IN BRIEF

ATLANTA

SEC's investigation of Beazer now formal

Beazer Homes USA said Monday that an informal Securities and Exchange Commission inquiry to determine if any person or entity related to the company violated securities laws has become formal.

The Atlanta-based homebuilder said in an SEC filing issued after the market closed that on Friday it received a "formal order of private investigation" issued by the SEC in this matter.

"Beazer Homes will continue to cooperate fully with the SEC regarding this matter," the company said in the filing.

It did not elaborate on the review.

NEW YORK

Security flaw found for Web-linked iPhones

Hackers could take control of an iPhone if its owner visits a doctored Web site or Internet hotspot, security researchers reported Monday.

The vulnerability of the vaunted device, the first cell phone from Cupertino, Calif.-based Apple, is only theoretical for now. There are no reports of criminals actually taking advantage of the security glitch to remotely access an iPhone.

But if it were exploited, hijacked iPhones could be very useful to the same gangs that take over personal computers and use them to disseminate spam, said Charlie Miller, principal security analyst at Independent Security Evaluators, which discovered the flaw.

PALO ALTO, Calif.

Offshore driller gets bigger with purchase

The world's largest offshore drilling contractor got bigger with Monday's announcement by Transocean that it will combine with GlobalSantaFe, creating a company able to drill globally from shallow to ultra-deep waters.

The deal, announced jointly by both Houston-based companies, includes a $15 billion cash payout to shareholders of both the world's largest contractor, Transocean, and GlobalSantaFe Corp. Shareholders of both companies will also get shares in the new company, which will retain the Transocean name and trade on the New York Stock Exchange under Transocean's symbol, RIG.

The value of the new company will be about $53 billion, including debt.

SAN FRANCISCO

Satellite-radio execs detail pricing plan

The top executives at the nation's two satellite radio companies detailed pricing plans Monday that they said would let customers choose which channels they want to receive if the two firms are permitted to merge.

XM Satellite Radio and Sirius Satellite Radio announced the $4.7 billion merger last February. The combination requires approval from antitrust regulators and the Federal Communications Commission.

The pricing plans announced Monday range from $6.99 per month for 50 channels offered by one service to $16.99 per month where customers would keep their existing service, plus "choose from the best" of channels offered by the other service.

That means a customer could subscribe to both the Major League Baseball channel on XM and the National Football League channel offered by Sirius, on the same radio.

Starbucks will raise prices by 9 cents a cup

Starbucks Corp. will raise U.S. prices for lattes, Frappuccinos and other drinks by an average of 9 cents a cup to blunt higher costs for dairy, energy and coffee.

The increases, which vary by city and drink type, average 3 percent and take effect July 31 at company-owned stores, spokesman Brandon Borrman said Monday. Starbucks, the world's largest chain of coffee shops, owned 6,200 U.S. locations as of April 1.

The company operates 173 shops in the Las Vegas Valley. That count includes free-standing stores and kiosks in other sites such as grocery stores and hotel-casinos.

HARTFORD, Conn.

Cerberus to acquire United Rentals

Private equity group Cerberus will acquire United Rentals for about $4 billion in cash, the equipment rental company said Monday.

The transaction, which includes about $2.6 billion in assumed debt, is valued at $6.6 billion.

Shares of United Rentals, one of the largest players in the construction-gear rental industry, have risen more than 16 percent since April 9, the day before the company said it might put itself up for sale. United Rentals shares jumped 61 cents, or 1.88 percent, Monday to close at $32.98.

WASHINGTON

Interest rates increase in government auction

Interest rates on short-term Treasury bills rose in Monday's auction with rates on six-month bills climbing to the highest level in four months.

The Treasury Department auctioned $17 billion in three-month bills at a discount rate of 4.885 percent, up from 4.84 percent last week. An additional $16 billion in six-month bills was auctioned at a discount rate of 4.89 percent, up from 4.865 percent last week.

NEW YORK

Treasury prices decline amid quiet trading

U.S. Treasury prices fell slightly on Monday in a quiet session.

At 5 p.m. EDT, the 10-year Treasury note was down 31 cents per $1,000 in face value, or 0.03 points, from its level at 5 p.m. Friday.

Its yield, which moves in the opposite direction, rose to 4.96 percent from 4.95 percent.

The 30-year bond fell 0.03 points. Its yield was unchanged at 5.06 percent.

The 2-year note fell 0.06 points. Its yield rose to 4.80 percent from 4.77 percent.

Yields on 3-month Treasury bills were 4.99 percent as the discount rate rose 0.03 percentage point to 4.86 percent.