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* Kohlberg Kravis Roberts & Co. is in talks to buy Regal Cinemas Inc. for more than $1 billion, people familiar with the situation said. It would be Kohlberg’s second acquisition in two months.

* Jefferies & Co., the Los Angeles-based investment bank, agreed to pay $4.3 million to LotsOff Corp. to settle a lawsuit over what the San Antonio-based discount store chain claimed was an illegal transfer of funds. Jefferies, which vigorously denies any wrongdoing, said the settlement was “in the best interest of our shareholders and clients,” and would not affect fourth-quarter earnings, said Michael Klowden, Jefferies’ president.

* In the wake of its failed merger with PhyCor, MedPartners Inc. said Chairman and Chief Executive Larry House had resigned and that Richard Scrushy, chairman and CEO of HealthSouth Corp., had been named as MedPartners’ acting head.

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* Texas Industries Inc. said that it bought closely held Riverside Cement, based in Diamond Bar, for $120 million, increasing its cement-production capacity 60% and expanding its operations in California.

* Microsoft Corp. asked an appeals court to suspend a federal judge’s use of Harvard law professor Lawrence Lessig as a special advisor.

* Porsche Cars North America Inc. said it broke with its advertising agency because of differences over account operations, not creativity. The North American sales arm of German sports car maker Porsche said it and Goodby, Silverstein & Partners have mutually decided to part company after five years of working together.

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