Business news in brief

QUOTE OF THE DAY “The majority of the lawsuits the EEOC brings are resolved through a settlement.” Pamela Dixon, U.S. Equal Employment Opportunity Commission senior trial attorney Article, 1DGeorge’s Inc. chicken products recalled

George’s Inc., a Springdale-based chicken producer, issued a recall Monday for frozen par-fried chicken tender products because of an undeclared wheat allergen, according to a news release issued by the U.S. Agriculture Department’s Food Safety and Inspection Service.

About 1.25 million pounds of misbranded par-fried chicken tenders were sold at wholesale locations that distribute to users nationwide.

The product label establishment number for recalled items is “P-13584.” The recall is for 10-pound packages of chicken including:

George’s Uncooked Breaded Chicken Breast Tenderloins, case code 4831 and packaging dates between Feb. 21, 2013, and Dec. 19, 2013.

George’s Uncooked Chicken Tenderloin Fritters, case code 4861 and packaging dates between Feb. 21, 2013, and Jan. 4, 2014.

George’s Uncooked Chicken Tenderloin Fritters, case code 4880 and packaging dates between Feb. 21, 2013, and July 19, 2013.

The service determined that some labels were printed without selected ingredients and called it an isolated incident.

Bitcoin operators tied to illicit-drug site

NEW YORK - The top executive of a Manhattan-based Bitcoin company and a Florida Bitcoin exchanger have been charged with conspiring to commit money laundering by reportedly selling more than $1 million in Bitcoins to users of the black market website Silk Road, which let users buy illegal drugs anonymously, authorities said Monday.

Charlie Shrem, 24, the chief executive officer of BitInstant and vice chairman of a foundation that promotes the Bitcoin currency system, was arrested Sunday at New York’s Kennedy Airport, while Robert Faiella was arrested Monday at his Cape Coral, Fla., residence, prosecutors said in a news release. Federal prosecutors in Manhattan said Shrem personally bought drugs on Silk Road and was fully aware that it was a drug-trafficking website.

Shrem’s defense attorney did not immediately return a message seeking comment ahead of a court appearance. It wasn’t immediately clear who would represent Faiella in court.

Authorities have said Silk Road’s San Francisco operator generated more than $1 billion in illicit business from January 2011 through September on the website, which used the tough-to-track digital currency called Bitcoin before the site was shut down.

U.S. Attorney Preet Bharara said Faiella and Shrem conspired to sell more than $1 million in Bitcoins to criminals who wanted to sell narcotics on Silk Road between December 2011 and October.

U.S. oil no threat to OPEC, chief says

U.S. shale oil production is no threat to OPEC and the group can absorb higher output from members Iran, Libya and Iraq when supply issues are resolved, according to its secretary-general, Abdalla El-Badri.

“I welcome the tight oil of the United States,” El-Badri said at the Chatham House Middle East and North Africa Energy conference Monday in London. “Demand will grow and this will not affect OPEC in any way.”

Oil prices in a range of $100 to $110 a barrel are acceptable to both producers and consumers, said El-Badri. The market is balanced and comfortable, with stockpiles at healthy levels, he said.

Production from the Organization of the Petroleum Exporting Countries may rise this year if Libyan protests subside, sanctions against Iran are lifted and Iraq meets its goals to lift output. Those reasons, coupled with steadily rising U.S. oil supply, have led the majority of analysts tracked by Bloomberg to predict lower oil prices for this year.

Brent crude futures traded around $107 a barrel in London on Monday. They are forecast to slide as U.S.

shale output surges and better relations between Iran and the West ease concern that Middle East exports will be curbed.

Sony credit rating cut on falling demand

Sony Corp. had its credit rating cut to junk by Moody’s Investors Service as Japan’s biggest television-maker struggles to capture consumer demand for smartphones and tablet computers.

The rating was lowered to Ba1, one level below investment grade, from Baa3 and the outlook is stable, Moody’s said in an emailed statement Monday. Sony is also rated junk at Fitch Ratings, while Standard & Poor’s has the company on the second-lowest investment grade.

Sony, which posted a surprise loss in the September quarter, is battling shrinking demand for TVs and personal computers as consumers switch to mobile devices produced by Apple Inc. and Samsung Electronics Co. Chief Executive Officer Kazuo Hirai is trying to turn around earnings at the Tokyo-based company by wringing benefits out of holdings from consumer electronics to mobile phones and entertainment.

“Sony’s profitability is likely to remain weak and volatile,” Moody’s said in the statement. “We expect the majority of its core consumer electronics businesses - such as TVs, mobile, digital cameras and personal computers - to continue to face significant downward earnings pressure.”

“We’ll continue explaining to the rating company the situations related to our businesses and financials,” Yumi Takahashi, a Tokyo-based spokesman for Sony, said Monday.

  • Bloomberg News

AT&T: No plans to buy U.K.’s Vodafone

DALLAS - AT&T said it does not intend to make an offer soon for British cellphone company Vodafone.

The announcement by the largest U.S. telecommunications company means it is restricted from initiating a bid on Vodafone in the next six months, according to British takeover rules. But the Dallas-based company can respond to an offer initiated by Vodafone, or it can make a bid in response to an offer from another company.

AT&T Inc. says it made the announcement at the request of a United Kingdom Takeover Panel, and it cites recent speculation about a possible Vodafone deal.

Last year, Vodafone agreed to sell its 45 percent stake in AT&T competitor Verizon Communications Inc. to Verizon for $130 billion.

  • The Associated Press

Business, Pages 22 on 01/28/2014

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