Marblehead firm sets IPO

By Globe Staff and wires, 9/6/2003

THE REGION

First Marblehead Corp., which processes and securitizes student loans, plans to raise as much as $200 million in an initial public offering, according to a Securities and Exchange Commission filing. The Marblehead company said the proceeds will be used for working capital. The company did not disclose how many shares it would sell. (Bloomberg)

Malden Mills drops motion

Attorneys for Malden Mills Industries Inc. chairman Aaron Feuerstein have withdrawn a legal motion to extend an option he had to buy back control of the bankrupt Lawrence fabric maker for $92 million. While the price technically has risen to $124 million, the company's secured creditors have said they would accept the lesser amount, and its unsecured ones may, too, after Malden Mills emerges from bankruptcy next week. A spokesman for Feuerstein said he is still assembling the funds and that the motion was withdrawn since all creditors have indicated a possible willingness to accept the original buyback price. (Ross Kerber)

Groton firm plans layoffs

New England Business Service Inc. said that it expects to lay off or relocate about 250 employees as part of its announced restructuring plan. The changes will come because of New England Business Service closing its manufacturing plant in Peterborough, N.H., according to the company's annual financial statement filed with the Securities and Exchange Commission. New England Business Service is a Groton business-to-business direct marketing company. (Dow Jones)

Fidelity names managers

Fidelity Investments has named William Kennedy manager of the $320 million Fidelity Pacific Basin Fund, succeeding June-Yon Kim. Kennedy has been leader of Fidelity's Global Research Group since 2002. Fidelity also said Dale Nicholls, manager of a technology fund available only to Japanese investors, was named portfolio manager of the Fidelity Advisor Japan Fund, also succeeding Kim, who left the company. And, equity research analyst Matthew Friedman has been named portfolio manager of the $158.5 million Fidelity Select Multimedia Portfolio, succeeding Brian Kennedy, who took a new job at Fidelity. (Done Jones)

THE NATION

Lycos e-mail restored

After almost four full days without e-mail access, Lycos Web portal users could finally review their accumulated messages by late yesterday. The Lycos server was running again at 7 p.m., spokesman Brian Payea said. The server went down Tuesday as the company attempted to upgrade its servers. "An error was made in loading the new back-up software onto the servers, and that error will not be made again," Payea said. Lycos, with US headquarters in Waltham, had to rebuild several databases to resolve the problem. Payea has said that e-mail users would not lose messages as a result of the error. (AP)

Music piracy amnesty seen

Internet users who promise to stop illegally copying music will be able to avoid prosecution under an amnesty program to be unveiled by the recording industry next week, a source close to the matter said. Users would sign a notarized affidavit promising to stop using "peer to peer" programs like Kazaa to download copyrighted music and to delete songs they may have acquired illegally, said the source, who spoke on condition of anonymity. Those facing lawsuits would not be eligible for the amnesty, the source said. (Reuters)

8 states join audit bid

Eight more states, including Maine, New Hampshire, and Connecticut, sought US Bankruptcy Court permission to audit WorldCom Inc. for possible underpayment of taxes. Massachusetts tax authorities added the new states in an amendment to a bankruptcy court filing this week, bringing the total number of states involved to 17. Some creditors who oppose Ashburn, Va.-based WorldCom's restructuring plan have said the company moved $19 billion internally in 1999, 2000, and 2001 from its units around the nation to one set up in Delaware, possibly depriving other states of tax revenue. (Bloomberg)