World News

www.washingtonpost.com Wednesday, February 19, 2003; Page E02

Oil Hits 29-Month Highs

Oil prices rose to 29-month highs as the United States and Britain pushed for a second U.N. resolution on Iraq that could open the way to war on the world's eighth-largest oil exporter. Light sweet crude oil for March delivery rose 16 cents, to $36.96 a barrel, in New York, the highest closing price since Sept. 20, 2000. In London, the April Brent crude-oil futures contract rose 62 cents, to $32.54 a barrel.

New SEC Chief Seeks Accountability

William H. Donaldson was sworn in as chairman of the Securities and Exchange Commission and called upon corporate executives "to create a new environment of integrity and accountability." Donaldson replaces Harvey L. Pitt, who resigned. Donaldson takes charge of the SEC under pressure from Congress to crack down on corporate misdeeds. "It is time that all those who manage and govern our corporate and financial institutions show true leadership," Donaldson said. "I will call upon them individually and collectively to create a new environment of integrity and accountability that goes well beyond adherence to laws."

MORE NEWS

Wachovia has agreed to acquire Prudential Financial's retail brokerage business, people familiar with the negotiations said. The transaction will bring about 5,000 brokers and $1.7 billion of capital to Charlotte-based Wachovia, which now has about 8,500 brokers. Prudential will have a minority stake in the new business. Prudential Securities has lost almost $300 million during the past two years. The transaction will be announced today, the people said.

Overture Services agreed to buy rival Web-search service AltaVista for $140 million. The current owner of AltaVista, CMGI , bought it from Compaq Computer for $2.3 billion in 1999. Overture, whose search service is used on the Web sites run by Yahoo and MSN, said AltaVista owns technology that will help it improve its search engine.

Duke Power said it received a subpoena from a federal grand jury seeking documents related to last year's audit of the public utility's accounting from 1998 to 2000. The audit, conducted at the request of regulators from North and South Carolina, found that the Charlotte-based utility planned to underreport earnings by $124 million in the three-year period. As a public utility, Duke Power's income is capped. If profits rise above a set level, the states can reduce consumer rates. Duke Power paid a $25 million settlement to the two states last year.

Adelphia Communications founder John Rigas, who is accused of accounting fraud, asked a federal judge to block plans by the bankrupt cable-television company to hire two top executives and pay them as much as $41 million over three years. Rigas and three of his sons joined other Adelphia shareholders and some creditors in trying to persuade U.S. Bankruptcy Judge Robert Gerber to reject or alter the contracts.

T-bill rates rose. The discount rate on three-month Treasury bills auctioned yesterday rose to 1.16 percent from 1.15 percent last week. The rate on six-month bills rose to 1.18 percent from 1.165 percent. The actual return to investors is 1.179 percent on three-month bills, with a $10,000 bill selling for $9,970.70, and 1.204 percent on a six-month bill selling for $9,940.30. Because of the snow storm, the Federal Reserve delayed release of its report on one-year Treasury bills until today.

Personal computer sales will rise 4.8 percent this quarter globally, market researcher Dataquest predicted. About 33.2 million PCs will be shipped in the quarter, and shipments this year may climb by 7.9 percent, to 138.7 million. Last year, global PC shipments rose 2.7 percent, to 132 million.

American Greetings, the second-largest U.S. greeting-card maker after, said Morry Weiss will retire as chief executive on June 1 and will be replaced by his son Zev.

United Airlines and Northwest Airlines matched a $3 fare increase on routes where they compete with American Trans Air, which blamed higher fuel prices. United and Northwest said their airlines added $3 each way of a flight in competing flights, mainly through Chicago. American and Continental were among airlines that tried to raise prices by $20 for all round-trip tickets on Friday and Saturday. Those increases were dropped after Northwest matched them only on some of its lowest fares.

Ford agreed to pay $244,000 to settle allegations that it failed to properly monitor hazardous waste at 14 factories in nine states. The Environmental Protection Agency's allegations involved pipes carrying paint, solvents and other chemicals to disposal sites from areas where cars are painted.

INTERNATIONAL

China overtook the United States as the world's leading exporter to Japan last year, said the Japan External Trade Organization, a government-backed trade group. Chinese exports to Japan in 2002 totaled $61.7 billion, up 6.1 percent from 2001. China accounts for 18.3 percent of Japan's imports. The United States accounted for 17 percent of Japan's imports at $57.5 billion, down 9.5 percent from 2001 for the second straight year of decline.

South Africa informed mining companies of 19 conditions they must meet to renew their licenses. The conditions are part of a program to promote black ownership and include such things as ownership quotas and requirements for training workers. South Africa plans to compel companies to sell 26 percent of their assets to black investors within 10 years.

Exxon Mobil will resume loading oil today from Venezuela's Jose port. It will be the first U.S. company to take on a shipment since a strike began Dec. 2.The resumption is a blow to striking oil workers, who are trying to topple President Hugo Chavez.

Arcelor, the world's largest steelmaker, said protesters held six managers, including the chief executive from its Cockerill Sambre unit, captive for 23 hours over plans to close blast furnaces in Europe. Police officers weren't asked to intervene and there was no violence. The protesters included union members who were protesting plans to close six furnaces in Belgium, French and German factories.

EARNINGS

Wal-Mart Stores said its fourth-quarter earnings rose 16.3 percent, to $2.53 billion. Sales totaled $71.07 billion, up 10.7 percent from a year earlier.

Waste Management is cutting 700 full-time jobs and 270 contract positions as it scales down North American operations. The Houston-based company also reported its fourth-quarter profit climbed 49 percent, to $236 million. Revenue was flat at $2.8 billion.