Symantec-Veritas deal creates software giant

Computer security giant Symantec Corp. is buying storage and backup program specialist Veritas Software Corp. to create the world’s fourth largest software maker.

The all-stock acquisition, announced Thursday, was initially valued at $13.5 billion, but the price quickly plummeted amid investor worries that the deal signals a sales slowdown at Symantec, the maker of the popular Norton-branded software that fights computer viruses.

Cupertino, Calif.-based Symantec hopes to create a one-stop shop that guards against computer viruses and ensures the reams of vital information stored on corporate networks remains accessible.

Health

Johnson & Johnson to buy device maker

Johnson & Johnson said on Wednesday that it would acquire device manufacturer Guidant Corp. for $25.4 billion. Under the terms of the deal announced on Wednesday, each Guidant share will be exchanged for $30.40 in cash and $45.60 in Johnson and Johnson stock.

Indianapolis-based Guidant makes pacemakers and cardiac defibrillators that will complement J&J’s products and services in cardiology and medical devices.

Guidant shareholders still must approve the acquisition, the largest business deal in Johnson & Johnson’s 118-year history.

Economy

Trade deficit hits high

The deficit in the broadest measure of trade climbed to a record high of $164.7 billion in the third quarter of this year, reflecting Americans’ hardy demand for imported oil and foreign-made goods.

Mortgages

Lawmakers to tighten reins on Fannie Mae

Lawmakers called Thursday for tighter government reins on embattled mortgage giant Fannie Mae after regulators found accounting violations back to 2001.

A review by the Securities and Exchange Commission said the government-sponsored company must restate earnings because it had violated accounting rules for derivatives and for some transactions related to loans.

The SEC’s investigation continues, and the Justice Department is pursuing a criminal probe into the accounting of Washington-based Fannie Mae, the biggest U.S. buyer and guarantor of home mortgages.

Survey

Mortgage rates drop

Rates on 30-year and 15-year mortgages dipped this week, good news for prospective home buyers.

Freddie Mac’s weekly survey released Thursday showed that rates on 30-year, fixed-rate mortgages declined to 5.68 percent, compared with 5.71 percent last week. This week’s rate was the lowest since late October.