NATIONAL

AIG DELAYS 10-K, SAYS CORRECTIONS TO CUT WORTH BY $2.7 BILLION

American International Group, the world’s largest insurer, last night put off filing its annual 10-K report for a third time amid a review of improper accounting and said corrections will lower its net worth by about $2.7 billion, $1 billion more than an earlier estimate. The company will restate its results going back to 2000 and expects to file its 2004 annual 10-K report with regulators no later than May 31, New York-based AIG said in a statement.

– Bloomberg News

NEIMAN MARCUS REPORTEDLY AGREES TO BUYOUT OFFER

The luxury retailer Neiman Marcus has agreed to be acquired for about $5 billion by two private equity firms, the New York Times reported on its Web site last night.

Executives close to the negotiations reportedly said that the purchasers are Texas Pacific Group, which turned around J. Crew and also owns Burger King, and Warburg Pincus.

– Staff Reporter of the Sun

BUFFETT MAINTAINS BET AGAINST DOLLAR AFTER $310 MILLION IN LOSSES

Berkshire Hathaway’s chairman, Warren Buffett, said he maintained a more than $21 billion bet against the American dollar even after it cost the insurance and investment company about $310 million the first quarter. Berkshire also plans to announce an insurance acquisition of “a little less than $1 billion” in the next few weeks and increased first-quarter profit from operations by about $400 million before taxes, Mr. Buffett said over the weekend at the company’s annual meeting of shareholders in Omaha, Neb.

– Bloomberg News

INTERNATIONAL

LENOVO COMPLETES ACQUISITION OF IBM’S PC BUSINESS

Chinese computer maker Lenovo has completed its $1.75 billion purchase of IBM’s personal computer division, creating the world’s third-largest PC maker, the company said yesterday.

The deal is expected to quadruple sales of Lenovo Group Ltd., already Asia’s biggest computer maker, the company said earlier.

The company also confirmed speculation that it was raising extra cash for the massive deal. It said three private equity investment firms – Texas Pacific Group, General Atlantic Group and Newbridge Capital Group – have agreed to take a $350 million stake in the company. Lenovo is partially owned by the Chinese government.

– Associated Press

WALL STREET

MORGAN STANLEY WILL KEEP PURCELL AS CHAIRMAN, CEO, BOARD RULES

Morgan Stanley, the largest securities firm by market value, said its board decided to keep Philip J. Purcell as chairman and chief executive officer, rejecting demands by former executives that he be ousted.

The board eliminated a bylaw requiring a 75% supermajority vote to remove Mr. Purcell as CEO, the company said in a Business Wire release. The company also said it won’t extend a corporate reorganization beyond the planned spin-off of its Discover credit-card business.

– Bloomberg News