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Briefs

Service sector growth in U.S. eases in Nov.

By wire services
Published December 6, 2005

NEW YORK - The nation's service sector grew in November, but at a less robust pace than in October and slightly slower than analysts expected, the Institute for Supply Management said Monday.

The Tempe, Ariz., group said its index of nonmanufacturing activity dropped to 58.5 in November from 60 the month before. The November reading was slightly below the 59 reading analysts had expected.

Readings of 50 and above indicate growth, while numbers below that indicate contraction.

Scott Brown, chief economist with Raymond James & Associates in St. Petersburg, said of November's report: "The headline number was less than expected, but the details were still pretty strong."

He said that the strength in new orders and employment "is consistent with continued economic growth and further Fed tightening."

Disney pays $500,000 to settle death lawsuit

Walt Disney Co. paid $500,000 to settle a wrongful death suit filed by the family of a 22-year-old California man killed riding the Big Thunder Mountain coaster at Disneyland in Anaheim.

Marcelo Torres died when the locomotive became detached from the passenger cars and the train jackknifed. Disney accepted blame for lapses in maintenance. The case was the third one stemming from the 2003 accident to be settled.

British cable company woos Virgin Mobile

LONDON - British cable operator NTL Inc. confirmed Monday that it has approached Richard Branson's Virgin Mobile Holdings PLC about a takeover valued at $1.4-billion.

If the deal goes ahead, it would create Britain's first "quadruple play" service, offering mobile phones, fixed-line phones, Internet broadband and TV.

NTL, which is merging with cable rival Telewest Global, said it plans to offer Virgin Mobile shareholders 0.09298 shares of NTL common stock per share of Virgin Mobile, as well as a full cash alternative at $5.59 per share.

NTL said the Virgin Group, the Branson-controlled company that owns 72 percent of Virgin Mobile, has indicated that it would exchange its stake in Virgin Mobile for shares in NTL Group. But analysts suggested Virgin Mobile's statement on the proposed deal contained a hint the company's board would seek a better price.

"In considering its response, the board of Virgin Mobile will be mindful of its duty to maximize value for all shareholders," the company said.

Shares in Virgin Mobile rose 10 percent to $5.94 in London. NTL shares were 1.56 percent lower at $59.16 on the Nasdaq.

[Last modified December 6, 2005, 11:53:35]