Business News

Government OKs Clear Channel deal

Washington The nation’s largest radio chain has agreed to a record settlement to resolve indecency complaints against Howard Stern and other radio personalities, federal regulators announced Wednesday.

The Federal Communications Commission’s $1.75 million deal with Clear Channel Communications is the largest settlement negotiated by the FCC and a broadcaster.

It narrowly tops the $1.7 million that Infinity Broadcasting paid in 1995 for indecency violations by Stern, the shock jock whose New York City-based radio show features sexually explicit talk and off-color humor.

FCC Chairman Michael Powell praised the settlement as a victory for the American public.

The agreement settles fines proposed by the agency against Clear Channel for remarks Stern made in an April 2003 broadcast. It also covers several dozen open investigations and pending cases stemming from listener complaints lodged against shows on Clear Channel stations.

Euro Disney might default on its debt

Paris Theme park operator Euro Disney SCA said Wednesday it could default on debt payments to The Walt Disney Co. and other lenders unless creditors approve a debt-rescheduling agreement by the end of next month.

The company, which operates Disneyland Paris and Walt Disney Studio parks outside Paris, said French banks Caisse des Depots et Consignations, BNP Paribas, and Calyon — a unit of Credit Agricole SA — have approved a provisional agreement.

Euro Disney said it could default on its debt payments unless the debt-rescheduling deal is struck by July 31. It could be forced to repay amounts to 1.7 billion euros ($2.1 billion) of a total of 2.3 billion euros ($2.8 billion) that the company owes.

May, Marshall Field’s reach purchase deal

Minneapolis May Department Stores Co. announced Wednesday it will buy Marshall Field’s department stores and nine Mervyn’s locations in the Twin Cities for $3.24 billion in cash.

The move strengthens May’s presence in the Midwest, giving it 62 Marshall Field’s stores, mostly in Chicago, Detroit and Minneapolis-St. Paul. The company already operates 438 department stores, including Lord & Taylor and Filene’s.

Target said it would use the money to repurchase $3 billion worth of stock over the next two to three years.

May said it would keep the Marshall Field’s name and operate it as a stand-alone division based in Minneapolis.

Japan’s economy showing strength

Tokyo Japan’s economy grew 1.5 percent in the January-March period from the previous quarter, slightly faster growth than initially estimated, the government said Wednesday.

The growth in the gross domestic product — the value of goods and services produced in the nation — was revised upward to reflect a rise in private inventories and external demand, the Cabinet Office said.

The report backs the emerging view among analysts that the world’s second largest economy appears to be on a recovery track after more than a decade of slowdown when sporadic periods of growth alternated with downturns.

The eight-quarter stretch of growth was the best since Japan racked up nine straight quarters of growth from the first quarter of 1995 through the first quarter of 1997.

Shering-Plough settles case for $500,000

Kenilworth, N.J. Schering-Plough Corp. will pay $500,000 to settle an investigation of a payment by its Polish subsidiary to influence decisions by a government official there.

Federal regulators said Wednesday that the pharmaceutical company’s Polish subsidiary made $76,000 in contributions to a charity founded by the official.

The Securities and Exchange Commission also determined that the payments made by Schering-Plough Poland were not reflected on books and records, and that accounting controls were “inadequate to prevent or detect the improper payments.”

The charitable contributions were discontinued in March 2002, Schering-Plough said.

The investigation was related to compliance with provisions of the U.S. Foreign Corrupt Practices Act, which bars U.S. businesses and individuals from bribing foreign officials.

The SEC said that the $76,000 was paid in 13 installments from February 1999 to March 2002 to the Chudow Castle Foundation, which works to restore castles and other historic sites in the Silesian region of Poland. Its founder and president was also director of the Silesian Health Fund, a regional governmental authority, the SEC said.

Starbucks executive to speak at luncheon

Herman Uscategui, director of international business development at Starbucks International, will be the keynote speaker at a luncheon Friday that’s part of Trade Week, an event sponsored by the state Department of Community Trade and Economic Development.

Uscategui is responsible for development of new markets for Seattle-based Starbucks. Previously, he was director of worldwide projects at Westin Hotels & Resorts, also in Seattle. He started his business career in Japan at Aoki Corp.

The luncheon will take place from noon to 1:30 in the Davenport Hotel’s Elizabethan Ballroom, and costs $20 to attend. For more information or for reservations call the International Trade Alliance at (509) 459-4123. self end