LITTLE ROCK — QUOTE OF THE DAY
“It appears we’re coming out of the recession even a little bit more strongly than the nation as a whole.”
Kathy Deck,
director of the Center for Business and Economic Research at the University of Arkansas at Fayetteville.
Article, 1DState commerce groups elect officers
The Arkansas State Chamber of Commerce and the Associated Industries of Arkansas have elected officers for two-year terms beginning Jan. 1.
The State Chamber officers include, Eddie Drilling, Arkansas Division of AT&T Arkansas in Little Rock, chairman; Gary Head, Signature Bank of Arkansas, vice chairman; Phil Baldwin, Southern Bancorp Inc., treasurer;
Maggie Sans, Wal-Mart Stores Inc., vice chairman; George Wheatley, Waste Management of Arkansas, vice chairman; Mike Callan, Arkansas Oklahoma Gas Corp., vice chairman; Randy Wilbourn, Martin-Wilbourn Partners LLC, past chairman; and Hugh McDonald, Entergy Arkansas Inc., past chairman.
The Associated Industries of Arkansas officers include, Bill Hannah, Nabholz Construction Corp. of Conway, chairman; Russ Bragg, OK Industries Inc., vice chairman; Bill Reed, Riceland Foods Inc., vice chairman; Steve Cousins, Lion Oil Co., vice chairman; Ken Kimbro, Tyson Foods Inc., vice chairman; Ray Dillon, Deltic Timber Corp., past chairman; and Benny Baker, International Paper Container Division, past chairman.
SAP to pay Oracle $1.3 billion in suit
OAKLAND, Calif. - A federal jury has ordered the German company SAP to pay Oracle $1.3 billion in damages for a software pirating scheme by a SAP subsidiary in a case that arose from a dispute between the rival tech giants.
Jurors deliberated less than a full day Tuesday after hearing closing arguments in the case Monday.
Oracle attorneys said the award is “by far” the largest penalty they have seen in a copyright infringement case.
A SAP spokesman said the company was disappointed and planned to examine its options, including the possibility of an appeal.
SAP had already accepted liability after admitting that its Tomorrow Now subsidiary surreptitiously downloaded thousands of copies of Oracle’s software and support materials, without paying for a license to use them. That meant the eight-member jury only had to decide how much compensation SAP should pay.
Oracle wanted $1.7 billion or more. SAP said it should pay $40 million or less.
Janus tapped in trading investigation
BOSTON - Janus Capital Group Inc. said Tuesday that it has received an inquiry in an investigation of insider trading on Wall Street, as mutual fund companies came under scrutiny in an investigation that initially targeted hedge funds.
A day after federal investigators raided offices of three hedge funds, Janus disclosed in a Securities and Exchange Commission filing that it received an inquiry seeking “general information.”
The Denver-based manager of $161 billion in mutual funds and other investments said it intends to cooperate with the request. A company statement said Janus “maintains rigorous compliance procedures” and “has confidence in the integrity of its processes and its people.” Janus said it did not intend to provide further updates “unless and until required by applicable law.”
Shares of Janus fell 31 cents, or about 2.8 percent, to close at $10.65, after falling as much as 8.3 percent earlier in the session.
J. Crew going private in $3 billion deal
NEW YORK - J. Crew said Tuesday it will be taken private in a $3 billion deal with two investment firms, including its former parent.
The clothing retailer will receive $43.50 per share to private equity firms TPG Capital and Leonard Green & Partners, confirming media reports Monday. That is a 16 percent premium to the stock’s closing price of $37.65.
J. Crew shares rose $6.31, or 17 percent, to close at 43.96.
Chief Executive Officer Mickey Drexler will remain in that role.
TPG took a majority stake in J. Crew Group Inc. in 1997 and remained majority shareholder until the company went public in 2006.
Private equity buyouts are rising after a lull during the recession. Gymboree Corp. in October agreed to be bought by Bain Capital for $1.8 billion.
J. Crew, which is based in New York, also said third quarter net income fell 14 percent to $37.8 million, or 58 cents per share.
That was better than the 54 cents per share analysts expected.
Revenue rose 4 percent to $421.2 million. Analysts expected higher revenue of $430.3 million.
Chrysler to invest in Indiana plant
DETROIT - Chrysler said Tuesday it will invest another $843 million in its facilities in Kokomo, Ind.
The investment was announced just ahead of appearances Tuesday by President Barack Obama and Vice President Joe Biden at a Chrysler transmission plant in Kokomo.
Chrysler said the money would pay for equipment to modernize the Kokomo transmission and casting plants.
It would extend the life of the plants and help retain nearly 2,250 jobs.
Chrysler said the investment would raise Chrysler’s commitment to the Kokomo plants to $1.1 billion.
Obama and Biden are visiting the Kokomo factories to tout the success of the auto industry bailout.
Chrysler received a $12.1 billion bailout from U.S. taxpayers to make it through bankruptcy protection last year.
American, Indian airline teaming up
FORT WORTH, Texas - American Airlines and Indian carrier Kingfisher Airlines said Tuesday they’re planning a frequent flyer partnership and a deal that will allow them to sell tickets on each other’s flights starting next year.
The partnership requires approval by regulators.
The initial phase of the deal will allow American to place its code on Kingfisher’s domestic network beyond Delhi. American will also share codes on Kingfisher Airlines flights from London Heathrow to Delhi and Bombay.
Kingfisher Airlines will place its code on American’s daily service between Delhi and Chicago O’Hare and on select American flights between the United States and London Heathrow.
Business, Pages 28 on 11/24/2010