BRIEFCASE ZENITH, MERITAGE HAVE CLOSED SALE.

Byline: - Staff and Wire Services

WOODLAND HILLS - Zenith National Insurance Corp. has closed on the sale of its home-building business in Las Vegas to Meritage Corp., the companies announced Tuesday.

Zenith, a property and casualty insurer, received approximately $65 million with the sale, including $28 million in repayment of intercompany loans from its home-building subsidiary.

Zenith estimates that it will record a gain on the sale in the fourth quarter of about $7 million, after tax.

Another ATG exec hits Ovitz with suit

Another top executive of Artists Television Group has filed a lawsuit against company founder Michael Ovitz.

Cathy Schulman, the former president of the company's film production division, filed the suit Monday in Los Angeles Superior Court, alleging she was fired for telling auditors that executives may have mismanaged company funds. She has asked for $4 million in damages for wrongful termination and breach of contract.

The action comes after another former president at ATG, Eric Tannenbaum, filed a lawsuit against Ovitz in April claiming fraud, deceit and defamation.

Ovitz has since filed a countersuit, accusing him of fiscal irresponsibility. Both cases were pending.

Ovitz, once considered one of the most powerful men in Hollywood, co-founded Creative Artists Management before leaving to become president of The Walt Disney Co. in 1995. He left that position in a highly publicized fallout that garnered him $38 million in cash and roughly $100 million in Disney shares.

Adjustable pedals force Ford recall

WASHINGTON - Ford Motor Co. is recalling more than 400,000 Ford Taurus and Mercury Sable cars with adjustable pedals because the brake and accelerator may be so close they can cause drivers to hit the accelerator accidentally when trying to slow down.

The National Highway Traffic Safety Administration, which had been investigating the problem since March, announced the recall Tuesday. Ford spokesman Todd Nissen said the problem has caused 18 incidents, injuring two people.

The recall involves 424,164 vehicles, 369,614 of which were sold in the United States. All 2000 and 2001 models with adjustable pedals are covered, as well as a few 2002 models built before Sept. 14.

TiVo will sell stock to investing firms

SAN JOSE - TiVo Inc., a leading maker of digital video recorders, said Monday it has signed a definitive agreement to sell $25 million of common stock to institutional investors.

The San Jose-based company will sell 6.96 million shares at $3.59 per share - a 3 percent premium to the trailing 10-day average closing price.

Additionally, TiVo will issue warrants to purchase 2.6 million shares of common stock at the exercise price of $5 per share.

The company identified the investors as Crosslink Capital and New Enterprise Associates, a TiVo founding investor.