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Byline: - Staff and Wire Services

Health Net wins Medi-Cal contract

WOODLAND HILLS - The California Department of Health Services announced Wednesday that it will award Health Net of California a contract to provide Medi-Cal benefits in Los Angeles County.

Health Net has provided Medi-Cal benefits in Los Angeles County since 1985.

The new contract is up to eight years, including the initial term and options. Estimated annual revenue is $560 million, according to Stephen Lynch, president of Health Net of California.

Health Net has been growing its Medi-Cal line of business recently, he said. In 2004 and 2005, Health Net either renewed or will initiate Medi- Cal services in Fresno, Kern, Stanislaus and Tulare counties.

Grupo Televisa suing Univision

Mexican broadcaster Grupo Televisa is suing Univision Communications Corp. for breach of contract, saying the U.S.-based, Spanish-language media conglomerate failed to pay $1.5 million in programming royalties.

Televisa is the second-largest shareholder of Los Angeles-based Univision and licenses exclusive rights to Univision to broadcast its telenovelas and other shows under a deal in effect through 2017.

In the suit, filed Monday in U.S. district court in Los Angeles, Televisa contends that Univision failed to pay programming royalties for broadcasts of the ``Premio Lo Nuestro'' music awards show.

In a statement, Univision said the suit was ``baseless.'' Televisa doesn't produce ``Premio Lo Nuestro'' and is not entitled to royalties, Univision said.

Icahn, allies get Blockbuster seats

DALLAS - Billionaire financier Carl Icahn and two allies apparently won seats on Blockbuster Inc.'s board of directors Wednesday, and Icahn's first move was to seek to retain John F. Antioco, whom he had just ousted as chairman of the nation's biggest movie-rental chain.

Icahn, Blockbuster's largest shareholder, did not attend the meeting, but a representative said he would propose adding a seat on the board for Antioco and making him chairman.

Antioco had threatened to quit as chief executive if he lost re-election as chairman but is now expected to stay.

Blockbuster shares rose 2.1 percent, gaining 21 cents to close at $10.05 on the New York Stock Exchange.

Its shares have traded in a 52-week range of $6.50 to $16.15.

Federated profits grew 27% in Q1

CINCINNATI - Federated Department Stores Inc. said Wednesday that its first-quarter profit grew 27 percent, topping Wall Street estimates and giving the retailer encouraging news as it proceeds with its takeover of rival May Department Stores Inc.

The owner of Bloomingdale's and Macy's said it made $123 million, or 71 cents per share, in the three months ended April 30 compared with $97 million, or 53 cents a share, a year ago.

The earnings beat Federated's forecast of 65 cents to 70 cents per share, and the consensus of 67 cents from analysts polled by Thomson Financial.

Net sales totaled $3.61 billion, up 3 percent from $3.52 billion a year earlier and ahead of the $3.58 billion expected by analysts.

Federated's stock fell 62 cents to close at $63.28 in Wednesday trading on the New York Stock Exchange.

The stock price has ranged from $42.80 to $65.08 in the past year.

Delta stock price hits 32-year low

ATLANTA - Delta Air Lines Inc.'s battered stock fell Wednesday to its lowest level in more than 32 years.

Shares of the nation's third-largest carrier fell 23 cents, or 7.7 percent, to close at $2.74 in trading on the New York Stock Exchange following the company's warning about further losses and the possibility of bankruptcy.

Delta's 52-week low for its stock had been $2.93, the closing price Oct. 20, 2004, around the time the airline almost fell into bankruptcy before winning deep concessions from pilots and fresh financing from creditors.

Delta warned in a filing with the Securities and Exchange Commission on Tuesday that it will record a substantial loss for the rest of the year and will need to file for bankruptcy if its cash reserves fall too low or lenders seek immediate payment of its debts.

Fannie Mae says it'll miss deadline

WASHINGTON - Embattled mortgage company Fannie Mae said Wednesday that it is again missing a regulatory deadline for filing a financial report, this time for the first quarter, because of the reworking of its accounting amid an investigation by federal regulators.

The government-sponsored company, which finances one of every five home loans in the United States, still hasn't filed its third-quarter or annual report for 2004 with the Securities and Exchange Commission, and has said it is unable to provide ``a reasonable estimate'' of its earnings for 2003 and 2004.

Federal regulators accused Fannie Mae last fall of serious accounting problems and earnings manipulation to meet Wall Street targets, and the SEC in December ordered the company to restate earnings back to 2001 - a correction that could reach an estimated $11 billion. The Justice Department is pursuing a criminal investigation.