BUSINESS BRIEFS
Wal-Mart plan riles lawmakers
Advertiser Staff and News Services
U.S. Rep. Neil Abercrombie is one of more than 30 members of Congress urging regulators to reject Wal-Mart Store Inc.'s plan to open an industrial bank in Utah.
In a March 8 letter to the acting chairman of the Federal Deposit Insurance Corp., the members of Congress said Wal-Mart's bank could dominate lending and hurt small businesses. The representatives also said they doubt Wal- Mart would abide by U.S. banking rules.
In July, Wal-Mart, the world's largest retailer, applied to open an industrial bank in Utah to process more than 1.6 million debit, credit and electronic-check transactions rather than pay third parties to handle them.
Community bankers and lawmakers have said they are concerned Wal-Mart will eventually open retail branches. The company has said it doesn't intend to open branches.
FEDS FLAY EBAY IN PATENT DISPUTE
WASHINGTON — The federal government yesterday took a position against eBay Inc. in a patent dispute that threatens to shut down one of the online auction site's popular shopping features.
The Office of the Solicitor General said in a brief filed with the Supreme Court that eBay willfully infringed on patents held by Great Falls, Va.-based MercExchange LLC and should be enjoined from using its "Buy It Now" feature, which allows users to buy goods at fixed prices rather than compete in auctions.
Goods sold using that system account for about a third of eBay's business. EBay has been found guilty of willfully infringing two patents held by MercExchange but has not been barred from using the systems, because of a district court decision to deny an injunction. An appellate court reversed that decision.
TAKEOVER BID FOR EXCHANGE FAILS
LONDON — The London Stock Exchange said yesterday that it has received and rejected a surprise 2.4 billion pound ($4.2 billion) takeover approach from the U.S.-based Nasdaq Stock Market Inc.
The LSE, which recently batted away a much lower bid from Australia's Macquarie Bank Ltd., said that the Nasdaq proposal of a 950 pence ($16.50) per share cash offer also undervalued the exchange, which is Europe's oldest.
BANK IPO'S UNDERWRITERS SET
BEIJING — A top state-owned bank announced underwriters yesterday for China's biggest initial public offering to date, awarding lucrative roles to Merrill Lynch & Co., Deutsche Bank AG and Credit Suisse Group following intense competition by the world's investment banks.
The IPO by Industrial and Commercial Bank of China in Hong Kong this year is expected to raise up to $10 billion, according to state media.
Underwriters could earn up to $300 million if they are paid a standard 3 percent fee. China's banks are raising billions of dollars from foreign investors and trying to modernize operations as Beijing prepares to open the market to foreign competitors under World Trade Organization commitments.
