MERGERS & ACQUISITIONS

Statoil, Express Scripts Bids Cap Record Mergers Year

LONDON — Statoil ASA’s offer to buy Norsk Hydro ASA’s energy unit and Express Scripts Inc.’s bid for Caremark Rx Inc. led more than $75 billion of takeovers announced yesterday, capping a record year for mergers and acquisitions. Statoil, Norway’s state-controlled oil company, agreed to pay $28 billion for the Norsk division to create the no. 4 oil and gas producer in Western Europe. Express Scripts offered $26 billion in cash and stock for rival Caremark to become the biggest American manager of drug benefits and thwart a takeover by CVS Corp.

— Bloomberg News

FCC’s McDowell Refuses To Break AT&T Impasse

WASHINGTON — A member of the U.S. Federal Communications Commission, Robert McDowell, refused to vote to break a deadlock over AT &T Inc.’s $85 billion purchase of BellSouth Corp., a new setback for the deal first announced in March. Mr. McDowell, a Republican who sat out of negotiations because of his past work as a lobbyist, told a news conference in Washington that his participation would raise ethical concerns. The decision is a disappointment for FCC Chairman Kevin Martin, who had been counting on Mr. McDowell’s vote to break the impasse between the two other Republican and two Democratic panel members. AT &T and BellSouth had been anticipating approval by the end of the year and the FCC sanction is the last hurdle needed.

— Bloomberg News

NYSE’s Planned Euronext Purchase Gains Backers

NYSE Group Inc.’s $14.3 billion planned purchase of Euronext NV yesterday gained the backing of a Dutch regulator and Atticus Capital LP, one of the largest investors in the two stock exchanges. Dutch Finance Minister Gerrit Zalm is likely to approve the transaction, provided that certain conditions are met, according to a letter released yesterday by NYSE Group and Paris-based Euronext. Atticus, a hedge fund that oversees $13.5 billion, said it will vote in favor of the deal because shareholders, users, and listed companies will benefit from the creation of a trans-Atlantic stock market. Euronext and NYSE Group shareholders are scheduled to vote on the deal tomorrow and December 20, respectively.

— Bloomberg News

American Apparel To Be Sold for $273 Million

LOS ANGELES — T-shirt seller American Apparel Inc., known for blending racy advertising campaigns and socially conscious manufacturing practices, has agreed to be sold to a private investment firm for about $273 million, a newspaper reported yesterday. Under the terms of the deal, New York-based Endeavor Acquisition Corp., will pay about $250 million in restricted stock and $23 million in bonuses, restricted stock, and stock options, the New York Times reported, citing unnamed persons briefed on the matter who spoke on condition of anonymity because they were prohibited from making public disclosures about the deal. Endeavor will also assume $110 million in American Apparel debt, the newspaper said. The purchase price and assumed debt combined equal about 12.7 times the clothing chain’s $30 million in earnings, before interest, taxes, and depreciation, the Times said. As part of the deal, American Apparel founder Dov Charney will remain in charge, the newspaper reported.

— Associated Press

TECHNOLOGY

Oracle Profit Surges 21%

SAN FRANCISCO — Oracle Corp.’s quarterly profit surged 21% as the business software maker reaped the latest returns from a two-year shopping spree that has eliminated several major rivals and shored up its product line. The Redwood Shores-based company said yesterday that it earned $967 million, or 18 cents a share, for the three months ended in November. That compared with net income of $798 million, or 15 cents a share, at the same time last year.

— Associated Press

Scooping Apple, Cisco Introduces iPhone

SAN FRANCISCO — Cisco Systems Inc.’s Linksys unit introduced a line of Internet-based phones called iPhones, a name analysts speculated would be given to a device from Apple Computer Inc. Linksys, which makes Internet routers for homes and small businesses, is selling phones that enable Webbased calls through eBay Inc.’s Skype service and Yahoo! Inc.’s Messenger, Linksys said yesterday in a statement. The Voice over Internet Protocol, or VoIP, phones have been available since 2004 and are being renamed. Cisco has owned a trademark on the word iPhone since 2000 when it bought Infogear Technology Corp., which had the rights. A UBS AG analyst, Benjamin Reitzes, said last week that Apple may introduce a cell phone next year that combines voice service with its iPod music player.

— Bloomberg News

PUBLISHING

Tribune Executives, Family Said To Plan Rival Bids

LOS ANGELES — Tribune Co. of Chicago and its largest shareholder, California’s Chandler family, had hoped to find a way out of their unhappy union when the publishing company went on the auction block this fall. Now, nearly three months after the Chandlers forced Tribune to explore a possible sale or breakup, the Chandlers and Tribune’s management appear to be preparing to fill the void themselves by considering making competing bids for all or parts of the company. Meanwhile, Tribune executives, led by Chief Executive Dennis FitzSimons, are expected to enter a bid of their own in alliance with a consortium of three private investment firms, one of the group’s advisers said.

— Los Angeles Times