PUBLISHING

TOP RANDOM HOUSE EDITOR QUITS

Jonathan Karp, a leading Random House executive whose many best sellers include Laura Hillenbrand’s “Seabiscuit” and Senator McCain’s “Faith of My Fathers,” has resigned.

“I wanted a new challenge” Mr. Karp said yesterday. “I have great respect for my colleagues and the authors I’ve had the privilege of publishing. But I want to see what else was out there.”

Mr. Karp has no specific project planned, but acknowledged that he had wanted more autonomy at Random House, more freedom to acquire the books he wanted.

– Associated Press

MERGERS AND ACQUISITIONS

THIRD AVENUE THROWS WRENCH INTO NASDAQ-INSTINET DEAL

The proposed merger between the Nasdaq Stock Market and the electronic trading arm of Instinet Group could be delayed after an investment advisory company made a separate, higher bid for Instinet’s institutional brokerage division.

Third Avenue Management, an Instinet shareholder, confirmed yesterday it was making a $307 million bid for Instinet’s brokerage unit.

While the counterbid was unlikely to substantially harm Nasdaq’s proposed $934.5 million acquisition of Instinet’s electronic trading unit, the takeover could be delayed if Instinet shareholders accept Third Avenue’s counterbid.

– Associated Press

ACCOUNTING

BERKSHIRE EXECUTIVES KNEW OF AIG’S INTENT, SEC SAYS

Executives at Berkshire Hathaway’s General Re unit knew four years ago that American International Group would use a reinsurance transaction to “cook the books,” according to phone transcripts cited in a suit from regulators.

John Houldsworth, a former General Re executive who agreed to plead guilty to a criminal charge of conspiring to misstate AIG’s finances, discussed the planned deal in a 2000 phone call with the insurer’s CFO at the time, Elizabeth Monrad. “They’ll find ways to cook the books won’t they?” Mr. Houldsworth told Ms. Monrad, according to a civil complaint the SEC filed on June 6. The comment prompted Ms. Monrad to laugh, and then Mr. Houldsworth continued, “It’s up to them! We won’t help them to do that too much. We’ll do nothing illegal!”

– Bloomberg News

LS&CO AND WEISER TO MERGE

The accounting firms Leslie Sufrin and Company and Weiser LLP announced yesterday that they will merge. “LS&CO’s niche dominance and dedication to the highest level of quality professional service is a perfect fit to Weiser’s platform,” Weiser’s managing partner, Doug Phillips, said in a statement. LS&CO is a boutique accounting, audit, tax, and consulting firm that works with media and communications businesses. Weiser provides accounting and consulting services to the manufacturing, real estate, apparel, and health care industries, among others.

– Special to the Sun