BRIEFCASE.

Byline: -- Staff and wire services

Lay fraud case comes to close

HOUSTON -- Prosecutors described Enron Corp. founder Kenneth Lay as a sophisticated hands-on investor who wanted to pry loans from banks so he could buy stock even though he knew federal rules prohibited him from using the money for that purpose.

But Lay's lawyer, in closing arguments Tuesday at Lay's bank fraud trial, insisted he had no intention to defraud or mislead bankers eager to get his business and wasn't aware of the regulations because he was more focused on the big picture of running Enron and not closely managing his own personal finances.

The three-day case went to U.S. District Judge Sim Lake, who heard it without a jury.

Lake will not release his verdict until a jury finishes its deliberations in the main case involving Lay and former Enron Chief Executive Jeffrey Skilling.

Toll Bros. income up, as costs rise

PHILADELPHIA -- Luxury home builder Toll Brothers Inc. reported a 3 percent increase in net income for the second quarter but said higher materials and labor costs as well as steeper write-downs will contribute to lower earnings for the full year.

But Robert Toll, chief executive of the Horsham, Pa.-based company, told analysts in a conference call that he expects excess inventory in the market from speculators to shake out in about six months.

``Demand should once again exceed supply and prices should start to rise again,'' he said.

Euronext rejects Germans' bid

AMSTERDAM, Netherlands -- Shareholders of European stock-exchange operator Euronext rejected a proposal Tuesday to commit in principle to a takeover by Deutsche Boerse Group, giving a boost to a rival bid from the New York Stock Exchange.

As the matchmaking dance between some of the world's largest stock exchanges continued, Euronext's boards reiterated they currently prefer an offer from the NYSE Group Inc. to one proposed by the German stock exchange.

Heinz investors lay out strategy

PITTSBURGH -- H.J. Heinz Co. on Tuesday received a proposed growth strategy from a group of shareholders led by billionaire investor Nelson Peltz, who has sought to pressure the food maker into boosting returns.

Investment firms Trian Fund Management LP and Sandell Asset Management Group outlined the proposal in a filing with the U.S. Securities and Exchange Commission. They own about 5.4 percent of the company's stock.

Their idea calls for the Pittsburgh-based company to cut annual costs by $575 million and reduce deals, allowances and other incentives to retailers by at least $300 million. It also recommends a stronger focus on core brands and international markets, returning capital through share repurchases and higher long-term dividends.

Whirpool lowers earnings estimate

GRAND RAPIDS, Mich. -- Appliance maker Whirlpool Corp. said Tuesday that it has lowered its earnings guidance for 2006 to reflect the acquisition and integration of its former rival, Maytag Corp.

Still, Whirlpool shares rose $3.38, or 4 percent, to close at $88 on the New York Stock Exchange.

Laura A. Champine, an analyst with Morgan Keegan & Co. Inc., said she believes the price of Whirlpool's shares increased because of the company's optimism about next year. Its guidance was slightly more than $1 per share higher than Wall Street had expected.