Comcast withdraws offer to buy Disney

Cable giant Comcast Corp. dropped its 2-month-old unsolicited bid for The Walt Disney Co. on Wednesday after being rebuffed by Disney and encountering resistance from its own shareholders.

The offer, originally valued at $54 billion, was rejected by Disney as too low, while Comcast investors clearly objected to a new, higher bid that would have diluted the value of their shares.

The nation’s largest cable provider said it would look for other growth opportunities, including bankrupt Adelphia Communications Corp.

It will go ahead with a previously announced $1 billion stock repurchase program sidelined while the Disney bid was pending.

Disney promised to stay the course with its current management.

Comcast stock rose 23 cents to close at $30.20 a share on the Nasdaq Stock Market, while Disney shares fell 23 cents to $23.95 on the New York Stock Exchange.

Investigation

Nortel fires executives

Nortel Networks fired its CEO and two other top executives Wednesday amid an internal audit and said it would restate its 2003 earnings and lower its profits for that year by about 50 percent.

The telecom equipment maker would not specify the reason for the firings.

“Because the investigations that are being conducted are ongoing, it would be inappropriate to provide specifics, but I can say it is about accountability for financial reporting,” Lynton Wilson, chairman of the board, said.

The company disclosed earlier this month that the Securities and Exchange Commission and the Ontario Securities Commission have launched probes of Nortel’s accounting.

Nortel, based in Brampton, Ontario, fired chief executive Frank Dunn, chief financial officer Douglas Beatty and controller Michael Gollogly.

Merger

Sunflower Bank buys Liberal-based company

Salina-based Sunflower Bank has completed a deal to buy Liberal-based Citizens State Bank.

Jim Berglund, president and CEO of Sunflower Bank, said the deal was expected to be completed within 60 to 90 days.

The deal will add about $50 million in assets to Sunflower Bank, which has assets of about $1 billion at 34 locations in Kansas, Missouri and Colorado. Sunflower operates a branch bank in Lawrence.

Area interest

Westar, Capitol Federal announce dividends

Topeka-based Westar Energy announced Wednesday that it would pay a 19 cent per share quarterly dividend to stockholders. Westar is the electric power provider for the Lawrence area.

Capitol Federal Financial, also based in Topeka, announced a quarterly dividend of 50 cents per share. The company is the parent company of Capitol Federal Savings, which operates several banks in Lawrence.

Also of area interest, Overland Park-based Applebee’s International announced earnings of 52 cents per share, up from 42 cents during the same quarter a year ago.

Kansas City, Mo.-based American Italian Pasta Co. announced profits fell to 41 cents per share for the quarter, down from 48 cents per share during the same period a year ago.