Business Desk
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
PUBLISHING
FORMER CHICAGO SUN-TIMES PUBLISHER PLEADS GUILTY TO FRAUD
Former Chicago Sun-Times publisher David Radler pleaded guilty to a federal fraud charge and agreed to cooperate with a Justice Department probe of Conrad Black, his ex-boss at Hollinger International.
[Hollinger International is a minority owner of The New York Sun.]
Prosecutors will recommend that Radler, 63, serve 29 months in jail and pay a fine of $250,000 for his role in the $32 million fraud. He’ll remain free on a $500,000 bond until all proceedings in the case are concluded.
Black, who founded Hollinger and built it into what once was the world’s no. 3 publisher of English-language newspapers, is fighting a lawsuit from the Securities and Exchange Commission and a $425 million civil lawsuit by Hollinger that claims he looted the company through excessive, undisclosed payments to himself and associates. Mr. Black hasn’t been charged by federal prosecutors.
Radler, a native of Montreal who now lives in Vancouver, may be permitted to serve his prison sentence in Canada. The American government agreed not to take a position if Radler files an application for the International Prisoner Transfer Program.
– Bloomberg News
NEW YORK TIMES TO CUT 500 JOBS
The New York Times Company plans to cut 500 jobs, or 4% of its workforce, over the next six to nine months.
About half the cuts will be in the New York Times Media Group, the division that includes the Times newspaper. The New England Media Group, which includes the Boston Globe, will lose 160 positions. The company’s smaller regional newspapers will also be affected.
In a press release yesterday, the company said 45 newsroom positions at the Times would be affected, along with 35 at the Boston Globe.
The company cut 200 jobs, or 2% of its workforce, earlier this year.
– Special to the Sun
IN BRIEF
Morgan Stanley may post its highest fiscal third-quarter earnings since 2000, buoyed by trading revenue and fees from arranging stock sales and mergers, after John Mack took over as chief executive officer … Goldman Sachs said quarterly earnings surged 84% to a record, led by gains in revenue from trading stocks, bonds, and currencies and the highest investment-banking fees in four years … Pfizer said American regulators rejected its injectable form of Bextra, the pain pill suspended since April because of links to a fatal skin disorder and elevated heart risks … OPEC will supply all the oil it can, effectively suspending its quota system for the first time since the 1990 Gulf War after prices surged because of damage from Hurricane Katrina … Crude oil and gasoline fell on speculation that the threat Hurricane Rita poses to Gulf of Mexico oil production and refining doesn’t justify Monday’s surge, which was 14% for New York gasoline futures … Microsoft announced a major reorganization designed to better equip the software giant against Google, Linux makers, and other companies exploiting the Internet to quickly develop and distribute software … Jet-Blue’s string of 18 consecutive quarterly profits since its inception “is in jeopardy” as concern about Hurricane Rita boosts oil prices … Federated Department Stores will sell its bridal stores, convert 62 Marshall Field’s locations to Macy’s, and cut as many as 6,200 jobs after buying May Department Stores … GlaxoSmithKline agreed to pay more than $150 million to settle allegations it overcharged American government health programs by inflating prices for nausea drugs used by cancer patients … DaimlerChrysler AG’s Chrysler and the Canadian Auto Workers reached a three-year agreement, avoiding a strike that would have shut down production of models such as the 300, the no. 3 American automaker’s best-selling car … General Motors will be the first company to average at least 20 miles per gallon in fuel efficiency with a large sport utility vehicle … American housing starts fell 1.3% in August, a second straight monthly decline, as construction on condos and other multifamily dwellings slowed. Starts are still on pace to be the highest since 1973 … Developer Donald Trump said real estate values will continue to rise because of low interest rates and demand from overseas buyers.
– Bloomberg News and Dow Jones Newswires