BRIEFCASE.

Byline: - Staff and Wire Services

California lost 25,000 positions

California's economy lost 25,000 payroll jobs last month, a trend that countered modest national payroll employment growth during the same period, according to figures released by the state Friday.

In all, more than 14.6 million people held payroll jobs in December, the state's Employment Development Department said.

The figure is based on a survey of employers and doesn't include farm workers and the self-employed.

Nationally, U.S. employers added 157,000 workers to their payrolls in December. In November, California added a revised 18,300 payroll jobs.

Expert says Ovitz couldn't be fired

GEORGETOWN, Del. - Walt Disney Co. had ``a lot of good reasons'' to fire Michael Ovitz from his job as president, but none of the reasons were good enough to justify a for-cause firing, an expert for the company's board of directors testified Friday.

The expert, California employment lawyer John Fox, is expected to be one of the last witnesses in the trial of a shareholder lawsuit challenging Disney's 1996 decision to terminate Ovitz with a $140 million severance package after 14 months as president.

Shareholders say Disney's board was lax in reviewing Ovitz's employment contract and in failing to fire him for cause due to alleged dishonesty and insubordination to Disney Chief Executive Michael Eisner, the longtime friend who recruited him.

Head of May Co. resigns his post

ST. LOUIS - The chairman and chief executive of May Department Stores Co. resigned Friday, the company said. It did not give a reason for the resignation.

Gene Kahn's departure was accepted by the St. Louis-based retailer's board and took effect immediately. The company has launched a search for his successor.

Wholesale prices fell in December

WASHINGTON - Easing fears about inflation, wholesale prices fell by the largest amount in 20 months in December, aided by a big decline in the cost of energy.

In other good economic news, output at the nation's beleaguered manufacturing companies rose strongly last month, helping factories enjoy their first annual increase in output since 2000.

Analysts said Friday's reports depicted an economy that began the new year on a good footing with mild inflation and signs of strength in the long-suffering manufacturing sector, which has seen the loss of 2.7 million jobs over the past four years.

Special dividend hiked for Molson

DENVER - Adolph Coors Co. and Molson Inc. put their plan to create a $6 billion brewer on firmer ground after sharply boosting a special dividend for Molson shareholders worried they were being treated unfairly.

The decision to boost the cash portion of the offer by 67 percent, raising the total value 6 percent to $3.76 billion, came amid mounting opposition to the mostly stock deal and a nibble of interest in Molson from brewing giant SABMiller. Molson stock rose 3.5 percent to close at a 52-week high.

The decision appeared to have at least started turning the tide, as one shareholder who earlier opposed the deal and a second with significant holdings said they would favor it. A third with about 4 percent of Molson shares said he still opposed the combination and planned to sell his shares.