BRIEFCASE STRAVINA ACQUIRES GIFT-MAKING FIRM.

Byline: - Staff and Wire Services

CHATSWORTH - Stravina Operating Co. LLC. announced the acquisition of Hanover Accessories Inc. on Friday.

The local personalized gift maker did not disclose terms of the purchase of Hanover, which designs children's hair accessories and jewelry, pet accessories and novelty products. Stravina's backer, Blue Capital Management, will handle the equity investment, while Union Bank of California and American Capital Strategies will provide lending.

PeopleSoft closes J.D. Edwards deal

PLEASANTON - Business software maker PeopleSoft Inc. on Friday announced the completion of its $1.8 billion acquisition of rival J.D. Edwards by buying the few remaining shares that it didn't already own.

The move was a formality - Pleasanton-based PeopleSoft took control of Denver-based J.D. Edwards on July 18 after accumulating an 88 percent stake in the company. The takeover creates the world's second-largest maker of business-applications software behind industry leader SAP of Germany. Redwood Shores-based Oracle Corp. is trying to seize the No. 2 position by buying PeopleSoft in a $7.5 billion hostile takeover.

Consortium sets up new Iraqi bank

WASHINGTON - An international consortium of financial institutions led by J.P. Morgan Chase & Co. will run a trade bank aimed at helping the Iraqi government make big-ticket purchases from other countries, U.S. authorities involved in rebuilding Iraq announced Friday.

The new Trade Bank of Iraq could be operating by the end of September, said Peter McPherson, director of economic development for the Coalition Provisional Authority, which oversees rebuilding the war-torn country. The trade bank is needed because of the phasing out of the United Nations oil-for-food program, which has handled Iraq's major purchases abroad, McPherson said.

Kmart shares rise as losses shrink

DETROIT - Kmart Corp. shares were up more than 4 percent Friday after the retailer showed a smaller loss in its first earnings report since exiting bankruptcy, although sales deteriorated. The discount retailer reported Thursday that its second-quarter loss narrowed to $5 million, or 6 cents a share, from $293 million, or 58 cents a share, a year ago. Excluding interest, reorganization costs, income taxes and discontinued operations, Kmart said it would have posted an $8 million profit, compared with a loss of $264 million in the second quarter of last year. Sales fell to $5.65 billion, down 21.3 percent from $7.18 billion a year earlier.

BP PLC makes big deal with Russia

LONDON - British energy group BP PLC said Friday that it has completed the biggest foreign direct investment ever in post-Communist Russia - a $7.7 billion deal that gives BP a 50 percent share in a major new Russian energy company.

BP signed an agreement late Thursday with its Russian partners - Alfa Group and Access-Renova - to combine their interests in Russia to create a new business with 5.2 billion barrels in proven oil reserves and daily crude production of 1.2 million barrels.