Briefcase

Google sues Interior over project bidding

LOS ANGELES – Google is suing the U.S. Department of the Interior over a request for bids for a new e-mail and messaging solution it says favors rival Microsoft.

The search giant filed the suit with the U.S. Court of Federal Claims on Friday.

Google Inc. alleges that in August, the government put out a request for bids that limits respondents to use Microsoft Corp.’s business productivity software, which was designed for the federal government.

Google called the specification “unduly restrictive” and in violation of the Competition in Contracting Act.

Associated Press

NEW YORK – Bond insurer Ambac Financial Group Inc. said Monday it will file for bankruptcy by the end of the year, either through a prepackaged plan arranged with senior debt holders or through Chapter 11 proceedings.

The development is the embattled company’s latest warning amid two years of struggle to regain its footing after getting pummeled by the collapse of the housing market.

Shares of the once high-flying stock tumbled 41 cents, or 50 percent, to close at 41 cents on very heavy volume. The stock traded above $95 a share in the spring of 2007, before the housing bust.

Associated Press

SAN FRANCISCO – Medical supplies distributor McKesson Corp. said Monday it will pay $560 million in cash to acquire US Oncology, a company that provides drugs and services to 500 cancer centers across the U.S.

McKesson said there is already an overlap between the goods and services provided by the two companies, and the combination will allow for cost-savings from shared operations.

McKesson plans to acquire all outstanding shares of US Oncology, a privately held company based in The Woodlands, Texas. In addition to what it is paying for the company’s shares, McKesson said it will assume $1.6 billion of US Oncology’s debt, which will be prepaid or refinanced.

Associated Press

UPS rates to rise in 2011 by nearly 5 percent

ATLANTA – United Parcel Service Inc. says rates for next year are going up 4.9 percent for ground and air-express shipments.

UPS, the world’s largest package-delivery company, said Monday that the new rates will take effect Jan. 3.

Imports of electronics products from Asia, including the Apple iPhone and iPad, have boosted UPS this year and helped offset slow growth in the U.S. The company reported last week that third-quarter net income rose 81 percent compared with the same period in 2009.

But officials told the Associated Press at the time they were not optimistic about a rapid economic recovery.

Associated Press