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.
IN THE COURTS
GABELLI TO PAY $130 MILLION TO SETTLE FRAUD SUIT Mario Gabelli, one of the highest-paid money managers on Wall Street, agreed to pay $130 million to settle claims he defrauded the American government by using sham companies to win cellular-phone licenses.
The Justice Department agreement with Mr. Gabelli and 38 people and firms tied to him ends an almost six-year legal battle that pitted the investor against Rufus Taylor III, a whistleblower who eventually persuaded the government to take over his civil lawsuit. Mr. Taylor will receive $32.2 million.
– Bloomberg News
AUTOMOBILES
FORD CUTS QUARTERLY DIVIDEND 50% In a move that mirrors efforts launched earlier this year by its crosstown rival General Motors Corp., Ford Motor Co. yesterday said it will halve its quarterly dividend and cut compensation paid to board members.
The struggling no.2 American automaker made the move as it struggles to cope with rising raw material prices and slumping market share and seeks to spread the pain of restructuring across its organization. Ford’s dividend has been cut to 5 cents from 10 cents, which will save the company $92 million on a quarterly basis, or $368 million on an annual basis, according to Ford spokeswoman Becky Sanch.
– Dow Jones Newswires
COMPUTERS
INTEL TO TRIM MANAGEMENT RANKS BY 1,000 Intel Corp., acknowledging that its management structure had become bloated, said it is laying off 1,000 managers as a result of a previously announced internal study to improve efficiency.
The giant chip maker, which had about 103,000 employees at the end of July, said the cuts would affect all levels of management and all geographies. Intel, which is reporting second-quarter results next Wednesday, said it may announce further cost-cutting moves later in the current quarter.
– Dow Jones Newswires
EARNINGS
PEPSICO PROFIT RISES 14% ON SALES OF GATORADE, LIPTON PepsiCo Inc., the world’s no. 2 soft-drink maker, said second-quarter profit rose 14%, topping analysts’ expectations, on sales of Gatorade and Lipton iced tea. The company also boosted its annual earnings forecast.
– Bloomberg News