2007 law that allows some out-of-state banks to expand into the state's two metropolitan areas without a new charter.

The bank has been operating a branch in Carson City under a previously existing law that permits out-of-state banks to serve rural counties. Under a law enacted in the last session, Imperial Capital and a few other out-of-state banks with rural branches were authorized to expand into the Reno and Las Vegas metropolitan areas, said Bill Uffelman, CEO of the Nevada Bankers Association.

Imperial Capital's branch on Monday announced the new location at 7207 W. Sahara Ave., Suite 130.

KINGMAN, Ariz.

Agency aims to enable Arizona flights to LV

The U.S. Department of Transportation is soliciting bids for an air carrier to take over the flight service that Air Midwest uses to link the northern Arizona communities of Kingman and Prescott with Las Vegas and Phoenix.

Bids must be submitted by June 2.

The Transportation Department has also ordered Air Midwest, a subsidiary of the Phoenix-based Mesa Air Group, to continue serving Kingman and Prescott under a two-year Essential Air Service subsidy contract beyond the 90-day termination notice the carrier provided last week.

Air Midwest said it would terminate service by Aug. 4 because skyrocketing fuel costs made the route economically infeasible.

Cablevision emerges as top bidder for Newsday

Cablevision Systems Corp., the New York-area cable provider, topped offers from Rupert Murdoch and Mortimer Zuckerman to buy Tribune Co.'s Newsday in a deal valuing the Long Island newspaper at $632 million.

Tribune will get $612 million for a 97 percent stake in Newsday, plus $18 million in prepaid rent for some facilities, the companies said in a statement. Tribune will keep a 3 percent stake worth $20 million. The money will help Chicago-based Tribune manage $13 billion of debt from a leveraged buyout last year led by Chairman Sam Zell.

Cablevision plans to boost profit at Newsday, located 7 miles from the cable operator's Bethpage, N.Y., headquarters, by combining advertising and marketing efforts.

Analysts said they're skeptical because spending on newspaper advertising is moving to the Internet. The stock fell 45 cents, or 1.8 percent, Monday to close at $24.52 on the New York Stock Exchange.

WASHINGTON

Interest rates increase in Treasury auction

Interest rates on short-term Treasury bills rose in Monday's auction to the highest levels since February.

The Treasury Department auctioned $24 billion in three-month bills at a discount rate of 1.8 percent, up from 1.61 percent last week.

Another $23 billion in six-month bills was auctioned at a discount rate of 1.85 percent, up from 1.74 percent last week.

NEW YORK

Treasury prices slide as stock push forward

Treasury prices slipped modestly Monday as the stock market rallied and fixed-income looked ahead to a number of forthcoming economic reports.

The benchmark 10-year Treasury note slipped 0.19 points to 100.66 and its yield rose to 3.79 percent from 3.78 percent late Friday, according to BGCantor Market Data. Bond prices move in the opposite direction of yields.

The 30-year long bond fell 0.13 points to 97.38 and yielded 4.54 percent, up from 4.53 percent late Friday.