Acquisition
Johnson & Johnson confirms Alza deal
Health care giant Johnson & Johnson confirmed Tuesday that it plans to buy drug-delivery specialist Alza Corp. for $12.3 billion in stock, a deal that analysts said would make it easier for J&J to offer new ways for patients to take its drugs.
Alza, based in Mountain View, Calif., had operations in Lawrence from 1969 to 1972, in laboratories built for the company on Kansas University's west campus.
The companies said that their boards had approved the deal and hope to complete it in the July-September quarter. It is subject to approval by Alza shareholders and by regulators in the United States and Europe.
J&J shares fell $2.13 to $83.25 on Tuesday, while Alza stock rose 25 cents to $39.
Microlectronics
Agere announces offering
Agere Systems Inc., a subsidiary of Lucent Technologies Inc., will offer 600 million shares priced at $6 each, the company said Tuesday.
The decision comes after the Allentown, Pa.-based company delayed the offering last week.
Agere Systems was formed as a result of Lucent Technologies' planned IPO and spin-off of its microlectronics business last year.
Agere is scheduled to start trading on the New York Stock Exchange under the symbol "AGR."
The revised IPO is expected to help Agere raise at least $3.6 billion.
Earnings
Palm tops forecast, will trim 250 jobs
Palm Inc.'s third-quarter results beat Wall Street expectations, but the leading handheld computer maker said slowing sales forced it to reduce its fourth-quarter projections and announced plans to cut about 250 jobs.
Shares of Palm fell 35 percent on the news.
For the three months ended March 2, Palm lost $1.9 million, or less than 1 cent per share, compared with earnings of $11 million, or 2 cents per share, in the year-ago period.
Excluding a number of factors, including the effects of amortization of goodwill and intangible assets, Palm earned $9.3 million, or 2 cents per share. Wall Street had expected the company to report earnings of a penny a share, according to a survey of analysts by First Call/Thomson Financial.
The company released its results after the close of regular trading Tuesday.
Utilities
Woman nominated to regulatory post
President Bush on Tuesday nominated Pennsylvania Public Utility Commissioner Nora Mead Brownell to the Federal Energy Regulatory Commission, or FERC.
Brownell, a member of the state panel since 1997, would serve on the federal commission through 2006 if confirmed by the Senate. FERC regulates wholesale power markets and interstate natural gas pipelines.
During her time on the state commission, Brownell helped oversee Pennsylvania's electricity deregulation, which has been praised as a national model.
She has supported research into renewable sources of energy and was instrumental in having the commission create a $21 million fund to be used for investment in clean energy projects including wind, solar and biogas ventures.
Internet
Firm settles charges of pyramid scheme
An Arizona company that sells "Internet malls" Web sites with links to retailers will pay $5 million back to its customers to settle charges that it operated an illegal pyramid scheme, federal regulators announced Tuesday.
Mark and Harry Tahiliani, the proprietors of the Web site called Bigsmart.com, also agreed to post a $500,000 bond before engaging in another similar marketing operation, the Federal Trade Commission said.
Bigsmart charged more than $100 for each mall, the FTC said, and claimed that customers would make substantial income on the deal if they continued to recruit more participants. Customers received commissions if visitors clicked links on their site and made purchases at the stores.
Bigsmart customers who believe they qualify for refunds should call the commission at 202-326-3294.
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