Also . . .

* Volvo, Sweden’s largest car maker, has hired an undisclosed U.S. investment bank to explore the sale or merger of its car division, the Financial Times reported, citing an unnamed Volvo official. Volvo, which sold about 400,000 cars in 1998, has acknowledged that it has become increasingly difficult to finance development.

* Biogen Inc., one of the world’s biggest biotechnology companies, named James C. Mullen to the posts of president and chief operating officer just two weeks after the company’s chief executive left because of a dispute with Chairman James L. Vincent. The Cambridge, Mass.-based company announced Mullen’s promotion from international vice president as it moves to convince investors that its business is on track after the departure of CEO James Tobin. Biogen shares fell 8% on Dec. 23, the day the company disclosed Tobin’s departure. The stock fell 25 cents to close at $80.31 on Nasdaq.

* Borders Group Inc. said a fourth-quarter shortfall in sales due in part to severe weather meant the book and music retailer will not meet fourth-quarter and fiscal-year earnings estimates. Citing major storms in key markets and an increase in gift certificate sales, which are not reported until redemption, the Ann Arbor, Mich.-based company expects to report full-year earnings of $1.14 to $1.18 a share, about 4% below estimates.

* Xerox Corp. said it would reorganize its operations to take better advantage of the high-growth market for digital copiers and other office products and to better serve customers. Xerox said it will restructure into four units based on business function from its current five units based on geographic region. It does not expect layoffs from the move.

* A New York lawsuit accusing handgun manufacturers of letting guns fall into criminals’ hands went to trial with relatives of seven shooting victims using a legal strategy that proved effective against Big Tobacco. The case is being closely watched by several cities that are trying to recover the costs of gun violence.

* Marriott International Inc. has agreed to buy ExecuStay Corp., the second-largest provider of leased corporate apartments in the U.S., for about $114.5 million in cash and stock. The purchase would give Bethesda, Md.-based Marriott about 6,000 ExecuStay apartments in 44 states and Washington, D.C. Gaithersburg, Md.-based ExecuStay has a 5% share of the interim housing industry.