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Business Today

By wire services
Published March 24, 2005

BMW INTRODUCES NEW SEDANS: German automaker BMW AG, whose U.S. business rose more than 7 percent in 2004, introduced two all-new 3 Series sedans, above, Wednesday - smaller relatives of the 5 and 7 series the company hopes will maintain its sales momentum. The luxury carmaker also used the New York International Auto Show for the North American debut of its refreshed high-end 7 Series. Both lines of cars are scheduled to go on sale in May as 2006 models. Pricing for the 3 Series starts at roughly $31,000, the 7 Series at $71,195.

FEDS ACKNOWLEDGE HOLLINGER INVESTIGATION: Federal prosecutors are conducting a fraud investigation into Hollinger Inc., newspaper tycoon Conrad Black and his former top deputy, David Radler. The government acknowledged the criminal investigation for the first time Tuesday in court papers in which it asked to intervene in a U.S. Securities and Exchange Commission lawsuit filed in November against Hollinger Inc., Black and Radler. The SEC alleges the men engaged in a "fraudulent and deceptive scheme" to take cash and other assets from Hollinger International, the parent company of the Chicago Sun-Times, and conceal the actions from shareholders.

COCA-COLA RESHUFFLES: The Coca-Cola Co. named an executive to a new post charged with overseeing its marketing and product innovation efforts and said Wednesday the head of its European business is retiring as the world's biggest beverage company tries to boost profits. The company said it has assigned Mary Minnick, president and chief operating officer of its Asia division, to lead a new corporate function overseeing the coordination of Coke's marketing, innovation and strategic growth segments. The company also said Sandy Allan, president and chief operating officer of Coke's European group, has decided to retire.

ATA PURCHASE TO GET SOUTHWEST $100-MILLION A YEAR: Southwest Airlines Co., the largest low-fare carrier, expects its investment in bankrupt ATA Holdings Corp. to generate $100-million in annual revenue, chief executive Gary Kelly said Wednesday. Southwest in December agreed to pay $117-million to lease Chicago gates and provided loans and cash to keep Indianapolis- based ATA operating. "We have invested just shy of $80-million in cash in this transaction and we're on a pace now, through a combination of revenue sources, to generate about $100-million or more annually," Kelly said at a Goldman Sachs transportation conference in New York.

NO BONUSES FOR GOOGLE'S FOUNDERS, CEO: Google Inc.'s board has decided not to give 2004 bonuses to the company's chief executive, Eric Schmidt, or its co-founders, Larry Page and Sergey Brin, according to documents filed Wednesday. Schmidt collects a $250,000 salary while Brin and Page each receive $150,000 annually, according to disclosures made as part of Google's closely watched initial public offering of stock. All three men rank among the world's richest men. Brin and Page each are worth $7.2-billion, while Schmidt is worth $2.8-billion, according to Forbes magazine's most recent wealth survey.

AOL's LATIN AMERICA AFFILIATE MAY SHUT DOWN: The Latin America affiliate of America Online Inc. is running low on cash and may shut down or seek bankruptcy protection if it isn't sold in a "timely manner," the company said. Shares in America Online Latin America Inc. dropped 31 cents, or nearly 66 percent, to 16 cents Wednesday on the Nasdaq Stock Market, as the company said it didn't believe its common stock has "any value."

Darden Restaurants Inc.: The owner of Red Lobster and Olive Garden chains reported Wednesday that profit jumped 20 percent in the fiscal third quarter, beating Wall Street estimates. The company also boosted its outlook for fiscal 2005 well above its earlier forecast.

[Last modified March 24, 2005, 01:19:16]