REGULATORY

FANNIE MAE AGREES TO SEPARATE CHAIRMAN, CEO DUTIES

Fannie Mae, the biggest American mortgage buyer, agreed with its federal regulator to improve corporate governance, including separating the duties of the chairman and chief executive and prohibiting employees from falsifying signatures.

The agreement amends an earlier pact reached in September that was sparked by Office of Federal Housing Enterprise Oversight’s findings that Washington based company violated rules in accounting for hedges on its $905 billion portfolio of mortgages, and at least once deferred expenses to meet an earnings target that triggered maximum executive bonuses.

– Bloomberg News

TECHNOLOGY

ORACLE STARTS BIDDING WAR WITH SAP TO PURCHASE RETEK

Oracle Corporation, the world’s no. 2 maker of business-management software, said it plans to make a $504 million takeover offer for Retek Incorporated, sparking a bidding war with larger competitor SAP AG. Retek shares surged 16% before falling back and losing 29 cents yesterday to close at $8.60 in Nasdaq trading.

Oracle bought 10% of Retek this week and said in a statement yesterday it will begin a $9-a-share tender offer today. Germany’s SAP on February 28 offered $8.50 a share for Retek, a Minneapolis-based maker of software for retail companies.

The contest for control of Retek pits Oracle’s chief executive, Larry Ellison, against a major competitor three months after he won an 18-month hostile takeover battle for smaller rival PeopleSoft. Adding Retek would give either Oracle or SAP greater access to the retail industry, where companies are increasing the use of software to help run their business.

– Bloomberg News

MARKETS

CRUDE OIL PRICES TRADE SHARPLY HIGHER; GOLD RALLIES

Crude oil futures ended sharply higher yesterday on both sides of the Atlantic, with Brent futures setting a new all-time high on London’s International Petroleum Exchange. Gold was higher on a weakening dollar, lending support to silver and other precious metals. Coffee futures prices hit another five-year high on the New York Board of Trade. April crude futures prices at the New York Mercantile Exchange made a run at the all-time high of $55.67 a barrel before retreating and closing under $55. The impetus for the higher prices was a rally in heating oil and natural gas futures amid a blast of cold weather in the key Northeast and Midwest consuming regions.

– Associated Press