BROADCAST

NEWS CORPORATION POSTS 67% INCREASE IN QUARTERLY PROFIT

Rupert Murdoch’s News Corporation posted a 67% increase in quarterly profit, driven by advertising sales at cable-TV networks including Fox News Channel.

Fourth-quarter net income rose to $717 million, or 23 cents per Class A share, from $429 million, or 15 cents, a year earlier, the company said yesterday in statement. Sales advanced 11% to $6.1 billion, beating analysts’ estimates.

News Corporation’s cable-TV unit, which includes FX, Fuse, and regional sports networks, posted a profit gain of 14%, its 11th consecutive quarter of rising earnings. The results underscore News Corporation’s reliance on cable networks including Fox News Channel to bolster profit.

“They are using Fox News and FX to drive performance at all of the channels to sell a package to cable operators,” an analyst with UBS AG who rate the shares “buy 2” and doesn’t own them, Aryeh Bourkoff, said. “They have invested wisely in programming and content.”

– Bloomberg News

APPLIANCES

WHIRLPOOL RAISES BID EVEN HIGHER FOR MAYTAG

Whirlpool upped its bid for Maytag by $100 million yesterday morning, the latest salvo in what may become a back-and-forth struggle for the fate of the storied appliance maker.

Whirlpool’s offer now stands at $21 per share for Newton, Iowa-based Maytag, or a total of $1.72 billion. Whirlpool said its latest offer consists of 50% cash and 50% stock, plus the assumption of $977 million of debt. The previous bid was valued at $20 per share, or $1.62 billion.

The move sets up a lively denouement for a months-long takeover tale. The Maytag board of directors must now decide whether to declare Whirlpool’s proposal superior. Meanwhile, a rival bidding group led by Ripplewood Holdings must weigh whether to sweeten its own $14 per share offer, potentially to head off the Maytag board withdrawing its support.

A 48-hour countdown now kicks into place. During that time, the Ripplewood led-group can counter Whirlpool’s latest move. But after that time expires, Maytag is free to recommend Whirlpool to its shareholders.

– Dow Jones Newswires

IN THE COURTS

FORMER WORLDCOM CONTROLLER SENTENCED

A former controller of WorldCom, David Myers, was sentenced yesterday to one year and one day in prison in connection with a massive accounting fraud that eventually lead to the collapse of the one-time telecommunications giant. At a hearing in federal court in Manhattan yesterday, U.S. District Judge Barbara Jones also sentenced Myers to three years supervised release when he completes his prison term. In imposing sentence, the judge cited the unusual level of cooperation Myers gave to federal authorities as they investigated wrongdoing at WorldCom. He could have faced as much as 24 years in prison if he hadn’t cooperated with authorities. Myers, 47, is the fourth former WorldCom executive to receive jail time.

– Dow Jones Newswires

REGULATION

SEC POSTPONES ENACTMENT OF NEW MUTUAL FUND RULES

The Securities and Exchange Commission won’t be able to enforce new corporate-governance rules for mutual funds until after a lawsuit opposing the measures is heard, according to a federal court order.

Judges at the U.S. Court of Appeals for the District of Columbia Circuit stayed the SEC rules yesterday, granting a motion brought by the U.S. Chamber of Commerce. The chamber is suing the SEC for the second time over the governance standards, which require that the chairman of a mutual fund board and 75% of its directors be independent. A former SEC chairman, William Donaldson, in one of his last acts before leaving the agency in June, cast the deciding vote to push through the rules after the appeals court rejected them. He ignored criticism from lawmakers, ex-SEC officials, and business groups that the agency was rushing the vote to prevent his successor from reconsider.

“The court’s action should prompt the commission to reconsider its decision to hastily rubber-stamp the provisions without the benefit of public comment,” a lawyer for the Chamber of Commerce at Gibson, Dunn & Crutcher LLP in Washington, Eugene Scalia, said in a statement.

– Bloomberg News

ENERGY

UNOCAL SHAREHOLDERS APPROVE OFFER FROM CHEVRON

Owners of oil and gas producer Unocal voted yesterday to sell their company to Chevron for about $18 billion, just as oil prices took off for a new record high of $65 a barrel.

The value of Chevron’s 60% stock, 40% cash bid has increased by about 5% since Chevron put it to Unocal’s board July 19. Unocal shareholders are now looking at $66 a share, close to the $67 offer withdrawn earlier this month under political pressure by Chinese suitor Cnooc. Nearly nine out of 10 Unocal shareholders opted for all cash, forcing a proration that will leave all Unocal holders with at least some Chevron shares.

But more shareholders than expected took the all-stock option, Unocal said, so prorated shareholders will actually get more than 40% in cash. The stock component will let Unocal shareholders benefit if oil prices continue to rise, said the chairman and chief executive of Unocal, Charles Williamson. “I’m quite bullish on oil prices,” Mr. Williamson said. “Demand growth will continue in developing countries, and supply isn’t getting easier.”

– Dow Jones Newswires