Television: EchoStar seeks to revive $18 billion merger

Representatives from satellite TV provider EchoStar Communications Corp. tried to convince Justice Department officials Monday to approve a proposed $18 billion merger with Hughes Electronics, offering to bolster a rival to preserve competition.

Under the revised plan, the company would give up some satellite capacity to strengthen Cablevision Systems Corp., according to House Energy and Commerce Committee spokesman Ken Johnson. The committee’s staff was briefed on the changes last week.

Johnson said EchoStar would sell and lease its own satellites to a Cablevision subsidiary and would give Cablevision the capacity to deliver programs nationwide.

Representatives from EchoStar, Hughes and Cablevision would not comment on the proposal.

Financial services: American Express profits on the rise

Profits rose strongly at American Express in the third quarter, beating analysts’ estimates by a penny.

The financial and travel company, which was hit hard last year by investment losses and fallout from the Sept. 11 terrorist attacks, said Monday that its net income totaled $687 million, or 52 cents a share, in the July-September period, up from $298 million, or 22 cents a share, a year earlier.

Results in 2001 were reduced by a $232 million restructuring charge as well as $65 million in Sept. 11-related expenses.

Insurance: Cigna to restructure

Cigna Corp., the nation’s third-largest health insurer, said Monday that it would spend $100 million to restructure its health-care division and would take at least a year to rebuild after a pricing miscalculation sent the company’s profits plummeting.

In a bid to stave off competition and win over dissatisfied customers grumbling about poor service, Cigna offered some clients deeper price discounts last year than the company had initially planned, or could afford, officials said.

Pharmaceuticals: Bayer reports victory in Cipro patent lawsuit

German pharmaceutical giant Bayer AG said Monday that a U.S. federal court has upheld the validity of its U.S. patent on the antibiotic Cipro, pictured at right, which is used to treat anthrax. The patent expires at the end of next year.

Bayer said in a statement the ruling in its favor was made by the U.S. federal appeals court in Washington, adding that the proceedings were the result of “various court actions” by several makers of generic drugs who wanted to manufacture equivalents of Cipro before the patent expires.

Last year, as anthrax attacks in the United States and a series of scares worldwide put Cipro in the spotlight, Bayer vowed to defend the patent against challenges from other manufacturers and consumer groups.

“I am pleased that these proceedings are finally resolved,” Frank Morich, Bayer’s chairman.