Business news in brief

QUOTE OF THE DAY

“As we all know, recovery in the real estate market is a slow process and this has directly affected our earnings over our recent history.”

Lunsford W. Bridges,

chief financial officer of Metropolitan National Bank Article, 1D

U.S. oil, gas rigs up 3; state loses 1

HOUSTON - The number of rigs actively exploring for oil and natural gas in the U.S. increased by 3 this week to 1,672.

Houston-based Baker Hughes Inc. said Friday that 967 rigs were exploring for natural gas and 696 for oil. Nine were listed as miscellaneous. A year ago this week, the rig count stood at 1,069.

Of the major oil- and gas-producing states, Texas gained five rigs, Alaska gained two and California and Louisiana each gained one. Arkansas, New Mexico, Oklahoma and Wyoming each lost one, while Colorado lost two rigs. North Dakota, Pennsylvania and West Virginia remained unchanged.

2 of mogul’s 4 convictions reversed

CHICAGO - A federal appeals court on Friday reversed two of former media mogul Conrad Black’s 2007 fraud convictions - raising at least the possibility he won’t return to prison.

After serving two years of a 6 1/2-year sentence, Black was released earlier this year from a federal prison in Florida while his case was appealed.

The 7th U.S. Circuit Court of Appeals in Chicago unanimously agreed that a recent U.S. Supreme Court ruling sharply curtailing “honest services” laws meant the two fraud convictions had to be tossed. The government had conceded two of Black’s convictions rested partly on the idea that he had deprived his former company of his faithful services as a corporate officer.

But the ruling was only a partial victory for the 66-yearold because the three-judge panel upheld two other convictions for fraud and obstruction of justice.

U.S. District Judge Amy St. Eve, who oversaw the trial, will have to sentence Black again. One option for her is to allow Black to stay out of prison based on time already served.

Dish, News Corp. settle Fox fee fight

News Corp. and Dish Network Corp. on Friday resolved a fee dispute over Fox channels that threatened to black out World Series games and shows such as Glee for more than 3 million Dish customers.

The two companies said in a statement that they agreed on a distribution deal, without disclosing the terms. News Corp. had said it would pull its signals if the two parties failed to strike an agreement by a Sunday deadline.

Broadcasters like Fox are trying to extract fees from pay-TV operators for over-the-air channels that were once free.

The accord allows the satellite operator to keep broadcasting National Football League games, as well as programs such as American Idol. A blackout would have affected Dish customers in cities including New York, Los Angeles, Chicago and Washington.

“After prolonged negotiations to reach a fair deal, we’re pleased to enter into a long-term agreement with Fox and to assure our customers that they can continue to enjoy these channels,” said Dave Shull, senior vice president of programming for Dish, in a statement.

Oklahoma to host innovation event

The Small Business Innovation Research National Conference will take place Nov. 8-10 in Oklahoma City, according to a release.

The conference will be held at the Cox Convention Center and is geared toward showing small-business owners how to receive federal government stimulus money for “innovative, high-tech” businesses, the release said.

Five hundred participants are expected to attend the conference, which will feature speakers Sean Greene, associate administrator at the U.S. Small Business Administration; and William Brinkman, director of Science Programs for the Department of Energy.

Information and registration are available online at www.sbirok.org.

Merck’s earnings beat forecasts

Merck & Co., the second-largest U.S. drugmaker, reported third-quarter profit that rose more than analysts estimated as reduced costs helped overcome revenue losses from drugs facing generic competition.

Earnings, excluding a $950 million legal reserve for a Vioxx lawsuit and other one-time items, were 85 cents a share, beating by 2 cents the average estimate of 15 analysts surveyed by Bloomberg.

Net income fell 90 percent to $342 million from acquisition costs and charges, the Whitehouse Station, N.J.-based company said Friday in a statement.

Sales jumped 84 percent to $11.1 billion after adding products from its $49.6 billion acquisition of Schering-Plough Corp. last November. Merck said Friday that it’s on track to cut 15,000 jobs from its combined work force and close facilities to save $3.5 billion in annual costs by 2012.

Merck raised the lower end of its 2010 earnings forecast to $3.31 to $3.39 a share, excluding one-time items. The company previously said it anticipated profit of $3.29 to $3.39.

The company shares fell 63 cents, or 1.7 percent, to $36.31 in Friday trading on the New York Stock Exchange. The stock had gained 15 percent in the last 12 months.

Business, Pages 36 on 10/30/2010

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