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By Times Staff Writer
Published May 24, 2005

JPMORGAN DOWNGRADES TECO STOCK: JPMorgan Securities on Monday downgraded its rating on TECO Energy Inc.'s stock to "neutral" from "overweight." The firm said the downgrade was related to a recent runup in TECO's stock price. Separately, the Tampa utility said it was seeking to raise about $200-million in a private placement of notes. The company said it planned to use the proceeds and cash on hand to rebuy or redeem $380-million in 10.5 percent notes due in 2007 and to retire other securities. TECO's shares closed Monday at $17.12, down 34 cents, or 2 percent.

TOYS R US SHARES BUYOUT DETAILS: Shareholders of Toys R Us Inc. were told Monday that if they do not approve the buyout of the company by a private consortium, the nation's No. 2 toy seller must pay up to $30-million to reimburse the group for expenses. In ballots mailed Monday, stockholders also were told that if the board of Toys R Us gets a better offer than the consortium's bid, the company must pay the group a $247.5-million termination fee. The toy seller's board has accepted a $6.6-billion buyout offer from two equity firms, Bain Capital Partners and Kohlberg Kravis Roberts & Co., and a real estate developer, Vornado Realty Trust.

MICROSOFT FACES EU DEADLINE: The European Union has given Microsoft Corp. until the end of the month to comply with its antitrust order or face punitive sanctions, the software producer and an EU official said Monday. The dispute stems from what regulators consider the software maker's recalcitrance in providing server software source code to competitors, and on EU doubts on whether the Windows version without Media Player that Microsoft was forced to produce is technically up to standard.

2,000 COCA-COLA WORKERS STRIKE: More than 2,000 workers at plants in California and Connecticut that bottle Coca-Cola soft drinks went on strike Monday, just before the start of the summer season. The workers, mostly production workers and delivery drivers, were in contract negotiations with Coca-Cola Enterprises Inc., the world's largest beverage bottler. The workers walked out over the company's proposal that they pay more for health benefits.

AIRTRAN FLIGHT ATTENDANTS RATIFY CONTRACT: Flight attendants for AirTran Airways ratified a 42-month contract. The agreement takes effect June 1, and offers better pay and benefits for the more than 1,300 flight attendants based in Atlanta.

SHAREHOLDERS APPROVE SALE OF USF CORP. TO YELLOW ROADWAY: Trucking company USF Corp. said Monday most of its shareholders approved selling the company to Yellow Roadway Corp. for $1.37-billion in cash and stock. The deal is expected to be closed today, USF said.

T-BILL RATES RISE: Interest rates on short-term Treasury bills rose in Monday's auction with the three-month bill hitting the highest level since September 2001. The Treasury Department auctioned $17-billion in three-month bills at a discount rate of 2.895 percent, up from 2.800 percent last week. Another $15-billion in six-month bills was auctioned at a discount rate of 3.110 percent, up from 3.070 percent last week.

[Last modified May 24, 2005, 12:22:36]