Closing arguments begin in Tyco International trial

Prosecutors presented no proof that the former chief financial officer for Tyco International Ltd. looted the conglomerate of hundreds of millions of dollars, his lawyer said Monday during his closing statement.

“They threw a lot of charges against the wall, hoping some would stick,” said Charles Stillman, who represents Mark H. Swartz. “Well it didn’t work. A 10-pound slab of clay is just that, a 10-pound slab of clay. Don’t confuse volume with substance.”

Swartz and former CEO L. Dennis Kozlowski are accused of stealing $170 million from Tyco by hiding unapproved pay and bonuses and by abusing loan programs. They also are accused of illegally making $430 million by pumping up the value of Tyco stock through lies about the company’s finances from 1995 to 2002. The jury may begin deliberations in the case Thursday.

Kansas City, Mo.

Review finds no problems with Aquila’s accounting

An internal investigation at Aquila Inc. found no evidence to support allegations raised in an anonymous letter last year that executives falsified the energy company’s financial results.

The board’s audit committee employed an outside law firm and advisers to help it with the investigation into executive bonuses, accounting practices, energy trading and real estate transactions after the board received the May 12, 2003, letter. The committee reported its conclusions in a 185-document submitted Monday to the Securities and Exchange Commission.

The Kansas City, Mo.-based company is the natural gas provider for Lawrence.

Acquisition

Smucker to buy maker of Pillsbury, Hungry Jack

The J.M. Smucker Co. said Monday it would acquire Minneapolis-based International Multifoods Corp., the maker of Pillsbury, Hungry Jack and other food brands, in a $500 million cash and stock deal. Shares of International Multifoods surged nearly 26 percent on the news.

The agreement calls for Multifoods shareholders to get $25 per share in a combination of 80 percent Smucker stock and 20 percent cash. The maker of Smucker’s jams and Jif peanut butter also would assume about $340 million of Multifoods debt.

Manufacturing

Kodak continues move toward digital

Accelerating its push into digital commercial printing, Eastman Kodak Co. is buying two business lines from German manufacturer Heidelberger Druckmaschinen AG in a deal worth up to $150 million. Kodak shares slipped on the news, after the company reduced its earnings outlook.

The world’s biggest film photography company said Monday it would acquire Heidelberg’s 50 percent stake in NexPress Solutions LLC, a six-year joint venture that makes digital color printing systems.

In a statement, Kodak said the deal meant that it now expected 2004 earnings to be between $2.05 and $2.35 a share, compared with earlier estimates of $2.25 to $2.55 a share.