EU likely to approve music companies’ merger

The European Union’s antitrust chief decided Thursday to approve a merger between Sony Music and Bertelsmann AG’s BMG, sources familiar with the case said.

The decision came after two days of closed-door hearings in which the companies faced EU charges, supported by many small independent labels, that the deal would lead to higher CD prices, less choice for music lovers and stifle the development of online music stores.

An official announcement was expected as early as today. The deal would leave four music industry “majors” controlling about 80 percent of the market. Sony-BMG and current No. 1, Vivendi Universal, would each have about a quarter. The merger still faces an antitrust review in the United States.

Financial services

Janus sells DST shares

Janus Capital Group Inc. on Wednesday said it had sold the remaining 7.4 million shares of stock in DST Systems Inc. for $336 million before taxes.

The sale will result in a second-quarter gain of about $100 million after taxes, the Denver-based mutual funds company said. DST is a Kansas City, Mo.-based information processing and financial software firm. It operates a service center in Lawrence.

Topeka

Westar refinances debt

Electric energy provider Westar Energy Inc. said Thursday it recently refinanced more than $600 million of debt to reduce its interest costs.

Westar on June 10 issued pollution control bonds to refinance $58.3 million of its 6 percent pollution control bonds due 2033. Also, its Kansas Gas and Electric unit issued pollution control bonds to refinance $327.5 million of its 7 percent pollution control bonds due 2031.

Kansas

Chamber taps leader

Ron Brunton, vice president of manufacturing at Boeing in Wichita, was elected as chairman of the Kansas Chamber on Thursday.

He replaces Lawrence businesswoman Shirley Martin-Smith, who has been re-elected to a term on the Chamber’s executive board. Martin-Smith is the owner of Lawrence’s Adecco employment agency.

Investigation

Lawsuit alleges Enron bilked billions in Calif.

California’s attorney general sued Enron on Thursday, accusing it of manipulating the market during the state’s 2000-01 energy crisis and costing Californians perhaps billions of dollars.

The lawsuit, filed in state court, contends Enron employed a variety of fraudulent schemes between 1998 and 2001 to artificially boost electricity prices and the company’s profits.

Atty. Gen. Bill Lockyer said the evidence is “very compelling that California ratepayers should be entitled to well in excess of a billion dollars — probably closer to $2 billion — in profits that Enron took that were illegal.”