BRIEFCASE COURT GIVES OK FOR NET SERVICE.

Byline: - Staff and Wire Services

SAN FRANCISCO - Excite(at)Home received court approval Tuesday to continue high-speed Internet service for about 2.1 million subscribers through February under a series of deals that will generate $355 million for the bankrupt company while preserving the right to sue its cable partners for alleged abuses.

The agreements approved by U.S. Bankruptcy Judge Thomas Carlson ensure that customers who buy the Excite(at)Home service through six cable companies will retain their high-speed connections until they are switched to other networks.

Merck: Earnings won't rise in '02

TRENTON, N.J. - Drug maker Merck & Co. told analysts Tuesday that it expects earnings growth to remain flat next year, mainly due to expiration of the patent on its key ulcer drug, Prilosec.

The news sent Merck's shares down $6.29, or 9 percent, to $60.70 in trading on the New York Stock Exchange.

In January, Merck had predicted that earnings per share for 2001 would be $3.15 to $3.25. It cut that to $3.12 to $3.18 in June. On Tuesday, Judy C. Lewent, the chief financial officer, cut the upper number to $3.15 and said per-share earnings would be flat next year.

Analysts had been expecting earnings per share of $3.40 in 2002.

Lawn mowers subject to recall

WASHINGTON - Two companies are recalling about 96,000 lawn mowers and garden tractors because of mechanical problems that could cause burns and other injuries.

Lawn-Boy Inc. of Bloomington, Minn., is recalling about 90,000 Lawn-Boy power mowers, the Consumer Product Safety Commission said Tuesday. Stress cracks can develop in the mower's fuel tank and the company has received reports of 400 gasoline leaks and one fire.

Cub Cadet Corp. of Cleveland is recalling about 6,000 garden tractors because it has received 44 reports of wheels loosening and spinning free on the axle, resulting in a loss of power to the wheel and brake. No injuries have been reported.

The government said consumers should stop using these products. Lawn-Boy owners should arrange for a free replacement fuel tank by calling Lawn-Boy at [phone]. Cub Cadet owners should contact the dealership where the tractor was purchased to schedule a free repair or call the company toll-free at [phone].

FedEx's pilots eye APLA union

MEMPHIS, Tenn. - Pilot leaders at FedEx Corp. voted Tuesday to merge their independent union with the Air Line Pilots Association.

The recommendation now goes to the cargo airline's 4,000 pilots with their votes expected in March.

David Webb, president of the FedEx Pilots Association, said his group can better negotiate pay raises and adjustments in work rules if it is part of APLA, which represents 67,000 air crew members at 46 airlines.

The company declined comment.

FedEx pilots have squabbled with the company since 1993, when pilots first began seeking a work contract.

They rejected the APLA in 1996 and formed their own union, the FPA. The flight crews make up FedEx Corp.'s only domestic employee group represented by a union.

R.J. Reynolds to buy boutique

RALEIGH, N.C. - R.J. Reynolds Tobacco Holdings Inc., the country's second-largest tobacco company, said Tuesday that it has signed an agreement to buy boutique cigarette maker Santa Fe Natural Tobacco Co. for $340 million in cash.

The announcement followed by a day the deadline Santa Fe set for Canadian cigarette company Rothmans Inc. to increase its previous offer of $353.7 million in cash, stock and other securities.

Rothmans said last week that it would not increase its offer, but that it expects to receive an $11 million termination fee if R.J. Reynolds prevailed.