PROGRESS ENERGY CREDIT RATING DROPS: Standard & Poor's Ratings Service lowered its outlook on Progress Energy Inc.'s credit ratings to "negative" from "stable," citing concerns about the financial effect of the recent hurricanes. Progress, the parent of Progress Energy Florida of St. Petersburg, is expected to recover its storm restoration costs from customers. But given the sheer magnitude of the costs, S&P voiced concerns about how quickly the company will be able to recover them. The ratings agency also noted the company is expected to incur operating losses at its synthetic fuel facilities. In a statement, Progress chief financial officer Geoff Chatas said the company was disappointed by S&P's action, adding that Progress has "ample liquidity to meet all of our anticipated needs."
GLAZER ADDS TO SOCCER STAKE: Tampa Bay Buccaneers owner Malcolm Glazer continued to acquire shares of Manchester United on Tuesday, raising his stake in the British soccer club to 28.1 percent. The purchase brings Glazer a shade closer to the 30 percent threshold, at which point he would be required to make a buyout offer for the remaining 70 percent under British law.
ENRON'S LAY TO GET TWO TRIALS: Enron Corp. founder Kenneth Lay will get two criminal trials - one by himself and one with his former protege, ex-CEO Jeffrey Skilling, a judge ruled Tuesday. U.S. District Judge Sim Lake partially granted Lay's request to be tried separately from Skilling and a third defendant in their pending case, former top Enron accountant Richard Causey. The judge said Lay would be tried separately on four counts of bank fraud and lying to banks, alleging he misled banks about using loans to buy Enron stock on margin. But on seven pending counts of conspiracy and fraud, Lay will face a jury with Skilling and Causey.
CONSTELLATION BIDS FOR MONDAVI: Constellation Brands Inc., an international producer and marketer of wine, spirits and beers, said Tuesday it had made a $970-million cash bid to acquire the Robert Mondavi Corp., a well-known California winemaker. Mondavi shares surged 30 percent on the news. Constellation said Tuesday its offer represents a premium of 37 percent over the closing market price of Mondavi's publicly traded Class A shares as of Oct. 11. Constellation would assume $333-million of Mondavi net debt.
COCA-COLA, EU REACH DEAL: Coca-Cola is putting an end to a 5-year-old antitrust investigation in the European Union by agreeing to stop business practices that were viewed as unfair. The company will make a host of changes across Europe, from obeying limits on exclusive deals to letting stores put rival drinks in some Coke coolers, according to an agreement with the EU announced Tuesday. With a deal in place, Coke won't have to pay a fine or slog through litigation. The company could, however, face hefty fines if it or its bottlers violate the agreement.
EBBERS TRIAL DELAYED: A federal judge Tuesday delayed the trial of former WorldCom chief executive Bernard Ebbers until January, granting his lawyers more time to prepare their defense. The trial, among the most closely watched cases in the recent spate of white-collar prosecutions, was set to begin Nov. 9.
T-BILLS HIGHER: The U.S. Treasury sold $10-billion in four-week bills at a high discount rate of 1.57 percent, up from last week's 1.555 percent. The rate on the four-week bills was the highest since 1.59 percent on Sept. 28.
