Business Briefing
Barnes & Noble says no to Burkle
Barnes & Noble has rejected a request by major shareholder and Los Angeles billionaire Ron Burkle to raise his stake in the book retailer without triggering its shareholder-rights plan.
This month, Burkle had sent a letter to the bookseller seeking to acquire up to a 37% stake in the company without triggering the company’s “poison pill” plan. Currently, Burkle and his Yucaipa Cos. own about 19% of the company’s shares. “Poison pill” plans are usually implemented to deter hostile takeovers.
According to a filing with the SEC, Barnes & Noble sent Burkle a letter Wednesday stating that his proposal would not be in the best interest of its shareholders.
Yucaipa Cos. did not return a call for comment.
COURTS
BofA seeks to limit judge’s role
A Bank of America Corp. lawyer said the bank doesn’t want the judge weighing its proposed lawsuit settlement with the U.S. Securities and Exchange Commission to have a say in the selection of a compensation consultant.
The bank responded in a court filing to questions posed by U.S. District Judge Jed Rakoff as he weighs whether to accept a proposed $150-million settlement of an SEC lawsuit against the bank.
INTERNET
Google donates to Wikipedia
Google Inc. is giving $2 million to support Wikipedia, a volunteer-driven reference tool that has emerged as one of the Web’s most-read sites.
The donation matches the largest grant made so far to Wikimedia Foundation, the nonprofit group that oversees the 7-year-old Wikipedia. EBay founder Pierre Omidyar also donated $2 million to Wikimedia six months ago through one of his investment arms.
AIRLINES
Carrier faces $2-million fine
The Federal Aviation Administration is proposing a $2-million-plus fine against a sister carrier of American Airlines for the second time in less than a month for safety violations.
The FAA says that AMR Corp.’s American Eagle conducted at least 1,178 passenger-carrying flights using four Bombardier jets with main landing gear doors that had not been repaired in accordance with a safety directive. The flights took place between February and May of 2008.
On Feb. 1, the FAA proposed a fine of nearly $2.5 million against American Eagle for not making sure crews had accurate information about the weight of baggage on dozens of flights.
AMR has 30 days to appeal both fines.
FOOD
Campbell Soup lowers forecast
Campbell Soup Co. lowered its fiscal 2010 sales forecast as competition heats up in the soup business and said it would cut sodium and revamp the packaging for some of its soups.
The moves come as food makers are competing vigorously to sell meals that are easy to prepare at home and persuade consumers not to trade down to store brands.
The world’s biggest soup maker now expects full-year sales will rise 2.5% to 3.5%, down from its prior outlook for a 4% to 5% increase.
-- times wire reports
