BUSINESS BRIEFS
Judge approves acquisition of Steve & Barry's
Associated Press
NEW YORK — A U.S. Bankruptcy Court judge yesterday approved a $163 million acquisition of discount clothing chain Steve & Barry's.
BHY Holdings LLC, an affiliate of investment firms Bay Harbour Management and York Capital Management, said earlier this week it had won a bid to buy Steve & Barry's for $168 million. A company representative was not immediately available to discuss the court's decision or say why the purchase price had changed.
The deal went before U.S. Bankruptcy Court Judge Allan Gropper in New York on Thursday and yesterday.
The acquisition is expected to be completed Monday.
FREDDIE SEEKING INVESTOR SUPPORT
NEW YORK — Freddie Mac talked to investors this week about possibly buying its stock to raise much-needed capital, but billionaire investor Warren Buffett said he passed on an opportunity to help the troubled mortgage giant.
The likelihood Freddie will find willing investors took another hit after Moody's Investors Service lowered the company's preferred stock ratings and those of its sister company Fannie Mae to near junk status.
Freddie spokesman Douglas Duvall confirmed to The Associated Press yesterday that the company's management has been in talks with potential investors this week as part of ongoing discussions to raise capital.
He declined to give any details about the meetings, possible investors or structures.
The Wall Street Journal reported on the talks yesterday.
BUYERS OF RISKY BONDS TO GET $7B
WASHINGTON — Federal regulators said yesterday that investors who bought risky auction-rate securities from Merrill Lynch & Co. before the market for those bonds collapsed will be able to recover up to $7 billion under a new agreement.
The largest U.S. brokerage will buy back the securities from thousands of investors under a settlement with the Securities and Exchange Commission, New York Attorney General Andrew Cuomo and other state regulators over its role in selling the high-risk bonds to retail investors.
BOEING MAY QUIT $35B CONTRACT BID
WASHINGTON — Boeing Co. is considering bailing out of a politically charged competition for a $35 billion contract to build aerial refueling tankers for the Air Force if it does not receive an additional four months from the Pentagon to assemble its offer.
The aerospace manufacturer said yesterday it also may file a protest on the final bids request — expected to be released early next week by the Pentagon — which could further delay an award. No final decision will be made until Boeing has a chance to review the final bids request, said company spokesman Daniel Beck.
Boeing lost the initial contract in February to Northrop Grumman Corp. and its partner, Airbus parent European Aeronautic Defense and Space Co. The competition was reopened after government auditors found "significant errors" in the Air Force's decision.
MEDICARE DRUG PLANS NOT AUDITED
WASHINGTON — Nearly three years into the Medicare drug benefit, federal officials have yet to ensure that private drug plans enacted programs to deter fraud and abuse, government investigators say.
About 24 million people are enrolled in Medicare drug plans subsidized by the federal government.
The plans are required to develop programs to stem improper spending, but the Centers for Medicare and Medicaid Services has not conducted audits to ensure those programs were up and running properly. That lack of oversight "risks significant misuse of funds in this $39 billion program," the Government Accountability Office said in a report to be publicly released Monday.
