BUSINESS BRIEFS
Bank of America gets Fed's OK on Countrywide deal
Associated Press
WASHINGTON — The Federal Reserve has given approval for Bank of America Corp. to purchase distressed subprime mortgage lender Countrywide Financial Corp.
The Fed board approved the deal in a 32-page order issued yesterday. Countrywide had said previously that it will hold a special meeting of shareholders on June 25 to approve the proposed sale.
In its order, the Fed board said that after the proposed deal Bank of America would remain the largest depository institution in the country, controlling approximately $773.4 billion in deposits, which represent 10.9 percent of total insured bank deposits in the country.
MILLER-MOLSON MERGER CLEARED
MILWAUKEE — The U.S. Department of Justice closed its investigation of a proposed joint venture between Molson Coors Brewing Co. and Miller Brewing Co. yesterday, clearing the way for the brewers to combine their U.S. operations.
The eight-month investigation concluded that the joint venture would not reduce competition in the market, the department's antitrust division said in a statement.
Miller, based in Milwaukee, and Molson Coors, based in Golden, Colo., announced in October they would form a joint venture called MillerCoors that would market and distribute their beers in the U.S. and Puerto Rico.
The deal was aimed at helping them compete against Anheuser-Busch Cos., which has about half the U.S. market.
Miller, which makes brands like Miller Lite and Miller Genuine Draft, has about 18 percent of the market while Molson Coors, maker of Coors Light, has about 11 percent.
MULTIPLE CHARGES AGAINST BILLIONAIRE
SANTA ANA, Calif. — Broadcom Corp. co-founder Henry T. Nicholas III was in custody yesterday on charges that he slipped Ecstasy into the drinks of technology executives, maintained a warehouse to store cocaine and tried to conceal his illegal conduct with bribes and death threats.
The billionaire also is accused of committing conspiracy, securities fraud and other violations while he led the Irvine-based computer chip company.
A pair of indictments was unsealed yesterday, one addressing the drug charges and the other allegations related to improper handling of backdated stock options.
Nicholas is accused of using much of his fortune to fund drug parties in airplanes and luxury homes and to build a secret tunnel and room beneath his mansion in Laguna Hills.
HONEYWELL SUED FOR UNFIT VESTS
WASHINGTON — The government is suing diversified manufacturer Honeywell International Inc. for selling material used in bulletproof vests that it alleges the company knew was defective.
According to the Justice Department lawsuit filed yesterday, Honeywell had scientific data that showed the ballistic material, known as Zylon Shield, "degraded quickly over time, especially in hot and humid conditions," leaving the vests unfit for use by law enforcement agencies and military personnel.
The department also alleges that Honeywell failed to notify the government or the vest manufacturer, Armor Holdings Inc., of the defect.
FORD TO CUT BACK WHITE-COLLAR JOBS
DETROIT — Ford Motor Co. sent an e-mail to offices across North America yesterday notifying workers it will cut white-collar salary costs 15 percent by Aug. 1, and an unspecified number of people will lose their jobs.
Employees knew job cuts were in store.
The cuts are in response to shrinking U.S. automotive sales brought on by $4 per gallon gasoline and a rapid shift to smaller vehicles from Ford's traditional moneymakers — pickup trucks and sport utility vehicles.
