Business Briefs - Wednesday

TECHNOLOGY

Google extends lead in searches

The Internet titan extended its lead over Yahoo YHOO as the top search site, with Google GOOG capturing 58.5% of all U.S. searches in Oct., up from 57% a month earlier, research firm ComScore said. Yahoo was a distant second, with a 22.9% share, down from 23.7%. Microsoft MSFT came in third with a 9.7% share, down from 10.3%, and Ask.com, owned by IAC/InterActiveCorp, took fourth with 4.7%, unchanged from a month earlier. Google climbed 1.9% to 660.52, Yahoo fell 3.8% to 25.71, Microsoft dipped 1% to 34.23, and IAC/Interactive edged up 0.3% to 27.64.

TELECOM

Unlocked iPhone a costly option

To comply with a court order, T-Mobile will sell the Apple AAPLiPhone without a 2-year wireless contract in Germany, a first for the iPhone, but it won't come cheap. The i- Phone alone will cost $1,477, vs. $590 for the device with a 2-year T-Mobile agreement. T-Mobile, owned by Deutsche Telekom DT, also will remove SIM locks on their i- Phones. Germany requires firms to sell phones separately from telecom contracts. Apple and Deutsche Telekom dipped less than 1%.

Qualcomm wins one in patent fight

The U.S. Int'l Trade Commission dismissed a patent suit by Nokia against chipmaker Qualcomm QCOM. Nokia NOK accused Qualcomm of infringement, but the ITC granted Qualcomm's motion to dismiss, agreeing that Nokia must first complete arbitration talks.

Motorola's $1 bil lawsuit upheld

A U.S. court upheld a $1 bil ruling that alleged a Turkish cell phone operator defrauded Motorola. The 2nd Circuit Court of Appeals rejected claims that the punitive damage award was an "economic death sentence" for the Uzan family. In 2002, Motorola and Nokia sued the family, alleging it borrowed $2.7 bil with no intention of repaying. Motorola fell 2.9% to 15.33.

RETAIL

Abercrombie & Fitch looks abroad

The teen and young adult retailer said Q3 earnings rose 16% to $1.29 a share, topping views by a penny. Abercrombie & Fitch's ANF sales grew 13% to $974 mil, falling shy of views. Same-store sales edged up 1%, led by a 3% increase at its Abercrombie & Fitch chain and its Abercrombie children's clothing stores. Same-store sales at its Hollister chain fell 1%. The company said it will focus international growth, particularly in Canada, Asia and Europe. It rose 2.7% to 74.77.

Buckle BKE, a youth clothing retailer that operates about 350 stores, said Q3 EPS jumped 22% to 72 cents, missing views by 2 cents. Revenue climbed 17% to $167.6 mil, meeting forecasts. Buckle reported 14.3% growth in same-store sales, a key indicator for retailers. Buckle fell 10.6% to 34.13. Circuit City slips on downgrade

The nation's No. 2 electronics retailer behind Best Buy BBYfell 5.6% to 5.45 after JPMorgan downgraded it to neutral from overweight, contending the struggling company will need a strategic partner or acquirer to complete its turnaround. Underscoring its recent troubles, Circuit City asked former staffers, many of whom it laid off in order to hire employees at lower pay, to come back to work. Last month, the retailer posted a loss of $63 mil for Q2 amid stiff price competition from Best Buy and Wal-Mart WMT. More on A5

Charming Shoppes, CHRS a retailer that specializes in plus-size apparel for women, said Q3 earnings turned a 3-cents-a-share loss from last year's 15-cent gain. Analyst expected a gain of 4 cents. Sales fell 4% to $669.4 mil, topping views. Shares fell 2.6% to 6.04. The Children's Place Retail Stores PLCE, a children's apparel retail that also operates Disney stores, said its preliminary Q3 EPS fell 70.4% to 40 cents, ex items, beating views by 2 cents. Revenue grew 7% to $587.4 mil, above views. It slipped 2.9% to 23.26.

MEDICAL

Glaxo to buy Reliant for $1.65 bil

The drug maker said it will buy Reliant Pharmaceuticals for $1.65 bil in cash. The purchase will help GlaxoSmithKline GSK expand its portfolio of heart disease treatments. Reliant's sales have been $341 mil for the first 9 months this year. Reliant's portfolio includes the U.S. rights to Lovaza, a treatment for people with high triglycerides. There are about 5 mil adults with this problem. Glaxo slid 0.7% to 47.87.

Par Pharmaceutical misses views

The generic drug maker said it swung to a Q2 profit of 27 cents a share ex items, missing views by 13 cents. Revenue fell 14.1% to $167.6 mil, below views. The drop in revenue was due to lower sales of its generic drugs amid increased competition, the company said. Cost-cutting helped the result. Par Pharmaceutical PRX said it raised full-year EPS outlook to $1.35-$1.50, above views. It sees full-year revenue of $760 mil-$780 mil vs. views of $760.4 mil. Par surged 8.8% to 19.06.

METALS/MINING

ArcelorMittal buys stake in China

The world's largest steel maker has bought a controlling stake in China Oriental Group for about $1.7 bil, the Financial Times said, making ArcelorMittal MT the first foreign company to take control of a steel maker in China. China generally bars foreign control of key industries, but since China Oriental is based in Bermuda, ArcelorMittal was able to acquire a 73% stake. It fell 1.6%.

BHP BHP Billiton CEO Marius Kloppers said he remains committed to his $150 bil proposed takeover of rival Rio Tinto RTP. Rio Tinto has rebuffed the offer and steel federations in China and Japan have voiced opposition to the merger. TRANSPORTATION

US Airways' hike may spur others

The carrier has upped prices by $5 on all domestic tickets, the latest in a series of hikes by the airlines amid rising fuel costs. Other carriers likely will match the increase at least in part, said Rick Seaney, CEO of airfare pricing Web site FareCompare.com. Ticket price increases are rare during the busy Thanksgiving travel period, and US Airways LCC typically doesn't initiate the hikes, Seaney said. US Airways said the $5 increase applies to each ticket, not to individual flights. US Airways rose 3.8% to 19.94.

Boeing BA said Russian airline Atlant-Soyuz agreed to buy 4 737-700 passenger jets. Boeing slid 0.5% to 87.41. MEDIA

Comcast makes demands of NFL

The No. 1 cable company sent a cease-and-desist letter to the NFL Network demanding the football channel stop encouraging fans to leave Comcast CMCSA. Jerry Jones, chairman of the league's NFL Network committee, urged customers to switch providers if Comcast and other cable providers won't carry the channel on a basic tier. The channel has also set up a Web site to help customers find cable provider who will make the channel more accessible. Comcast fell 1% to 19.19.

FINANCE

GMAC mulls selling mortgage unit

The finance company, 49% owned by General Motors GM, is considering selling parts of its struggling mortgage-lending arm Residential Capital, according to a published report. GMAC was also looking at acquiring a lender whose business would merge with ResCap's. GM edged up 0.4% to 26.39.