Business news in brief

Michigan dumps its oil-spill analyzer

LANSING, Mich. -- A company hired to analyze the worst-case scenario of an oil pipeline failure in the Straits of Mackinac has been fired because of a conflict of interest with Enbridge Energy, the state of Michigan announced Wednesday.

An employee on the project subsequently worked on another project for Enbridge, which owns Line 5 in northern Michigan. Det Norske Veritas is the contractor.

"Our trust was violated, and we now find ourselves without a key piece needed to fully evaluate the financial risks associated with the pipeline that runs through our Great Lakes. This is unacceptable," Attorney General Bill Schuette said.

An email seeking comment was sent to Det Norske Veritas, which develops standards and provides technical expertise in the maritime and energy industries.

Line 5 carries nearly 23 million gallons of light crude oil and liquefied natural gas daily. It runs across Wisconsin and Michigan's Upper Peninsula before entering the Straits of Mackinac, where it divides into two lines, then continues southward to refineries in Sarnia, Ontario.

Enbridge Energy, a Houston-based subsidiary of Calgary, Alberta-based Enbridge Inc., said it supports ending the contract.

-- The Associated Press

Vermont maple syrup crop 2nd largest

MONTPELIER, Vt. -- Vermont had another sweet season, producing nearly 2 million gallons of maple syrup, the second-highest amount on record.

The U.S. Department of Agriculture said the number of taps in maple trees in Vermont grew this season by 12 percent for a total of 5.4 million.

The USDA said producers were encouraged to tap trees early this season because of the warmer temperatures. The 2017 season lasted 46 days on average, compared with 44 days last year.

Vermont is the country's leading producer of maple syrup. The state also set a record for the value of the maple syrup crop the previous season, which was a record crop yield year. The USDA says the 2016 production totaled nearly $60 million, a 28 percent jump from 2015.

-- The Associated Press

Amazon said to add Nike shoes to lineup

Amazon.com Inc. will begin selling Nike shoes directly through a brand-registry program designed to keep counterfeit goods off the site, according to a person familiar with the situation.

The approach lets Nike Inc. take greater control over how its products are sold, helping ensure that knockoff shoes aren't offered by third parties on the e-commerce marketplace, said the person, who asked not to be named because the arrangement isn't yet public.

Shoes are popular products for counterfeiters, and Nike's global brand is an especially alluring target. That's put pressure on the athletic-apparel giant to police online sales more aggressively.

Lindsay Drucker Mann, an analyst at Goldman Sachs Group Inc., said earlier that Nike may be close to forging a closer relationship with Amazon. Currently, Nike is available on Amazon's Zappos site, but not directly through the parent company.

It's unclear how much more Nike merchandise might ultimately flow through Amazon, but the prospect of a special relationship between the two companies sent shoe-retailer stocks tumbling. Foot Locker Inc. plunged as much as 11 percent, while Finish Line Inc. fell 5.9 percent. Dick's Sporting Goods Inc. dropped more than 9 percent. European sellers Sports Direct International PLC and JD Sports Fashion PLC declined as well.

-- Bloomberg News

Toshiba picks buyer for microchip arm

HONG KONG -- As Toshiba, the embattled technology giant, battles for survival, it has turned to a group led by the Japanese government to buy its prized microchip business, although its plans still face a legal challenge by a U.S. business partner.

After weeks of jockeying among suitors, Toshiba said that it hoped to reach a formal sale agreement over its semiconductor business by next Wednesday, in the process raising much-needed cash. The company did not disclose terms of the potential deal, but analysts have estimated the value of the chip unit at about $20 billion.

By picking the Japanese consortium -- its members include the Innovation Network Corp., a state-backed investment fund, as well as the U.S. buyout firm Bain Capital and the Development Bank of Japan -- Toshiba is hoping to conclude a sale quickly. The company is hoping to reach a deal before its annual shareholder meeting.

Toshiba said in a statement that the group presented "the best proposal" in terms of its price, its promises to keep employees and its ability to keep sensitive technology within the country. The last of those was considered an important point, since a Chinese winner would have raised concerns by Japanese government officials about trade secrets seeping out of Japan.

Western Digital, a U.S. data storage company that owns part of a Toshiba semiconductor factory in Japan, has argued that it has a say in any deal. Western Digital, also a bidder for the memory business, asked a California state court to block any sale while also pursuing arbitration in the Paris-based International Court of Arbitration.

-- Bloomberg News

Sears Canada said to seek creditor shield

Shares of Sears Canada Inc., an offshoot of Sears Holdings Corp., tumbled as much as 30 percent Wednesday after people familiar with the matter said it was preparing to seek court protection from creditors.

The court filing will likely lead to a liquidation, with the business sold off in pieces, said one of the people, who asked not to be identified because the deliberations are private. The company's most valuable assets are real estate, but many of its locations are in lower-end shopping centers. That makes it difficult to sell them to a single buyer, the person said.

Sears Canada's stock fell as much as 30 percent in Toronto trading.

The move would herald the end of a once-prized piece of the Sears retail empire. As in the U.S., Canadians are increasingly shopping online. Sears also has had to contend with homegrown competitors, such as Canadian Tire Corp. and Hudson's Bay Co.

-- Bloomberg News

Business on 06/22/2017

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